Introduction

Operations Management functions by administering and efficiently utilizing

manpower, machinery, and finances to deliver quality output. It primarily focuses
on business profits. On the other hand, Sustainable Operations Management
(SOM) applies the principle of sustainability to all strategic decisions in business
operations. It advocates economic, social, and environmental objectives, in
addition to revenue generation.

SOM requires an organization to contribute towards the economic and social

growth along with promoting environmental sustainability. An exhaustive study on
sustainable operations management is carried out here discussing the concept,
factors, ways to implement and the importance of sustainability in operations.

Sustainable Operations Management (SOM)

Sustainable Operations Management can be defined as the set of skills and concepts that
help a company to carry out its business processes competitively without hindering or
disturbing the social, economic or environmental factors.

The SOM approach aims at delivering the requirement of current generation without
compromising the needs of the future. It ensures a balance between business revenue,
environmental obligation and social well-being.
All functional process units of a business must be aligned with the principles of sustainability.
Production units should be arranged in a way to promote reduction of energy use, gas emissions,
liquid and solid wastes and ensure effective resource utilization. Integration of production
optimization techniques, use of green energy and limited number of processes should be
encouraged. Distribution and logistics, including packaging and transport mode should
incorporate SOM techniques.

Major Factors of Sustainable Operations Management

SOM refers to the concept of doing business where the social, economic and environmental
factors are associated with the operations of the company. It ensures processes to meet the
current requirement as well as plan for the future. Key factors under SOM are as follows −

Social Factors

 Responsibility of a business towards the society and social justice makes the first
dimension, social factor. The social impact of an organization both internal and external
should be monitored and ensured that the entire operation processes are socially
responsible and ethical.
 Internal social factors are related to the employees of an organization. Working
conditions, workforce diversity, equal opportunities to minorities and women, lack of
discrimination of any kind, affordable health care provisions, safety, training and
development, and other employee benefits constitute internal social factors under SOM.
 Impact of business on the local residents and social service sector constitute the external
social factors of SOM.
 Companies practicing SOM are expected to engage only with those suppliers who share
similar values od sustainability. SOM has to make efforts to make sure that the policies,
business processes, advertising content, logo or any other business activity does not seem
disrespectful or hurt the sentiments of other companies, suppliers or clients of the global
market.

Economic Factors

Economic factors associated with SOM include activities that leave an economic impact as a
result of the business functions.

 Following a more disciplined work approach promoting recycling, minimal wastage and
utilising green and renewable materials substantially reduce costs ensuring sustainable
resource supply.
 Careful resource management and channelling primary wastage to second line of
production or sales help to optimize fiancé backing and save natural resources. All these
add up to internal economic factors under SOM that secures business stability and
success.
 Job creation, impact on local wages, real estate, tax flow, investment in underdeveloped
areas, public works and social service systems are some of the external economic factors
of SOM.
Sustainable business is believed to build strong and stable economy that help more businesses to
thrive and flourish, thereby enriching the overall economy.

Environmental Factors

Companies today are legally bound to adhere to Corporate Social Responsibility (CSR)
principles.

 Combining environmental dimension too to CSR is the duty of Sustainable Operations

Management. Environmental implications create a sustainable future for generations to
come.
 SOM activities are obliged to preserve environmental quality by adopting green business
concept. Green industry businesses strive for minimal to zero wastage, prevent carbon
emissions, and find ways to recycling habits and other eco-friendly initiatives.
 SOM works against all business practices that cause harm to the environment including
improper use of natural resources, emitting toxic waste and pollution. Adopting
guidelines such as International Organization for Standardization (ISO) 14000 is an
example to stick to environmental practices and lower damages.

How to Implement SOM?

There are certain points to consider before integrating sustainable solutions to operations
management. They are −

 The Company need to understand the basic principles of balancing people, planet and
purpose with business profits. This fundamental understanding will help adopting SOM
with ease.
 The objectives of business need to be prioritised and well aligned to SOM after
thoroughly analysing the existing requirements and demands.
 The company could rethink on their mission statement to confirm the long term
perspective of its business
 It is always advisable to set fund allocation sanctioned towards SOM initiatives from
management.
 Taking inputs from all parties involved including employees, stakeholders, suppliers,
partners and customers will help SOM implementation. Seeking feedback will enable
them to think and recognise the potential merits of the company being more socially
committed.
 Take expert advice if required to device strategic decisions to focus on sustainability
goals.

Finally, the activities implemented under sustainable practices need to be monitored and
measured to track the changes and outcomes. This can ensure that the business gives ample
attention to social economic and environmental factors.

Importance of SOM
Sustainable Operations Management Practices contributes significantly to the internal and
external territory of an organization. The importance of SOM primarily is reducing operating
costs, improved employee and customer satisfaction and socio environmental enrichment.

The benefits of adopting SOM practices are −

 Integrating SOM creates a wider scope enabling more deliverables for business. This can
prompt them to revisit their business objectives and efficiency.
 It can help cost reduction by implementing energy-efficient measures in business
processes.
 Profitability is the aim of every business entity. Sustainable practices in operations help
efficiently manage resources without wastage and reduce costs, thereby increasing profit.
 Adopting sustainable practices help business to improve its image and goodwill. Society
and public governance view the company with reputation as it caters to environmental
protection and social commitment.
 SOM provides greater employee satisfaction as they tend to be happier with clean and
healthier workspace and feel engaged leading to a productive workforce.
 Employees of companies following SOM approach enjoy high morale and record lesser
employee turnover.
 SOM integrated businesses exercise more social responsibility. Customers who are
interested in social commitments are more attracted to companies following SOM
practices.

Conclusion
Sustainable operations management benefit companies to remain agile and flexible by
maintaining proper balance between people, environment and revenue. Operations management
can help a company to integrate sustainable practices successfully covering all functional units
responsible for design, production, marketing and sales. This helps business to rethink and align
its vision and goals further satisfying the socio economic and environmental aspects. This could
be seen as an excellent opportunity to organise socially responsible initiatives and enjoy
goodwill from the society.

This impact will help them take better strategic decisions and create a strong brand value in the
minds of customers. Adopting and integrating sustainable approach to operations management
help business to save funds and boost profitability along with being more socially responsible.