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This book is primarily intended to serve as a research-based textbook on sustainable supply chains for graduate programs in Business, Management, Industrial Engineering, and Industrial Ecology, but it should also be of interest for researchers in the broader sustainable supply chain space, whether from the operations management and industrial engineering side or more from the industrial ecology and life-cycle assessment side.

As firms become progressively more tightly coupled in global supply chains, rather than being large vertically integrated monoliths, risks and opportunities associated with activities upstream or downstream will increasingly impinge upon their own wellbeing. For a firm to thrive, it is increasingly imperative that it be aware of economic, environmental and social dimensions of the entire supply chain it belongs to, and that it proactively monitor and manage those. Finding efficient solutions towards a more sustainable supply chain is increasingly important for managers, but clearly this raise difficult questions, often without clear answers. This book aims to provide insights into these kinds of questions for students and practitioners, based on the latest academic research.
We have noticed a recent surge in the number of courses on “sustainable supply chain management” or related topics, but a relative lack of corresponding teaching materials. While sustainability has been widely studied at the level of company strategy and extensive related pedagogical materials exist, there is still a relative lack of materials on sustainability with a supply chain management perspective.



Chapter 1. Sustainable Supply Chains: Introduction

As firms become progressively more tightly coupled in global supply chains, rather than being large vertically integrated monoliths, risks and opportunities associated with activities upstream or downstream, will increasingly impinge upon their own wellbeing. For a firm to thrive, it is increasingly imperative that it be aware of economic, environmental and social dimensions of the entire supply chain it belongs to, and that it proactively monitor and manage those. Finding efficient solutions towards a more sustainable supply chain is increasingly important for managers, but clearly this raises difficult questions, often without clear answers. In this introductory chapter, we first provide some insights on what does “sustainable supply chains” mean. Then, we review the main reasons that motivated us to assemble this book at this particular point in time. In a third section, we discuss the five main underlying principles we adopted in designing this book. Finally, we propose some insights on the future of sustainable supply chains.
Yann Bouchery, Charles J. Corbett, Jan C. Fransoo, Tarkan Tan

Measuring Environmental Impacts in Supply Chains


Chapter 2. Introduction to Life Cycle Assessment

This chapter gives an overview of the mainstream method of life cycle assessment (LCA) on the basis of the generally accepted principles as laid down in International Organization for Standardization (ISO) series of Standards on LCA. The first part is devoted to the key questions addressed by LCA and sketches the historical development towards that method. The second part provides an overview of the LCA method itself, while the third part discusses some examples of LCA applications. Finally, the fourth part discusses some of the future challenges to LCA including life cycle sustainability assessment (LCSA) and streamlined LCA techniques.
Jeroen Guinée, Reinout Heijungs

Chapter 3. Carbon Footprinting in Supply Chains

This chapter presents an overview of the methods and challenges behind carbon footprinting at the supply chain level. We start by providing some information about the scientific background on climate change. This information is necessary to clarify the overall methodology behind carbon footprinting measurement. We also briefly review the main motivations for carbon footprinting. Then we propose an overview of the main methods available to measure a carbon footprint at the supply chain level. We propose to organize these methods in function of the quantity of information required, and we highlight a trade-off between the scope of measurement chosen and the accuracy of the estimation made. We continue by emphasizing the importance of supply chain (Scope 3) emissions in many supply chains. Finally, the chapter also discusses some challenges related to supply chain carbon footprinting. We specifically consider how to get information in practice, what level of accuracy is needed and how to extend the horizons beyond carbon.
Tasseda Boukherroub, Yann Bouchery, Charles J. Corbett, Jan C. Fransoo, Tarkan Tan

Chapter 4. Water Footprint Assessment in Supply Chains

Companies become increasingly aware that they contribute directly and indirectly to water scarcity and pollution and that this constitutes a risk they have to respond to. A growing number of companies is exploring their water footprint and searching for ways they can become better water stewards. The chapter discusses and compares three methods to trace resource use and pollution over supply chains: environmental footprint assessment, life cycle assessment and environmentally extended input–output analysis. Next, it discusses what new perspective the water footprint concept brings to the table, compared to the traditional way of looking at water use. It then reviews some of the recent literature on direct and indirect water footprints of different sectors of the economy. Finally, it discusses future challenges, such as the issue of data gathering and reporting, the demand for water stewardship and greater product transparency and the need to establish water footprint benchmarks.
Arjen Y. Hoekstra

Chapter 5. Sustainable Non-Renewable Materials Management

The supply of non-renewable materials, critical to the operation of supply chains, is today hampered by factors such as rapid resource depletion and overuse, national policies and fluctuations in global markets. This chapter presents the challenges and strategies for securing materials for production, while increasing the supply chain’s efficiency and sustainability as a whole. It also outlines advanced tools available to decision makers today such as Life Cycle Assessment (LCA), Material Flow Analysis (MFA) and ISO standards that operationalize sustainability principles and facilitate better decision making on multiple levels including supply chain managers, firms’ executives, and policy makers.
Vered Blass, Tzruya Calvão Chebach, Amit Ashkenazy

Chapter 6. Disclosing and Reporting Environmental Sustainability of Supply Chains

Environmental disclosure and reporting can be broadly defined as the various methods that businesses use to communicate their environmental impacts, responsibilities, and mitigation activities to stakeholders. The decision of what and when to disclose is specific to each setting; companies make disclosure decisions while considering internal objectives, external pressure, and regulatory requirements. The motivations that drive reporting are often regulatory compliance, risk mitigation, and brand positioning. Reporting companies disclose environmental information in several different ways: by publishing quantitative metrics, by comparing performance with set targets, through third-party verification, and by means of environmental cost accounting. Once a company has assessed its impacts, corporate decision makers can then choose to report solely through their individual reports or to disclose their impacts through a variety of platforms. In reporting, most companies only account for their own operations, not for the entire supply chain. Many critics of standard reporting suggest that assessments scoped at the company level misses far too much and does not account for the supply chain at all. This chapter reviews the current status of business environmental disclosure and reporting for supply chains, ongoing challenges, and concludes with the future of reporting.
Alexis H Bateman, Edgar E. Blanco, Yossi Sheffi

Operational Aspects of Sustainable Supply Chains


Chapter 7. Green Logistics

Traditionally, logistics decisions have been driven by minimizing cost, maximizing profitability, or achieving customer service targets. As companies have added sustainability goals to their business objectives, there has been an increased interest in mitigating the social and environmental impact of their products and operations.
Green Logistics refers to the systematic measurement, analysis, and, ultimately, mitigation of the environmental impact of logistics activities. This chapter describes the main environmental impacts of logistic operations, namely greenhouse gases, pollution, noise, vibration, and packaging waste. It introduces the various green logistics strategies available to mitigate these impacts, how to these impacts can be incorporated in logistics decision-making and how organizations collaborate to implement green logistics in practice.
Edgar E. Blanco, Yossi Sheffi

Chapter 8. Green Inventory Management

Managing inventories, and thereby material flows, is of key importance for achieving efficient and sustainable supply chains. Green inventory management is characterized by complementing the traditional economic (cost) focus with environmental (emissions) considerations. In this chapter we identify and discuss key questions and challenges for green inventory management research. We do so by categorizing the costs and emissions of operating an inventory system into those associated with: ordering and transporting items, holding items in stock, and not satisfying customer demand on time. A literature overview illustrates what issues have been addressed so far in this emerging field. We conclude that there is a promising potential for green inventory management practices to reduce both costs and emissions, but much remains to be done. Not least in terms of developing more general green inventory models for practical use.
Johan Marklund, Peter Berling

Chapter 9. Green Facility Location

Transportation is one of the main contributing factors of global carbon emissions, and thus, when dealing with facility location models in a distribution context, transportation emissions may be substantially higher than the emissions due to production or storage. Because facility location models define the configuration of deliveries, green location models become an important alternative to reduce CO2 emissions in logistics.
This chapter presents a variety of green location models that include the estimation of carbon emissions. It also provides basic guidelines in understanding these models in comparison with cost minimization models.
Josué C. Velázquez Martínez, Jan C. Fransoo

Chapter 10. Operational Implications of Environmental Regulation

Environmental regulation has important implications on the design and operation of sustainable supply chains. In particular, driving supply chains towards environmental sustainability heavily depends on how such regulation is implemented. To realize a simple regulative principle, different implementation choices may be available to regulators, and these choices can generate very different incentives on different stakeholders and how they operationalize sustainability. In this chapter, we review a number of recent research papers to illustrate this phenomenon in the context of take-back regulation and posit that looking through an operational lens should be an essential component of designing and coping with environmental regulation.
Ximin (Natalie) Huang, Atalay Atasu

Chapter 11. Responsible Purchasing: Moving from Compliance to Value Creation in Supplier Relationships

Nowadays, supply chain relationships represent an important risk factor to companies due to a cost-driven purchasing orientation. By relentlessly driving down cost in supply chain relationships, supplier relationships may suffer. In addition, through outsourcing and global sourcing, companies have not only created highly complex supply chains, but also supply chains that are not transparent. When irregularities arise, such as child labor and environmental problems in supplier relationships, the company’s reputation may suffer and supply can no longer be secured.
We argue that responsible rather than sustainable purchasing is needed to support the company’s overall business strategy. In doing so, companies need to change their shareholder orientation into a stakeholder orientation. Which is why stakeholder theory is discussed. We furthermore argue that driving responsible purchasing fosters product and process innovation and builds stronger relationships. However, doing so effectively will take time and effort as companies and supplier relationships will move through different stages of maturity. These stages of maturity are discussed, as well as what it takes to move from one stage to another. Our discussions are illustrated by numerous examples taken from best practices of international companies.
Arjan van Weele, Kristine van Tubergen

Chapter 12. Green Technology Choice

In late 2000s, Wells Fargo, a large US bank, asked themselves a profoundly important, yet very simple, question: “If our clients find it profitable to borrow money from us to install solar panels on their roofs, shouldn’t we find it profitable too?”
Anton Ovchinnikov

Chapter 13. Principles of EcoDesign in Sustainable Supply Chains

It is often said that the majority of environmental impacts of products occur during the design stage, so efforts to make supply chains more sustainable should inevitably include the product design process. In this chapter, we put EcoDesign in the broader product design context and discuss some aspects of implementing EcoDesign in companies. We then introduce ten “Golden Principles” (10GP) of EcoDesign and provide an illustration of how they can be used to analyze and redesign a product.
Conrad Luttropp

Business Models and Strategy in Sustainable Supply Chains


Chapter 14. Market Value Implications of Voluntary Corporate Environmental Initiatives (CEIs)

Although firms engage in a variety of practices to manage their internal environmental performance as well as those of their supply chains, and they often promote those efforts to concerned stakeholders, it is not well understood how those voluntary corporate environmental initiatives (CEIs) affect the financial bottom line, and the market value of the firm. In this chapter, we discuss the various types of environmental initiatives that are reported in the business press, and how they can potentially impact firm costs and revenues. We provide empirical evidence of the relationships between CEIs and the market value of the firm.
Brian Jacobs, Ravi Subramanian, Manpreet Hora, Vinod Singhal

Chapter 15. Business Implications of Sustainability Practices in Supply Chains

This chapter uses a number of examples to detail how a series of path-dependent decisions underpins the strategic trajectory of today’s leaders in sustainable supply chain management. A truly sustainable supply chain, could customers willing, operate forever (Pagell and Wu 2009). Such a chain would at a minimum create no harm and might even have positive or regenerative impacts on social and environmental systems while maintaining economic viability (Pagell and Shevchenko 2014). True sustainability is the end goal of SSCM, a goal which few, if any, supply chains, especially those with tangible flows, presently meet.
Mark Pagell, Zhaohui Wu

Chapter 16. Moving from a Product-Based Economy to a Service-Based Economy for a More Sustainable Future

Traditionally, economic growth and prosperity have been linked with the availability, production, and distribution of tangible goods as well as the ability of consumers to acquire such goods. Early evidence regarding this connection dates back to Adam Smith’s Wealth of Nations (1776), in which any activity not resulting in the production of a tangible good is characterized as “unproductive of any value.” Since then, this coupling of economic value and material production has been prevalent in both developed and developing economies throughout the world.
Ioannis Bellos, Mark Ferguson

Chapter 17. Closed-Loop Supply Chains: A Strategic Overview

Managers who consider a closed-loop supply chain just another environmental initiative need to update their thinking. Modern firms that use closed-loop supply chains as a competitive strategy receive many benefits—particularly higher profitability and control over a product’s entire lifecycle. In fact, the market for multiple lifecycle products continues to grow, with current estimates holding that remanufactured product sales exceed $100 billion per year. As a result of analyzing the ever-growing remanufacturing sector through years of working with managers in numerous industries, various levers and themes surrounding effective closed-loop supply chain strategies became apparent. This chapter presents these findings and shows how firms in multiple industries experienced both successes and failures of their closed-loop supply chain strategies.
James D. Abbey, V. Daniel R. Guide

Chapter 18. Sustainable Food Supply Chain Design

Supply Chain Management (SCM) has become part of the c-management agenda in Western countries since the 1990s, particularly in the manufacturing and retail industries (Chopra and Meindl 2012). More recently, interest in SCM has also been growing in the agrifood industry, both in developed and developing countries. Executives of agrifood companies are aware that successful coordination, integration, and management of key business processes in the supply chain will determine their competitive success. Sustainable Food Supply Chain Management (SFSCM) refers to all forward processes in the food chain, like procurement of materials, production and distribution, as well as the reverse processes to collect and process returned used or unused products and/or parts of products in order to ensure a socioeconomically and ecologically sustainable recovery (Bloemhof and van Nunen 2008).
Jacqueline M. Bloemhof, Mehmet Soysal

Chapter 19. Risk and Uncertainty Management for Sustainable Supply Chains

Supply chains are the backbone of the global economy as well as a major influence on the social and natural business environment (van der Vegt et al. 2015). In today’s globalized world, every organization is part of at least one supply chain. Furthermore, the majority of everyday transactions - withdrawing money, eating in a restaurant, shopping for food or clothes, ordering something online - involves participation in a supply chain. As such, supply chains are the channels via which resources, services, and information flow from the originating supplier to the end user. A company’s relationships across their supply chains combined with increasing globalization have facilitated worldwide operations, better communication, and the ability to integrate enlarged product variety and greater consumer choice. Simultaneously, the emergence of longer and more complex supply chains and relationships, shorter product lifecycles, increased competitive pressure, and environmental uncertainty (Mentzer et al. 2001) have exposed every business to the risk of unexpected disturbances that can lead to financial losses and in some cases firm closures (Skipper and Hanna 2009). Our world is increasingly uncertain (Tang 2006) and our supply chains more vulnerable than ever (Wagner and Bode 2008).
Kirstin Scholten, Brian Fynes

The Social Dimension of Sustainable Supply Chains


Chapter 20. Improving Social and Environmental Performance in Global Supply Chains

The rise of global supply chains has delivered many benefits for consumers and firms. Yet concurrently, social, environmental, and ethical problems have arisen and continue to persist, despite government, private sector, and nongovernmental efforts to address them. What are effective methods for global firms, or buyers, to gain an understanding of problems in the supply chain and to address them? We examine strategies using a sense and response framework, and find various approaches within this framework to be associated with improved performance. In particular, research suggests that using a collaborative, proactive approach with suppliers and providing meaningful incentives can be effective. There exists an opportunity to cascade these efforts to second tier suppliers and beyond, where some of the greatest impacts and opportunities to affect change lie. In this chapter, we discuss supply chain practices associated with improved social, environmental, and in several cases, economic performance. We discuss how leading firms are building upon compliance programs, which remain important, to increase their emphasis on building shared value for various actors along the supply chain.
Hau L. Lee, Sonali V. Rammohan

Chapter 21. Social Responsibility in Supply Chains

We start with four questions facing managers and researchers as regards how social responsibility can or should be incorporated into supply chains. These questions pertain to: (1) delineating the scope and context of supply chain operations, (2) dealing with the huge number of definitions and objectives of social responsibility, (3) figuring out how to work with the ‘poor’, and (4) developing an overarching framework across the company or supply chain. We outline the views in the literature culminating with the stakeholder resource-based view (SRBV; Sodhi (POM 24(9):1375–1389, 2015)) and how it helps address these questions. We report the findings in terms of how organizations are working with the poor as well as implications for companies wishing to fulfil their social responsibility using their supply chains. Finally, we describe potential areas for application and further research.
ManMohan S. Sodhi, Christopher S. Tang

Chapter 22. Cross-Sector Partnerships for Sustainable Supply Chains

Sustainability issues are becoming more complex. Private companies respond to the new challenges with the pursuit of corporate social responsibility. One way to contribute to society and to deal with the increased pressure is by engaging in cross-sector partnerships with nonprofit organizations. But under which conditions are these partnerships successful? Using a multiple case research design we study the challenges in the process of creating sustainable value for supply chains through cross-sector partnerships between pharmaceutical companies and nonprofit organizations operating in developing countries. The chapter answers two research questions: (1) What are the challenges affecting the success of cross-sector partnerships to create sustainable value? (2) How can these challenges be addressed by Operations Management (OM)/Supply Chain Management (SCM) research?
J. Balaisyte, M. Besiou, L. N. Van Wassenhove


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