Optimizing Supply Chain Management Indicators for Sustainable Supply Chain Integration and Customer Loyalty: Potential Role of Environmentally Responsible Practices

Optimizing Supply Chain Management Indicators for Sustainable Supply Chain Integration and Customer Loyalty: Potential Role of Environmentally Responsible Practices

Bhanupriya Khatri, Raj Kumar Singh, Shaina Arora, Shad Ahmad Khan, Arshi Naim
DOI: 10.4018/979-8-3693-0669-7.ch008
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Abstract

Efficient supply chain management (SCM) plays a crucial role in optimizing the delivery process, reducing costs, and ensuring products reach the market and end consumers smoothly. Meanwhile, the growing global significance of customer loyalty (CL) has made establishing a strong customer base essential for shaping the brand image of products and services. Integrating the supply chain aims to unite all stakeholders involved in product fulfillment within a cohesive system. Assessing the impact of environmentally responsible supply chain management on brand loyalty is imperative. This study aims to evaluate how SCM indicators influence sustainable supply chain integration (SCI) and, subsequently, CL. Data from 265 participants were collected through purposive sampling and analyzed using a PLS SEM measurement model. The findings demonstrate a positive correlation among SCM, SCI, and CL. The model's suitability for future research was confirmed through favorable fit indices for the alternate hypotheses.
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Introduction

Managing supply chains effectively can serve as a branding tool and allows branded products to reach the market at the best possible price and time. As planetary sustainability is becoming a point of concerns across all the domains, it has become essential to assess the sustainability component in the arena of supply chain management (SCM). Sustainable Supply Chain Integration (SCI) pertains to the incorporation of environmentally and socially responsible practices within the supply chain management process of an organization (Das, 2018). It includes the seamless integration of sustainable principles, such as eco-friendly sourcing, ethical production, and efficient distribution, to promote long-term environmental preservation, social equity, and economic viability within the supply chain network (Panigrahi et al., 2018).

To create a brand, the relationship between the business strategy and the supply chain needs to make efficient use of sustainability and character (Mukherjee & Kamarulzaman, 2015). Understanding the essential elements necessary for businesses to capitalize on the opportunities presented by these technologies is crucial (Khan et al., 2023).A framework supply structure is presented here that incorporates multiple acquiring/pre-warning costs, as well as brand separation/loss costs associated with lack, transport, and variable individual determinations (Fang et al., 2012). Adding business strategies to the design of today's supply chains facilitates the achievement of this success measurement system (Jha et al., 2022). Due to the globalization of supply chain management, it is critical to comprehend SCM in different cultures (Liu et al., 2021). Over the past several years, one of the most critical concerns for organization leaders has been how to remain aware of their clients' long-term picture. The coordination of creation network variables can provide insight into creation network design, creation network changes the board, stock organization framework progress, and store network best practices execution (Feizabadi et al., 2021). Integration of supply chain indicators and customer loyalty must be in concert with management of supply chain indicators. It is first necessary to examine the role of supply chain logistics to define SCI. Basically, it involves ensuring that goods are moved between the appropriate stakeholders in accordance with a consensus regarding quality and timing. Some examples of important practices or variables that contribute to a company's success are product or service design, process management, and the delivery of high-quality results (Yangailo et al., 2023). In a competitive environment, organizations strive for greater output (Palandi Cardoso et al., 2022). It is equally important to move product information in the supply chain as it is to create the product itself. It is impossible to distribute the product to the correct consignee without the necessary information. When procurement was done locally, there was little pressure on lead times, and users were satisfied with standard products. Even after the product has been completed and shipped, buyers may change their minds.

Organizing properly in today's competitive environment depends on the loyalty of the customers towards the brand, which is the most important factor in establishing a position in the market and most importantly in the customer's mind (Khan et al., 2020; 2021). Supply chain indicators should be connected to the ability to retain customers towards a brand. This becomes even more crucial for the green supply chain or sustainable supply chain management. Ultimately the sustenance of a sustainable practice is needed to make viable decisions in the organization (Khan et al., 2021; Boateng et al., 2020).

Key Terms in this Chapter

Sustainable Supply Chain Integration: Sustainable Supply Chain Integration pertains to the incorporation of environmentally and socially responsible practices within the supply chain management process of an organization ( Das, 2018 ). It involves the seamless integration of sustainable principles, such as eco-friendly sourcing, ethical production, and efficient distribution, to promote long-term environmental preservation, social equity, and economic viability within the supply chain network ( Das, 2018 ; Panigrahi et al., 2018 ).

Intramural Locus of Authority: Intramural Locus of Authority refers to the internal organizational setting or specific department within a company where decision-making power and control are centralized ( Wilensky, 2015 ). It signifies the focal point or center of command within the company's internal structure, where key managerial and operational decisions are made, and where the primary authority for directing and managing internal affairs is located.

Apprehension of Privacy Paradox: Apprehension of Privacy Paradox denotes the dual perception or conflicting feelings that individuals may experience regarding the protection of their personal data and privacy in the context of technological advancements and data-driven practices ( Kaaniche et al., 2020 ; Saleem et al., 2023 ). It highlights the tension between the desire for personalized services and the concern about the potential misuse or unauthorized access to sensitive information ( Ogbuke et al., 2022 ; Jamal et al., 2013 ).

Customer's Loyalty: Customer's Loyalty Toward Brand signifies the strong emotional and behavioral attachment that a consumer develops towards a particular brand or company ( Boateng et al., 2020 ). It represents the enduring commitment and preference of customers for a specific brand over its competitors, driven by positive experiences, trust, satisfaction, and perceived value associated with the brand's products, services, or overall brand identity ( Khan et al., 2020 ; 2021 ).

Vantage Towards Marketing Transmission: Vantage towards Marketing Transmission refers to a strategic position or advantageous perspective adopted by a company to effectively convey its marketing messages to the target audience ( Heil & Robertson, 1991 ). It involves leveraging various communication channels and tactics to ensure the successful dissemination of promotional content and brand information to potential customers.

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