Resilient Sustainable Supply Chain Management

Resilient Sustainable Supply Chain Management

DOI: 10.4018/978-1-6684-9062-4.ch003
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Abstract

Companies must respond to the growing expectations of their stakeholders, but also conduct their activities according to an ambitious responsible development approach, which means addressing the social and environmental practices associated with the development of its products. This commitment covers not only its own internal practices but also those of its suppliers. It involves identifying, managing, and optimizing sustainable practices in the supply network. Working towards this has become an extension of the responsibility and commitment, and is a key component of the overall business model and structure. However, supply chain management needs to deal with many difficulties to coordinate the actors of the supply chain. One of these difficulties is a wider range of risks. These include political, economic, social, environmental, legal, and technological risks. The objective of this chapter is to highlight, through the theoretical literature, some of the challenges and difficulties of supply chains and to constitute the strategies of resilience sustainable supply chain practices.
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Introduction

Over the past decades, thanks to globalization, international companies have multiplied. Between 1995 and 2007, the number of transnational companies doubled from 38,000 to 79,000, and the number of international/multinational companies tripled, from 265,000 to 790,000. In this regard, almost 80% of managers believe that the number of cooperative relationships with third parties will increase in the coming years (United Nations. July 2008). Following globalization, competition between companies has turned into a competition between supply chains. Amongst the factors of competitiveness, sustainability, as a multidimensional factor that further than economic outcome, focuses on the efficient use of resources and achieving a return on investment, became crucial and a critical component of a company's long-term profitability and competitiveness (Elkington, 1997).

Indeed, the network between companies to create and distribute value in the form of products or services is defined as supply chain. It represents the steps required to deliver a product or service to customers. Improving supply chain management is the main challenge in all sectors to have an integrated global network, which is crucial in the creation and the distribution of value. In this regard, one of the main difficulties is to manage the risk, to ensure the adaptation of sustainability in all phases of its supply chain, whatever the types of products offered or the way they are manufactured, distributed and disposed at the end of their life (Taghipour and Beneteau-Piet, 2020). Since each company is part of a larger network, it is important to manage the relationships that require action beyond the company's boundaries. Each company's network, or stakeholders, play a central role in the effectiveness of the supply chain. They can be customers, providers, manufacturers, suppliers and vendors, who refer to both inside and outside the organization (Taghipour et al., 2014). Organizations must not only satisfy the desires and expectations of the stakeholders, but also avoid actions that can negatively impact future generations and their needs and actual employees (Golinelli and Volpe, 2012). Unfortunately, some companies outsourced their activities from the countries with low income, or low regulatory controls in order to avoid the strict financial, environmental and social regulations of production. For example, companies sourcing raw materials from countries could unintentionally abuse their suppliers' employees who work under inhumane conditions.

Supply chain management is difficult. One of the main reasons in addition to the complexity, is the risks that treat supply chains. In fact, the globalized companies are less performant in the risk management According to Robert W. Moffat, Jr. Senior Vice President and Executive Director IBM Systems and Technology Group, 69% of companies formally track risk, but only 31% manage performance and risk together. In this regard, a lack of standardized processes, insufficient data, and inadequate technology as their top barriers to effective risk management (Merimi and Taghipour, 2021).

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