Professional Documents
Culture Documents
Introduction
In this review the necessity of achieving sustainability in supply chain operations by the
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
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 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
2|Page
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
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.
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
would fulfil investor expectations and take into account the long-term environmental and
3|Page
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
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
hypothesis underlines the key incorporation and accomplishment of social, ecological, and
improving the drawn out monetary execution of the individual association and it’s flexibly
4|Page
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)
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
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
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
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
leads to the operations of logistics, allows it a critical area for the exploration and
5|Page
productivity of logistics. Acknowledging this need is essential to this study's research agenda,
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
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,
6|Page
dependent on quality and working environment has resulted in sustainable logistics and aided
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
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.
7|Page
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
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
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
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
8|Page
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
9|Page
References
Ageron, B., Gunasekaran, A. and Spalanzani, A., (2012). Sustainable supply management: an
Beske, P., and Seuring, S., (2014). Putting sustainability into supply chain management.
Bhardwaj, B. R., (2016). Role of green policy on sustainable supply chain management.
Braunscheidel, M.J., Hamister, J.W., Suresh, N.C. and Star, H., (2011), An institutional
theory perspective on Six Sigma adoption. International Journal of Operations & Production
Cervera, C. M. and Flores, J. L. M., (2012). A conceptual model for a green supply chain
Elkington, J. (2004). Enter the triple bottom line. In A. Henriques & J. Richardson (Eds.),
The triple bottom line: Does it all add up? Assessing the sustainability of business and CSR
Giunipero, L.C., Hooker, R.E., Joseph-Matthews, S., Yoon, T.E. and Brudvig, S., (2008). A
decade of SCM literature: past, present and future implications. Journal of Supply Chain
Hsu, C., Tan, K. and Zailani, S. H., (2016). Strategic orientations, sustainable supply chain
10 | P a g e
Lee, H.L., So, K.C. and Tang, C.S., (2000). The value of information sharing in a two-level
Mani, V., Agrawal, R. and Sharma, V., (2015). Social sustainability in the supply chain:
Maqbool, S. and Rafiq, M., (2014). Creating competitive advantage through supply chain
2231-5756.
Marshall, D., McCarthy, L., McGrath, P. and Claudy, M., (2015). Going above and beyond:
How sustainability culture and entrepreneurial orientation drive social sustainability supply
Sandberg, E. and Abrahamsson, M., (2010). The role of top management in supply chain
management practices. International Journal of Retail & Distribution Management, 38, pp.
57-69.
Shipeng, L., (2011). A study on green supply chain management of enterprises based on self-
Simpson, D., and Samson, D., (2010). Greening the Automotive Supply Chain: A
27 (1), p. 28-48.
Slack, N., Chambers, S. and Johnston, R., (2013). Operations Process and Management (8th
11 | P a g e
Srivastara, S. K., (2007). Green Supply-Chain Management: A State-of-The-Art Literature
Stevels, A., (2007). Green Supply Chain Management Much More Than Questionnaires and
12 | P a g e