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Future-Proofing the Supply Chain against Economic Crises and Natural Disasters

Shivam Bijjamwar
MIT-WPU Department of Research and Development, Pune (INDIA)
shivambijjamwarofficial@gmail.com

Abstract - channels. In this case, the paper highlights the four major
strategies companies can consider to manage supply chain
Most organizations operate in complex environments in disruptions through future-proofing. The first approach
which competition is fierce and customer expectations are entails identifying the supply chain strategy areas that
high. These factors put companies under constant pressure to require redesigning to meet new challenges in the supply
improve efficiencies while reducing costs and increasing chain. The second tactic involves boosting supply chain
revenues. To meet these challenges, many businesses resilience to resist and recover from adverse events. The
employ supply chain management (SCM) strategies to third strategy is developing agility to adapt to changes as
increase control over their supply chains and improve quickly as possible and meet consumers’’ expectations.
overall productivity. Supply chain management is the Lastly, the paper justifies the need for sustainability to
process of coordinating the various activities involved in improve business reputation amidst supply chain
getting a product to market. It involves aligning all of the disruptions.
organization's resources, including people, information, and
financial capital, with those of its suppliers and other II. SUPPLY CHAIN STRATEGY AREAS
partners. An effective SCM strategy can improve a Supply chain practices have changed rapidly over
company's profitability by reducing costs, increasing time globally. Most supply chain management changes
revenue, and improving customer satisfaction. The supply occurred during the COVID-19 pandemic because the
chain is often thought of as a series of discrete, independent disease disrupted normal business operations. Besides the
entities. However, it is actually a highly interconnected new normal, the Russia-Ukraine conflict has aggravated the
system that can be disrupted by economic crises or natural supply chain process and exposed vulnerabilities that require
disasters. This paper presents the significance of future- future-proofing against economic crises [1]. In particular,
proofing the supply chain against economic crises and forward-thinking managers have focused on predicting the
natural events that might cause undesirable outcomes. The impact of the future situation on the supply chain to adopt
findings indicate that organisations constantly face suitable measures for prevention. The traditional supply
vulnerabilities that cause business disruptions. However, the chain strategies focused on three main areas: service,
chief supply chain officer (CSCO) can future-proof the quality, and cost and capital [2]. In contrast, the next-normal
supply chain against economic crises and natural disasters approach has become more complex with three additional
by identifying strategic areas and boosting supply chain focus areas: resilience, sustainability, and agility. Figure 1
resilience, agility, and sustainability. illustrates the key elements of the new supply chain strategy.

Keywords—CSCO, supply chain, resilience,


agility, sustainability
I. INTRODUCTION Resilience

As the world becomes more interconnected, it's


important to keep in mind that the supply chain is extremely
vulnerable to economic crises and natural disasters. To be
prepared for these situations, organizations should have a
plan in place for how you would respond if your supply New Normal
chain was affected by an economic crisis or natural disaster. Supply Chain
Elements
A company's supply chain is the entire system of people,
products, and services that are needed to get a product from
Agility Sustainability
the point where it was made to the point where it is sold.
When you think about how much happens between those
two points from raw materials being mined or grown to
finished goods being manufactured and shipped it's easy to Figure 1. New Normal Supply Chain Elements
see how a single event could have a huge impact on a supply Based on Figure 1, the next-normal supply chain is more
chain. With the increasing uncertainties in global business complex to help managers predict future crises and mitigate
risks, companies have realized the need to adapt specific them through resilience, sustainability, and agility [3].
strategies to mitigate potential business disruptions. The The new supply chain strategy area will focus on
COVID-19 pandemic and the Russian Invasion of Ukraine technology. In recent years, supply chains have become
are the major critical recent events that have increased the increasingly complex and globalized. These shifts are
need for businesses to adapt approaches for identifying, challenging our assumptions about how supply chains work
assessing, and handling risks that affect supply chain and how they should be managed. Currently, only about
60% of the world’s population has access to the internet, and There are two main approaches to conducting crisis
only 28% of those people are online in developing countries. mapping in a supply chain: Top-down approach Bottom-up
In addition, the increasing prevalence of mobile devices has approach In the top-down approach, the first step is to map
led to widespread adoption of mobile technology by out the structure of the supply chain at a high level, showing
businesses around the world. Despite these significant all the involved entities and key links in the chain. You can
challenges, the growth potential of the mobile market is then use this map to identify the potential sources of risk
huge. Some estimates predict that the number of global within the supply chain. This process is then repeated for the
internet users will exceed 5 billion by 2020 and that mobile lower levels of the supply chain until you reach the point
users will account for more than 70% of the total number of where products enter your organization's facilities. In the
internet subscribers by that time. These trends will likely bottom up approach, you first identify the end-points of your
lead to tremendous growth in emerging markets such as supply chain where products are delivered and received, and
Africa and Asia, which is home to more than half the then work your way back up the chain to identify potential
world’s population. As a result, it is imperative that sources of risk along the way. Which approach is more
companies understand how these factors will impact their appropriate will depend on the size and complexity of your
supply chains and make the necessary adjustments to ensure supply chain and the objectives that you are trying to
successful business operations in these markets. In today’s achieve with this exercise. This may sound complicated, but
global marketplace, the availability of reliable and it's actually pretty simple in practice. It doesn't take very
affordable transportation networks is critical to the success long to perform a crisis mapping exercise, and it can be very
of any business enterprise. Companies must strive to create beneficial for your organization in the long run.
efficient and responsive logistics networks capable of
meeting the demands of their customers across a diverse set
of locations. To accomplish this goal, many companies are III. BOOSTING SUPPLY CHAIN RESILIENCE
developing innovative approaches to supply chain Supply chain resilience focuses on organisations’
management that are designed to reduce operating costs and capacities for resistance and recovery from economic crises
improve the customer experience[46].Developing strong [4]. The concept implies that companies should have
partnerships is an important part of this process. strategies for mitigating supply chain disruptions that can
Partnerships can help companies unlock the full potential of lead to devastating losses. Therefore, firms should identify
their supply chains by identifying new opportunities for supply chain risks and invest in processes for addressing
growth and introducing innovative solutions to the possible gaps in their vulnerabilities to business disruptions.
marketplace. When designing these partnerships, it is A. Supply chain risk
important to take the time to identify the company’s unique
strengths as well as the weaknesses of its partners. This will  Disruptions
help to ensure that the partnership is mutually beneficial and
that it offers the greatest potential for success. In addition, it Studies show that supply chains have always been
is equally important to develop an effective process for vulnerable to unexpected disruptions that affect business
communicating the goals and strategies of the partnership to performance [5, 6, 7]. According to McKinsey Global
its various stakeholders. This will help to ensure full Institute's pandemic research, several companies faced
cooperation and buy-in from all members of the team and troubles that affected their operations for almost three years.
ensure that everyone is working towards the same common The findings indicated that severe disruptions caused losses
goal. Another important consideration is the development of that could account for more than 30% of a year’s EBITDA
an appropriate compensation structure for the participants in [1]. The supply chain risks usually increase with
the partnership. vulnerability and exposure to uncertain events. For example,
Economic and Natural disasters can have a Toyota suffered losses associated with the Tohoku
devastating impact on businesses and their supply chains. earthquake and tsunami in 2011 [8]. The company could not
However, with the right planning it is possible to mitigate attain a break-even for six months due to low operations.
the impact of these crises on your operations. One of the The car maker could not prevent the catastrophic event;
most important aspects of this planning is identifying the however, lack of strategy to mitigate adverse outcomes
most critical areas in which a given supply chain is contributed to the six months’ low productivity [8, 9].
vulnerable to disruption. Individuals can then develop Figure 2 illustrates how high exposure to unforeseen events
strategies in these areas to reduce the risk to a business. without resilience increases vulnerability, leading to
This can be done using the crisis mapping methodology. uncontrollable supply chain risks.
Crisis Mapping Methodology is a scientific method
for analyzing critical vulnerabilities in an organization's
supply chain in order to identify potential risks and develop
mitigation strategies. The method was first developed by
FEMA (Federal Emergency Management Agency) in the US
in response to natural disasters like earthquakes and
hurricanes, but is now also used to deal with other types of
crises such as economic crises and supply chain disruptions.
The process of crisis mapping consists of the following
steps: - Identify potential sources of risk in the supply chain
- Identify the risks associated with each source - Develop
mitigation strategies for addressing these risks.
Financial
Vulnerability

Lack of Data Security


resilience Supply
Chain
Unexpected Risks
Reputation
event

Figure 4: Critical Areas of Vulnerabilities


Figure 2: Supply Chain Risks Companies can address the vulnerabilities to changing
supply chain by:
Besides, business leaders faced critical supply chain  Increasing corporate liquidity
disruptions during the COVID-19 pandemic and the ongoing  Avoiding poor credit history
Russian invasion of Ukraine [10, 11, 12]. The uncertain  Monitoring changing industry attractiveness and
events indicate that supply chain disruption constantly taking appropriate actions to leverage opportunities
impacts the affected businesses. Accenture research on the and avoid threats
implication of the Russia-Ukraine war revealed supply chain  Improving the degree of oversight
disruptions across Europe due to logistic breakdowns, lack  Making effective regulatory changes to mitigate
of material supplies, and labor shortages. Figure 3 illustrates business disruptions
the supply chain shocks that disrupted several businesses in  Increasing quality cybersecurity to avoid exposure
Europe and other regions worldwide [2]. to criminal acts during business disruptions
 Improving data-protection protocols [11, 13, 14,
15].
C. Visibility
Business visibility enables supply chain managers
Material
to detect risks early to take the best response options [12].
Logistics
shortages Effective CSCO can sense supply chain disruptions by
breakdowns analysing inventory shortages, raw material price inflation,
labour shortages, and global energy shortages. The CSCO
should keep updated on the critical global factors that can
Labour
shortages cause supply chain disruptions [16, 17, 18]. Studies indicate
that businesses with reliable visibility can respond to
uncertain events in the supply chain better than those
without visibility and resilience. Figure 5 illustrates the
significance of visibility and resilience in helping companies
attain full recovery [3].
Supply Chain Shocks

Figure 3. Supply Chain Shocks

B. Addressing supply chain vulnerabilities


Companies must design strategies for addressing Businesses with Businesses
supply chain vulnerabilities to mitigate adverse outcomes. reliable visibility without reliable
Studies on future-proofing the supply chain against can recover from visibility might
economic crises and natural disasters provide multiple ways supply chain not recover from
businesses can handle supply chain vulnerabilities [19]. The disruptions supply chain
key ways to address supply chain vulnerabilities involve disruptions
taking targeted actions to examine the key areas of exposure,
including examining financial, data security, and
organizational reputation during crises [20, 21, 22]. Figure 4
represents the critical areas supply chain managers should Figure 5. The Relevance of Visibility in Managing Supply
consider addressing vulnerabilities that can cause business Chain Disruptions
disruptions.
The global economy is growing at an
unprecedented pace, and this growth is driven by expanding
supply chains of many industries across the world. This
expansion is creating new channels for trade and creating
opportunities for companies to reach new markets and
expand into new territories. While this rapid growth is continuity following a supply chain disruption can be
having a positive impact on the global economy, it has also severe, even devastating for many organizations. Lost
created many challenges for companies to manage their revenue, lost profits, and loss of customer confidence are
complex supply chain operations while successfully just a few of the potential consequences of a supply chain
balancing competing priorities. Supply chain resilience is a disruption. The frequency and severity of these events has
key concern for businesses across all industries because increased in recent years as global transportation and trade
maintaining a stable supply chain is critical to business patterns continue to evolve and expand. Disruptions can be
success[45].A robust supply chain ensures that organizations caused by a wide range of factors including severe weather,
can deliver the right products to customers in a timely accidents or disasters, labor and material shortages, political
manner and maintain a competitive advantage in their issues, computer viruses, equipment failure, and even
respective markets. As globalization and the interconnected supplier fraud. While many of these events cannot be
nature of modern supply chains continue to broaden in scope prevented, organizations can take steps to reduce their
and reach, it has become more challenging for businesses to impact by implementing effective contingency plans in the
sustain their competitive advantage and build resilient event of a crisis. These plans should include strategies to
supply chains. While these challenges are common to all minimize damage and mitigate risk. They should also
businesses, they pose a much greater threat to smaller or address steps that should be taken to ensure continued
emerging companies that may not have the resources and business operations and safeguard against long-term
expertise required to build and sustain a resilient supply damage. As supply chains become increasingly complex and
chain. Businesses that wish to create a more resilient supply interconnected, it becomes increasingly important for
chain must focus on building a strong partnership between businesses to take steps to protect their operations in the
their internal teams and their external partners. These event of a crisis. A well-developed business continuity plan
partnerships help organizations strengthen their networks can help minimize the impact of a crisis and maintain a high
and increase their ability to respond to disruptions and level of customer satisfaction during and after an adverse
changes in the business environment. A strong partnership event. The following tips are designed to help organizations
will ensure that businesses have all the necessary resources, create a plan for dealing with a supply chain disruption:
tools and capabilities to effectively manage disruptions in Evaluate current processes and identify potential risks or
their supply chains. At the same time, it is important for vulnerabilities[43].This will help them determine
businesses to maintain an open communication line with appropriate mitigation strategies to minimize the impact of a
their suppliers. This will help ensure that they have up-to- crisis. Conduct regular tabletop exercises to test your
date information about their suppliers’ operations and response protocols and identify areas for improvement.
operating conditions. This will ensure that businesses can Identify key stakeholders and ensure that they are
quickly identify and address any issues that may arise in the adequately trained and informed regarding their roles in the
supply chain and resolve them as quickly as possible. event of a crisis. Conduct periodic reviews to ensure that
Developing a proactive and data-driven approach to your plan is up to date and properly maintained. Business
managing supplier relationships can also help prevent continuity planning provides a framework for an
disruptions in the supply chain and improve overall organization to respond quickly and effectively to a variety
operational efficiency[44].Businesses that use data analytics of potential crises, whether natural or man-made. It is a
to track and analyze key performance indicators (KPIs) such proactive strategy that can help minimize the impact of an
as inventory levels, lead times and order volumes have the adverse event and ensure continued business operations and
advantage of getting a clear picture of their operations and customer satisfaction during and after a crisis.
can use this information to identify potential problems or Notably, economic crises and natural disasters can
inefficiencies in the supply chain before they develop into have a devastating impact on businesses, economies and
major issues. They will also be able to take appropriate societies. Natural disasters can result in significant
measures to improve efficiency and reduce costs while disruption to the supply chain, while economic crises can
maintaining a high level of service for their end customers. cause severe liquidity issues and problems financing stock
This will enable companies to build a sustainable and other assets which can impact the viability of the supply
competitive advantage and ensure that they remain chain. In addition, they can also negatively impact employee
competitive in an ever-changing business environment. retention as well as damaging the reputation of the business
A business’s supply chain is the network of and the reputation of a country as a whole. Building strong
suppliers and their customers. It’s the backbone of a resilience into the supply chain can help mitigate these
company that moves goods from factories to stores, and it impacts and enable businesses to bounce back quickly when
can play an important part in an organization’s success. In disaster strikes. A strong supply chain can play a key role in
times of economic instability or natural disasters, however, ensuring a company's success by providing a flexible and
supply chains can break down, threatening a company’s resilient way of delivering products and services to
ability to do business. This can have significant customers and maintaining profitability over the long term.
consequences for employees and customers alike. When a Here are some of the steps companies can take to build
business suffers a supply chain disruption, employees may supply chain resilience and ensure they remain competitive
lose their source of income and customers may have no in challenging market conditions:
access to products or services they need. Businesses must be 1. Understand your risks. Before you can take steps to
prepared for such disruptions in order to minimize the strengthen your supply chain, you need to know what risks
financial impact of such incidents and protect their bottom your business faces and what the potential impact of those
line. Doing so can help companies minimize the impact of risks could be. In order to assess this risk, it's important to
crises and maintain a high level of customer satisfaction identify the main threats and vulnerabilities that could affect
during and after an adverse event. Impacts on business your company's operations and determine whether they are
material to the business. This will enable you to develop that they have used in the past are no longer effective in
appropriate mitigation measures and ensure that appropriate driving growth and profitability. Therefore, they are turning
resources are available to deal with potential crises if they to new technologies in order to improve their business
arise. operations and enhance customer experiences. To maximize
2. Plan for business continuity. Once you understand what the business benefits of these new technologies, companies
risks you face, you can start to develop effective must approach their digital transformation efforts with an
contingency plans for dealing with them. These plans should open mind and a willingness to experiment with new ideas
cover all aspects of the company's operations from finance and solutions.
and sales to IT and human resources and include specific Today, businesses are under increasing pressure to
actions to be taken in the event of a crisis, including who remain competitive in an economy that is constantly
will be responsible for implementing each action and what fluctuating. Consumers are more demanding and businesses
resources and funding will be required to do so. This will need to be able to react quickly in order to stay ahead.
help ensure that key business processes remain operational Increasingly, they are turning to technology to increase
during a crisis and help to ensure smooth continuity of efficiency and enable faster decision making[40]. However,
business operations following an incident. the speed of technological innovation is outpaced by the
3. Develop an emergency response plan. An effective speed of natural disasters and economic crises, which are
response plan will enable you to quickly and effectively deal difficult to predict and can have devastating effects on
with any incidents that might occur in your supply chain. It businesses. In these situations, supply chains are often the
should include detailed procedures for each situation, first to be impacted, with disruptions affecting the flow of
including a recovery timeline with corresponding roles and goods and services between suppliers, manufacturers and
responsibilities for all parties involved. All staff should retailers[41].In the face of these difficult challenges,
receive regular training on the procedures for dealing with organizations are looking for ways to increase their agility
various scenarios to ensure that they are able to respond so they can respond quickly to the constantly changing
effectively in the event of an emergency. market conditions while continuing to provide excellent
4. Monitor your suppliers' performance. Maintaining strong customer service to the end user. One of the ways to do this
relationships with your suppliers is essential to ensure that is by adopting a “Supply Chain as a Service” approach.
your supply chain remains reliable and robust. You should Rather than investing in building and maintaining their own
monitor the performance of your suppliers on an ongoing supply chains, many organizations are choosing to outsource
basis to identify potential issues as early as possible and these functions to a provider who provides the service on a
address any issues or weaknesses in their operations before subscription basis. This allows them to access the expertise
they impact your own operations. and technology they need while remaining flexible and
5. Maintain an effective information management process. scalable as their business grows. One example of an
Companies need to maintain up-to-date records of all organization that has embraced this approach is Wal-Mart.
transactions to ensure compliance with regulatory In recent years, the company has substantially increased its
requirements and reduce the risk of fraud. use of third-party logistics providers to handle its shipping
and distribution operations. By outsourcing this function to
IV. INCREASING SUPPLY CHAIN AGILITY an external partner, it has been able to free up valuable
internal resources that can be reinvested in other areas of the
Supply chain agility is the ability of a company's business[42]. It has also been able to reduce costs and
supply chain to quickly and efficiently move products from improve the efficiency of its operations by leveraging the
suppliers to distributors and ultimately to customers when technology and expertise of the third-party provider. The
demand changes or problems occur. As supply chains get company currently uses more than 100 third-party logistics
longer and more complex, the ability to quickly respond and providers and expects this number to grow significantly in
adapt to new situations becomes critical. Supply chain the coming years. This global scale enables Wal-Mart to
agility enables companies to anticipate and respond to keep pace with the demands of its customers while staying
changing market realities and quickly adjust their strategies at the forefront of innovation in the rapidly changing world
accordingly. of supply chain management.
The increased supply chain agility of businesses A recent study by the World Economic Forum
today is a direct result of advances in technology and found that global economic crises and natural disasters are
innovation. According to research from DHL, global supply costing businesses an estimated $2.5 trillion per year in lost
chain costs are forecast to reach USD $8 trillion by 2023, productivity due to disruptions in the supply chain.
representing a 4% compound annual growth rate. Companies that are able to improve their supply chain
Companies that are able to utilize digital technologies to agility will be able to better adapt to future market shocks,
automate and optimize their supply chains will be able to allowing them to maintain or increase their competitive
mitigate these costs and drive greater value for their advantage. How can companies increase supply chain
customers. However, many organizations are still struggling agility? The first step is to improve visibility across the
to successfully integrate digital technologies into their supply chain, both internally within the company and
supply chains. According to a recent Accenture study, 54% externally with its suppliers and customers. This requires
of supply chain executives reported that their companies are implementing an automated platform to connect all aspects
struggling to embrace digital transformation. This is largely of the supply chain together and allow all parties involved to
due to the fact that the traditional approach to supply chain have access to real-time information. Secondly, companies
management is no longer sufficient to support the must implement technology that can help them to respond
increasingly complex requirements of the modern business more quickly to supply chain disruptions when they occur.
environment. Many companies are finding that the strategies This could include the implementation of cloud-based
inventory management software that can help streamline • Shorter lead time will
reduce labour costs
• Higher levels of
productivity will
inventory tracking and ordering processes to ensure that the improve consumers'
experince
right products are available to meet customer demands and
avoid unnecessary stock-outs. Finally, companies must
ensure that their supply chain is resilient against future Lead time Productivity
shocks by developing contingency plans that will help them
to quickly recover from any disruptions that may occur in
the future. This includes conducting regular disaster
recovery drills to ensure that all employees know what to do Operations
Inventory
in the event of a disruption so that they can quickly put these cost
plans into action and restore operations as quickly as • Proper inventory • Lower operation
possible. By implementing the above strategies, companies management will
help in balancing
costs will increase
competitive edge
can be better prepared to withstand any future shocks to the demand and supply

global supply chain and ensure that their operations remain


unaffected throughout the crisis[33].This will help to ensure Figure 6. The Retail Supply Chain Network of the Future
that they can continue doing business as usual even in
difficult times and help to minimize the negative impact of V. ACHIEVING SUPPLY CHAIN
any disruptions to their supply chains on their business. SUSTAINABILITY
When a disaster strikes, supply chains are often the first to
be affected. As supply chains become more complex, they One of the key aspects of supply chain
are also more exposed to potential disruptions caused by sustainability is being able to remain viable during times of
factors such as weather events, pandemics, political unrest crisis, as well as protecting the company from unnecessary
and natural disasters. It is therefore essential that companies losses should a crisis occur. In order to ensure that this is the
are able to develop effective contingency plans to ensure case, it is important for businesses to consider ways in
that they can quickly recover in the event that any such which their supply chains can be protected against potential
disruptions occur to their supply chains. This may include crises and natural disasters. While it is not possible to
the redeployment of workers from other areas of the completely eliminate the risk of a crisis occurring, it is
business to help facilitate the recovery process or the possible to take steps to reduce the risks that a supply chain
temporary suspension of certain operations to ensure it is not will face. There are a number of different factors that can
affected by any disruption. This will also help to minimize affect the viability of a supply chain, including political
the impact of any disruption to the company's operations and stability, natural disasters, and economic instability. In order
enable them to resume normal business as soon as possible to combat these issues, businesses need to take steps to
once the situation has been resolved. ensure that their supply chains can withstand any potential
Successful organizations have high agility that disruptions. This can be achieved by developing effective
enables them to adapt quickly to market changes [23]. While contingency plans to deal with any issues that arise[6] One
businesses are vulnerable to unforeseen events that can key aspect of achieving supply chain sustainability is
disrupt their supply chains, the CSCO is supposed to ensuring that contingency plans are in place to deal with any
recognise that customer loyalty depends on firms’ agility potential problems that may arise in the supply chain.
[24, 25]. For example, studies show that about 77% of However, in order to ensure that the plans actually make a
consumers in the United States changed their stores in the difference, it is important that they are adequately tested on
new normal for reliable companies with reliable supplies a regular basis. It is also important to ensure that the plans
[1]. The situation shows that the biggest winners in supply are developed in accordance with the culture of the
chain disruptions include organisations that can keep their organization. This will help to ensure that the plans are
products and services flowing to the target markets. acceptable to the employees of the organization, which will
Therefore, the CSCO should consider designing new make them more likely to adhere to them.
methods to compete with companies that may take One of the most important elements of crisis
advantage of supply chain disruptions to gain substantial management is identifying potential risks that could have an
market share [26, 27]. In particular, studies show that the impact on the organization's operations, so that appropriate
future retail supply chain network will become more measures can be taken to avoid or mitigate these impacts.
competitive [4]. Figure 6 illustrates the crucial elements Developing a threat matrix that details all the potential
companies will consider to gain and maintain a competitive threats that can impact the organization is a great way to
edge by increasing supply chain agility. help identify the potential crises that may occur in the
supply chain. This will enable organizations to identify key
areas where the risk is high, so that they can take the
necessary precautions to reduce the risk in these areas. Once
a risk has been identified, the next step is to identify how the
issue should be addressed[32]This is generally done through
the creation of a crisis response plan. This will include a list
of steps that need to be taken in order to address the
identified issue. It is important that the plan be thoroughly
tested in order to ensure that it is operational in the event of
an actual crisis. This will ensure that it effectively reduces
the risk of a crisis occurring and ensures that it can be
carried out in a timely manner.
through a variety of innovative initiatives including social,
The current organizations recognize that environmental and economic sustainability programs. The
consumers’ awareness of sustainable supply chains has implementation of sustainable business strategies
increased. Elite consumers consider the role of companies encourages businesses to adopt management practices which
on climate mitigating climate change concerns through promote continual improvement and innovation and enhance
sustainability [28, 29, 30]. Organisations that consider the efficiency and competitiveness of their supply chain
decisive environmental actions enjoy higher chances of operations[34].By implementing sustainable management
increasing profitability and reputation simultaneously. strategies into their daily operations companies are
Studies show that the current CSCO takes appropriate increasing operational efficiency, reducing operational costs
measures to attain considerable ESG performance, including and minimizing negative environmental impacts associated
environmental, social, and governance issues [3]. The with the management of their supply chains[35]. Sustainable
supply chain plays a central role in organisations’ efforts to supply chain management involves the development and
achieve sustainability transformation. The significant management of collaborative relationships between all
initiatives that companies consider to facilitate sustainability stakeholders involved in an organization’s supply chain
include: including the supplier, the buyer and the consumer. The
 Reducing packaging in the supply chain implementation of sustainable management practices
 Promoting diversity and inclusion initiatives enables organizations to improve the efficiency and
 Reducing emissions in the supply chain effectiveness of their supply chain operations and minimize
 Ensuring employee safety, health, and fair the impact of their business operations on the environment
treatment and the communities in which they operate.[36].Effective
 Considering changing consumer preferences [1]. supply chain management requires the development of
Besides, organisations have redesigned their supply chains collaborative relationships with suppliers, customers and
to fulfill omnichannel orders [4]. Omni-channel ordering other stakeholders involved in the management of the supply
enables CSCO to mitigate linear fulfilment processes to chain[37].The development of these collaborative
improve agility that promotes sustainability [3]. Therefore, relationships enables organizations to streamline the flow of
CSCO can combine various supply chain channels to information throughout the supply chain and encourage a
provide quality consumer experience, including combined collaborative approach to problem solving. By encouraging
warehouse services. Figure 7 illustrates a sample of an a collaborative approach among stakeholders organizations
omnichannel approach for enhancing agility and are better able to anticipate and manage potential issues
sustainability. before they occur and are able to improve their overall
performance.

Environmental Sustainability
Environmental sustainability refers to the ability of
Well suited •Track
enterprise resource a business to meet or exceed its operational requirements
business
planning (ERP)
resources while maintaining and improving the health and
system
environment of local communities and the natural
environment[38].Environmentally sustainable business
•Support
Combined
fulfilment practices include strategies designed to reduce the amount of
warehouse with
integrated center for waste produced by the organization or the products it
managemnet all manufactures, recycle waste materials, develop renewable
system (WMS)
channels energy sources and implement energy efficiency measures to
reduce the overall impact of the business on the
• Minimize environment.
Integrated
inventory working
optimization tool capital Social Sustainability
Social sustainability refers to the principles and
practices of corporate social responsibility aimed at
enhancing the quality of life for all stakeholders in the local
Figure 7. Automated Omni-channel
community while minimizing the business's impact on the
Achieving Supply Chain Sustainability is a goal that
local community and the environment. Social sustainability
many companies would like to accomplish in today's
practices include the introduction of training programs
changing global market place. Consumers are also becoming
designed to enhance the skills of the employees in the local
increasingly aware of the impact they are having on the
community and provide education opportunities for
environment and the social responsibility of companies to
members of the community who may not otherwise have
ensure that their supply chain practices are not impacting on
access to education opportunities. Businesses also encourage
the sustainability of our planet. Managing your supply chain
community engagement programs and promote volunteer
effectively can be a complex and challenging task, but by
work within the organization to increase social awareness
incorporating effective sustainability strategies into your
among the employees and provide them with an opportunity
operations you will be able to minimize any negative
to give back to the community.
impacts your supply chain may have on the environment and
increase your corporate profile in the market place as an
VI. CONCLUSION
ethical and sustainable business. Companies of all sizes are
The key takeaway in this research is the need for a
realizing the importance of sustainable supply chain
future-proofing supply chain against economic crises and
management and are incorporating it into their operations
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