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Introduction

In this review the necessity of achieving sustainability in supply chain operations by the

operations department of an organisation. Improving organisational performance through

operational strategies is a prime objective of modern organisation. It is the responsibility and

aspires of the operations mangers of an organisation to develop operational strategies to

nurture more successful and efficient supply chains. The operations managers are keen on

developing sustainable supply chain strategies as part of achieving competitive advantage for

the business. However it is a debating topic whether sustainable supply chain offers

competitive advantage for the firm or not. This review tries to find answer for this debate

with the support of adequate evidences.

Review of literature

According to Slack et al., (2013) supply chain is a network of organisations linked through

value chain actions. As opinioned by Giunipero et al., (2008) the notions and procedures of

Supply Chain Management are praised as enhancing the organisational performance of the

firms taking part in Supply Chain Management. As proclaimed by Sandberg and Abrahamson

in 2010, various surveys were conducted on adoption of SCM in manufacturing firms and big

retailer firms. Supply Chain Management procedures are the managerial activities executed,

in order to ameliorate performance of the amalgamated supply chain. As stated by Sandberg

(2007), level of information sharing, strategic supplier partnership, integration of intensity,

quality or standard of the information sharing is the various SCM procedures.

In terms of supply chain management, sourcing decisions are important. Within that context,

the choice of supplier, how companies efficiently integrate themselves to acquire adequate

complementary skills is important. Several studies have shown that strategic sourcing

programs boost the efficiency of the supply chain. The study of the form of procurement

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decisions reveals that strategic sourcing decisions are closely linked to the development goal

of competitive supply chain (Maqbool and Rafiq, 2014). Improved productivity and

improved revenue have historically been the focal point of corporate strategy. However the

urgent need for businesses to incorporate sustainability into their strategies has increased with

growing concerns about issues such as capital constraint, global warming, greenhouse gas

emissions (GHG) and consumer health (Lee, 2010). Each business is under the watchful eye

of the public through the growth of the internet and 24-hour news. Unsustainable activities in

the supply chain could very easily become public knowledge, undermining the brand

reputation of a company and displeasing shareholders.

Sustainability is among business pioneers most significant administration goals and it is

indispensable to serious achievement. Sustainability has become a worry for some business

associations that incorporate natural and social issues in their methodology (Ageron et al.,

2012). Sustainability is hard to keep up without actualizing reasonable supply chain practices.

Sustainability centres on defending regular assets against misuse while keeping up

profitability and solemnity.

The sustainable competitive advantage turns into the dynamic connection between an

association and its outer condition, supportability is more available to organizations with

more than one predominant technique since contenders numerous not have similar

alternatives (Marshall et al., 2015). Sustainability is an issue for associations that incorporate

ecological and social issues without improving operational effectiveness to keep up a

competitive edge in business activities (Ageron et al., 2012)

As a conscious customer rises today, incorporating sustainability to the corporate strategy

would fulfil investor expectations and take into account the long-term environmental and

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community consequences of operations (Prokesch, 2010). Focusing on supply chains

represents a step towards broader acceptance and sustainability growth since the supply chain

takes the product from initial raw material production to the customer's distribution (Seuring

et al., 2008). Each manager is best placed to carry on sustainability initiatives as supply chain

managers are concerned with all aspects of the business process such as logistics, strategic

planning, and information technology, marketing and sales and finance (Beske and Seuring,

2014).

It is crucial for supply chain managers to understand that day-to-day decisions can have

positive or negative implications for millions of stakeholders (Stevels, 2007). When an action

is expected to have adverse consequences at some time in the future, then the relevant risks

are not sustainable and beneficial. While it takes imagination to incorporate sustainability to

the enterprise, several businesses have learned to distinguish from rivals, lower costs and

boost customer satisfaction (Shipeng, 2011). The next crucial step from the current

organizational and environmental evaluations as well as operations and sustainability is the

relationship between sustainability and supply chains (Bhardwaj, 2016).

Sustainable supply chain management or SSCM was the essential reasonable system for this

investigation. SSCM hypothesis originates from the triple main concern hypothesis created

by John (Elkington, 2004). The hypothesis thinks about financial, natural, and social

objectives from a microeconomic viewpoint. Sustainable supply chain management

hypothesis underlines the key incorporation and accomplishment of social, ecological, and

monetary objectives of the association. In Sustainable supply chain management hypothesis,

improving the drawn out monetary execution of the individual association and it’s flexibly

chains are the essential goals (Touboulic and Walker, 2014)

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Cervera and Flores, (2014) has carried out research and reported that "the Green Supply

Chain idea, which had previously been the focus of a large number of firms, is becoming a

competitive and profitable undertaking among operators. Cervera and Flores, (2014)

described Green Supply Chain Management as a "integration of environmental thinking in

supply chain management: product design, material procurement and selection processes,

manufacturing processes, final product distribution to customers, and product end-of - life

management after its useful life. As per Simpson and Samson, (2010) the process of using

environmentally friendly inputs and transforming these inputs through change agents, whose

by-products can improve or are recycled within the existing environment. This process

develops outputs that can be reclaimed and re-used at the end of their life-cycle thus, creating

a sustainable supply chain."

Although several articles have focused on sustainability in the supply chain sense (Srivastava,

2007), relatively little is being done to understand how logistics can contribute to the

sustainability of an organisation. Logistic operations are the integrated management of all

activities required for moving goods through the supply chain and logistical costs can then be

described as "an expression of money of all kinds of consumed labor during the displacement

of goods" (BinA and Chaoyuan, 2005). Logistics costs are substantial for most companies

and rate only second to selling products.

Logistics costs on average about 12 percent of the world's gross domestic product per year,

according to the International Monetary Fund (IMF). In regards to the environmental effects

of logistics, logistics can generate up to 75% of a company's carbon footprint (The Supply

Chain Management Professionals Council, 2008) according to the Board of Supply Chain

Management Professionals. The combination of monetary and environmental costs, which

leads to the operations of logistics, allows it a critical area for the exploration and

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productivity of logistics. Acknowledging this need is essential to this study's research agenda,

in which the emphasis is on logistics in the supply chain.

Particularly, it is supposed that there are distinct areas in the firm’s logistics functions where

feasibility and endurance can be adopted. A firm's logistic function can be classified into

supply chain, value-adding chain, distribution chain and reverse logistics chain. For every

logistics operations and it is realise and pinpoint chances to introduce and maintain viable

functions. In this review an elaborate examination on why all the organisations should adopt

these procedures as soon as possible, after giving instances of today’s prominent firms and

how they describe this sustainability (Srivastara, 2007). There are various instances that there

are several reasons to persuade the firms to make variations in their logistic tactics and

schemes. Each logistics manager should realise the importance of all the factors with his/her

firms logistics operations and begin integrating worthwhile procedures to attain sustainability

or robustness in the firms of operations. As there are several instances of firms that have first

class and below standard performance, we suggest sections within logistic function where

sustainability can be adopted, including both short-term and long-term recommendations and

suggestions.

As stated by Mollenkoff et al., (2010) the logistic functioning of a firm should play a

significant role for the forms to adopt sustainability strategy in supply chain functioning. A

fascinating instance is the logistic companies of Europe chemical sector. As proclaimed by

Young (2009) a few activities that were introduced by the managers of the logistic firms are

full asset utilisation of your asset or the whole investment, the rise of single size to small lots

to full loads, decreasing in cost to serve and eradication of waste. As opinioned by Young

(2009) such activities together with increased amalgamation of the distinct supply chain

constituents and assurance to social ethics and system in circumstances of work force,

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dependent on quality and working environment has resulted in sustainable logistics and aided

the forms to minimise their carbon footprint.

There is a chance firms to exploit and harm valuable resources when sustainability is not

adapted to global supply chain. The green supply chain deriving from business firms changes

the fundamental concepts of business that is profit maximization and prioritisation on

advantages and merits of the present stakeholder’s preferences (Mani et al., 2015). The

people are aware of advantage of going green, as there are lots of debates and discussions on

climate change and global warming. The consumers in developed countries are interested in

buying green products and the developing third world countries are inspired to the notion of

the green products and its advantages to humans and the entire nature. Primarily, the firms

were hesitant to execute green shift due to rise in expense of production or manufacture and

distribution or supply which lowers company's profits and results customers avoiding their

products.

The rise in consumer consciousness and their willingness to pay raised prices resulted in

changes of the firms to go green. On the other hand a green firm representation results in

increase in sale of products. Hsu et al., (2016) stated that majority of firms in various

industries opt for sustainable and robust procedures to upgrade brand name or differentiate

their products to the clients. Though price and quality are most important factors, customer

satisfaction and comfort are dependent on more socially significant features, such as energy

efficaciousness and health advantages. As stated by Pepper et al., (2009) this resulted in the

term conscious customer which believe firms to do much better than making environment-

friendly claims and expect and condition lucidity and responsibility in every stage of business

procedure.

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Environmental advantages and business advantages of the two benefits by making supply

chain green. Cost reduction or decrease in price and customer preference benefits or

advantages based on priority of the customers is the two business benefits. The alterations

made to make supply chain go green enhanced resource efficaciousness, which resulted in up

gradation of the distinct sections of production and supply and hence results in lowered costs.

As the recognition and honour of the firm increases by implementation of green, the

customers will get more attracted to firm and ultimately result in rise in sales. As opinioned

by Holden Lee, four elaborate sections of advantages are identified for a firms greening of

supply chain, moreover than swift positive publicity and reduced environmental affect.

Reduced functional expense, rise in customer service and sales, chances for creativeness and

skills and coordinating risk reduction are the four merits for a firm by going green.

Conclusion

From the review of literature it can find that supply chain is transforming greatly and the

major objective of modern supply chain management is attain sustainability. Sustainability

provides various advantages for the supply chain and the organisation as a whole. The

implementation of green supply chain is such an effort which enhances quality of supply

chain activities, reduce waste, reduce carbon emission, reduce plastic, reduce pollution and

increase corporate reputation. However, it is a debatable topic whether such sustainable

supply chain brings competitive advantage for the firm. anyhow from the review it can state

that sustainable supply chain is possible to achieve competitive advantage in case certain

elements fulfilled. The following are those critical factors.

It is important to utilize technology in supply chain that Adds Value. For example, use of

supply chain automation with the support of robotics. This approach will help the firm and

supply chain managers to discovery and forecast problems before they happen rather than

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detecting and responding to issues after it actually happened. It is important to prioritise

supply chain management in the firm and integrate the SCM with other functional activities

of the firm like marketing, finance management and HR management. Apply Lean Six Sigma

to assess the supply chain can establish benchmarks for optimize fulfilment, eliminate errors,

and tracking progresses while reducing waste (Braunscheidel et al., 2011). Maximize Supply

Chain Partnerships is another and last factor to achieve competitive advantage. It is proved

that Supply Chain Partnerships can influence supply chain sustainability, ability to adhere to

timeline and cost.

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References

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