what is sustainable scm? holistic perspective long-term profitability

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Page 1: What is sustainable SCM? holistic perspective long-term profitability
Page 2: What is sustainable SCM? holistic perspective long-term profitability

What is sustainable SCM?holistic perspective

long-term profitability

Page 3: What is sustainable SCM? holistic perspective long-term profitability

How to achieve Sustainable SCM?Reducing emissions

Efficient transportation

Sizing distribution network properly

Warehouse technologies should consume less energy

Page 4: What is sustainable SCM? holistic perspective long-term profitability
Page 5: What is sustainable SCM? holistic perspective long-term profitability

Comply with regulationsSustainability is a norm

Companies are forced to follow

Any deviation can lead to serious outcomes like cancellation of business license.

To survive, the standard regulations needs to be followed (Brandenburg 2014)

Page 6: What is sustainable SCM? holistic perspective long-term profitability

Leverage government programsNew programs for sustainability

Unregulated products are sidelined

Government keeping a close watch

Government helping the companies to implement sustainability (Craig 2011)

Page 7: What is sustainable SCM? holistic perspective long-term profitability

Stay Ahead with government interventionsRegular checkup by the government

Avoiding unwanted problems

Being in the good books of the government official

Page 8: What is sustainable SCM? holistic perspective long-term profitability
Page 9: What is sustainable SCM? holistic perspective long-term profitability

Meet customer expectationsCompanies with sustainability are preferred

Go green initiatives

Willingness to pay more

Take feedback from customer on the green product (Zailani 2012)

Page 10: What is sustainable SCM? holistic perspective long-term profitability

Access green consumersCreate forums to discuss with customers

Involve customers in dialogs

Offer opportunities to customer

Social events can be organized and customers can be invited.

Page 11: What is sustainable SCM? holistic perspective long-term profitability

Product differentiationBetter environmental practices

Consumers who believe in green are attracted

Competitive advantage

Strong commitment from the customer

Page 12: What is sustainable SCM? holistic perspective long-term profitability

Gain AccreditationCustomers will the accreditation

Green SCM states the reduction in the emission of CO2 and other gases.

Potential environment damage is stopped (Cholette 2012)

Page 13: What is sustainable SCM? holistic perspective long-term profitability
Page 14: What is sustainable SCM? holistic perspective long-term profitability

Improve efficienciesUsage of electricity and water is reduced

and hence, efficiency is increased.

Recycling is undertaken

Usage of raw materials is reduced.

Page 15: What is sustainable SCM? holistic perspective long-term profitability

Reduced WasteBudget is set for savings

Every possible cost is taken into consideration.

The management has a strong vision (Beske 2012)

Page 16: What is sustainable SCM? holistic perspective long-term profitability

Reduced treatment costsCompany need not spend on treatment the

chemical outlets

Design products with entire lifecycle in mind

There won’t be dual spending on production and treatment of environmental hazards

Page 17: What is sustainable SCM? holistic perspective long-term profitability
Page 18: What is sustainable SCM? holistic perspective long-term profitability

Retain EmployeesEmployees are happy to be associated with a

sustainable company.

Employees know the impact of globalization.

Employee gets involved in the green initiatives undertaken by the government

Page 19: What is sustainable SCM? holistic perspective long-term profitability

Improve risk managementWorkplace risk can be reduced.

Risk management strategies are improvised and new strategies are implemented.

Sustainability and risk management go hand-in-hand (Roehrich 2014)

Page 20: What is sustainable SCM? holistic perspective long-term profitability

Improve learning and InnovationEmployees are given a chance to learn and

innovate green strategies

Every employee will have an important and separate role to play.

Sustainability in personal lives

Page 21: What is sustainable SCM? holistic perspective long-term profitability
Page 22: What is sustainable SCM? holistic perspective long-term profitability

Meet investor sustainability criteriaSustainability is an investment criteria

They want companies with sustainable practices only, to survive

Steady growth in sustainable investment (Li 2014)

Page 23: What is sustainable SCM? holistic perspective long-term profitability

Rank in sustainability IndicesCarbon disclosure leadership

Positive relative between sustainability and growth in the number of customers.

Page 24: What is sustainable SCM? holistic perspective long-term profitability

Deliver Long-time returns for investorsConcern about environment attracts more

customers

Small things taken care by the company today will yield results for years to company.

The investors invest and disinvest but investment can be retained if sustainability policies are in place (Piplani 2008)

Page 25: What is sustainable SCM? holistic perspective long-term profitability
Page 26: What is sustainable SCM? holistic perspective long-term profitability

References Piplani, R, 2008, Sustainable supply chain management,

International journal of production economics, vol. 111, no. 2, pp. 193-194

Li, D, 2014, Sustainable food supply chain management, International journal of production economics, Vol. 152, pp. 1-8

Roehrich, J, 2014, Reputational risk and sustainable supply chain management, International journal of operations & production management, vol. 34, no. 5, pp. 695-719

Beske, P, 2012, Dynamic Capabilities and sustainable supply chain management, International journal of physical distribution and logistics management, vol. 42, no. 4, pp. 372-387

Page 27: What is sustainable SCM? holistic perspective long-term profitability

Cholette, S, 2012, Sustainable Supply chain management: an introduction, INFORMS transactions on education, vol. 13, no. 1, pp. 1(50)

Zailani, S, 2012, Sustainable supply chain management (SSCM) in Malaysia: A survey, International journal of production economics, vol. 140, no. 1, pp. 330-340

Craig, C, 2011, Sustainable supply chain management, evolution and future directions, International journal of physical distribution & logistics management, vol. 41, no. 1, pp. 46-62

Brandenburg, M, 2014, Quantitative models for sustainable supply chain management developments and directions, European journal of operational research, vol. 233, no. 2. pp. 299-312