Of course, we could not talk about any modern supply chain without mentioning the biggest S of the decade; Sustainability.
What is Sustainability?
Sustainability is defined as “the means of meeting our own needs without compromising the ability of future generations to meet their own needs.”
Corporate sustainability is not just about ‘going green’; it is a holistic approach that considers environmental, social and economic factors together when entering into any business relationship.
Driven by legislation and increasing environmental awareness, sustainability has become an important issue among leading organisations, research institutions and policy-makers at national and international levels (Beamon, 1999; Prokesch, 2010; Stanford University SER Conference, 2010). Within organisations, sustainability issues lie with strategic level decision making on Corporate Social Responsibility (CSR) and carry serious implications for purchasing and supply chain management.
Sustainability in supply chain management generally refers to continuous accountability for risk and negative impact caused by a range of actions along the supply chain. Sustainability efforts are also aimed at enhancing fairness and positive benefits for suppliers, workers, customers, end-users and any other stakeholders. Sustainability presents companies with an opportunity to forge new commercial relationships and build stronger core competencies (Fynes et al., 2005; Handfield and Bechtel, 2002).
A sustainable supply chain demonstrates a long-term commitment to procurement and supply chain management that considers “the environmental, social and economic consequences of design, non-renewable material use, manufacture and production methods, logistics, service delivery, use, operation, maintenance, re-use, recycling options, disposal, and suppliers’ capabilities to address these consequences throughout the supply chain” (Department for Environment, Food and Rural Affairs, 2006).
Three Pillars of Sustainability
There are three pillars to support the roof of sustainability; these are social, environmental and economic, which are also known as people, planet and profit.
Businesses need to try and build sustainable processes into every stage of their supply chain and operating models to secure a successful future for their brand.