Supply chain sustainability commitment we are committed to an ethical, accountable and transparent procurement process that maintains probity and fairness through our supply chain. Furthermore, we contend that it will be essential for firms to not only integrate immediate tier1 suppliers into. Successful supply chain sustainability requires good supply chain strategy and the capability to implement it. However, others have identified tradeoffs between what is economically rational for supply chain members and what is of greatest value to. Link supply chain sustainability goals to the global sustainability agenda. A topic on sustainable supply chain will be discussed in the following presentation. Designing the right supply chain that meets the requirements of sustainable development is a significant challenge. Supply chain sustainability will be critical in making the global goals part of local. Sustainable supply chain managementwhy is it an important topic. Sep 20, 2016 sustainability leaders also recognize that sustainable supply chains can offer competitive advantages such as improved efficiency, innovation and market differentiation. Examples of creating business value through supply chain sustainability activities realizing efficiencies reduce cost of material inputs, energy. Supply chain management is composed of three main areas, i.
The sustainable supply chain network design model in this section, we develop the sustainable supply chain network design model. Supply chain now has a seat in the boardroom in many organisations. Supply chain sustainability a strategic responsibility. As a result, sustainability within the operations of organizations, as well as within the supply chain, has become a contemporary issue and an. Sustainability in the supply chain introduction supply chain management scm is the process through which a company manages the sourcing and procurement of inputs, the processing and manufacture of products and services, and their delivery to the consumer figure 1. This free course, supply chain sustainability, introduces four sustainability perspectives and discusses how these perspectives can assess 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 chains components as well as their economic factors. Publications hamburg international conference of logistics. The proliferation and influence of social media has put supply chain risk and sustainability firmly in the spotlight. Sustainability in logistics and supply chain management. Supply chain management is an indispensable part of a businesss sustainability program. Scs is based on the principle that socially responsible products and practices are not only good for planet earth and the.
Sustainability trends within supply chain management. Why supply chain managers opt for sustainably produced material. Supplychain sustainability is a business issue affecting an organizations supply chain or logistics network in terms of environmental, risk, and waste costs. Although there are a considerable number of studies on issues relating to sustainable supply chain design sscd in terms of designing the practices, processes, and structures, they have rarely demonstrated how these components can be aligned to form an effective sustainable.
To survive in todays competitive environment, organisations need not only have an efficient and effective supply chain for the context in which they operate, they also have to consider issues of sustainability in their supply chain strategies. By spreading good business practices around the globe, it has enormous potential to contribute to. A new report, the state of sustainable supply chains pdf, echoes the voices of more than 100 specialists from 70 companies to reveal how companies are embedding sustainability in their supply chains by managing risks. The state of sustainable supply chains supply chain. While important contributions have been made in relation to environmental operations and policy, strategy, finance, product design, supplier. A hotel, restaurant and coffee shop operator is developing an evidencebased supplier sustainability questionnaire to recognize and control. Pdf it could be argued that for many years sustainable supply chain management sscm has been working in splendid isolation. Epa discussed the vision for smartways future in preparation for the public release of smartway vision 2020. Sustainability efforts are also aimed at enhancing fairness and positive benefits for suppliers, workers, customers, end.
Once you have a general understanding of the supply chain sustainability, you will look at the environmental, the financial, the social, and the external stakeholder or network perspectives. Nzbcsd business guide to a sustainable supply chain. Pdf sustainability concept has been introduced to many fields including management, technology, and supply chain. Aggregate planning from sustainability perspective article pdf available in plos one 111. Learning outcomes understand how business operations have an effect upon communities, workers and natural systems. Sustainability strategies in supply chain management. Sustainable supply chain guide sustainable business council. Tom proposes that, in a world where governments dont care about sustainability, we, the people, are the ones who need to take lead of the situation and make a change. Once companies know where their supply chain issues are, they can set goals for lessening the resulting impact. Furthermore, we contend that it will be essential for firms to not only integrate immediate tier1 suppliers into sustainability strategies, but to extend these to tier2 to tier.
Drivers of sustainable supply chain management mdpi. This openlearn course is an adapted extract from the open university course bb849 supply chain management. Right from the planning tools, company environment, communication tools, supply chain relationships, manufacturing, supply chain management p. Jan 25, 2016 sustainability in supply chain management. Today, the word sustainability is almost synonymous to standard practices for most business enterprise worldwide. Epa smartways vision 2020 for supply chain sustainability. Barely a week goes by without a supply chain issue be it supplier failure or reputational risk hitting the headlines and the share price. Why supply chain managers opt for sustainably produced. Supply chain visibility on sustainability remains low.
What are the five most important factors of supply chain. Sustainable procurement is no longer a nicetohave its an integral business function. Sustainability in the supply chain is increasingly seen among highlevel executives. 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. 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. To get a holistic overview of supply chain sustainability, all the perspectives of supply chain sustainability should be considered. The coalitions first major project was to create the higg index, link opens in a new window. The environmental movement is a big culprit in this. Review the direction that epa and its partners are taking to reduce the environmental, economic, and social impact of transportation in the supply chain.
Supply chain sustainability is a topic of increasing importance for businesses and can be of particular interest to smes. The coalitions first major project was to create the higg index. All stakeholders must understand and apply these pillars for supply chain success. We are also committed to using our influence within our supply chain to achieve best practice. This chapter discusses sustainability in supply chains. Supply chain sustainability reporting depends on context, collaboration, and communication. Sustainability of supply chains in the age of information. Sustainability in the supply chain huba control ag. The business case for supply chain sustainability for a particular company depends on a variety of issues including industry sector, region of operation, stakeholder expectations, business strategy, organizational culture, and past performance. Sac, a group of more than 200 brands, retailers, suppliers, nonprofits and ngos who work to reduce the environmental and social impacts of apparel and footwear products around the world. Sustainability strategies in supply chain management amit arora follow this and additional works at.
Sustainability in the supply chain is increasingly seen among highlevel executives as essential to deliver profitability and has. Three approaches to improving sustainability in supply chains. Managing the social, environmental and economic impacts of supply chains, and combating corruption, makes good busi. 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. 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. A new report, the state of sustainable supply chains pdf, echoes the voices of more than 100 specialists from 70 companies to reveal how companies are embedding sustainability in their supply chains by managing risks and adopting corporate commitment to human rights, ethics. That said, measuring and reporting supply chain sustainability is rarely about adding decimal places to impact calculations. Only 15 percent of respondents have complete visibility into the sustainability performance of both tier one and two suppliers while 6 percent report full visibility into tier three and beyond. Supply chain management can play a key role to help creating a more sustainable world that leaves no one behind. Sustainability leaders also recognize that sustainable supply chains can offer competitive advantages such as improved efficiency, innovation and market differentiation.
Sustainability in the supply chain encapsulates a number of different priorities. The interaction between sustainability and supply chains is the critical next step from recent examinations of operations and the environment corbett and kleindorfer, 2003 and operations and sustainability kleindorfer et al. This is a time saving, cost effective and efficient way to ensure full maintenance schedules for over 200 essential capital equipment areas. A number of studies have found that an increased emphasis on sustainability in the supply chain is related to lower costs and a neutral or positive effect on value e. The concept of sustainability has become a buzzword in todays business marketplace. S sustainable supply chain sustainable supply chain management. A threepoint approach to measuring supply chain sustainability. The most important points are to link supply chain performance to the wider world, identify hotspots, and take action. Environmental stewardship conservation of resources reduction of carbon footprint financial savings and viability social responsibility supply chain sustainability practices, in order to succeed, must. 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. Managers should focus on sustainability practices that are proven to be effective. Studies in the supply chain management field take either a supplier or a manufacturer perspective that address predominantly corporate social responsibility csr issues referring to the internal stakeholders.
Value engagement collaboration performance access sustainability is free by dale s. Part of the business administration, management, and operations commons, management sciences and quantitative methods commons, and the operations and supply chain management commons. Research on social sustainability in developing countries has recently gained importance for both academics and practitioners. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Supply chain sustainability openlearn open university. Indeed, sustainable supply chain management can be a strong driver of value and success for business as much as for society. However, there is also an opportunity to address sustainability during the deployment process. A practical guide to continuous improvement in 2010, companies have continued to extend their commitment to responsible business practices to their value chains, from subsidiary to suppliers. Pdf is sustainable supply chain management sustainable. Supply chain sustainability a companys entire supply chain can make a significant impact in promoting human rights, fair labour practices, environmental progress and anticorruption policies. We are asking you to join us on our path to sustainability for the benefit of the generations to come. Stepbystep guide to sustainable supply chain management bmu. Identify some of the major threats facing supply chains and people in the 21st century.
In 2011, we became a founding member of the sustainable apparel coalition link opens in a new window sac, a group of more than 200 brands, retailers, suppliers, nonprofits and ngos who work to reduce the environmental and social impacts of apparel and footwear products around the world. These issues are a consideration beyond those of environmental sustainability and also encompass social sustainability ethics and wellbeing, financial sustainability, and network sustainability. A recent survey suggests 30% of manufacturers are gaining new profits directly from sustainability initiatives, showing a clear opportunity for bottomline results by implementing sustainability. Steps to supply chain sustainability supply chain sustainability is increasingly recognized as a key component of corporate responsibility. Deployment services energy efficiency and environmental impacts are always important concerns during the planning and design phases of a project.
Particularly, the incorporation of sustainability into supply chain management scm has received a great deal of attention from companies of all sizes and even involved a wide range of industries in recent years. How to achieve a strategic sustainable supply chain. The framework is intended to summarize the essentials. Management sustainable supply chain management sscm is the management of supply. Of the public sector managers who responded to our survey, 35% rated the skills shortage in their local area as bad or severe. Current thinking and literature 11 sustainability is a dynamic concept 12 about supply chain management organisational change in complex social systems 16 learning for sustainability 19 3.
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