This chapter takes a multifaceted look at China's sustainable and smart supply chains. It examines China's impact on the environment and stresses the importance of a green transition. Sustainable logistics and supply chain management are examined as a potential source of market segmentation and competitive positioning in the context of novel business models. Case studies can illustrate how new technologies such as blockchain, artificial intelligence, the internet of things, and big data may improve supply chain performance and sustainability. Additionally, the chapter examines the function of green finance in promoting sustainability, logistics cost management measures, and the altering role of logistics managers. Impacts of China's Industry 5.0, agile logistics, service supply chains, and SCM analytics are discussed to round out the chapter. Anyone interested in China's transition toward more sustainable, intelligent supply networks may find useful information here.
Top1. Introduction
Sustainable and efficient supply chain management strategies have assumed center stage as we progress through the 21st century (Haipeter et al., 2021). Sustainable and intelligent supply chains in China are the focus of this chapter. China's position as the world's top manufacturer and exporter makes it a useful case study because of the enormous impact it has on supply chains around the world.
From raw materials to finished goods, China's supply chains are extensive, complex, and crucial to global trade. These chains have a history of impressive efficiency and low prices, but they have also been linked to pollution and harmful behavior.
Sustainability and intelligence are on the rise in China's supply chains as a result of the country's pressing need to solve environmental concerns and the country's rapid technological development (Fróna, Szenderák, & Harangi-Rákos, 2019). Digitalization, connection, and real-time data are the hallmarks of these “smart” supply chains, which enable hitherto unimaginable efficiencies and robustness. Meanwhile, sustainability is a concept known as the “triple bottom line” because it aims to combine economic efficiency, environmental responsibility, and social equality (Sargani et al., 2020).
Not only are Chinese industries dependent on an understanding of the development and management of sustainable and smart supply chains, but so are companies, politicians, and academics all over the world. Due to the multifaceted nature of these supply networks, this chapter integrates economic, environmental, technological, and social considerations. The goal is to offer insight on China's specific strategies, problems, and opportunities for making the switch to sustainable and smart supply chains.
Several factors provide considerable weight to the significance of learning about sustainable and intelligent supply networks in China. First, because China is a manufacturing powerhouse on a global scale, its supply chains are deeply intertwined with global trade. These networks have widespread effects on operations, the environment, and society. Therefore, enhancing their durability can have far-reaching benefits.
Second, the necessity of changing to environmentally friendly corporate practices is being acknowledged on a global scale. Consumers, regulators, and investors are all putting pressure on businesses to do their part for society and the environment. How this is accomplished in China's massive and varied supply chains is instructive for companies everywhere.
Third, the introduction of cutting-edge innovations like Big Data, AI, IoT, and Blockchain is reshaping the supply chain management industry. Due to the country's rapid digital transformation, China is at the forefront of this trend toward “smart” supply chains (Attaran, Attaran, & Celik, 2023). Insights on how these technologies might be exploited to improve the efficiency, resilience, and sustainability of supply chains can be gleaned from China's experience.
Finally, the scholarly discussion of sustainable development and the role of technology in accomplishing it benefits from the examination of China's approach to sustainable and smart supply chains. This field of study is crucial because of the critical nature of environmental issues and the rapid development of new technologies.
Given these considerations, it is important for practitioners, policymakers, and researchers to investigate China's sustainable and smart supply chains. It's a chance to pick up some tips from one of the fastest growing economies and help advance the cause of greener, more technologically sophisticated supply chains worldwide.
The theory of the diffusion of innovations, proposed by Everett Rogers, describes how new ideas and technologies spread through cultures and organizations. This theory classifies adopters into categories such as innovators, early adopters, early majority, late majority, and laggards, based on how quickly they embrace a new innovation. In the context of supply chain management, understanding this diffusion process is essential for SC managers. It allows them to identify where their organization, suppliers, and other stakeholders fall within these categories, enabling a more strategic and tailored approach to implementing new technologies and practices.