Jan 05, 2016
What is sustainable SCM?holistic perspective
long-term profitability
How to achieve Sustainable SCM?Reducing emissions
Efficient transportation
Sizing distribution network properly
Warehouse technologies should consume less energy
Comply with regulationsSustainability is a norm
Companies are forced to follow
Any deviation can lead to serious outcomes like cancellation of business license.
To survive, the standard regulations needs to be followed (Brandenburg 2014)
Leverage government programsNew programs for sustainability
Unregulated products are sidelined
Government keeping a close watch
Government helping the companies to implement sustainability (Craig 2011)
Stay Ahead with government interventionsRegular checkup by the government
Avoiding unwanted problems
Being in the good books of the government official
Meet customer expectationsCompanies with sustainability are preferred
Go green initiatives
Willingness to pay more
Take feedback from customer on the green product (Zailani 2012)
Access green consumersCreate forums to discuss with customers
Involve customers in dialogs
Offer opportunities to customer
Social events can be organized and customers can be invited.
Product differentiationBetter environmental practices
Consumers who believe in green are attracted
Competitive advantage
Strong commitment from the customer
Gain AccreditationCustomers will the accreditation
Green SCM states the reduction in the emission of CO2 and other gases.
Potential environment damage is stopped (Cholette 2012)
Improve efficienciesUsage of electricity and water is reduced
and hence, efficiency is increased.
Recycling is undertaken
Usage of raw materials is reduced.
Reduced WasteBudget is set for savings
Every possible cost is taken into consideration.
The management has a strong vision (Beske 2012)
Reduced treatment costsCompany need not spend on treatment the
chemical outlets
Design products with entire lifecycle in mind
There won’t be dual spending on production and treatment of environmental hazards
Retain EmployeesEmployees are happy to be associated with a
sustainable company.
Employees know the impact of globalization.
Employee gets involved in the green initiatives undertaken by the government
Improve risk managementWorkplace risk can be reduced.
Risk management strategies are improvised and new strategies are implemented.
Sustainability and risk management go hand-in-hand (Roehrich 2014)
Improve learning and InnovationEmployees are given a chance to learn and
innovate green strategies
Every employee will have an important and separate role to play.
Sustainability in personal lives
Meet investor sustainability criteriaSustainability is an investment criteria
They want companies with sustainable practices only, to survive
Steady growth in sustainable investment (Li 2014)
Rank in sustainability IndicesCarbon disclosure leadership
Positive relative between sustainability and growth in the number of customers.
Deliver Long-time returns for investorsConcern about environment attracts more
customers
Small things taken care by the company today will yield results for years to company.
The investors invest and disinvest but investment can be retained if sustainability policies are in place (Piplani 2008)
References Piplani, R, 2008, Sustainable supply chain management,
International journal of production economics, vol. 111, no. 2, pp. 193-194
Li, D, 2014, Sustainable food supply chain management, International journal of production economics, Vol. 152, pp. 1-8
Roehrich, J, 2014, Reputational risk and sustainable supply chain management, International journal of operations & production management, vol. 34, no. 5, pp. 695-719
Beske, P, 2012, Dynamic Capabilities and sustainable supply chain management, International journal of physical distribution and logistics management, vol. 42, no. 4, pp. 372-387
Cholette, S, 2012, Sustainable Supply chain management: an introduction, INFORMS transactions on education, vol. 13, no. 1, pp. 1(50)
Zailani, S, 2012, Sustainable supply chain management (SSCM) in Malaysia: A survey, International journal of production economics, vol. 140, no. 1, pp. 330-340
Craig, C, 2011, Sustainable supply chain management, evolution and future directions, International journal of physical distribution & logistics management, vol. 41, no. 1, pp. 46-62
Brandenburg, M, 2014, Quantitative models for sustainable supply chain management developments and directions, European journal of operational research, vol. 233, no. 2. pp. 299-312