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Samenvatting Sustainable Supply Chain managementWeek 1: Introduction to sustainable SCM
Learning goals:
- Compare and contrast the traditional instrumental logic with the ecologically dominant logic
and their contrasting views on economic, social and ecological priorities in the context of
supply chains.
- Evaluate how sustainable development dimensions are operationalized in the context of
supply chain processes.
- Evaluate the difficulties companies face while transitioning towards more sustainable
practices in their supply chains and develop innovative solutions.
- Evaluate the role of supplier codes of conduct for implementing sustainability across the
supply chains (from the perspective of the leading firm)
Definitions
Sustainable development: A development that meets the needs of the present without
compromising the ability of future generations to meet their own needs
Wicked problem: a social or cultural problem that is difficult or impossible to solve for as many as
four reasons: incomplete or contradictory knowledge, the number of people and opinions involved,
the large economic burden, and the interconnected nature of these problems with other problems.
Theoretical Foundations of SCCM
From TBL perspective Sustainability as complex network science
Win-Win focus Emerging view: Sustainability as complex network science
Acknowledges tensions, trade-offs and cross-level linkages
Emerging view: Complex network science
- Social and economic systems exist inside of and depend upon environmental systems.
- Sustainable development emphasizes the INTERACTIONS between 3 complex systems
- Sustainable development as the science of 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
,Instrumental view versus ecologically dominant logic
Comparison of current sustainability and ecologically dominant logic
Current sustainability logic Ecologically dominant logic
Relationship among All are equal-efforts that create The three are nested. Need to satisfy
environmental, social shared value or which are less environmental, then social prior to
and economic unsustainable are acceptable economic.
Time horizon Short Long term
Outcome Organized irresponsibility/ Integrated sustainable supply chains
tragedy of commons
Cognition-managers “if it’s not profitable you don’t “if it harms the environment or
do it” society you don’t do it”
Cognition-researchers Does it pay to be green? How to be profitable while doing no
Looking for win-win outcomes harm
Efficiency (gross domestic Conservation
product) Well-being (gross domestic happiness)
Why does it matter?
Efficiency VS Sufficiency approaches
Supply-side (Efficiency approaches) Demand side (sufficiency approaches)
Focus in business studies Focus in ecological economics, recent adaption
in business studies
Eco-efficiency Moderation of end-user consumption
Production-focused New ways of consumption habits, lifestyle and
behaviour
Moderation or production inputs of materials, Change of mind-sets
energy and labour
E.g. energy reduction techniques, CO2 E.g. Focus on functionality rather than
emissions techniques ownership
E.g. Boiling only the amount of water needed E.g. Doing without the cup of coffee
for a cup of coffee
This matters because creating sustainability is not the same as reducing unsustainability
,Reducing Unsustainability VS Creating Sustainability
1. Most sustainability approaches adopted Requires changes at a more fundamental level,
by companies are rather quick-fixes changes in behaviour
2. Eco-efficiency or material productivity Consumer education, communication and
are “being less bad” type of solutions awareness
3. Reducing unsustainability is not the Demand management
same as creating sustainability Product longevity (levensduur)
Frugal (zuinig) business models
Drivers and Barriers of SCM
Relevant global trends and drives
- 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 anti-corruption measures, social and environmental
standards for business.
Sustainable SCM – Drives & Barriers
Key barrier: achieving SC visibility
Context: The dodd-Frank act of 2010 gave companies over three years to determine and report on
whether their products contained “conflict minerals” from the Democratic Republic of Congo Area
Findings: from over 1300 corporations it was found that almost 80% admitted they were unable to
determine the country of origin of such materials, and only 1% could certify themselves conflict-free
with certainty beyond reasonable doubt.
Companies with complex supply chain structures do not have the ability to investigate and verify
where the raw materials used in their products are coming from.
Even large and visible companies, as well as those that voluntarily participate in CSR programs, were
no better at figuring out whether their suppliers relied on conflict minerals.
Deep pockets and motivation to be sustainable were not sufficient to achieve accountability.
, Sustainable SCM – Relevant Actors
The leading firm perspective
Why important?
Push factors
- Legal demands/regulation
- Customer demands
- Reputation loss
- Environmental and social pressure groups (NGOs)
Pull factors
- Satisfied customers
- Competitive advantages
o Market share
Higher profit
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