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Summary - Sustainable Supply Chain Management Articles + Lectures
1 Lecture 1: Introduction to Sustainable Supply Chain Management
How does the framework of the course Sustainable Supply Chain Management look like?See picture.
1.1 Theoretical foundations of SSCM
Define Sustainable development- A development that meets the needs of the present without compromising the ability of future generations to meet their own needs (WDEC,1987).
- Socially inclusive and environmentally friendly economic growth Sachs, 2015).
- The principle of good governance (Sachs, 2015).
Sachs add that good governance is important --> key agents to help companies and countries to achieve sustainable goals.
What important approaches according to Sustainable SCM are there?1. Triple Bottom Line VS Complex Network Science View
2. Instrumental (current sustainability logic) VS Ecologically Dominant Logic
3. Efficiency VS Sufficiency approaches
Explain the shift of the approach "Triple Bottom Line" to "Sustainability as complex network science"Traditional view (Triple Bottom Line): integration between three different dimensions. Those three dimensions are equally important. In practice however, one of these dimensions is more emphasized: economic. This meant that companies are looking at this as most important first. All sustainability in the world can increase our profit. The focus of research of this particular this paradigm was to test the social engagement of research. In the end profit is important.
This is a problem: when you are only looking at win – win situations for implementing sustainable solutions then there are only trade-off points. You are ignoring these trade-offs and some of these trade-offs are significant important.
Emerging view (Sustainability as complex network science): prioritizing three different dimensions: economy is located within society. Both economic and society are imbedded in environment system. It basically shows when you only focus on economy, this will impact the environment and society, which are the foundation for economy.
- Social and economic systems exist inside of and depend upon environmental systems.
- Sustainable development emphasizes the INTERACTIONS between three complex systems.
- Sustainable development as the scienceof COMPLEX SYSTEMS
- EMERGING PROPERTIES of complex
systems – characteristics emerge from the interactions of the components to
produce something that is ‚more than the sum of its parts‘
- Unexpected characteristics, nonlinear way to respond to shocks
Describe the differences between the approaches "Instrumental view/ current sustainability logic" and "Ecologically Dominant Logic".See picture.
Describe the differences between the approaches "Efficiency" and "Sufficiency"See picture.
Why is "reducing unsustainability" not the same as "Creating sustainability"?See picture.
1.2 Drivers and Barriers of SCM
What are relevant global trends and drivers for sustainable SCM (5)?
- Relevant Global Trends and Drivers:
- Changing societies – consumer demand for transparency, fairness and eco-friendliness of business processes
- Disruptive technologies – social, mobile, cloud, big-data and green technologies
- Global economy – high levels of off-shore production with low impact on global income equality
- Environmental issues – breaking levels of pollution, overexploitation of resources and growing resource scarcity
- Stringent policies – compliance and anticorruption measures, social and environmental standards for business
- Relevant Global Trends and Drivers:
1) What are drivers and motivations to a supply chain to be sustainable? And
2) What are barriers and challenges to a supply chain to be sustainable?See picture.
According to Kim & Davis (2016), a key barrier for achieving a sustainable SC is SC Visibility. What were their findings?See picture.
To achieve a sustainable SC, there should be different stakeholders involved. Which stakeholders? What role has each stakeholder to fulfil?See picture.
Only when collective action takes place, sustainability can be achieved.
1.3 The leading Firm Perspective
Why is the "Leading Firm Perspective" so important to achieve more sustainable supply chains?See picture.
What actions (3) do you have to make to manage social and ecological issues in a sustainable manner in global supply chains?While most companies are employing reactive/firefighting
strategies, the way forward is PROACTIVE sustainable supply
Sustainable and Responsible Supply Chain actions:
1. Communication strategies
2. Compliance Strategies
- Codes of Conduct/standards (Empirical evidence: little to no results)
- Auditing (Empirical evidence: little to no results)
3. Supplier Development Strategies (SDS)
- Direct SDS
- Indirect SDS
- Collaborative Relationships (Empirical evidence: collaboration create significant change, is essential for effective implementation)
What is the difference between compliance and commitment approaches? (think of approach, mechanisms, dynamics, drivers of change)See picture.
Collaborative approaches are needed to understand the local socio-cultural institutional settings/constraints and to jointly develop solutions which work for the local context.
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