Executive Summary:

Sustainable multi-tier supply chain management is a complex and critical issue in today's globalized
business environment. This literature review explores the challenges, themes, and potential solutions
related to sustainability in multi-tier supply chains. The review highlights the interconnectedness of
supply chain stakeholders and the need for comprehensive management of complex relationships.

Key Findings:

Challenges in Multi-Tier Supply Chain Sustainability: Multi-tier supply chains involve numerous
stakeholders, and organizations are often held responsible for environmental and social infractions
occurring throughout their supply chains. Challenges include sustainability breaches, worker
exploitation, and environmental degradation, especially in lower-tier supply chains in developing
countries with weak regulatory regimes.

Themes in Sustainable Multi-Tier Supply Chain Research: The review identifies four main research
themes: sustainability assessment approaches, digital technology applications for sustainability,
sustainability strategies, and multi-tier supply chain sustainability management.

Sustainability Assessment Approaches: Researchers have developed methods, models, and frameworks
to assess sustainability in multi-tier supply chains. These approaches often focus on environmental,
social, or economic dimensions, but holistic assessments considering all three aspects are limited.
Validation of these approaches is needed to ensure their applicability across different industries and
supply chain structures.

Digital Technology Applications for Sustainability: The application of emerging technologies such as
blockchain, IoT, and AI is seen as a solution to improve traceability, transparency, and compliance in
multi-tier supply chains. However, the practical implementation of these technologies remains limited,
and their effectiveness needs further exploration.

Sustainability Strategies: Strategies for achieving sustainability in multi-tier supply chains include
strategic alliances, "jumping the chain," and top-down sustainability enforcement. Strategic framing of
sustainability requirements is essential to achieving positive outcomes. Additionally, open, closed, and
third-party strategies play a role in sustainability management.

Multi-Tier Supply Chain Sustainability Management: Sustainability management in multi-tier supply

chains involves addressing corporate sustainability standards, the role of agency, and optimization
strategies. Corporate sustainability standards need to be evaluated at the sub-supplier level, and agency
roles need to be clearly defined and incentivized. Mathematical modeling and simulations are used to
optimize supply chain processes and mitigate risks.

Framework for Sustainable Multi-Tier Supply Chain Management:

A framework is proposed, covering three main dimensions of sustainability: environmental, social, and
economic. This framework emphasizes the need for comprehensive management of sustainability across
all tiers of the supply chain.

Agenda for Future Research:

Validate sustainability assessment approaches.

Explore the application of emerging technologies for sustainability.

Investigate the effectiveness of sustainability strategies.

Enhance corporate sustainability standards.

Optimize supply chain processes and mitigate risks.

In conclusion, this review provides a foundation for addressing the challenges of sustainable multi-tier
supply chain management. Organizations need to adopt a holistic approach that considers the triple
bottom line and collaborates with suppliers across all levels of the supply chain to achieve
sustainability. Further research and practical implementations are essential to address the
complexities of multi-tier supply chain sustainability in the global economy.

Drivers:

 International Networks and Global Supply Chains: The development of global supply chains has
necessitated a shift toward sustainability. Organizations can no longer operate in isolation, and
international networks of value chains require a focus on sustainability.
 Stakeholder Expectations: Organizations are held responsible for environmental and social
infractions by other stakeholders in their supply chains, which can impact their value and
reputation. Meeting stakeholder expectations for sustainability is a driver.
 Triple Bottom Line: Sustainable supply chain management focuses on economic, social, and
environmental dimensions, and this comprehensive approach is a driver for achieving
sustainability.
 Economic Benefits: Sustainable practices can lead to economic benefits, including innovation,
efficiency, reputation enhancement, and increased market value along the supply chain.

Barriers:

 Neglect of Lower-Tier Suppliers: Many supply chain sustainability efforts primarily concentrate
on the relationship between the focal company and its direct suppliers, neglecting lower-tier
supplier networks, where sustainability violations are more likely.
 Weak Regulatory Regimes: Lower-tier members of supply chains are often located in
developing countries with weak regulatory regimes and high levels of corruption, making it
difficult to address sustainability breaches.
 Lack of Research and Examination: The nuances of applying the triple bottom line to
sustainable multi-tier supply chain management have been under-researched, creating a barrier
to understanding and implementing sustainability practices at all tiers of the supply chain.
 Limited Exploration of Triple Bottom Line Issues: Literature specifically exploring the triple
bottom line issues that go beyond the first-tier suppliers to evaluate the multi-tier supply chain
is relatively limited.
 Lack of Validation of Sustainability Assessment Approaches: Many sustainability assessment
approaches lack validation, making it difficult to determine their applicability and effectiveness
in multi-tier supply chains.
 Complexity of Multi-Tier Supply Chains: Multi-tier supply chains are characterized by complex
relationships and numerous organizations, making it challenging to monitor and manage
sustainability practices effectively.
 Short-Term Focus: Some organizations may prioritize short-term financial gains over long-term
sustainability efforts, hindering the adoption of sustainable practices.

These drivers and barriers highlight the complex nature of achieving sustainability in multi-tier
supply chains and the need for a strategic and comprehensive approach to address them.

Several approaches and strategies that companies can consider for achieving a sustainable supply
chain. Here are some key processes and strategies mentioned in the text:

 Sustainability Assessment Approaches: Companies can use various assessment approaches,

methods, and frameworks to evaluate the sustainability of their multi-tier supply chains. These
approaches may involve assessing the environmental, social, and economic dimensions
individually or in combination. For example, companies can use eco-intensity-based methods,
game-theory-based frameworks, and multi-criteria decision-making approaches to assess
sustainability.
 Digital Technology Application: Companies can leverage emerging technologies such as
blockchain, Internet of Things (IoT), big data, and artificial intelligence to improve sustainability
in their supply chains. These technologies can enhance traceability, transparency, and
compliance across multi-tier supply chains.
 Sustainability Strategies: Companies can adopt various strategies to achieve sustainability in
their supply chains. These strategies include forming strategic alliances, delegating responsibility
to first-tier suppliers, "jumping the chain" to work directly with lower-tier stakeholders, and
enforcing top-down sustainability requirements. The choice of strategy depends on factors like
supply chain complexity and the regulatory environment.
 Corporate Sustainability Standards: Companies can establish and enforce corporate
sustainability standards to ensure compliance with sustainability requirements throughout the
supply chain. These standards can be designed to address environmental, social, and economic
dimensions of sustainability.
 Multi-Tier Supply Chain Sustainability Management: Companies can manage sustainability in
multi-tier supply chains by optimizing processes, using agency roles, and implementing
corporate sustainability standards. Optimization may involve mathematical modeling and
forecasting to assess risks and make informed decisions. Agency roles can help in delegating
responsibilities to achieve sustainability, and corporate sustainability standards can guide
compliance and management.
 While the text provides an overview of these processes and strategies, it is essential to note that
implementing a sustainable supply chain is a complex endeavor that requires careful planning,
collaboration with stakeholders, and continuous improvement efforts. Companies need to tailor
their approaches to their specific industry, supply chain structure, and sustainability goals.

The conclusion from the text is that achieving a sustainable multi-tier supply chain is a complex and
dynamic process that requires the integration of social, environmental, and economic sustainability
dimensions. This integration is crucial for meeting the expectations of key stakeholders, including
customers, governments, and society. Digital technology applications, such as blockchain and
artificial intelligence, play a significant role in enhancing transparency and managing multi-tier
supply chains effectively. The text also emphasizes the importance of sustainability assessment
approaches for continuous evaluation and adaptation to changes in the business environment.

Furthermore, the text identifies notable gaps in the existing literature, suggesting areas for future
research. These gaps include the need for more comprehensive studies that consider all three
dimensions of the triple bottom line together, the impact of government regulations, perspectives
from non-supply chain stakeholders, research from emerging and developing economies, and
empirical validation of sustainability assessment approaches.