Abstract
The convergence of supply chains and sustainability is taken into account. This is a crucial subject that highlights growing sustainability concerns, whether they are motivated by recent legislation, public interest, or business potential. The goal of the study is to identify the different initiatives, approaches, and strategies that may be used to implement sustainable supply chain practices in an organization. Various published research is reviewed to identify the various approaches and strategies that can be adopted by a firm for embracing a sustainable supply chain. Several efforts made by various firms to create sustainable supply chains are also recognized and presented as case studies. Sustainability has become a key issue worldwide. Sustainable supply chain practices gained the attention of manufacturers. However, it is required to implement strict action plans for the adoption of sustainable supply chain practices at the local level, too, to ensure environmental benefits and social welfare at a broad level.
TopIntroduction
A supply chain (SC) is the complete process of producing and delivering a commodity or service, beginning with sourcing raw materials, and concluding with the delivery of the item to the final customer (Stadtler, 2008). The supply chain outlines every step of the production procedure (Croxton et al., 2001), including the tasks performed at each level, the information exchanged, the natural resources converted into usable materials, the human resources, and other elements that go into the completed good or service (Garetti & Taisch, 2012; Hervani et al., 2005).
Practitioners have been compelled to alter industrial procedures as a consequence of the modifications made by society's increased knowledge of the environmental threats posed by industries. Industrial operations have long been the primary contributors to the enormous amounts of liquid and solid waste that are produced, as well as air and water pollution, rising temperatures, the depletion of non-renewable resources, and the loss of important minerals. Social media pressure, demands from non-governmental organizations (NGOs), and appeals from the global community (such as the United Nations has announced the 2030 Agenda For Sustainable development, and the most recent World Climate Change Conference was held in Glasgow in 2021). Just a few of the main activities and incentives that force firms to shift their supply chain policies more in the direction of Sustainable Supply Chains (SSCs) are numerous stakeholder and consumer sustainability aspirations (Shekarian et al., 2022a). The goals of preserving social and environmental values are combined with sustainable supply chain management (SSCM) (Büyüközkan & Berkol, 2011) with conventional supply chain management emphasis on operations' effectiveness, cost, and dependability (Vokurka et al., 2002). This entails solving global problems, including corruption, fair labour practices, deforestation, water security, and climate change (Reinerth et al., 2019). Businesses that utilize sustainable practices now benefit from a demonstrable competitive and financial advantage over those that don't. The traditional definition of sustainability is using resources to satisfy current needs without jeopardizing the ability of future generations to fulfil their requirements. Nowadays, companies are aware of the importance of sustainability and how to integrate it into their supply chain strategies.
A company's attempts to take into account the effects of their goods' trip through the supply chain, from the procurement of raw materials through manufacture, storage, distribution, and every transportation connection in between, are referred to as supply chain sustainability. The intention is to benefit the people and communities in and around their operations while minimizing environmental damage from elements, including energy use, water consumption, and waste creation (Ho et al., 2022). These concerns are in addition to the standard ones of profit and revenues in the supply chain for businesses.
“The management of material, information, and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental, and social, into account, which are derived from customer and stakeholder requirements,” defined (Seuring & Müller, 2008), a well-known and one of the researchers who is most commonly referenced in the sustainable supply chain management domain.
Research indicates that the supply chain is mostly responsible for an organization's environmental impacts. As items are manufactured and transported throughout the world, supply chains often include manufacturing and transportation that use plenty of energy (Kalenoja et al., 2011). Therefore, rather than altering other company procedures, firms may often have the most impact by changing their supply chain. Multiple factors have an influence on sustainable supply networks, including waste generation, carbon intensity, air pollution, unfair labour practices, deforestation, worker safety, and well-being (Park & Li, 2021). A sustainable supply chain is built on the principle that morally righteous actions and products benefit not just the environment and its people but also help companies increase their brand recognition, reduce their environmental impact, and boost long-term profitability (Chin et al., 2015).
Key Terms in this Chapter
Business Sustainability: ?Corporate sustainability may be described as serving the demands of a firm's direct and indirect stakeholders (such as shareholders, workers, customers, pressure groups, communities, and so on) without jeopardizing the firm's capacity to meet the needs of future stakeholders ( Dyllick & Hockerts, 2002 ). The capacity to run a company with the long-term purpose of ensuring the continued prosperity of the economy, environment and society is what is meant by the phrase “business sustainability” ( Hassini et al., 2012 )?.
Supply Chain Management: Coordination of a network of connections inside a company and between interdependent organizations and business units comprised of material suppliers, buying, logistics, manufacturing facilities, marketing, and associated systems that support the forward and reverse movement of materials, services, funds, and information from the original producer to the ultimate customer with the advantages of creating value, optimizing profitability via efficiency, and ensuring customer satisfaction ( Stock & Boyer, 2009 ). Planning and managing all of the actions involved in sourcing and procurement, conversion, demand development and fulfilment, as well as all of the operations involved in logistic management is what is meant by the term “supply chain management.” ( Gibson et al., 2005 ).
Sustainable Supply Chain Management: Mitigating, and ideally eradicating, the negative environmental consequences of the supply chain ( Andiç et al., 2012 ). The extent to which manufacturing enterprise controls its intra- and inter-organizational processes for sustainability via strategic collaboration with its supply chain partners ( Wolf, 2011 )?. Indicator of the company's capacity to anticipate, prevent, manage, identify, and react to possible global risks, as well as recover from their effects. Product creation, channel choice, market choices, procurement, manufacturing complexity, logistics, industry and government legislation, resource endowments, talent development, alternative energy sources, and security are all areas with significant marketing and supply chain risks ( Closs et al., 2011 ).