GSCM4
GSCM4
GSCM4
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Sustainable
Sustainable supply supply chain
chain management management
Abstract
Purpose – The business enterprises are increasingly focusing on buying and supplying of products and
services in a manner to reduce the adverse impacts on the environment, society, and economy. In view of the
above, the concept of sustainable supply chain management (SSCM) has received attention of the industry
and academia due to its importance on environmental, social and corporate responsibility through economic
performance. The paper aims to discuss these issues.
Design/methodology/approach – The structured literature review attempts to map the various theories in
the SSCM literature from the perspectives of economic performance, environmental dimensions, and social
values and ethics.
Findings – As supply management is vital for enhancing organizational competitiveness, the present work
attempts to investigate the theoretical perspectives in SSCM to develop an understanding of the current
research activities and future potentials.
Practical implications – This work aims to gain a number of valid insights for the practitioners and the
researchers. It also focuses on the perspectives of governance mechanisms for successful implementation
SSCM practices in the business enterprises.
Originality/value – As the theory building initiatives with implications on the conceptualization of SSCM
is limited in literature, this work has also been able to identify the trends and relevant research gaps to define
the potential areas for future research.
Keywords Social sustainability, Environmental sustainability, Sustainable supply chain management,
Economic performance, Sustainability
Paper type Literature review
1. Introduction
Due to the present economic condition and globalization, the supply chains (SCs) are getting
more and more complex (Varma et al., 2006) and subsequently designing, organizing and
interacting within the SC has become a challenging task (Gold et al., 2010a, b). The need of a
change in focus from firm level to SC level and also aligning the organizational goals with the
sustainability goals is necessary owing to the rising environmental and social concerns
(Gold et al., 2010a, b). All the stakeholders in the SC must work together to achieve the
sustainability goals. Organizations will remain reluctant to commit to sustainability standards,
till the time specific laws have not been enforced. The measurement of the success of sustainable
initiatives differs from organization to organization (Searcy et al., 2009).
SC functions contribute significantly to the field of sustainability and when viewed from
a life cycle perspective, the sustainable initiatives are not possible without involving the SC
Management of Environmental
Quality: An International Journal
The authors are greatly indebted to the panel of reviewers for their valuable comments and © Emerald Publishing Limited
1477-7835
suggestions which has helped to modify the paper to the present form. DOI 10.1108/MEQ-01-2018-0003
MEQ management function (Preuss, 2005). The structural components in the supply chain
management (SCM) literature are identifiable and affect behavior which involves the
planning, monitoring, workflow design, organizational structure, knowledge management,
and communication structure. However, the behavioral components are less recognizable
and hence more challenging to synchronize across the SCs which are management
techniques, leadership, risk management, rewards and recognition, culture and attitude, and
trust and commitment (Winter and Knemeyer, 2013). In the recent literature available, the
principles of sustainability have become one of the major trends in SCM. The present review
of literature includes assessment of SCM policies with a triple bottom line orientation.
Sustainable supply chain management (SSCM) has been the topic of interest for a number
of research papers both in qualitative and quantitative fields (Genovese et al., 2017). So, it is
quite necessary that sustainability concerns must be incorporated into the core functions of the
SC namely purchasing, manufacturing, distributing, storing, warehousing, usage, recycling
and disposal which have been depicted in Figure 1 (Linton et al., 2007). Business firms are
under tremendous pressure in order to able to sustain their existing SC due to recent trends of
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globalization, market changes, demand uncertainty, and economic challenges. Focusing only
stressing on the internal efficiencies of SC will be insufficient to gain competitive advantage.
If sustainability concepts are integrated into core functions of a business firm’s SC, it achieves
a good market position in the global context (Khodakarami et al., 2015).
Transformation of the conventional SCM into SSCM generates tremendous pressure on
firms to bring changes to their existing SC in order to meet the current sustainability needs
(Busse et al., 2017). SSCM is management process which integrates environmental
considerations, social performance, and economic contribution. Varied customer demand
and complex product components gave rise to a strong internal competition between
businesses along with the global competition (Raut et al., 2015). SSCM generates the right
sets of abilities for the firms to be able to differentiate themselves from their contemporaries
(Khodakarami et al., 2015).
There are several instances of firms developing a commitment towards adopting
sustainability practices in order to make their SCs sustainable (Govindan et al., 2015).
Eco-friendly products and pollution free production practices are being encouraged for
sustainable development (Xie, 2016). The sustainability theory inspires firms to implement
practices such as return of products to manufacturer at the end-of-life cycle, environment
friendly management of returns (Zhu et al., 2005), while incorporating green strategies at each
level of SC, maintaining healthy working conditions, fair compensation practices, equal
human rights and cultural diversity (Rajak and Vinodh, 2015).
Customers
Value
and product
proposition
use
Sustainable
Distribution Supply Chain Reuse, Recycle,
Return
Management
Figure 1.
SSCM core functions Manufacturing Purchasing
In a challenging and competitive world like ours, SSCM is such a robust tool that could Sustainable
bring about revolution by enhancing corporate effectiveness in terms of social and supply chain
environmental performance thereby achieving profitability (Seuring and Muller, 2008; management
Tseng et al., 2015; Fahimnia et al., 2017). The academic research related to SSCM has been
given importance in recent times. But, there is a need for deep academic inquiry to help the
SC managers in their decision-making process without compromising the importance of
sustainability.
The remainder of the paper is organized as follows. A set of definitions for SSCM has
been presented in Section 2. The methodology adopted to conduct this study has been
presented in Section 3. A detailed review of literature including various aspects of SSCM is
presented in Sections 4 and 5. Some managerial insights have been provided based on the
study in Section 6. The potential gaps that have been identified from the literature and
relevant research recommendations have been presented in Section 7. The paper ends with
the concluding remarks in Section 7 followed by the references.
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Shrivastava (1995) Reduction of risks occurring in long term that is associated with resource utilization,
energy utilization and associated costs, product design, pollution, and management of
waste in a supply chain
Beamon (1999) An extended supply chain that aims at minimizing environmental impacts of a product
throughout its entire life cycle, such as green design, resource saving, harmful material
reduction, and product recycle
Jørgensen and The means by which companies manage their social responsibilities across dislocated
Knudsen (2006) production processes spanning organizational and geographical boundaries
Linton et al. (2007) Integrate issues and flows that extend beyond the core of supply chain management,
including product design, manufacturing by-products, by-products produced during
product use, product life extension, product end-of-life, and recovery processes at
end-of-life
Seuring (2008) Integration of sustainable development and supply chain management (in which) by
merging these two concepts, environmental and social aspects along the supply chain
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have to be taken into account, thereby avoiding related problems, but also looking at
more sustainable products and processes
Font et al. (2008) Adding sustainability to existing supply chain management processes, to consider
environmental, social and economic impacts of business activities
Ciliberti et al. The management of supply chains where all the three dimensions of sustainability,
(2008) namely the economic, environmental, and social ones, are taken into account
Carter and Rogers Integrating and attaining the organization’s social, environmental, and economic goals
(2008) in a systemic coordinated manner so that the inter-organizational business decisions
lead to improvement of the long-term economic performance of the organizations and
its supply chains
Seuring and The management of material, information and capital flows as well as cooperation
Muller (2008) among companies along the supply chain while taking goals from all three dimensions
of sustainability, such as, the economic, environmental and social, into account which
are derived from customer and stakeholder requirements
Pagell and Wu The specific managerial actions that are taken to make the supply chain more
(2009) sustainable with an end goal of creating a truly sustainable chain
Badurdeen et al. Involvement of the planning and management of sourcing, procurement, conversion
(2009) and logistics activities involved during pre-manufacturing, manufacturing, use and
post-use stages in the life cycle in closed-loop through multiple life-cycles with
seamless information sharing about all product life cycle stages between companies by
explicitly considering the social and environmental implications to achieve a shared
vision
Haake and The set of supply chain management policies held, actions taken, and relationships
Seuring (2009) formed in response to concerns related to the natural environment and social issues
with regard to the design, acquisition, production, distribution, use, reuse, and disposal
of the firm’s goods and services
Wolf (2011) The degree to which a manufacturer strategically collaborates with its supply chain
partners and collaboratively manages intra- and inter-organization processes for
sustainability
Closs et al. (2011) Reflection of the firm’s ability to plan for, mitigate, detect, respond to, and recover from
potential global risks. Risks and supply chain considerations such as product
development, channel selection, market decisions, sourcing, manufacturing
complexity, transportation, government and industry regulation, resource availability,
talent management, Alternative energy platforms and security
Wittstruck and An extension to the traditional concept of supply chain management by adding
Teuteberg (2012) environmental and social/ethical aspects
Hassini et al. The management of supply chain operations, resources, information, and funds in
(2012) order to maximize the supply chain profitability, while minimizing the environmental
impacts and maximizing the social well-being
Table I.
SSCM definitions (continued )
Author Definitions
Sustainable
supply chain
Ahi and Searcy The creation of coordinated supply chains through the voluntary integration of management
(2013) economic, environmental, and social considerations with key inter-organizational
business systems designed to efficiently and effectively manage the material,
information, and capital flows associated with the procurement, production, and
distribution of products or services in order to meet stakeholder requirements and
improve the profitability, competitiveness, and resilience of the organization over the
short- and long-term
Pagell and Sustainable supply chain is the design, coordination, control and organization of a
Shevchenko (2014) supply chain to make it truly sustainable with minimum expectation being to achieve
economic viability, while ensuring no harm to environment and social systems over an
extended period of time
Raut et al. (2015) Sustainable supply chain management (SSCM) is management process which
integrates environmental considerations, social performance, and economic
contribution. Varied customer demand and complex product components gave rise to a
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strong internal competition between businesses along with the global competition Table I.
(Charter et al., 2001). But, the present-day suppliers do not have adequate financial
opportunities and information to enhance their firm’s sustainability performance.
South-East Asian firms have made product changes to be able to match the Western
buyer’s needs but have not really adopted the sustainable standards in their SC (Hamner,
2006). Hence, it is necessary that the green procurement strategies should be made robust
enough to be able to identify the reality rather than just sticking to the terms and conditions
over paper. Eco-labeling strategies have also come up to be able to track the extent of
sustainable initiatives involved in the manufacturing of a product (Ball, 2002).
4. Perspectives of SSCM
SSCM has emerged from the identification of the strategic importance of purchasing and
supply decisions to attain the organization’s long-term performance, and address the
sustainability issues. SSCM researchers need to understand the risk arising out of the lack of
a conceptual foundation in SSCM which can otherwise become a legitimate management
discipline (Carter, 2011). The descriptive nature of current SSCM research has been
elaborated which is useful in gathering knowledge on facts, however, these are unable to
significantly contribute to the SSCM theories and that is why this field was considered to be
conceptually immature and underdeveloped having a lot of scope for further research
(Hoejmose and Adrien-Kirby, 2012). There are broadly three different perspectives of SSCM
that have been addressed by researchers over time, such as, environmental perspective,
social perspective and economic perspective. We have attempted to classify the available
literature by including two more perspective, i.e. the performance measurement perspective
and governance perspective. The various perspectives of SSCM have been categorically
represented in Figure 2.
Efficient Resource
Eco-friendly utilization
technologies
Environmental
Management System
pollution and damage thereby an increased focus on various waste control measures are a
necessity. The environmental aspect of sustainability constitutes a critical research area
in SSCM.
The environmental focus generated more quantifiable benefits than the social focus
(Banerjee, 2003). Authors have conducted an analysis in SC to study the impact on
environment and found that the techniques for optimal use of energy in manufacturing
results in a substantial decrease of carbon emission by minimizing energy consumption to a
minimum (Bevilacqua et al., 2014). Researchers have included concepts of sustainability into
the field of logistics and SCM and suggested the use of high productivity freight vehicle for
transportation as it would minimize the cost of transportation by 33.5 percent and also its
impact on the environment (Lee and Wu, 2014).
It has been suggested that a few SSCM activities can be included in the business plans
for a sustainable future such as minimizing the cost of packaging by effective product
design, reuse and recycling, reduced turnover and recruitment costs by efficient storage,
warehousing and transportation facilities, proper working conditions (Carter and Rogers,
2008). This would lead to low labor cost because of high motivation, enhanced product
quality, and adoption of the ISO 14000 standards.
The environmental aspect in the triple bottom line of sustainability involves the objectives,
plans, tools and techniques to encourage greater environmental responsibility and promote
eco-friendly and pollution free technologies (Klassen, 2001). One of the major aspects of a
sustainable SC is the adoption of green procurement strategies (Varnäs et al., 2009).
MEQ The reverse logistics aspect is one of the most important processes in the green SCM
framework, which is connected to recycling. In the case of reverse logistics, a manufacturer is
ready to accept the products that had been shipped earlier for recycling, refurbishing or
disposal (Varma et al., 2006) which supports process from “cradle to cradle.” This also supports
the concept of SSCM which leads to the conclusion that sustainable initiatives need to be
incorporated at all SC stages. Effective use of scarce resources is possible through recycling,
reuse and waste reduction which is the entire motive of reverse logistics resulting in improved
competitiveness (Rao and Holt, 2005). Authors conclude that the product life cycle assessment
leads to environmental stability (Varma et al., 2006; Hagelaar and van der Vorst, 2002).
The enterprises need to work closely with their suppliers in order to improve the
environmental performance of their products and production processes. If an environmental
management system is incorporated in an organization, then it can portray itself as
environmentally proactive by providing a means to monitor the environmental
performance. The stakeholders can hence verify if the environmental improvements are a
reality or a marketing strategy (Darnall et al., 2008).
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The life cycle analysis (LCA) has huge environmental benefits. In order to truly benefit
from LCA, intense SC partnerships are required (Hagelaar and van der Vorst, 2002),
however; regardless of several attempts of highlighting the importance of SC relationships,
the focus is mainly on greening the SC processes.
Design for the environment represents the design and development of new products and
processes that address issues of the natural environment. These products are not only
recoverable but also durable, repeatedly usable and eco-friendly. The aim of product
stewardship is to support the ecological perspective in the entire value chain including all
the stakeholders including R&D members, designers and suppliers (Rusinko, 2007). This
strategy establishes a reputation in the market as an environmentally responsible
organization. It may be noted that if a product is recalled from the market as it has not met
the environmental concerns, the economy of the organization is hampered.
Structural changes in the logistics system can foster environmental sustainability. Customers
prefer green packaged products in the recent times owing to the rising environmental concerns.
Authors have revealed that there is a need to implement energy-efficient logistics systems and
minimize the global carbon footprint (Halldórsson and Kovács, 2010). The importance of role of
retailers in minimizing carbon footprint in a SC has been felt by several researchers (Wiese et al.,
2012). Some of the measures for minimizing the carbon footprint are economy in energy usage,
use of cross-docking and third party logistics service providers, green packaging, and accuracy
in demand forecasting ( Ji et al., 2014).
SC managers take decisions pertaining to environment without adequate information
which gives rise to adoption of common assumptions and readily available rules for decision
making (Wu and Pagell, 2011). SSCM has been classified into 3R’s (reuse, recycle, and
remanufacture) for process improvement, and (reduce, recover, and redesign) for product
design (Kuik et al., 2011). However, the major challenges for environmental sustainability lie
in the uncertainties, complexities, organizational culture, cost and operationalization of the
sustainable initiatives. The details of the review papers on SSCM from environmental
perspective are presented in the Table II.
organization is functional. Authors have highlighted that the social aspect of sustainability
is one of the most important aspects in SSCM as organizations involve multiple stakeholders
with varying goals, objectives, and perspectives and managing this variation poses a
challenge (Hall and Matos, 2010).
Social responsibility concepts have used Carroll’s (1979, 1991) work of the hierarchy of
economic, legal, ethical, and other responsibilities to identify the SCM activities which can
cater to social responsibility. Social sustainability is related to poverty alleviation, ensuring
justice and human rights, and all round welfare of the employees (Krause et al., 2009).
The interrelation and prioritization of ecological, human, and economic aspects is difficult to
comprehend. Employment of socially sustainable practices into business enterprises is a
challenging task (van der Heijden et al., 2012).
A socially responsible enterprise must extend its values and standards to their suppliers
(Tate et al., 2010) and focus on maintaining long-term partnerships, proper communication
and supplier development (Leire and Mont, 2010). Fair trade is a social practice that aims at
attaining fairer partnerships with suppliers and it provides another alternative model for
international trade that involves better trade practices, fair pricing, and informing the
consumers about the adverse effects of traditional trade practices. The supplier
management strategies should focus on developing the suppliers and guiding them to
implement the sustainable supply chain (SSC) practices to attain competitive advantage
(Harms et al., 2013). Authors have stated that adding the stakeholder concerns into the
decision-making process would pave way for identification of necessary steps that are
a pre-requisite for designing, planning and operating a socially responsible SSC (Simões
et al., 2014).
Social sustainability is closely related to corporate social responsibility (CSR) that
includes activities for social good, beyond the obvious, economic interests of an organization
(Sarkis et al., 2010). Some authors have assessed the relationship between corporate social
decisions and social indicators of sustainability by incorporating life cycle assessment
model (Hutchins and Sutherland, 2008). They argue that every single corporate decision
affects national level measures of social sustainability of SSCM. The idea of CSR is that the
firms should meet the economic, legal, ethical, and other expectations of stakeholders and
also satisfy their economic needs keeping in mind the societal and the environmental needs
(Defee et al., 2009). Some researchers have indicated the social implications of SSCM as a
part of the CSR initiatives (Keating et al., 2008; Tencati et al., 2010). In order to facilitate Sustainable
proper coordination between various activities such as procuring, manufacturing, supply chain
distributing, and marketing, the promotion of CSR activities cannot be ignored (Keating management
et al., 2008) SC managers who take decisions regarding the operational, strategic, and design
aspects can play a major role in kick starting the adoption of sustainability practices. These
steps have a direct influence on the quality of living, safety, health concerns, and public
welfare (Sarkis et al., 2010). Hence, there is a requirement of systematic supportive
management structures and monetary investments into the SSCM field.
Few researchers have concluded that most organizations are adapting to sustainable
standards due to an increased stakeholder pressure to safeguard the environment and
the society (Seuring and Muller, 2008). It does not imply that the economic aspect is to be
completely neglected. There are instances of companies that have adopted sustainable
activities taking into account the environment and society have had long-term economic
benefits and a leading edge among the contemporaries (Carter and Rogers, 2008; Markley
and Davis, 2007).
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1. Code of Code of conduct is a set of rules that needs to be adopted Roberts (2003), Matos
conduct by all enterprises. It includes social responsibilities, and Hall (2007),
religious norms, moral values which is essential to build Keating et al. (2008)
a good reputation of the organization. Employees stay
motivated when their organization abides by an ethical
code of conduct
2. Employee The employees in an organization have some Carter and Rogers
rights, welfare fundamental rights such as, right to privacy, fair (2008), Leire and Mont
and working compensation and transparency, zero discrimination. (2010), Simões et al.
conditions Legislations that protect the employees rights exist, (2014)
however, implementing these in real terms is still a
challenge. The working condition is also a major
factor to keep the employees motivated. It is the
enterprise’s responsibility to take care of the employee
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sustainability, authors have also included the economic dimensions such as financial
performance, cost minimization, competitive advantage and profits (Winter and Knemeyer,
2013). In order to attain economic sustainability, some critical factors such as collaborative
relationships through information sharing, optimized logistics support and profitability
need to be addressed (Dubey et al., 2016). Many authors have also suggested that SC
partnerships and environment related programs have a positive effect on the perspectives of Sustainable
SSCM (Vachon and Klassen, 2008; Blome et al., 2014). The implementation of SSCM supply chain
energy-efficient practices are feasible through financial incentives, loans and low pay back management
periods (Dam and Petkova, 2014; Glover et al., 2014). A firm’s long run success and its
competitive advantage are the economic considerations. When compared to the social and
environmental aspects, the economic aspect is about the judicious utilization of the natural
resources and attaining a high return on investment (Rumelt, 1974). Traditionally, the
economic aspect of sustainability was mainly focused upon by firms and businesses;
however, lately the environmental and social aspects have gained impetus even though it is
challenge to be able to measure them.
It has been suggested in the literature that a collaborative planning, forecasting and
replenishment system to promote partnerships in the SCs, and ways to achieve collaboration
for sustainable competitive advantage in the SC (Attaran and Attaran, 2007). The benefits of
inter-organizational SC collaboration to support enterprises for initiatives to reduce
recycling and disposal costs through the creation of a common platform have been reported
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time and again (Lee and Lee, 2010). Supplier selection is integral for SC collaboration,
profitability, and technology integration for which various multi-criteria decision-making
tools are used (Dubey et al., 2016). Researchers have revealed that future SCs need to develop
collaborative relationships with cost reduction measures by acquiring the technical,
communication, and financial skills (Giunipero et al., 2006).
The implementation of SSCM strategies through coordination of the organization’s
economic, environmental and social goals results in maintaining transparency of all their
business processes (Pagell and Wu, 2009). When cost was measured over the whole product
life cycle, sustainable strategies are cost effective for both in short term and long term, it led
to competitive advantage by identifying, drafting, and communicating the firm’s SC
strategies and goals in collaboration with their suppliers (Krause et al., 2009). Authors have
stated that the governments must promote procuring from small and local suppliers
through partnerships to enhance the local economic and social aspects of sustainability
(Walker and Preuss, 2008).
It is necessary to align marketing strategies with SSCM strategies to create a lean and
resource efficient SC (Brindley and Oxborrow, 2014). When compared to the social and
environmental aspects, the economic aspect is about the judicious utilization of the natural
resources and attaining a high return on investment (Rumelt, 1974). The details of the
review papers on SSCM from economic perspective are presented in the Table IV.
1. Financial Firm’s financial health over a specific time period is the Krause et al. (2009),
performance financial performance of the firm. It is measured in Winter and
and monetary terms by analyzing the firm’s policies and Knemeyer (2013)
competitive operations. Assets recovery, cost minimization, enhanced
advantage profitability, effective inventory management, adequate
environment regulations are the of the key performance
measures of SSCM that lead to competitive advantage
2. Incentives, The planning and price incentive decisions include low Dam and Petkova
low interest interest loans with quick payback period to stakeholders. (2014),
loans, quick The eco-friendly technologies have long and uncertain Glover et al. (2014)
payback payback periods whereas the cheaper technologies have
periods faster pay back periods or low interest rate loans. This
issue requires attention
3. Business Business transparency of product conformity is essential Pagell and Wu (2009),
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SSCM (Vermeulen and Seuring, 2009). The role of collaborative approaches has been highlighted
in the field of SSCG (Vurro et al., 2009). Some authors have also revealed the importance of
formalization of governance mechanisms. It is suggested that the investigation of environmental
and social responsibilities beyond the organizational boundaries is vital to derive suitable
implications for upstream and downstream functions of a SC (Bassen and Kovacs, 2008).
There is a need to study how the SC governance mechanisms respond to sustainable Sustainable
strategies, stressing on contracting issues (Carter and Easton, 2011). There are several supply chain
papers that suggest frameworks to understand the linkage between the various governance management
mechanisms (Vurro et al., 2009); however, empirical validation of how the sustainable
business models come to practice and align with the governance structures is still missing
(Formentini and Taticchi, 2016). It is essential to study the governance of inter-firm
relationships and their influence from effective governance and the resulting firm
performance. Some researchers have also argued that formal and relational mechanisms
could be used to manage resources within partnerships, and these formal mechanisms are
more suitable for property-based assets than relational governance which is best suited for
knowledge-based assets (Hoetker and Mellewigt, 2009). They also stated that the companies
that chose an effective governance mechanism would induce a positive impact in achieving
some alliance goals, namely financial access, new markets opportunities, cost reductions,
and risk minimization.
A set of new governance structures for SCs have been proposed which includes the
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reports of nine companies (Turker and Altuntas, 2014). It is revealed that sustainability
accounting and sustainability assessment can be utilized to assess the financial implications
and benefits of sustainable practices (Schaltegger and Burritt, 2010). Researchers conducted
a study in 86 Italian manufacturing firms to probe how they attain their environmental and
social practices and sustainability performance and found that with development in
SSCM the organization’s sustainability performance increases (Gualandris and
Kalchschmidt, 2016).
It has been stated in the literature that the stringent environmental regulations, which
define specific processes of SCs to attain a particular outcome, cripple the economic
performance of the organization (Ramanathan et al., 2010). The research focuses that
organizations can become instrumental to reverse the hindrance by innovative utilization of
resources and capabilities. Authors have evaluated that if various organizational factors such
as SC actors’ nationality and associated national risks affect the relationship between
sustainability governance and environmental, social and governance (ESG) performance
(Ramanathan et al., 2010). They stressed that collaborative governance mechanisms result in
high ESG performance. Authors have studied the direct and indirect effects of eco-innovation
on environmental performance of firms in terms of minimization of greenhouse gas (CO2 , NOx,
and SOx) emissions and stated that there is strong positive impact of eco- innovation on the
environmental performance of firms (Costantini et al., 2017). The details of the review papers on
SSCM from performance perspective are presented in the Table VI.
1. Audit and To adopt and improve sustainability, tools such Hassini et al. (2012),
assessment as eco-labeling, environment management Taticchi et al. (2013),
systems, environmental and social audits are Grosvold et al. (2014),
necessary. A supplier assessment plan consists of Dubey et al. (2015),
monitoring, auditing and evaluating the SC Gunasekaran et al. (2015)
operations periodically. Frequent assessment and
auditing improve SC performance. Firms need to
impose these procedures on their suppliers to
promote sustainable behavior
2. Standardization Firms stress on the standardization of economic, Ching and Moreira (2014)
and traceability social and environmental working conditions of
their suppliers through compliance. A
standardized performance in the SC can be
attained by promoting product traceability
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Balaman et al. SSCM Hybrid fuzzy set Developing a decision support system Economic,
(2018) theory comprising two multi-objective environmental
mathematical models to optimize the
configuration of multi-technology bio-
product SCs and design co-model
transportation networks
Battini et al. None Life cycle Integrated inventory management for SC Economic,
(2014) assessment (LCA) cost optimization by assessing the impact of Environmental
and analytical sustainability perspectives on procuring
model (EOQ) decisions
Besiou et al. CLSC Single objective Influence of scavenging on the operations of Economic,
(2012) simulation the formal recovery system of waste environmental,
electrical and electronic equipment with social
three regulatory measures applying the
system dynamics methodology
Borchardt None Ecological foot Eco-design implementation to reduce Economic,
et al. (2011) printing and environmental impact and cost of environmental
input-output production and assembly in footwear
analysis industry
Bouchery SSCM Carbon foot Sustainable order quantity model and its Economic,
et al. (2012) printing and multi echelon extension and effectiveness of environmental,
analytical model regulatory policies to control carbon social
(EOQ) emissions
Boukherroub SSCM Multi-objective Integrated approach for transposing Economic,
et al. (2015) linear sustainable development principles to SC environmental,
programming planning models by linking sustainability social
(MOLP) performance on SC decisions
Chaabane SSCM LCA and MOLP Evaluation of trade-offs between economic Economic,
et al. (2012) (Optimization) and environmental objectives under various environmental
cost and operating strategies in an
aluminum industry and highlights efficient
carbon management strategies
Choi and Chiu SSCM Single objective Understanding the mean downside-risk Economic,
(2012) analytical model (MDR) and mean-variance (MV ) environmental
(Newsvendor) newsvendor models under both the
exogenous and endogenous retail price
decision cases; comparison of levels of
sustainability of retailers that employ mean- Table VII.
risk and risk-neutral models Modeling techniques
in SSCM and
sustainability
(continued ) dimensions addressed
MEQ Sustainability
Focused Used modeling dimensions
References paradigm technique Focus addressed
It has been found that quantitative research is required to justify the decision-making
process while integrating sustainability and SCM (Seuring, 2013). Authors have advised
that it is vital to identify the current status of the field to be researched upon if it is driven by
qualitative or quantitative process (Ansari and Kant, 2017). Some of the modeling
approaches for SSCM in literature are presented in Table VIII.
Equilibrium Standard and well established Balancing of environmental Corbett and De Croix
models methodologies on evaluating and and economic issues by (2001), Kainuma and
assessing sustainability issues in utilizing relevant equilibrium Tawara (2006),
supply chains or optimum solution(s) Nagurney and
Toyasaki (2003),
Saint Jean (2008),
Seuring (2013)
Multi-criteria Disciplines that explicitly deliberate Optimizing environmental Geldermann et al.
decision-making multiple conflicting criteria, which and economic criteria (2007)
(MCDM) models require to be evaluated in decision- by balancing trade-offs
making processes or proposing optimal
solutions
Input-output Techniques in which relationships Evaluating outputs of Bonney and Jaber
analysis (IOA) between outputs of some environmental capital (2013)
based models performance measures and the (e.g. renewable and
supply chain’s input parameters non-renewable ecological
alongside their related decision goods, material use, and
factors can be analyzed impact of emissions on
human health) and economic
goals (i.e. lowering costs and/
or maximizing profits) along
supply chain networks
Table VIII.
Composite Practical tools in focusing attention Policy prioritization, decision- Hassini et al. (2012),
Quantitative analytical
metrics through their abilities to summarize making, and communication Singh et al. (2009) modeling approaches
complex and multifaceted problems with respect to various levels for assessing
into single metrics of system performance sustainability issues
Source: Ahi et al. (2016) in the SC
8. Technological integrations with suppliers and customers Beamon (1999), AlKhidir and Zailani (2009)
9. Role played by project leaders and value champions Vachon and Klassen (2007), Vachon and
Klassen (2008)
10. Organizational contingencies such as size and nationality Min and Galle (2001)
11. Customer interest and stake holder pressure Hervani et al. (2005), Seuring and Muller
(2008)
12. IT infrastructure and knowledge enhancing mechanisms Walker and Jones (2012)
13. Employee and stakeholder orientation and support
14. Supplier certification and non-traditional supplier Revell and Rutherfoord (2003)
development (sustainability, orientation, innovation
capability, measurement systems)
15. Government support and Government regulations Mudgal et al. (2009), Paulraj (2009), Bai and
Sarkis (2010)
16. Performance measurement system Walker et al. (2008)
17. Community development and social welfare Zhu et al. (2013), Ortas et al. (2014)
18. Employee training, health, safety, compensation Hutchins and Sutherland (2008), Matos and
Table IX. Hall (2007)
List of enablers 19. Social value and ethics Carter and Jennings (2002)
imperative to derive a predictive and holistic approach for promoting sustainability along
SCs. It has been seen that the integration of sustainability is one of the most crucial topics in
the field of operations management ( Jabbour and de Sousa Jabbour, 2016).
The literature review conducted by some authors focused on generating integrated
sustainability concept (Carter and Rogers, 2008). A theoretical framework was devised by
the authors about the future SSCM research directions. The review work done by some
authors extended this work in greater details by adding recent research articles
(Winter and Knemeyer, 2013). Researchers have provided a systematic literature review
considering 80 top tier SCM journals which mostly described methodological and
analytical portions of SSCM and omitted the managerial insights (Carter and Easton,
2011). The integration of sustainability concepts with SCM processes is not limited to
the activities within a single firm rather it should occur across the entire SC involving
all the stakeholders.
A review done by some authors has reported the benefits of integration of sustainability
with SCM (Winter and Knemeyer, 2013). In another review work, authors have classified the
literature into four categories, i.e. time period and journal wise distribution, types of research
methodologies employed and the extent of incorporating sustainable practices (Seuring and
Muller, 2008). Quite a few publications have been reviewed by some authors that were based
on case studies and quantitative analysis (Gold et al., 2010a, b). Authors have presented a
Barriers References
Sustainable
supply chain
1. Lack of job stability Kuik et al. (2011), Gabzdylova et al. (2009), management
Bhaskaran et al. (2006)
2. Lack of healthcare and work safety measures Carter and Rogers (2008)
3. Inadequate community welfare measures Gabzdylova et al. (2009)
4. High environmental cost Carter and Rogers (2008)
5. Lack of implementation of green practices Govindan, Popiuc and Diabat (2013)
6. Lack of adoption of eco-purchasing Mudgal et al. (2009)
7. Lack of eco-design strategies Zhu et al. (2005), Vojdani and Lootz (2012)
8. Lack of stricter government rules and regulations Zhu et al. (2005)
9. Lack of disaster management approaches Waheed et al. (2009)
10. Lack of consumer satisfaction Hussain (2011), Faisal (2010b)
11. Lack of enhancement of product features Hussain (2011)
12. Inadequate infrastructural support Kleindorfer et al. (2005), Elkington (1994)
13. Complex to measure environmental standards Faisal et al. (2007), Mudgal et al. (2009)
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adopted by suppliers
14. Fear of failure and monetary losses Rao and Holt (2005), Revell and Rutherfoord
(2003)
15. Lack of skilled human resource Hillary (2000)
16. Lack of proper technical expertise Van Hemel and Cramer (2002), Hillary (2000),
Revell and Rutherfoord (2003)
17. Lack of awareness about reverse logistics adoption Ravi and Shankar (2005)
18. Skeptic about environmental benefits Revell and Rutherfoord (2003)
19. Perception of “out of responsibility” zone Hillary (2000)
20. Lack of green system exposure professionals Mathiyazhagan et al. (2013)
21. Lack of environmental knowledge Bowen et al. (2001), Hillary (2000)
22. High investment and less return on investments Mathiyazhagan et al. (2013)
23. Non availability of bank loans to encourage green Mathiyazhagan et al. (2013)
products/ processes
24. High cost for disposing hazardous wastes Mathiyazhagan et al. (2013)
25. Lack of training courses to train and guide the Bowen et al. (2001), Carter and Dresner (2001) Table X.
progress of each enterprise List of barriers
5. Managerial insights
This paper employs a systematic process to review the SSCM literature from the perspectives of
environment sustainability, social sustainability and economic sustainability. This has also
addressed the perspective of performance metrics and the governance aspects for a sustainable Sustainable
SC. The major contribution of this paper lies in identifying the successful SC practices in the supply chain
context of organizational culture, policies and regulations, supplier evaluation and relationships, management
green SC practices, economic efficiency, and social sustainability. The managerial insights from
the literature review have been presented in the Table XI.
theories from organizational behavior. There are not enough works which addresses the
triple bottom line in an integrated manner. The SSCM research must move from the
exploratory, atheoretical and descriptive research toward theory testing and
implementing the conceptual frameworks to organizations. Research must be done to
find technical management variables to quantify the impact of the sustainable initiatives
on the economic performance.
There is a need for more SSCM research based on formulation of policy frameworks
that can align the firms towards sustainability. The SC researchers must develop
practical SSCM tools and techniques along with a guide for SC practices through
various strategic models and frameworks. SSCM research should be aligned to develop
constructs and metrics to examine the concepts SSCM. As most works are based on
qualitative studies, collecting relevant data to substantiate the concepts is also an
opportunity. Secondary data sources can be used to examine the relationship between the
firm’s environmental and social performance vs the economic performance and
the relationship between regulatory compliance and economic performance across the
SC members.
Research can be done to understand the outsourcing or purchasing decisions involved
in SSCM and how the SC governance structures affect this decision-making process.
Research focused on analyzing the decision-making process on how the supplier
relationships are affected considering one stakeholder in the SC with the others in the
network. Sustainability and behavioral management concepts could be studied conjointly
like the trust building between all the stakeholders in the SC network beginning from the
first supplier to the end customer. Issues in SSCM like cooperation and effective
communication between the SC members can be addressed to attain the pre-determined
sustainable goals. Association of managerial implications with sustainability concepts
could be studied in a way to analyze how the managerial decisions affect the execution of
the SSCM practices.
Based on the detailed review of literature, a number of potential research avenues in the
area of SSCM have been identified. These gaps are summarized below which would lead to a
number of research directions for the future:
• the integration of social issues into the environmental and economic aspect of SSCM;
• lifecycle analysis and the concept of closed-loop SCs for a connected view of
sustainability in SCs;
• addressing the issues of inventory management within sustainable SCs (as the
traditional inventory models focus on economic aspects);
MEQ A. Organizational culture References
The critical aspect for the SC to be sustainable is the top management Bhool and Narwal (2013), Olugu
support for the SCCM programs by allocating funds for sustainable et al. (2011), Mudgal et al. (2009),
practices and technologies. Each and every member of the enterprise Simpson and Samson (2008)
must be encouraged and supported for innovative ideas for successful
implementation of the sustainable practices. The implementation of SSC
practices can be successfully realised by considering it as a ongoing and
continuously evolving process, preferably within the framework of total
quality management (TQM) and lean management
B. Policy/regulations
The enterprises need to have a structured SC policy and regulations Luthra et al. (2011), Bhool and
followed by the awareness by each and every member. The government Narwal (2013), Rao and Holt (2005),
policies and regulations must be robust, which should provide Zhu et al. (2005)
guidelines for eliminating or controlling the environmental pollution.
The government agencies through pollution control board should
strictly monitor the pollution level of the enterprises on a regular basis
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and must impose penalties on the enterprises for violating the pollution
norms even if the sustainable practices have been adopted. Stringent
SSC practices should be reinforced if the enterprises are dealing with
international customers
C. Supplier evaluation and relationships
The enterprises must consider the sustainability criteria during supplier Bhool and Narwal (2013), Wang
selection process. For successful relationship, these enterprises should et al. (2011), Agarwal and
collaborate with the suppliers including technological collaboration for Vijayvargy (2012)
compatibility. These enterprises must engage in training and educating
the suppliers for implementing the environmental guidelines including
the social sustainability. These enterprises need to monitor review and
audit the suppliers on a regular basis
D. Green SC practices
The enterprises along with their suppliers must take adequate measures Zhu et al. (2005), Deshmukh and
for the implementation of green practices such as the minimization of Sunnapwar (2013)
the cost and usage of virgin raw materials, inventory level, energy and
water usage. These enterprises must also focus on the minimization or
elimination of the environmental accidents, health hazards and
generation of solid wastes
E. Economic efficiency
It is critical for the enterprises to minimize the utilization of the Attaran and Attaran (2007), Vachon
resources and optimize the overall logistics cost for high financial and Klassen (2006), Ashby et al.
performance and profitability through strategic collaboration and (2012), Gimenez and Tachizawa
information sharing (2012), Liu et al. (2012), Bai and
Sarkis (2014), Blome et al. (2014),
Brindley and Oxborrow (2014),
Azadi et al. (2015)
F. Social sustainability
The enterprises should engage themselves for maintaining social equity Keating et al. (2008), Krause et al.
through proper code of conduct, protection of employee rights, (2009), Tencati et al. (2010), Mani
developing suitable working conditions and employee welfare schemes. et al. (2015)
Table XI. These enterprises should gain trust and confidence of their suppliers
Managerial insights and customers through fair trade practices and CSR activities
7. Concluding remarks
The concept of sustainability is quite broad, and understanding its interactions with SCM
has been critical for the business enterprises. SSCM encompasses the integrated
perspectives of economic, environmental and social considerations in the SC along with the
governance structures in a dynamic business environment. For the successful
implementation of SSC practices, the business enterprises should collaborate with all its
stakeholders while optimally utilizing the resources, information and funds to maximize
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the value propositions to the customers and SC profitability. In the process, it minimizes
the environmental impacts and enhances the social equity and well-being on all the
stakeholders. Owing to the dynamic nature of SSCM, the researchers in this field should
dive into the literature periodically and identify the research opportunities (Winter and
Knemeyer, 2013).
The current research has focused on a detailed and structured review of literature on
various perspectives of SSCM such as the environmental, social, economic, governance and
performance measurement. It has also focused on the various quantitative and empirical
modeling approaches in literature including the dynamic capabilities of SSCM. This has
resulted in identifying the parameters which enable and inhibit the implementation of SSC
practices in bigger enterprises. This structured review has resulted in a number of key
managerial insights for the practitioners and future researchers.
The study has identified a number of research gaps in the existing literature
which provides enough scope for future investigations. More and more research needs to
be conducted to accommodate the social perspectives to enhance the scope of triple bottom
line in a SC context. The modeling approaches need to done across industries and in a more
realistic uncertain decision environment to fully understand and integrate the SSCM
practices across industries.
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Corresponding author
Vipul Jain can be contacted at: [email protected]
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