Drivers of Sustainable Supply Chain Management: Practices To Alignment With Un Sustainable Development Goals
Drivers of Sustainable Supply Chain Management: Practices To Alignment With Un Sustainable Development Goals
ISSN 1800-6450
Dominik Zimon1
DRIVERS OF SUSTAINABLE SUPPLY CHAIN
Jonah Tyan MANAGEMENT: PRACTICES TO
Robert Sroufe ALIGNMENT WITH UN SUSTAINABLE
DEVELOPMENT GOALS
Article info: Abstract: The main objective of the research and thinking
Received 03.06.2019 presented in this study is to characterize the conditions and
Accepted 09.10.2019 barriers related to the implementation of SDGs in supply
UDC – 005.62 chains. The explanation of the outlined research problem and
DOI – 10. 24874/IJQR14.01-14 the more detailed research issues prompted the authors to
formulate the following auxiliary goals: identification and
emphasis on the links between SSCM practices and UN SDGs
and development of a model supporting the implementation of
UN SDGs in SSCM. In summarizing our analysis of information
from this field of inquiry, contributions to the literature include
a new conceptual model, and a dynamic context for a three
phased model for implementation of successful sustainable
supply chain management initiatives. We provide a grounded
approach for new theoretical insights that map supply chain
practices for future research and performance measurement
aligned with the United Nation’s 17 Sustainable Development
Goals.
Keywords: Drivers; Practices; Supply Chain Management;
Sustainable Development; Theory Development; UN SDGs.
1
1
Corresponding author: Dominik Zimon
Email: zdomin@prz.edu.pl
2 D. Zimon, J. Tyan, R.
Sroufe
economic, technical, legal, social, and reveals a lack of studies that
political attributes of performance. A similar comprehensively discuss issues that have a
view is presented by Sisco et.al. (2011) who significant impact on SSCM and cover
define the SSCM that takes into account broadly the market, workplace, environment
environmental, economic and social and society. Paradoxically, these areas are
influences and implements friendly found within the 17 UN Sustainable
manufacturing practices throughout the Development Goals (SDGs), and will be
product life cycle. Sroufe and Melnyk (2017) described in more detail later in this paper.
see these practices as including stakeholder Integrating SSCM practices into the SDGs
engagement, materiality, product/process will enable entrepreneurs to develop
design, life cycle assessment (LCA), advanced and complex supply chain
materials selection and sourcing, management strategies, which should
manufacturing processes, waste, translate into a more stable, efficient and
transportation of final products and services ethical supply chains. It is worth noting that
to consumers as well as end-of-life the goals of sustainable development have
management of products, and closed-loop been designed to interact with business and
systems. These definitions reinforce Seuring stimulate synergistic economic effects
and Müller (2008a), who, stated that good (Willis, 2016). While the SDGs do represent
relations with suppliers will result in a different approach, their potential for
minimizing environmental and social risks, transforming the dominant governance
and this plays a particularly important role in approaches to sustainability remains an open
developing a sustainable supply chain. question. Global collective action does not
Similar support for the integration of end when decisions are reached, but these
sustainability within supply chains can be decisions introduce new practices in a
found in the work of Grekova et al. (2016). complex political process that can bring in
Dey et al. (2011) suggest that modern supply new actors, new ideas, and new action for
chains should implement sustainable sustainability (Stevens & Kanie, 2016). It
solutions, not for economic, but moral seems, therefore, that the role of SSCM may
reasons. Brandenburg et. al. (2014) be decisive in the successful implementation
recognize that the key to building a of SDGs, provided that development goals
sustainable supply chain is to find alignment are understood as a process in which all
between economic and environmental issues. components interact with each other.
Other studies indicate the importance (Campagnolo et al., 2018). In a similar vein,
sustainable consumption and production Sudusinghe et al. (2018) emphasize the key
(Govindan, 2018, Gualandris & role of the links that co- create supply chains
Kalchschmidt, 2014; Zimon & Domingues, are embedded within the SDGs. In turn,
2018), reduce risk (Sajjad et al., 2015), Russell et al., (2018) suggests that SDGs
prevention of production problems in have undoubtedly been successful in
developing countries, improved overall broadening the awareness of entities co-
supply chain performance and the need to set creating supply chains, yet their
sustainability criteria for their suppliers implementation in the supply chain may be
(Turker & Altuntas, 2014; Touboulic & problematic due to their very wide scope. It
Walker, 2015; Beske-Janssen et al., 2015; should therefore be emphasized that due to
Fernandes & Bornia, 2019; Tomic & the complexity of SDGs, management
Spasojevic Brkic, 2019). decision makers may encounter many
In summary, we conclude there are many barriers and limitations at the stage of
publications in the literature on the subject of implementation of objectives in supply
SSCM with a call to look for and improve chains. This situation is influenced by the
emerging areas of interest to researchers and fact that the development of an integrated
practioiners. Our review of the literature supply chain management system aligned
with the SDGs is a highly
complicated undertaking and requires
significant involvement in this process of 2. SSCM Drivers, Implementation
these particular goals. It is worth noting that Practices and UN SDGs
in the literature on the subject there is a lack
of research and studies addressing the Sustainable supply chain relationships are
discussed these types of issues. Therefore, formed among a focal company, suppliers,
we find there is a need for comprehensive and customers under the influence of
research in this area, the results of which government and other stakeholders outside
will, to some extent, will help to fill this gap the supply chain (Seuring & Müller, 2008a).
in the literature. These drivers provide an important context
Bearing in mind the above considerations the for developing and implementing new
main objective of the research and thinking practices. The core management practices
presented in this study is to characterize the associated with SSCM include sustainable
conditions and barriers related to the supplier management, sustainable operations
implementation of SDGs in supply chains. and risk management, and corporate social
The explanation of the outlined research responsibility. Overall supply chain
problem and the more detailed research objectives include simultaneously achieving
issues prompted the authors to formulate the economic, environmental, and social
following auxiliary goals: performance. A closer look at
Identification and emphasis on the implementation reveals three interrelated
links between SSCM practices and components considered important by
UN SDGs. (Nilsen, 2015) and expanded upon in this
Development of a model supporting study:
the implementation of UN SDGs in Explanatory theory of
SSCM. implementation: it refers to theories
To the main areas of interest for our and framework developed to
research include: provide overarching understanding
and/or explanation of aspects of
A relatively small number of studies
implementation.
regarding the issues under
examination. Guiding process model of
implementation: the guiding process
The fact that the implementation
describes and/or translates
process of UN SDGs in the supply
implementation into practices.
chain is extremely complex and
requires a systematic approach to Evaluation of implementation:
this issue. addresses the measurement criteria
to determine implementation goals
It is therefore necessary to develop models and success.
that will support the integration process and
make it easier for business decision makers First, we review and provide a foundation for
to choose the optimal implementation explanatory theory and implementation
strategy for UN SDGs in the supply chain. In through a review of the literature involving
summarizing our analysis and synthesis of sustainable development and supply chain
information from this field of inquiry, our management. Going above and beyond the
contributions to the literature include a new intertwining goals among economic,
conceptual model, a dynamic context for the environmental, and social aspects, we
implementation of successful SSCM propose the 17 UN Sustainable Development
initiatives, and a resilient approach for Goals (SDGs) as an overarching alignment
uncovering new theoretical insights. for SSCM implementation. In 2015, the 17
global goals (Fig. 1) and 169 targets were
agreed by United Nations General Assembly
as the 2030 agenda for sustainable
221
development to transform our world (UN, ‘Economy’ (SDGs 8, 9, 11, and 12), or
2015). It should be noted that to make the ‘Environment’ (SDGs 13, 14, and 15). These
extensive SDG package more easily divisions can be considered as helpful,
accessible, different clustering approaches however, in the way in which we present
were suggested, aiming to reduce the summary information we will make a
complexities of the original UN framework. statement of individual objectives with
Considering these clusters, SDGs could be practices realized in the framework of
grouped according to systems, such as SSCM.
‘Energy and climate’ (SDGs 7 and 13),
‘Agriculture, food, and terrestrial’ (SDGs 2 Then, extending the framework developed
and 15), or ‘Economic development and by Seuring and Müller (2008a) and aligning
equity’ (SDGs 1, 5, 8, 9, and 11). Other with
approaches interlink SDGs according to their 17 UN SDGs, we propose a sustainable
functions, such as (Körfgen et al., 2018) supply chain framework (figure 1) for a
‘Social objectives’ (SDGs 1, 3, 4, 5, and 10), company to implement their own SSCM
strategy.
The UN SDGs serve as an overarching goal customers, suppliers, and third parties.
to align various aspects of SSCM Internal drivers include management
implementation. This implementation commitment (Ansari & Kant, 2017),
framework can be a foundational element to organization involvement (Luthra et al.,
help develop explanatory theory and provide 2014), supportive culture (Walker & Jones,
practitioners a blueprint of overseeing of 2012), productivity improvement
SSCM strategies. (Srivastava, 2007), and competitive
SSCM drivers are one explanatory aspect of opportunity (Linton et al., 2007) where top
implementation, which provide motivational management commitment is normally cited
factors for a focal company to adopt SSCM as the most important internal driver.
practices. We can view drivers from internal External pressures from customers/suppliers
and external angles, where external drivers refer to business social compliance (Walker
can further divide into perspectives of & Jones, 2012), environmental regulation
compliance
(Srivastava, 2007; Seuring & Müller, 2008), environment regulation (Srivastava, 2007),
green product and reverse logistics competition (Walker & Jones, 2012),
requirements (Ageron et al., 2012), and reputation (Seuring & Müller, 2008b; Sroufe,
customer and supplier involvement (Luthra 2017), and social responsibility ( Luthra et
et al., 2014). The SSCM third parties cover al., 2014; Xia & Li-Ping Tang, 2011; Zailani
local government, international regulatory et al., 2012). Among all internal and external
institutions, competitors, investors, and drivers, regulatory pressure is commonly
general publics; the derived pressures like identified as the influential driver for SSCM
regulatory pressure (Ansari & Kant, 2017; implementation. Table 1 summarized the
Chen, 2008; Chiou et al., 2011), institutional drivers of SSCM implementation.
pressure (Dubey et al., 2017), international
Next, we review the evaluation of SSCM energy and hazardous material consumption
implementation, which represent the (Charter & Gray, 2008; Ramudhin et al.,
performance measurement of SSCM. From a 2009).
strategic thinking perspective, it makes
business and rational sense to set SSCM Economic performance includes total cost
goals before determining what SSCM (Linton et al., 2007), waste reduction
practices to implement. And to make those (Azevedo et al., 2011), inventory cost and
goals and practices material to the firm. order fulfillment rate (Tyan & Wee, 2003),
Materiality means important to stakeholders sustainable risk mitigation (Sroufe, 2017),
and within the control and alignment of the green purchasing performance (Seman et al.,
firm as recommended by the Global 2012), green innovation (Charter & Gray,
Reporting Initiative (GRI). Setting SSCM 2008; Chen, 2008), competitive advantage
performance objectives is an integrative (Chiou et al., 2011; Luthra et al., 2014;
process considering internal and external Vachon & Klassen, 2006), and long-term
drivers, enablers, resources and constraints. profitability (Azevedo et al., 2011).
In order to align company SSCM goal with Social performance measures consider green
UN SDGs, we divide the SSCM metrics into image and product image (Chen, 2008;
environmental, economic, and social Azevedo et al., 2011; Seman et al., 2012),
performance. public perception (Luthra et al., 2014),
Environmental performance starts with corporate social image (Xia & Li-Ping Tang,
maintaining compliance to environment 2011), level of partnership (Tyan & Wee,
standards (Chiou et al., 2011; Luthra et al., 2003), quality of life of communities, and
2014), greenhouse gases emissions social responsibility (Sroufe, 2017). This
(Ramudhin et al., 2009), green-design level review of SSCM performance measures are
(Seman et al., 2012), green purchasing level summarized in Table 2, and can be used to
(Seman et al., 2012; Zhu & Sarkis, 2004), both guide and evaluate the SSCM
and implementation process and its success.
Table 2. Performance measurement of SSCM
Environmental performance Economic performance Social performance
Compliance to environmental Total cost Green images
standards Waste reduction Product image
Greenhouse gases emissions Inventory cost Public perception
Green-design level Order fulfillment rate Corporate social image
Green purchasing level Sustainable risk mitigation Level of partnership
Energy consumption Green purchasing Quality of life of
Consumption for performance communities
hazardous/harmful/toxic Green innovation Social and community
materials Competitive advantage responsibility
Long-term profitability
Next, in an attempt to align SSCM practices goals (SDG 7-9, 11-12), social goals (SDG 1-
with UN SDGs, we build on the 5, 10, 16-17), and environmental goas (SDG
methodology developed by Costanza et al. 6, 13-15). Following a deliberating and
(2016) to aggregate 17 UN SDGs into 3 recursive mapping process, the SDGs link
clusters: efficient allocation to build a living with relevant SSCM practices according to
economy (i.e. economic aspect), fair their scope and objectives.
distribution to protect capability for
flourishing (i.e. social aspect), and Taking all together, Figure 2 presents the
sustainable scale to stay within planetary SSCM practices alignment with UN SDGs
boundaries (i.e. environmental aspect). This and sustainable aspects.
procedure results in mapping the SDGs into
three focal areas: economic
17 SDGs 17 SDGs
Reverse logistics
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