Sustainability presents companies with an opportunity to forge new commercial relationships and build stronger core competencies (Fynes et al., 2005; Handfield and Bechtel, 2002). Benefits of a sustainable company and supply chain. There is a growing body of research on the theory and practice of sustainable supply chain management (SSCM). The performance of SSCM is based on the triple bottom line approach encompassing people-planet-profit, hence being defined not in only in social and environmental terms, but also the economic. This literature review provides a characterization (framework) of the practices tha t sets the foundation for further methodological evaluation. UNILEVER British-Dutch consumer goods company Unilever is the third-largest of its kind, and offers food, beverages, personal care products, and cleaning agents. Map your supply chain. To build a sustainable supply chain, manufacturers can only pick the best suppliers when they are available. Supplier Management (SRM) Sustainable supplier relationship management has become crucial in companies’ efforts to achieve sustainability in supply chain management. And though supply chains are complex and multi-tiered, almost all of the sourcing practices examined address only a single tier in the supply chain, with a heavy focus on first-tier suppliers. 2.3.4. Supply chain sustainability is now a business imperative fueled by the demands and requirements of consumers, governments, investors, and third parties. Incorporating sustainability into a company's supply chain is complex but the failure to act may be the biggest risk of all. 6 Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers Examples of Supply Chain Sustainability in Business In addition to reviewing existing research in supply chain sustainability, best practices in business were analyzed. For some materials, there may not be any truly sustainable options right now. Sustainable Supply Chain Practices Published: 14 October 2019 ID: G00464239 Analyst(s): Consult the Board Research Team Summary This summary contains responses from two anonymous members about assessing the environmental and social practices of their suppliers. Many companies do not have a comprehensive understanding of the sustainability impacts of their supply chain. Sustainability in Supply Chain Management – 5 Areas to Focus 1. Hazen et al. Sustainable supply chains: why placing ethics over profits pays off Companies may talk about ethical supply chains, but if they don't independently monitor and audit suppliers, nothing will change Sustainable supply chain management (SSCM) is a relatively new sub-field of supply chain management (SCM). 3 with the respective acronyms described in Table 1. SCOR Model (Supply Chain Operations Reference) has been developed by … For instance, we are installing performance optimisation software and battery storage systems on our contracted offshore supply vessels to reduce fuel consumption and lower greenhouse gas emissions. Companies looking to become more sustainable are increasingly looking beyond their own operations to the impact of their supply chains. Supply chain sustainability is a goal achieved through a process of continuous improvement. Ideally, they will base their goals on scientists’ recommendations for bringing various types of sustainability impact under thresholds that will maintain or improve human well-being. Sustainable supply chain management. Green supply chain management is seen as an important step companies need to take on the road to sustainable practices. FMCG Companies that are most sustainably aware may be the earliest to gain from the growth in consumer spending that is expected to take place over the next decade. In an Industry Week column, Apte and Sheth write that many companies struggle to … Discuss supply chain sustainability best practices, go over what works well and explain what doesn't and why. Most articles describe a supply chain with a focal company or at least from the viewpoint of one single company in the supply chain. Typically, sustainability initiatives include identifying the source of raw materials, ensuring good conditions for workers and reducing the carbon footprint. While the concept of a “sustainable supply chain” is still relatively new, there is a budding consensus over best practices to follow when building a more sustainable 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 Apte and Jagdish Sheth, the authors of The Sustainability Edge: How To Drive Top-Line Growth With Triple-Bottom-Line Thinking.. However, relatively little research has been conducted on the extent to which corporations have integrated sustainability principles into the management of their supply chain and the evaluation of supplier performance. The social sustainability of global supply chains: A critical perspective on current practices and its transformative potential Guest Editors: Minelle E. Silva - La Rochelle Business School (France) Morgane M.C. Designing the right supply chain that meets the requirements of sustainable development is a significant challenge. 3. Supply chain sustainability is a complex issue, and the more people who are working to solve it, the better. In practice, supply chain sustainability interacts with almost every supply chain component, whether in simple or complex supply chains. Companies can take several initial steps to move toward sustainable supply chains: 1. Sustainable supply chain management practice is positively associated with supply chain dynamic capability. Sustainable supply chain companies are the ones that will succeed far into the future, since these practices reduce costs and improve efficiency, in addition to preserving natural resources. Further, this framework illustrates that firms that simultaneously inte-grate all three pillars of sustainability will achieve higher economic performance than firms that integrate only one or Building a sustainable supply chain isn't easy, but it is possible — and necessary. Supply chain sustainability practice should be a consideration in decisions involving strategy, tactics, goals, processes, trade-offs and outcomes in all levels of supply chain management. 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