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Sustainable Supply Chain Manag
Sustainable Supply Chain Manag
Review
Sustainable Supply Chain Management in the
Automotive Industry: A Process-Oriented Review
S. Maryam Masoumi 1, *, Nima Kazemi 2 and Salwa Hanim Abdul-Rashid 3
1 Department of Operations and Supply Chain Management, Australian Institute of Business (AIB), 27 Currie
Street, 5000 Adelaide, SA, Australia
2 Center for Transportation & Logistics, Massachusetts Institute of Technology, Cambridge, MA 02142, USA
3 Faculty of Engineering, Department of Mechanical Engineering, Center for Product Design and
Manufacturing, University of Malaya, Kuala Lumpur 50603, Malaysia
* Correspondence: maryam.masoumi@aib.edu.au
Received: 25 May 2019; Accepted: 4 July 2019; Published: 19 July 2019
Abstract: The holistic shift from traditional supply chain to sustainable supply chain has been practiced
in different industries for many years. The automotive industry, as one of the largest and most
influential industries in the world, could have a substantial effect on the movement toward a sustainable
society. Despite the growing body of literature in the field of sustainable supply chain management,
there is no review article that comprehensively synthesizes the state-of-the-art research in the
automotive industry. To cover this gap, this paper reviews the sustainable supply chain management
literature in the automotive industry published between 1995 and 2017. A systematic review and
content analysis were conducted to collect the studies and analyze their content. The content analysis
was structured based upon a set of key business processes following the Integration Definition
Function (IDEF0) method, which is a structured approach of analyzing business processes. The study
provides a practical guideline for designing a sustainable automotive supply chain and culminates
with the outlined research gaps and recommendations for future research.
Keywords: sustainable supply chain management; green supply chain management; automotive
industry; supply chain design; review; content analysis; IDEF0 method
1. Introduction
The automotive industry is indubitably one of the largest and most influential industries in the
world [1,2]. It involves a wide variety of companies taking part in design, development, manufacturing,
selling, and marketing of automobiles and their spare parts [3]. The industry is a major contributor
to the world’s economy and is one of the most important economic sectors by revenue, such that its
turnover is equivalent to the sixth largest economy in the world [4]. Besides the economic impact,
the industry is a huge contributor to the well-being of people and society, through affecting the
quality of a human’s life remarkably [5]. With the growth of the industry and the production rate,
more vehicles are seen on the roads, bringing their own problem to society. Automobiles affect the
environment in various ways during their life cycle. Any automobile, before being ready to roll,
consumes a considerable amount of materials like plastics, rubber, glass, steel, and many more, many
of which are difficult and expensive to recycle or dispose of. On the other hand, fuel consumption leads
to air pollution, which affects air quality and worsens global warming. Considering the substantial
effect of the automotive industry on economic, environmental, and social activities all over the globe,
effective management of this sector has become vital to assure the well-being of society [6]. Owing to
these concerns, automotive companies have started to implement particular practices that enable them
to integrate sustainability measures into their operations [7–9].
The necessity of changing industrial activities to attain a more sustainable world started with the
report by the World Commission on Environment and Development (WCED) in 1987 [10], with the
emphasis that different industries have to incorporate sustainability-conscious initiatives into their
business practices. Since then, controversies have risen as to how a better sustainable performance
might be achieved for industries, and indeed what practices can be incorporated into conventional
supply chain management (SCM) that make supply chain (SC) activities more sustainable. Given
the fact that SCs manage the flow of products from their early stage until they are delivered to end
users, the focus on SCM is a step toward the wider execution and development of sustainability [11,12].
Consequently, integrating the concept of sustainability into SCM, leading to the definition of the
so-called term sustainable supply chain management (SSCM), has provided the opportunity for the
broader development of this field. Green supply chain management (GSCM) [13,14], reverse logistics
(RL) [15], and closed-loop supply chain management (CLSCM) [16] are terms that have emerged in the
literature focusing on the environmental aspect of sustainability.
Recently, the automotive industry, as an industry with huge potential for tackling environmental
issues, has felt increasing pressure from authorities and the public. For instance, regulations framed by
governments, such as the EU Directive of End-of-Life (EOL) Vehicles, has encouraged car manufacturers
in the European region to accelerate greening their SCs. As a result of these pressures and regulations,
the concept of SSCM in the automotive industry (from now onward, auto-SSCM) has received growing
attention in recent decades and unfolded plenty of opportunities for research in this area. Several
studies have been conducted to discuss different aspects of environmentally-conscious practices and
the challenges that the automotive sector encounters for the effective implementation of the practices.
This had led to the incorporation of sustainable practices and aspects into different stages of automotive
SCM, including, but not limited to design, purchasing, supplier collaboration, logistics, warehousing,
and packaging [17].
As the field of auto-SSCM grows rapidly, there is a necessity to conduct review studies that
structure the literature in a systematic way. Doing so can facilitate identifying primary research streams,
analyzing research findings, and highlighting future research directions. Analyzing the studies in the
area of SSCM indicates that several review articles have been published so far. However, the published
review papers have discussed the SSCM field in general, without drawing specific attention to the
automotive industry (see the background of the study in Section 2). As Carter and Easton [18]
noted, the existing research on multi-industry samples provides an opportunity for deeper studies
on individual industries that aid in discerning specific sustainability issues within those industries.
To address this research gap, this paper aims to present a systematic state-of-the-art literature review
discussing sustainability-conscious issues in automotive SCs. The paper categorizes and synthesizes
the existing studies from a process-oriented perspective, and tries to distinguish prominent research
areas that establish an agenda on future research opportunities. In this perspective, the paper will
answer the following research questions:
What is the current state-of-the-art research on auto-SSCM from a process’s perspective?
On the basis of the literature review, what steps can be taken for designing a sustainable SC in the
automotive industry?
What future research directions can be identified for this field of research?
The rest of the paper is organized as follows. In Section 2, a background to this research is
provided. In Section 3, the research process applied in this study is presented. Section 4 provides
a classified review of auto-SSCM issues. A conceptual model for designing a sustainable SSCM is
presented in Section 5. Finally, the future research directions and the conclusions of this paper are
given in Sections 6 and 7.
progress in the area under investigation and can identify the strengths and weaknesses of prior studies,
which can be beneficial in laying foundations for future studies [20,21]. As the area of SSCM took
shape at the beginning of the 2000s, it has gained increasing attention over the years and has been
a dominant research domain since 2010 [22]. The growing number of studies has consequently led
to the growth in the number of review studies. A recent study by Rajeev et al. [22] comprehensively
reviewed studies in the field of SSCM published over a period of 16 years, from 2000 to 2015, where
the authors found 59 review papers covering different issues and sub-issues of SSCM. According
to Rajeev et al.’s [22] analysis, the first review paper emerged in 2002, and the number of review
papers followed a fairly stable trend until 2010, with less than four reviews published per year. From
2011 onward, the trend has changed and the number of review papers showed substantial growth,
highlighting the importance that this topic has been gaining in the literature. The content analysis of
the papers published during this time frame reveals that only the study of Beske et al. [23] focused on
SSCM in a specific industry [22]. Beske et al. [23] investigated SSCM practices in the food industry
and analyzed their connection to dynamic capabilities, which refers to the capabilities of companies
to gain competitive advantages in a highly dynamic business environment. As a complement to the
study of Rajeev et al. [22], Table A1 in the Appendix A provides the review studies that appeared
in the literature from 2016 onward. Totally, 23 review papers were found with a focus on SSCM or
GSCM. The number of studies within the two recent years also confirms the finding of Rajeev et al. [22],
who stated that the number of review studies in SSCM has been growing since 2011. Looking at the
fourth column of Table A1, it can be realized that only six papers analyzed a particular industry within
the frame of SSCM research. They include mineral [24], textile [25], biorefinery [26], oil and gas [27],
food [28], and fashion [29]. This analysis discloses that despite the high number of literature review
studies conducted in SSCM, no study can be found that solely focused on the automotive industry.
This is surprising given the importance of the automotive industry and its role in building a more
sustainable world. This study, therefore, tries to cover this research gap and presents a review of
research works published so far with the considerations of auto-SSCM.
3. Research Methodology
In this review study, we used a systematic review and content analysis to search and classify the
body of the literature. A systematic literature review is a type of literature review that analyses the
literature in a structured way [30,31] and presents the results in a transparent, objective, and reproducible
way [32]. In addition, systematic literature reviews are usually performed using defined keywords
and through iterative search phases that allow finding sample papers and organizing them for
evaluation [33]. Similar to the most recent reviews [30,31,34–36], this paper follows a seven-step
methodology for data collection, sample formation, and content analysis in order to investigate and
classify research issues in auto-SSCM. The detailed guideline of executing a multi-step methodology
for conducting a literature review is discussed by Tranfield et al. [37] and Cooper [38]. In what follows,
we explain the methodology that was used to identify and analyze the studies.
“Reverse”, “Closed-loop”. Set C was defined to ensure that different aspects of sustainable operations
were covered: “Waste Management”, “Return”, “Reuse”, “Recycle”, “Remanufacture”, “Life cycle
assessment”, “EOL”, “Product recovery”. Finally, set D of keywords was defined to limit the search to
the papers in the area of the automotive industry: “Automotive”, “Auto”, “Automobile”, “Automaker”,
“Car”, “Vehicle”. The final set of keywords was generated by combining the keywords from the
four sets defined above. Thus, the search string used in the database search was the combination of
W W
keywords from all four sets using Boolean operators: [“Sustainable” “Sustainability” “Sustainable
W W W W W
Development” “Green” “Environment” “Ethics/Ethical” “Social” “Economic”] ∧ [“Supply
W W W W W
Chain” “Logistics/Logistical” “Supply” “Reverse” “Closed-loop”] ∧ [“Waste Management”
W W W W W W
“Return” “Reuse” “Recycle” “Remanufacture” “Life cycle assessment” “EOL” “Product
W W W W W
recovery”] ∧ [“Automotive” “Auto” “Automobile” “Automaker” “Car” “Vehicle”].
3.3. Filtration
In the second phase in Scopus, a number of exclusion criteria were implemented. First, the types
of the papers were selected as article, review, and article in press, whereas other sources, the so-called
gray literature, such as conference papers, books and book chapters, editorial, notes, short survey, letter,
and erratum, were excluded from the search. During the search phase, the language of the papers was
set as English. In this step of the search, 389 papers were found. To ensure that no paper was missing
from the review, we added Google Scholar as the second scholarly database to our search. Using the
same keywords as presented in Section 3.1, the papers were searched through Google Scholar and
compared to the list of papers found from Scopus. This step resulted in finding 31 additional papers.
Both papers from the databases were integrated and formed a single sample.
Figure 1. The framework for content analysis based on Integration Definition Function (IDEF0).
Figure 1. The framework
SSCM—sustainable for content
supply chain analysis based on Integration Definition Function (IDEF0).
management.
SSCM—sustainable supply chain management.
4. Classification and Review of Studies in Auto-SSCM
In this section, the results of the content analysis of the auto-SSCM literature are presented.
First, a descriptive analysis of the reviewed articles is presented, which is followed by a discussion
highlighting some key research issues from the literature within each category and its sub-categories.
life vehicles (ELVs) and their components, aiming at preventing waste generation from vehicles and
a reduction in disposal of waste. Considering the requirements of this directive, Zorpas and
Inglezakis [47] tried to investigate the challenges that the automotive industry is experiencing to meet
the quantified targets for reuse and recovery per vehicle and year specified by the EU directive. Other
Sustainability 2019, 11, 3945
studies such as Ferrão and Amaral [48], Johnson and Wang [48,49], and Coates and Rahimifard6[50], of 30
discussed the circumstances in which EOL activities could be economical, while meeting the
requirements
4.1. Descriptiveof the EUof directive
Analysis on Based
the Literature ELVs.onApart
Their from
Contentthe EU rules, some studies investigated
standards in China as the largest automobile manufacturer and the biggest market in the world. For
To descriptively
instance, Zhang and Chen analyze
[51]the literature,
discussed thethe frequency
rules of appearance
and regulations of each
of ELVs’ fiverecovery
plastic content incategory
China
and their sub-categories (for categories and their sub-categories, see Figure 2) was counted
and criticized that the regulations of plastic recovery in China are not as perfect as in other developed in the
sample
countries.articles.
Zhang Table
and 1Chen
illustrates the result ofthe
[52] investigated the effect
analysis. It is necessary
of vehicles’ to note
emission that some
standards set articles only
up in China
investigated one category, while the others discussed
(China 2, China 3, and China 4) on diesel engine remanufacturing. more than one category. Hence, the frequency of
the categories is more than the number of papers.
Figure 2. The framework for the processes and sub-processes of an auto-SSCM. EOL—end-of-life.
Figure 2. The framework for the processes and sub-processes of an auto-SSCM. EOL—end-of-life.
Table 1. Analyzing the literature with respect to their classification.
ISO 14001 is the environmental management
Main Category
system (EMS) standard that is widely established
Process Sub-Categories
among original equipment manufacturers Content(OEMs) and their suppliers [53]. Some researchers like
Content Category Fre. * Perc. ** Fre. Perc. Content Category Fre. Perc.
Nawrocka et al.[53] and Gonzalez et al. Category [54] investigated the role of this standard on extending SSCM
Input 12 3.87% Delivery 3 2.27% Management Capabilities 7 17.07%
practices within the automotive
Legislation and Standards 18 5.81%
industry.
Supply
“Recycling
26
regulation”
19.70%
[51], “economic
Network Structure 16
instrument
39.03%
including free take back”
Processes 130 [54], “landfillProduction
41.93% tax” [54], “recycling
15 11.36%credit-fee” [54], “tax on virgin
Technology 18 materials
43.90%
Resources/Mechanisms 36 11.62% Use 8 6.06%
subsidiesOutput
on recycled material”
102 [54], “imposing
32.9% Post-use tax 80
on used car export” [55], and “extended producer
60.61%
Total 41 100%
Overall Review 12 3.87%
responsibility”
Total
[56] are the
310
other
100%
policy-related
Total issues
132 investigated
100% in the literature.
* Frequency of appearance in the literature, ** Percentage.
4.2.2. Inputs (Stakeholder Requirements)
As can be seen from Table 1, “process” is the most highly studied area in auto-SSCM (almost
42%). The “output”-related studies, with about 32% of the total frequencies, constitutes the second
considerable portion of the reviewed literature. “Resource”-related research placed third with about 12%
of total publications. The less published areas are “inputs” and “legislations and standards”, accounting
for approximately 4% and 6% of the total studies, respectively. Among “process” sub-categories,
the heavily investigated area is “post-use” process, with a percentage of roughly 61%. This is far more
Sustainability 2019, 11, 3945 7 of 30
than “supply”, with almost 20% of the publications of this category. In this sub-process, “delivery”
and “use” are less explored areas, which just account for almost 2% and 6% of studies, respectively.
Concerning the sub-category of “resources and mechanisms”, while the “technology”-centered studies
have been favored more by researchers, “management capabilities” is a research area that is faced with
a significant shortfall. Some examined articles discussed the concept of sustainability in the automotive
industry, investigating how the sustainability-conscious issues can be integrated into the business
strategy. They provided a comprehensive insight into the challenges that the companies encounter
while developing a sustainable SC. The category of overall review represents this kind of study. As
illustrated in Table 1, the articles falling into this category account for a small proportion of the total
reviewed articles. Table A3 in Appendix A provides more detailed information and categorizes all the
reviewed articles under the five main categories.
the link between stakeholders’ pressure and the ultimate outcomes of implementing SSCM initiatives.
Stakeholders’ pressure was examined in different automotive sectors as well as geographical areas.
Lin and Lan [61] studied external pressure on Taiwanese auto component firms and investigated its
possible link to the performance of the firms. Roh et al. [57] analyzed how stakeholders’ pressures affect
the decision of developing hybrid cars in seven reputable automotive companies. Vanalle et al. [62]
investigated stakeholders’ pressures on a Brazilian automotive SC and further explored its effect on the
performance of GSCM. They found out that internal environmental management, green purchasing,
and customer cooperation are the main practices adopted by suppliers in Brazil’s automotive industry,
which are thanks to the high pressure from assemblers and regulations such as ISO 14000. Finally,
Seles et al. [58] tried to find a relation between stakeholders’ pressures and the green bullwhip effect in
a Brazilian automotive company.
Fuel efficiency in the utilization stage of the vehicle is another issue that has been given attention
in the literature. For instance, Granovskii et al. [89] compared four types of vehicles—conventional,
hybrid, electric, and hydrogen fuel cell—in terms of economic and environmental aspects. Other
contributions to this topic are the works of Jones [90] and Sivak and Tsimhoni [91].
Green delivery is another research topic in auto-SSCM. The primary role of delivery in SCM is
highlighted in the literature [92]. Particularly, delivery is a part of SC that generates environmental
waste and releases pollutant gases into the air, thus affecting the performance of an SSCM ([92]). In this
line of thought, White et al. [93] addressed the issue of complexity in green packaging design in a
case company, and tried to understand how the company made a tradeoff between the operational
requirements and sustainability objectives. Staš et al. [94] focused on green transportation and
developed a model to assess the green transportation performance. However, despite the emphasis on
the importance of environmentally-friendly packaging for materials and components [95], little effort
has been made to discuss this issue comprehensively.
A significant body of literature brought up the issues of the post-use stage and investigated
different processes that ELVs would undergo. Figure 2 illustrates different treatments that ELVs receive
in the post-use stage, and it further shows the flow of ELVs after they are entered into this phase. In the
following, the papers are discussed according to the steps of ELVs depicted in Figure 2. The post-use
phase starts with the collection of the used products from customers, where the reverse flow starts.
In relation to this step, Krikke et al. [96] conducted a study to optimize the collection process of used
products or dismantled components from EOL vehicles. Sundin and Dunbäck [97] studied the obstacles
of the reverse fellow for collecting automotive mechatronic devices among a number of European
automotive companies. In a similar study, [98] explored the challenges that Chinese manufacturers
are facing in executing RL. In an exploratory study, Abdulrahman et al. [99] investigated the inputs
and outputs of product returns management in five case studies from various industries in Malaysia,
one of which was automotive. Concerning the disassembly process, Colledani and Battaïa [100]
conducted the only study that addressed this problem by developing a decision support model that
integrates disassembly and line balancing problems. When a vehicle undergoes the recycling process,
the recyclable components are first segregated, and the remainder that are not recyclable are sent
for shredding. These components are known as Automotive shredder residue (ASR); a few papers
concentrated on this topic. Hwang et al. [101] and Vermeulen et al. [102] are among these studies that
discussed the techniques and solutions to either increase ASR’s recyclability or improve its quality
for fuel utilization. Through analyzing a shredder plant in the United Kingdom, Khodier et al. [103]
pointed out that shredder plants in the United Kingdom should have better technologies and recovery
techniques in shredding processes that would enable them to enhance recovery of material and energy
from ASR. Among the post-use options, remanufacturing and recycling were among the favorite
topics of research. Saavedra et al. [104] analyzed the attributes of the automotive’s remanufacturing
industry in Brazil through an exploratory study, where the researchers highlighted the roles of the
government and associations in motivating the remanufacturing companies to expand their business.
Similarly, Yusop et al. [105] conducted research within the Malaysian automotive industry to realize the
know-how level of remanufacturers. Chaowanapong et al. [106] derived primary factors that affect the
remanufacturing decision in the Thailand automotive industry. Ramoni and Zhang [107] debated the
issues of recycling as the common method for ELV treatment of electric vehicle batteries, and suggested
remanufacturing as a viable option that would be more environmentally friendly. In line with this type
of study, some research works were performed to aid in ELV recovery systems and management. In this
context, Đorđević and Kokić [108], Ahmed et al. [109], Keivanpour et al. [110], and Kuik et al. [111]
developed decision-making models for selecting recovery options including reuse, remanufacturing,
recycling, and energy recovery. Subramoniam et al. [112] and Ahmed et al. [109] addressed strategic
issues concerning the remanufacturing of auto parts. Yang et al. [86] and Anthony and Cheung [113]
discussed the issue of design for remanufacturing, which involves integrating remanufacturing factors
into different perspectives of product design. Recycling is another reprocessing option studied in the
Sustainability 2019, 11, 3945 10 of 30
literature. Li et al. [114] evaluated the environmental impact of ELVs’ recycling in China by examining
Corolla taxis as a subject of analysis. Chavez and Sharma [115] studied the chemical recycling of
polyethylene terephthalate seats in the Mexican automotive sector from economic and environmental
perspectives. There are also some different studies [116] that focused on recycling specific materials
(i.e., car plastic, aluminum) with the intention of coming up with the processes and techniques to
increase the recyclability rate, while taking economic issues into consideration.
4.2.4. Resources/Mechanisms
A variety of resources and mechanisms are required to carry out SSCM processes effectively. From
the literature review, it can be seen that three main categories of resources have attracted the attention
of researchers, which are shown in Figure 2. Therefore, in the following paragraphs, the papers of this
group will be discussed according to the subcategories presented in Figure 2.
In most cases, the literature concerning SSCM processes is intertwined with the literature of
SCND. In other words, SCND is considered as a key element for implementing SSCM processes. With
respect to this matter, the topic of “CLSC/RL network design” has been deeply studied by several
researchers [117–125]. The main objectives of these studies are determining optimal locations and
material flows,
Sustainability 2019,while satisfying
11, x FOR the capacities and demand as constraints. According to the description
PEER REVIEW 12 of 31
provided by Sutherland et al. [63], a typical structure for auto-SSCM is drawn in Figure 3.
Figure
Figure 3. A typical
3. A typical structure
structure of
of an
an auto-SSCM.
auto-SSCM. ELV—end-of-life
ELV—end-of-lifevehicles.
vehicles.
Technology is another major resource that lays the foundation for the accomplishment of
SSCM practices. As noted by Sutherland et al. [64], the automotive recovery system is heavily
dependent on the capabilities provided by the recycling technologies. To emphasize the key role
of technology in driving recycling and remanufacturing initiatives in Auto-SSCM, some articles
addressed this topic in detail. The works by Boks and Tempelman [126] and Pickering [127]
represent the direction of these types of studies. In this line of research, some scholars reviewed
specific technologies and brought up their specifications, applications, implementation challenges,
and future research needs. For instance, Zhang and Chen [51] studied recycling technology and
equipment that are utilized for treating the plastic components of ELVs in China’s automotive industry.
The authors expressed the reasons why ELVs’ plastic recycling system in China is not as perfect as
those of other developed countries. Günther et al. [128] underlined the impact of electric vehicles
on deriving an SSCM, and further anticipated future development of the automotive industry in
applying this type of vehicle. The examples of other technologies presented in the literature are
as follows: ASR treatment technology [102,129], ELV recovery technology [130], fuel-propulsion
system technologies [131], integrated management system (IMS) for EOL tires [132], recycling
technology [51,133], reverse engineering technologies for remanufacturing [134], battery electric
vehicles (BEV) [135], and automotive components remanufacturing [136]. The study of Förster [137] is
relatively different from those reviewed above. The authors studied the future technologies that would
facilitate sustainable production within the scope of German automotive manufacturers. They further
tried to designate the time when the technology will be commonly used in the German industry.
It goes without saying that management skills are an imperative part of the successful
implementation of SSCM practices. Management skills include all the management capabilities,
systems, and strategies that are utilized, intending to improve the sustainability of SC. Reviewing
the content of the works in this area reveals that the topic of management skills has diversely been
discussed in the relevant literature. For example, the work done by Ferguson and Browne [138] and
Rahimifard et al. [139] argued for designing information systems to support ELV recovery activities.
The studies conducted by Vachon and Klassen [140] and Samson Simpson, et al. [141] were about
relationship and collaboration management, covering issues related to collaboration with suppliers
and customers in environmentally-related initiatives. Another topic seen in the literature is SC
capabilities (SCCs), which refers to the combination of people skills and knowledge, physical assets,
and organizational routines. In this respect, Liu et al. [142] and Liu et al. [143] analyzed the role of
SCCs in the implementation of sustainable strategies and practices. Finally, Xie [144] investigated the
impact of cooperative strategies on sustainability in the automotive industry and concluded that the
industry can benefit from a cooperative strategy, as it can positively affect the sustainability of SC.
others were developed in combination with other SCs’ characteristics to assess the performance more
comprehensively; for example, with resilient [156]; lean and resilient [157]; lean, agile, and resilient [155];
customer-centric and customer pressure [158]; and green human resource management [159]. Talking
about the output phase generally, the problem was investigated across the industry of emerging
markets (e.g., [106,145,160–171]). However, few studies investigated the problem within European
industries [159,172]. Furthermore, developing models to measure the performance for automotive
components was observed to be under-researched in this category (e.g., [169,172,173]).
In order to implement the designed SSCM processes, the proper infrastructures are supposed to
be acquired at stage 3. This includes the appropriate forward and reverse logistics networks, clean
technologies, and management capabilities.
After finalizing the design stages and acquiring the related resources, the designed automotive
SSC can be implemented in stage 4. The ultimate outcome of such an implemented auto-SSCM is
expected to be the realization of sustainable values by all the SC’s stakeholders. In this respect, within
stage 5, the expected sustainable values generated as a result of implementing the designed SSC would
be measured, and the corrective actions will be done according to the results of the performance
measurement system.
â The automotive industry is an industry that is highly influenced and shaped by its stakeholders’
(e.g., investors, governments, employees, consumers, competitors) demands. As our study shows,
investigating the stakeholders’ requirements is one of the less studied areas in the literature.
Specially, we discovered that a few studies available in this literature have mainly focused on the
effect of stakeholders’ pressure on performance or adoption of environmental policies of a single
firm. The automotive industry has a complex supply chain network with many tiers, where
environmental degradation happens mostly within the supply chain network. Future studies
should be directed toward how stakeholders’ requirements may affect the collaboration of supply
chain tiers in the automotive industry in responding to the pressure.
â Discussing the stakeholders’ pressure further, future research needs to catch up with the fast
growth of the industry and changing stakeholders’ expectations. Given the globalization of the
industry and the universal growth of car manufacturing, the stakeholders’ demands are constantly
changing, putting more pressure on the industry to ensure that the sustainable requirements
of the stakeholders are met. For instance, the industry is moving toward zero emissions and
clean cities through renewable energies for electricity and alternative fuels by 2050 [186]. In this
regard, it is crucial for the automotive industry to respond effectively to the complex and evolving
needs of its stakeholders. To help the industry in tackling this issue, more academic research
is required. For example, identifying the most influential stakeholders and investigating the
change in their needs and expectations with growth of technology can be a promising research
area. Furthermore, the growth in technology also increases the challenges of making the balance
between environmental expectations of stakeholders and the economic benefit of the industry.
These are some of the main challenges that leave a substantial room for future studies.
â Concerning the aforementioned matter, it is further observed that the effect of stakeholders’
requirements on the relationship between different tiers in SC is largely unexplored. For instance,
it is still not clear how different tiers in the automotive supply chain work collaboratively to
address the environmental concern or regulations in the industry. Furthermore, the relationship
between the tiers can additionally be joined to performance indicators of an SSC to explore how
stakeholders’ requirements and the relationship between different tiers may affect the performance
of an SSC.
â Legislation and standards is another area that is not deeply studied. The studies have thus far
investigated the problem across only one emerging economy (i.e., China) and in a few automobile
sectors (i.e., plastic industry). There is not much knowledge about the effect of legislation and
standards on the automobile sectors of several countries, particularly on the world’s major
Sustainability 2019, 11, 3945 15 of 30
automobile manufacturers (i.e., India, Brazil). In addition, further research is required to study
the impact of legislation and standards on reprocessing activities of various components in the
automotive industry.
â As to the sub-categories of SSCM processes, far more studies have been done on the post-use
process compared with other sub-categories. Thus, more researches are needed to be conducted
in the sub-categories of delivery, supply, production, and use to make a balance between the
number of research in all sub-groups. Future studies in these sub-classes of SSCM processes
would also lead to the development of the field.
â In spite of the strategic importance of management capabilities for developing an SSCM, this
topic is observed to be an under-researched area. Although the importance role of management
capabilities including information management, relatiohnship and collaboration management,
risk and knowledge management, and human resource management in the supply chain has been
already very well researched in the literature of traditional SCM, it is certainly less investigated
in the auto SSCM literature.
â Despite the growing body of literature in the field of performance analysis, little effort has been
made to discuss the intangible values that could be created by sustainability-conscious practices
in the automotive industry. Studying the latent cost or intangible values of SSCM practices would
provide a better understanding of the link between SSCM implementation and organizational
performance, which could encourage proactive adoption of SSCM practices beyond the legislation.
â The sustainability reports of the top-ranking car manufacturers are valuable secondary resources
presenting the best sustainability-conscious practices in addition to the performance outcomes of
the practices. These valuable sources have rarely been investigated in the reviewed literature.
Future studies can develop further practical studies in this area relying on the useful information
provided in these reports. Designing expert systems for measuring the environmental performance
of automotive SCs and benchmarking with the best practices in this industry is an example.
â Reviewing the available studies discloses that they have only discussed the selected stages of
auto-SSCM. However, more studies should be conducted to develop an integrated perspective
that resembles several processes of SSCM (or ideally even the whole processes). Doing so not only
can boost the potential of designing a more sustainable SCM, but also would allow researchers
to analyze the interaction between the processes and stages to make a transition toward a more
sustainable SC.
Other than the aforementioned recommendation for future research adopted from the processes
analysis, we observed a couple of other research gaps that are worth further investigation in the future:
â The focus of studies in the automotive industry has only been on single countries so far.
The practices and lessons learned from every country are different and comparing countries may
shed more light on the establishment of a more sustainable automotive industry.
â There is a growing concern on the social aspects of supply chains in the literature. We found
only nine papers in our sample addressed a social issue. The social aspects of an automotive
supply chain such as safety, health, training, education of the employees and their satisfaction,
community development, and public policy of companies are understudied to a great extent.
â The concentration of the studies in the literature has mostly been on large to medium size
companies. The supply chain of automotive companies may include many small-sized companies’
employees and the level of adaptation of sustainability may be different for these companies
compared with the large to medium sized ones. So, future studies should investigate the
adaptation of sustainability by small companies.
7. Conclusions
The study at hand presented a process-oriented review of the studies in the area of auto-SSCM.
A broad range of publications was collected, applying a structured and systematic approach, where the
Sustainability 2019, 11, 3945 16 of 30
core themes addressed in the literature of auto-SSCM were classified and discussed. To categorize the
papers, a content analysis framework was developed based on IDEF0, which divided the studies into a
number of major processes in the industry, namely (1) inputs/stakeholder requirements; (2) legislation
and standards; (3) SSCM process, (4) resources/mechanisms; and (5) outputs/performance. Relying
on the results of the investigation into the different aspects of auto-SSCM literature, a five-stage
procedure was presented that can be used as a guideline to design an automotive SSC. The content
analysis resulted in the identification of several promising research opportunities that will require
further investigation.
Even though this review paper applied a rigorous and systematic research methodology, it carries
some limitations like any other review study. The first limitation is affiliated with the search phase,
where we limited our search to the papers published in journals, and skipped other scientific resources
(i.e., theses, conference papers, and book chapters). Adding these overlooked resources to the sample
papers could have led to additional studies that may derive further insights. As another limitation,
this review is structured on the basis of the processes in the automotive industry, and not based on
other characteristics of the studies (e.g., model’s characteristics). Obviously, conducting a different
content analysis approach on the same sample will lead to a different study that may provide beneficial
insights. This limitation will be left for future studies.
Author Contributions: S.M.M. prepared the original draft and reviewed and edited the final draft. N.K. updated
the origanial draft by including the recent literature, and reviewed and edited the final draft. S.H.A.-R. supervised
the research, and reviewed the final draft.
Funding: This research received no external funding.
Acknowledgments: This study is supported by the Exploratory Research Grant Scheme (ERGS Grant No.
ER033-2011A) from Malaysian Ministry of Higher Education.
Conflicts of Interest: The authors declare no conflict of interest.
Appendix A
Table A1. Review studies in the area of sustainable supply chain management (SSCM) published from
2016 onward. GSCM—green SCM.
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