The Evolution of Sustainability in Supply Chain Management: A Literature Review

The Evolution of Sustainability in Supply Chain Management: A Literature Review

Copyright: © 2024 |Pages: 25
DOI: 10.4018/979-8-3693-2845-3.ch017
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Abstract

Sustainable supply chain management (SSCM) has emerged as an important approach for organizations to reduce their environmental impacts and contribute to sustainability. This paper provides a complete analysis of the academic literature on SSCM. A systematic search of scholarly databases was conducted to identify relevant studies. The findings reveal a significant growth in SSCM research over the past two decades, with empirical studies now outnumbering conceptual papers. Key themes examined in the literature include SSCM practices, performance outcomes, drivers and barriers, stakeholder integration, and theories applied. While early SSCM studies took a narrow environmental focus, current research adopts a triple-bottom-line perspective. Significant research gaps are identified, including a need for more theory-driven studies, research in developing country contexts, small and medium-sized enterprises, and service supply chains.
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Introduction

Sustainable Supply Chain Management (SSCM) is a complete approach that encompasses various proportions, including environmental, social, financial, and legal aspects, within supply chain activities. Its objective is to integrate sustainable applies throughout the entire supply chain lifecycle, opening from product project and progress and extending to end-of-life management and disposal (Ruiz-Benítez et al., 2019). The overarching goal of SSCM is to minimize adverse impacts on the natural environment, encourage social concern and ethical practices, confirm financial viability, and adhere to relevant laws and regulations (Tundys & Wiśniewski, 2018). SSCM is no longer just a moral imperative, but a strategic necessity for companies to keep on competitive. Adopting SSCM practices allows organizations to enhance long-term economic performance while also addressing pressing social and environmental challenges. The business case for embracing SSCM is clear. By taking a lifecycle perspective and integrating sustainability into sourcing, manufacturing, distribution and other supply chain activities, companies can reduce costs through more efficient resource utilization, waste and emission reduction, and enhanced risk management. For example, sustainable sourcing that considers human rights and environmental impacts of material extraction can minimize reputational risks and supply disruptions. Energy-efficient manufacturing processes lower energy expenditures and carbon footprints. Optimized transportation and reduced packaging lower distribution costs and waste. Beyond cost savings, SSCM provides strategic advantages by future-proofing supply chains against climate change impacts and resource scarcity. With climate change exacerbating extreme weather events, sustainable supply chains (SSC) that are resilient to disruptions will fare better than unsustainable ones. As resources like oil and minerals face scarcity, circular supply chains that reuse and recycle materials will enjoy security of supply. Additionally, sustainable practices are now a crucial component of maintaining a positive brand image and attracting ethically-minded talent and investors. With consumers and employees increasingly supporting companies that benefit society, sustainability has become a key facet of competitiveness. First-mover companies proactively adopting SSCM practices also gain competitive advantage in their industries.

Sustainability has become an increasingly important focus in supply chain management (SCM) over the historical periods. In the 1990s and early 2000s, the primary sustainability focus was on compliance and risk management, as companies aimed to avoid reputational and regulatory issues. The compliance approach evolved into a more proactive focus on eco-efficiency in the mid-2000s, as companies realized sustainability could generate cost savings through energy, waste, and water reductions. More recently, leading companies have begun to pursue sustainability initiatives as a way to create shared value, innovating to use sustainability as a competitive differentiator and source of top-line growth. Looking ahead, integration of sustainability into core business strategy is likely to continue, driven by consumer demand, regulation, resource constraints, and ongoing advancements in life cycle assessment and other sustainability measurement tools.

Performing a literature review is a crucial step when investigating SSCM. It provides important context on the present state of research and helps recognize knowledge breaks as well as best practices. A strong literature review examines previous theoretical and empirical studies on the environmental, social, and economic impacts of supply chain decisions. It synthesizes findings on the benefits of SSC practices, such as increased efficiency, waste reduction, improved brand value, higher resiliency, and the ability to enter new markets. Additionally, a literature review can reveal challenges and implementation issues documented in prior academic work and industry reports. Reviewing existing sustainability frameworks helps in selecting appropriate ones to apply to the current supply chain context. By thoroughly reviewing the literature, researchers can build a robust foundation for advancing sustainability research and managers can make informed, evidence-based decisions about integrating sustainability into operations and strategy. The literature review demonstrates scholarly rigor and enables practitioners to adopt practices that have proven successful based on existing studies.

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