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Sustainable supply chain management: Trends and challenges

Article · May 2018

DOI: 10.1016/j.tre.2018.05.005

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Omar Bentahar Smail Benzidia

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 Transportation Research Part E xxx (xxxx) xxx–xxx

Contents lists available at ScienceDirect

Transportation Research Part E

journal homepage: www.elsevier.com/locate/tre

Editorial

Sustainable supply chain management: Trends and challenges

Traditional supply chain management focuses on cost, time and quality but, nowadays, it has been extended to integrate en-
vironmental and social dimensions. This development is often part of a response to legal constraints and/or consumer pressures.
Nevertheless, companies increasingly go beyond adaptation by considering, as part of a proactive response, that taking environ-
mental and social conditions into account in the supply chain management brings a critical, strategic advantage to the company’s
competitiveness (Zhu et al., 2008).
No clear definition of sustainable supply chain exists to date. Sustainable Supply Chain Management follows principles established
by Seuring and Müller (2008); however, we observe that, depending on the research study, it can be assimilated to the green supply
chain or the socially responsible supply chain. Market changes are leading companies to move from a standard supply chain to a
green supply chain driven by the criterion of eco-efficiency. Thus, the environmental dimension is integrated into the supply chain
not just by reducing waste and dangerous substances, but through production processes, new product designs and purchasing policies
that respect the environment.
Beyond the environmental dimension, some research has focused on social and ethical issues in the supply chain (Leire and Mont,
2010). Since 2010, studies have emerged that highlight the importance of the social dimension in the global supply chain (Wieland
and Handfield, 2010). These studies show, for example, that when suppliers do not respect codes of conduct and working conditions,
then there is an impact on the company’s brand image. Customers view these companies as having a social responsibility, even when
it concerns their second- or third-level suppliers. As a result, sustainable supply chain has been subject to increasing attention from
researchers and practitioners. We define a sustainable supply chain as: the integration of economic, environmental and social
dimensions into the management of intra- and inter-organizational flows, through innovative and collaborative ap-
proaches, with the objective of creating sustainable value. We here discuss in a non-exhaustive way sustainable solutions relating
to design, purchases, transportation, storage, production, distribution and reverse logistics.
Design: For many organizations, the design phase has become a strategic asset that can influence the life cycle of their products
and their sustainable performance. Companies have intensified their efforts to this end by using new materials that are capable of
reducing energy consumption, polluting emissions, toxicity, and size and weight of products. This has been supported by the de-
velopment of sophisticated technological solutions that bring greater precision and rigour in terms of testing and measurements in the
deployment of products.
The design phase can also relate to packaging management, with the main targets being to maintain product quality, prevention,
and the guarantee of transport and storage. Increasing consumption generates more and more waste, triggering a significant eco-
logical problem on a global scale. Sustainable packaging design involves a combination of structural items (materials, components,
matter) and informational items used to communicate clearly about sustainability and influence consumer behaviour (Steenis et al.,
2017).
Purchasing is a strategic function in the sustainable organization of the supply chain (Tate et al., 2010). Sustainable purchasing
involves acquiring raw materials and components that make it easy to recycle, reuse, and reduce waste and resources and/or im-
plementing a sustainable sourcing strategy (Schneider and Wallenburg, 2012). In the latter case, suppliers must be selected and
assessed not just on the basis of technical and economic criteria, but in terms of their respect for environmental standards. Sustainable
purchasing also involves integrating social and ethical dimensions into purchasing procedures and criteria, managing supplier re-
lations, and communicating with company’s stakeholders. Social purchasing criteria include the working code and conditions, child
labour, forced labour, and even health and security in the work place (Leire and Mont, 2010). Some studies integrate other criteria of
the social character of purchasing, such as responsible products, support for local suppliers, and job creation (Patala et al., 2016). A
sustainable approach should go beyond purchases related to production and include indirect purchases (administrative supplies,
office equipment, reprography, etc.), which also generate a significant amount of waste.

https://doi.org/10.1016/j.tre.2018.05.005

1366-5545/ © 2018 Published by Elsevier Ltd.

Editorial Transportation Research Part E xxx (xxxx) xxx–xxx

Production: Sustainable production is subject to increasing interest from the scientific community and companies. In the 2000s it
mainly focused on the post-production phase by focusing on reducing dangerous waste and greenhouse gas emissions, recycling,
remanufacturing, and reuse. Today, it has moved on to adopt new ways of thinking, taking on sustainability objectives right from the
product design phase. In addition, acting on production processes using clean technologies builds on this approach. The image would
be incomplete without considering the safety and well-being of employees and the development of their skills. This new vision of
production is guided not just by financial indicators, but also by environmental and social criteria.
Transport and storage: The use of ecological transportation solutions is a difficult choice to put in place because it depends on
different economic constraints. Faced with competitive pressure and price wars, many companies choose to obtain input cheaply
from their supplies from remote locations. Other organizations choose to set up production factories as subcontractors or to offshore
their activities. These different internationalization strategies are some of the possible ways aiming to reduce cost prices and/or
increase market coverage. However, they increase the complexity of transport flows (multimodal transport mode) and often have
significant environmental and social impacts (Basu et al., 2015).
The environmental impact of the mode of transport also depends on the cost of storing flows. We observe, for example, the use of
logistical solutions like cross-docking in the mass market sector. This choice involves deliveries of low quantities and could sig-
nificantly increase the number of deliveries and consequently greenhouse gas emissions.
Other companies that commercialize luxury products or products with short consumption dates (food items, medication) are
obliged to choose air transportation to ensure rapid delivery times and respond to consumer expectations and regulations; although it
is an efficient solution it also results in generating considerable air pollution (Hoen et al., 2014). Over the recent years, companies
have been under increasing pressure from the increase of carbon tax and the rise in oil prices, which are emerging factors having a
direct impact on their transport costs. Faced with these challenges, companies invest in hybrid transport modes that reduce energy
consumption. They also adopt new strategies to identify optimum flows in terms of delivery and storage. The development of ICT
makes it easier to create delivery and storage systems that are optimized in terms of managing flows.
The new paradigm of the sustainable supply chain is called into question by the prevailing traditional vision that considers
that sustainable approaches do not create economic value. Other internal and external obstacles to the organization add to this vision.
External obstacles mainly result from regulations that are not very rigorous in terms of corporate environmental and social objectives,
and consumers who are not very sensitive or aware of sustainable aspects. Internal obstacles stem from a lack of measurement
indicators and reliable technological tools to evaluate environmental and social performance in relation to economic performance. A
lack of dissemination of sustainable approaches within the supply chain is also linked to operational set-up difficulties. These im-
plementation difficulties are accentuated by resistance to change and a lack of capacities and key skills in the environmental and
social domain.
To overcome these obstacles, companies should promote an organization culture that supports an environmental and social
approach. The success of this approach is conditioned by the mobilization of financial, material and technological resources.
Investment in research and development and the development of highly qualified skills are also necessary to generate innovative
ideas all along the logistics chain.
In addition, decisive commitment from management to promote a communication policy and permanent exchanges on ethical and
environmental values makes it easier to raise employee awareness and encourage staff to adopt a sustainable approach.
On an external level, the sustainable supply chain is mainly based on improving relations between stakeholders by developing a
spirit of collaboration and common solutions for the long term. Moreover, governments could play a crucial role in developing
sustainable supply chains through a dynamic approach that integrates financial incentives and regulatory standards (Chen and Sheu,
2009).
These different research avenues should be the object of developments in empirical studies adopting varied methodologies
(qualitative, quantitative and mixed methods) and a longitudinal analysis of the results. A global approach involving several actors
and combining different theoretical perspectives on logistics, supply chain management and organizational theory (transaction cost
theory, stakeholders theory, game theory, resource-based view theory, dynamic capabilities theory, etc.) would also contribute
considerably to understanding and disseminating the sustainable supply chain within organizations. Research on sustainable supply
chains currently mostly focuses on major multinationals. It could be extended by exploring this issue in service companies, public
companies and small and medium-sized enterprises evolving in a specific context.
The theme of sustainable supply chains was central to the 3rd edition of the PROLOG 2017 (Project & Logistics) conference.
PROLOG is an international conference that takes place in two languages: English and French. Its objective is to develop and promote
original research with a genuine theoretical and managerial contribution to the fields of logistics and project management. The 2017
edition took place at La Rochelle Business School in France and featured participants from all over the world: Europe, Asia, Africa and
America. Internationally renowned guest speakers took part in the conference to tackle the new issues and challenges of logistics and
supply chain management. Professor Lenny SC Koh from the University of Sheffield, who chaired the conference, presented her
research on supply chain sustainability and efficiency. She underlined the importance of taking a transdisciplinary approach to
understand the different facets of sustainable supply chains. The paper-selecting processes took place in several phases. First, papers
submitted to the conference were evaluated by two anonymous reviewers. A second review of the papers was then carried out by the
session chairpersons. Based on these two review phases and the editorial line of the journal Transportation Research Part E: Logistics
and Transportation Review (TRE), we selected seven papers. In the final stage, these seven papers were assessed by two anonymous
reviewers either from the editorial advisory board of the TRE journal and/or referenced on the Elsevier web-base system (EVISE).
Two papers made it through the last stage for publication in this special section.
Ravi Shankar, Rachita Gupta and Devendra Pathak in their paper on “Modeling Critical Success Factors of Traceability for Food

2
Editorial Transportation Research Part E xxx (xxxx) xxx–xxx

Logistics System” have explored the inter-relationships among statistically significant success factors (CSFs) of traceability im-
plementation in food logistics. They used “Critical success factor (CSF) theory” and Multiple stakeholders’ view on ensuring the
security of quality food. Their study proposed an integrated approach involving Exploratory Factor Analysis (EFA), Total Interpretive
Structural Modeling (TISM) and Fuzzy MICMAC analysis to model this problem. Using a questionnaire-based survey and exploratory
factor analysis, statistically significant CSFs are identified. TISM provided a hierarchical framework despite there were complex
multi-directional relationships among these CSFs. Government regulation come up as the most powerful CSF, driving the whole
system to achieve the terminal objective of consumer satisfaction in food traceability system.
Hakim Akeb, Btissam Moncef and Bruno Durand in their paper on “Building a collaborative solution in dense urban city settings to
enhance parcel delivery: An effective crowd model in Paris” have proposed a crowd-based solution for the parcel delivery in dense
areas in order to avoid delivery failure. The method followed uses the crowd, more precisely individuals called “neighbor relays” that
collect and deliver the parcel to the final customer in return for financial reward. The model is mainly based on circle packing where
each circle corresponds to the area associated with one neighbour and managing parcels belonging to customers living in this area. An
experiment was conducted in the twelfth district of Paris (France) in order to validate the model. Good results were obtained in terms
of number of parcels to manage by each neighbour, the maximum distance s/he has to walk as well as the gain per parcel received.
The proposed method contributes to the optimization of the parcel delivery operation avoiding multiple delivery attempts that cause
additional costs for transporters, pollution and traffic jams.
We are grateful to Prof. Jiuh-Biing Sheu, Editor-in-Chief of TRE, for giving us the opportunity to manage this special section for
the Journal. Our thanks also go to all the contributors and anonymous reviewers for their precious time and inputs to ensure the
quality of the editorial process and value of this special section.

References

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Omar Bentahar, Smail Benzidia

Université de Lorraine, IAE Metz, University School of Management, CEREFIGE, France
E-mail address: omar.bentahar@univ-lorraine.fr

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