Performance Measurement of Sustainable Supply Chain Management using DEMATEL, ANP, and TLS. Case Study: Hydroponic Industry

This study develops strategic recommendations to improve sustainable supply chain performance in the hydroponic industry, named AHM. The proposed model employs the supply chain operation reference (SCOR) model to identify the critical activities for designing Key Performance Indicators (KPIs) that cover all activities in the supply chain. After validation by experts, 16 KPIs were agreed upon and processed using the Decision-Making Trial Evaluation and Laboratory (DEMATEL), Analytical Network Process (ANP) methods, and Traffic Light System (TLS). The result shows that 1 KPI represents poor performance, 11 KPIs represent moderate performance, while only four are considered good performance, indicating that customer demand forecasting has poor performance. AHM should pay more attention to KPIs related to poor performance, namely customer demand forecasting. Thus, forecasting methods should be evaluated to improve performance. Other moderate KPIs must be improved to achieve better performance, such as supplier certification, water usage efficiency, fertiliser and nutrient management, fuel cost and consumption, and product replacement quantity.