2008/09/16 16:36 CET THIS and THAT

Sustainability means less vulnerability?

Does sustainability improve a a company’s resilience towards supply chain vulnerabilities? Recently, in my research on supply chain vulnerability, I’ve come across the term sustainable supply chains. Curious as I am, and easily distracted by related topics, I decided to do some more digging, and this is what I came up with.

What are sustainable supply chains?

There are numerous definitions of the terms ‘Sustainable’ and ‘Supply Chain’, but in essence, this is a supply chain where the responsible manufacturer and retailer takes precedence over the green consumer. It is a supply chain, where resources are not just consumed but also replenished, and where business decisions consider long-term overall environmental and societal impacts. It’s not the opposite of just about business, but it is also not just about environment. It’s about

  • Profitability
    Yes, we need to make money, but we should do so in a responsible way.
  • Accountability
    Whatever we do, we will be held accountable for doing so.
  • Community
    How can our business benefit the community (more than just providing jobs and tax money)?
  • Environment
    Does our business harm the environment in any way?
  • Sustainability
    Do we simply consume, or do we also replenish?

Conclusion

A sustainable supply chain is not primarily seeking to maximize profits.

It may not necessarily be less susceptible to disruption, but nonetheless,  a disruption in a sustainable supply chain may be less likely to wreck widespread havoc, since a sustainable supply chain is not streamlined for profit, but is streamlined for resilience.

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  • http://unnc.wordpress.com Carsten

    The article shows the importance of the three classic pillars of sustainable development: Environmental Protection, Economic Growth and Social Development. It is generally accepted that sustainability needs to address all three pillars.

    Personally I think, the relevance of sustainability in supply chains could be highlighted very well by showing examples of supply chains that are clearly NOT sustainable, Especially in globally sourcing large-scale companies it happens that such unsustainable (and sometimes ridiculous) supply chains develop unnoticed over time…

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