Since its inception in 1982, there has been no turning back. The Importance of Creating a Sustainable Supply Chain Management System. A sustainable supply chain must avoid compromising both the environment and the business itself. Sustainable supply chain management is quickly becoming a necessity for businesses. Planning and sourcing is one of important phase in supply chain management. Drivers for Sustainable Supply Chain Management Organizations are influenced by both internal and external factors (such as government, community, investors, customers, suppliers, and employees) to adopt sustainable supply chain initiatives [1,12,13]. SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage, according to Robert Handfield, Ph.D. SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, … A single company can set high goals, but to achieve a truly sustainable supply chain, each partner must do the same, too. Now, this is deep! SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. An inability to definitively quantify value or an underestimated recognition of supply chain risk has traditionally led business leaders to focus their attention on more obvious business sustainability threats. Although it is often identified as being one of the most difficult aspects of a business to make sustainable, it is one of the most important … A responsible supply chain typically ensures it operates within all legal and ethical parameters. 57, No. Why it is important to us and our stakeholders. There are four major elements: integration, operations, purchasing and distribution. However, more specifically, sustainable procurement is the … Being sustainable should be an essential consideration and aim for any business and your supply chain should be no different. Sustainable supply chain management (SSCM) is a relatively new sub-field of supply chain management (SCM). Decrease Total Supply Chain Cost - Wholesale manufacturers and retailer suppliers depend on proficient supply chain management to design a network that meets customer service goals. The initiatives stretch throughout the value chain, from packaging to transportation and waste management. Reducing Costs and Improving Savings Purchasing has a direct impact on two of the most important factors … Reliable delivery of materials to assembly plants avoids any costly delays in manufacturing. 2 Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers Supply Chain Sustainability: An Introduction The issue of sustainability in supply chain management is gaining attention in both academic literature and industry practice as an area of opportunity. Other phases in supply chain management include making as well as delivering. • Specifically, the development of These influencing factors are defined synonymously in the literature as pressures, Supply Chain Management (SCM) is an important part of every organization, whether small or large. Sustainable Supply Chain Management (SSCM) is an important strategy that supports organizations in improving the overall performance. Businesses are becoming aware of the importance of this integration to enable a sustainable business strategy. A sustainable supply chain management is a vital business strategy that manages and supports the supply chain activities with regards to the social, economic, and environmental issues that will enhance the long-term economic goals of an . It can help companies save money while reducing their carbon footprint. Good supply chain management is critical at reducing operating costs from Procurement activities, through operations and logistics functions and throughout the whole supply chain. Organisations struggle to evolve from theory to the successful “Clearly communicate the importance … Sustainability in the supply chain can be recognised at almost every stage of the process. Sustainable agri-food supply chain management covers the concept of sustainability from the field to the supply chain level by providing learners with tools for improving their company’s competitiveness, sustainability and responsibility towards stakeholder expectations. A Green Sustainable Supply Chain integrates ecological factors and supply chain management principles to identify the environmental impact of an organization’s supply chain processes. The business enterprises are increasingly focusing on buying and supplying of products and services in a manner to reduce the adverse impacts on the environment, society, and economy. • The design of incentive mechanisms to promote consumer green behavior is elaborated. What Is Sustainable Supply Chain Management? But, it is also the truth. It’s also important to recognise that a “responsible” supply chain isn’t necessarily the same thing as a “sustainable” supply chain. For this reason, supply chain leaders need to revisit their segmentation strategies and reassess their selection of strategic suppliers engaged through their supplier relationship management (SRM) program. However, this is without question about to change. Sustainable supplier relationship management has become crucial in companies’ efforts to achieve sustainability in supply chain management. Sustainable Supply Chain Management (SSCM) is an approach that supports organizations to enhance their overall performance. Sustainable supply chain management plays a vital role in safeguarding human and labor rights, as well as protecting the health and safety of workers. (2019). The abilities of Industry 4.0 for advancing sustainable supply chains are discussed. • Four capabilities of blockchain towards sustainable supply chain management are described. This program will help you understand the level of social, environmental, and economic impact and viability that your suppliers and customers have. The performance of SSCM is based on the triple bottom line approach encompassing people-planet-profit, hence being defined not in only in social and environmental terms, but also the economic. Lean and agile supply chain can be sued by companies in order to make their supply chain more efficient and effective (Kouvelis, Dong, Boyabatli, & Li, 2011). From prioritising ethical suppliers to minimising overproduction and waste by efficient supply and demand management. The efforts are laudable; but, more and more I find myself questioning their significance. Supply Chain Management is like the heart for the living, breathing, and sustainable life of a company. Supply chain management, or SCM, is the management of how goods and services evolve from raw materials into products sold to consumers. Here's the lowdown on why green is … The purpose of this paper is to develop an integrated study which uses … 7, pp. Blockchain technology and its relationships to sustainable supply chain management. 2.2. Although, the traditional methods of supply chain management do not involve the concept of the green supply chain. Supply Chain Management plays a significant role in customer satisfaction through the delivery of products and services. International Journal of Production Research: Vol. 2117-2135. Sustainable Supply Chain Development: An Energy Management Approach: 10.4018/978-1-5225-5424-0.ch005: Sustainability has assumed increased importance in view of the international focus on pollution control and climate change. Supply Chain Management (SCM) is an important part of every organization, whether small or large. Sustainable supply chain management can be achieved by acknowledging the role and importance of green supply chain practices. What is Supply Chain Management? This factor makes supply chain management ever more important. It's important to understand the role each plays, as well as how they work together. Supply chain management is the available network of business entities, and the people involved in that work to create finished goods out of raw materials making sure it reaches the end-user that is the customer. Therefore, the supply chain's traditional view has been developed to sustainable supply chain perspective. • There is a strong business case for developing sustainable ways of working throughout a company and its supply chain: saving resources is a more efficient and … Supply-chain sustainability is a business issue affecting an organization’s supply chain or logistics network in terms of environmental, risk, and waste costs. Sustainability is the future, and it is more important than ever that your business’ supply chain establishes a sustainability program. Optimally, it serves to empower women and alleviate poverty. The implementation of supply chain management processes can improve the efficiency and profitability of a company. The importance of Supply Chain Management in an organization is as important as having a healthy heart for a long sustainable life. The recovering economy and a demand surge projected by many to run away from supply has companies both […] Purchasing and supply management professionals focus on ensuring the right products are available at the right time and right place for their consumers. There is a growing need for integrating environmentally sound choices into supply-chain management. Sustainable supply chain management should focus on improving recycling numbers, using more recycled materials, and reducing the amount of packaging used overall rather than eliminating all plastics. 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