Developing a Sustainable Supply Chain Management Framework
Assoc. Prof. Ruth Banomyong, Mr. Paitoon Varadejsatitwong and Mr. Kavin Kitcharoen
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Some of the key management approaches to SCM today include outsourcing of
procurement processes, collaborative planning and partnerships between customers and
suppliers, and Integrated Supply Chain (ISC) design, involving all areas of the
organisation. These approaches are closely linked to the latest advances in
manufacturing technology including agile manufacturing and postponement technology.
Organisations with long and complex supply chains, whether they are at the
beginning (such as chemicals), in the middle (such as logistics companies), or at the end
(retail businesses) of the supply chain, need to understand the sustainability aspects of
their supply chains. Supply chain sustainability issues can range from child labour and
exploitation of workers on the one hand to ozone depletion, deforestation and global
warming on the other. These issues can be broken down according to environmental,
social, and economic aspects. Some of the tools used in sustainable supply chain
management (SSCM) include written policies and communications materials, prequalification
of suppliers (using environmental and/or social/economic criteria),
purchasing guidelines and supplier partnerships, and development.
Companies are now realising that the value they provide to their customers is the
sum of all the ‘value added’ along the supply chain. In the same way, the sustainability
of the goods and services an organization provides is also the sum of all the social,
economic and environmental impacts of these goods and services along the supply
chain. Therefore, organisations are beginning to recognise that they have to identify,
understand, and manage sustainability issues within their organisation, but also cooperate
with other organisations in the supply chain to ensure that these issues are
successfully managed throughout the supply chain.
The aim of this study is to develop a sustainable supply chain management
framework that can assess the related sustainable dimensions. The authors will try to
define the concept of “sustainable supply chain management” and identify sustainable
metrics.
