This report highlights the importance of supply chain sustainability from a business perspective and. Innovative solutions for logistics and sustainable supply chain management in the context of industry 4. The incorporation of sustainable aspects in the supply chain management scm has become an important topic for researchers and. The importance of sustainability sustainability in its broadest sense is the capacity to endure, to maintain a process or situation over time. Steps to supply chain sustainability supply chain sustainability is increasingly recognized as a key component of corporate responsibility. Unilevers supply chain shows the importance of sustainability. In ecology, a sustainable system is a system whose biodiversity and productivity are preserved over time. Companies contribution to sustainability through global. Thus, attention focuses to the sustainable supply chain. The idea of the triple bottom line as the foundation of sustainability is used. Supply chain management is an indispensable part of a businesss sustainability program. About this guide 1 sscl guide this guide is about sustainable supply chain logistics sclthat is, the planning, storage, transportation and reverse logistics processes involved in.
Cdp and the global reporting initiative have created standards and metrics for comparing different types of sustainability impact. Supply chain management scm over the past few decades has proven there to be opportunity to reduce cost and add value in the supply chain. The need for sustainable strategic supply chain management naslung and williamson 2010 conclude that most people agree to the importance and potential benefits of supply chain. Sustainability and collaboration in supply chain management. Sustainable supply chain management sscm is an approach that supports organizations to. Managing the social, environmental and economic impacts of supply chains, and combating corruption, makes good business sense as well as being the right thing to do. Identify opportunities to consider supply chain impacts in epa programs, policies, actions, decisions, and tools through the creation of an overall strategy. Sustainable supply chain managementwhy is it an important topic. Sustainability strategies in supply chain management. This is a huge undertaking and it is necessary that its supply chain be among the best in the world to function successfully. Why supply chain planning with sustainability is growing in importance. Hence, identification of the important sustainability issues emphasized by various internal and external factors to the supply chain also described.
The findings were revealed in a supply chain sustainability survey of more than 1,400 professionals involved in certification across europe, asia and america, conducted by quality assurance and risk management firm dnv gl, with gfk eurisko and sedex. Investigating and analysing the factors affecting the. Supply chain sustainability scs is a holistic view of supply chain processes and technologies that addresses the environmental, social and legal aspects of a supply chain s components as well as their economic factors. Although a change in the supply chain may bring shortterm financial gains, it should be viewed with extreme skepticism if there is any risk of potential damage to the corporations reputation. Chapter 2 developing a sustainable supply chain strategy balkan cetinkaya learning goals. However, very few studies in the extant literature have examined the impact of sustainability practices on supply chain risk. Nov 04, 2018 importance of supply chain in business processes. It is important to understand what happens when this influence is used to achieve environmental or other sustainability goals and what are the possible conflicts among the members of the sustainable supply chain. In the supply chain process, there is the designing, execution, planning, monitoring and controlling of the goods and services, the supply chain has its own value, importance in the process, have own mission, objectives and strategies, it is the field, which emphasis on maintain the competitive environment, so that companies could make the. Being sustainable should be an essential consideration and aim for any business and your supply chain should be no different. Build epas supply chain capability by developing an internal network of epa programs and staff working on or interested in supply chain issues. Although it is often identified as being one of the most difficult aspects of a business to make sustainable, it is one of the most important and holds more benefits than you may think. There are numerous reasons why companies start a supply chain sustainability journey. Sustainable supply chain management sscm is a relatively new subfield of supply chain management scm.
Supplychain sustainability is a business issue affecting an organizations supply chain or logistics network in terms of environmental, risk, and waste costs. The findings were revealed in a supply chain sustainability survey of more than 1,400 professionals involved in certification across europe, asia and america, conducted by. Supply chain sustainability practice should be a consideration in decisions involving strategy, tactics, goals, processes, tradeoffs and outcomes in all levels of supply chain. The key to a sustainable supply chain is trust between customers and suppliers and this can also create more profitable supplier relationships, according to suhas. This presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply. This illustrated the importance of having sustainability integrated into supply chains and not as an afterthought. In the light of the aforementioned changes and increased importance of supply chain management function in regard to environmental protection, effective and efficient management of firm s relationships up and downstream supply chain, with focus on green practices, represents a.
What is supply chain management, and why is it important. Sustainability strategies in supply chain management amit arora follow this and additional works at. The importance of supply chain management it is well known that supply chain management is an integral part of most businesses and is essential to company success and customer satisfaction. Chart with keywords and icons trueffelpix it is undisputed that the procurement function has evolved throughout the past. There has been so much rhetoric about how bad business is that people inside companies feel guilty, and guilty people arent going to do bold. As transparency and accountability become increasingly important to investors, consumers and other shareholders, sustainable supply chain shortcomings can also be a blow to a corporations sustainability cred.
Link supply chain sustainability goals to the global sustainability agenda. Scs is based on the principle that socially responsible products and practices are not only good for planet earth and the. Importance of green supply chain management westford. Sustainability in the supply chain world bank group. Stepbystep guide to sustainable supply chain management bmu. In this report, the concept of supply chain sustainability and its importance in todays environment is introduced. Environmental stewardship conservation of resources reduction of carbon footprint financial savings and viability social responsibility supply chain sustainability practices, in order to succeed, must. Once companies know where their supply chain issues are, they can set goals for lessening the resulting impact. Publications hamburg international conference of logistics. Closedloop supply chains and reverse logistics are an important part of the. The environmental movement is a big culprit in this. Why is sustainability important to the supply chain.
Knowing the level of environmental, social, and economic impact and viability of your vendors and customers is becoming increasingly common as all industries move towards a more sustainable future. On the other hand the importance of the issues related to global supply. Improving environmental sustainability in supply chains. There is a growing need for integrating environmentally sound choices into supplychain management. Sustainability in supply chain management generally refers to continuous accountability for risk and negative impact caused by a range of actions along the supply chain. Benefits of sustainable supply chain management taiga. Supply chain sustainability practice should be a consideration in decisions involving strategy, tactics, goals, processes, tradeoffs and outcomes in all levels of supply chain management. Why sustainable supply chains make business sense guardian. Triple bottom line supply chain sustainability, or tbl, is a measure of sustainability that includes social, environmental and financial performance measurespeople, planet and profitand helps ensure that there is a long. Sustainable green supply chain management and impact on. Why supply chain planning with sustainability is growing in. Bsr maximizing benefits from a sustainable supply chain 1 introduction as demonstrated by recent company initiatives and industryled coalitions, corporate executives see substantial benefits to be gained from improving social and environmental impacts in their supply.
Part of the business administration, management, and operations commons, management sciences and quantitative methods commons, and the operations and supply chain management commons. The model incorporates green supply chain practices that link manufacturers with supply chain partners both suppliers and customers to support environmental sustainability throughout the supply. Drivers of sustainable supply chain management mdpi. The chartered institute of purchasing and supplyconsiders corporate social responsibility csr to be the number one issue in its role in helping organisations to responsibly increase prosperity.
Home procurement news why is sustainability important to the supply. Supply chain planning and sustainability are becoming increasingly important for companies. The importance of supply chain management it is well known that supply chain management is an integral part of most businesses and is essential to company success and customer. Feb 11, 2019 companies look to supply chains for sustainability gains. In practice, supply chain sustainability interacts with almost every supply chain component, whether in simple or complex supply chains. Despite this importance, there is currently no comprehensive, empirically grounded understanding of how companies address sustainability in their supply chains. Describe the most important supplier selection approaches, based on a selected set. Bsr maximizing benefits from a sustainable supply chain 1 introduction as demonstrated by recent company initiatives and industryled coalitions, corporate executives see substantial benefits to be gained from improving social and environmental impacts in their supply chains. Automated systems and highspeed communication have paved the way for supply chain management and its increased demand. The carbon footprint a product makes during the manufacturing unit to the end user plays a critical role in making the supply chain environmentfriendly. Challenges and conflicts in sustainable supply chain. The paper discusses the value chain of coffee, issues surrounding the coffee supply chain and the need for sustainable coffee production. Supply chain management therefore has a significant impact on key social and environmental challenges. There has been so much rhetoric about how bad business is that people inside companies feel guilty, and guilty people arent going to do.
The increasing importance of the procurement and supply. Sustainability trends within supply chain management. However, this is a cost to 4 sustainable supply chain management gscm grew of importance in the early design, raising awareness via workshops and 1990s. Mar 16, 2017 this presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply chains can be expected to change in the future, as a result of the need to go green. Here are four key areas to focus on when developing your sustainability strategy. Understanding this context was important and had me questioning how much has really changed in the last 19 years. Environmental stewardship conservation of resources reduction of carbon footprint financial savings and viability social responsibility supply chain sustainability. In addition it also discusses starbucks position and influence on the coffee trade, and the measures that starbucks is taking to ensure sustainability efforts throughout the coffee supply chain. Longlived and healthy wetlands and forests are examples of sustainable. Heizer and render principles of operations management sustainability and supply chain management 10th edition pdf strategic logistics management a supply chain.
Sustainable development issues are considerably popular subjects within the international research community. In the recent years, a particular interest was given to the relationship between sustainability and supply chain management, thus making the term of sustainable supply chain management sscm. Oct 31, 20 why sustainable supply chains make business sense. It hopes to reduce productions water usage by 25 percent from 2010 to 2020, and as of the businesss 20142015 sustainability report, it is nearly halfway there. The soda company has made plans across various departments for improving its supply chain by 2020. Sustainability in its broadest sense is the capacity to endure, to maintain a process or situation over time. Companies that look to become more sustainable start with their own operations, but pretty soon they realise that many of their impacts are in their supply chains rather than in. Although it is often identified as being one of the most difficult aspects of a business to make sustainable, it is one of the most important.
This study not only provides a comprehensive understanding and image of sustainable supply chain but also defines the key factors and their interinfluences in building a sustainable supply chain. Supply chain management scm is the process through which a. Pdf green supply chain management benefits, challenges. Supply chains tied to multinational corporations represent over 80% of global trade and engage over one in five workers.
Also, in the research field, discussions on supply chain management have been flourished in the last decade. Sustainable green supply chain management and impact on organisations. The primary purpose of a supply chain network design is to assess company policies and programs and to meet targets to accomplish long. Apr 05, 2016 due to the impact of environmental issues, consumers will be asking the companies about how green is the manufacturing and supply chain of the products. Supply chain mapping is important for businesses to realise their corporate social responsibility policies.
Describe the importance of the buyersupplier relationship to the overall performance of the supply chain. Sustainability in logistics and supply chain management. Research gaps however, available to date research on sustainable supply chain. Sustainable supply chain management sscm is an important strategy that supports organizations in improving the overall performance. Sustainable supply chain management sscm is an approach that supports. Cocacola also wants to reduce its carbon footprint. Sustainability in supply chain management drives top management in corporations to design even more effective and efficient supply chain. Sustainability in the supply chain encapsulates a number of different priorities. Supply chain sustainability improves brand reputation. Build epas supply chain capability by developing an internal network of epa programs and staff working on or interested in supply chain.
Unilever has topped gartners annual supply chain top 25 list for the last two years and it is a matter of time before it joins the likes of amazon and apple in its supply chain masters category. Considering supply chains are responsible for up to four times the greenhouse gas emissions of a companys direct operations and many suppliers operate in waterstressed areas of the globe. Why sustainable supply chains matter environmental leader. Maximizing benefits from a sustainable supply chain. Companies look to supply chains for sustainability gains. Efficiency a key ingredient towards sustainable supply chains. Supply chain sustainability scs is a holistic view of supply chain processes and technologies that addresses the environmental, social and legal aspects of a supply chain s components as. Successful supply chain sustainability requires good supply chain strategy and the capability to implement it. The concept of sustainability has affected many areas such as supply chain, technology and management. Managing the social, environmental and economic impacts of supply. Sustainable supply chains for supply chain sustainability.
Chapter 2 developing a sustainable supply chain strategy. The importance of corporate social responsibility and supply. The importance lies in the balance between profit and ethics. February 20, 2017 february 20, 2017 by jessica lyons hardcastle. In the supply chain process, there is the designing, execution, planning, monitoring and controlling of the goods and services, the supply chain has its own value, importance.
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