Sustainable benchmarking of supply chains: the case of the food industry

Long-term organisational viability and competitiveness should not be evaluated solely in terms of financial measures. Investors, policy makers and other stakeholders increasingly seek to evaluate performance with respect to sustainability – the environmental, social and economic performance of an organisation. But measuring and improving the sustainability performance of supply chains is challenging. Using one of the world's most critical supply chains, the food supply chain, we introduce and apply a multi-stage procedure to help analytically evaluate supply chains’ sustainability performance. The method involves development of sustainability indicators, data collection, data transformation using rescaling and determining of importance ratings using the Analytic Hierarchy Process (AHP). The proposed methodology demonstrates how quantitative statistical data can be combined with expert opinion to construct an overall index of sustainability. Stakeholders can use the index to evaluate and guide sustainability performance of supply chains. Strengths and opportunities, as well as limitations of the methodology are discussed, and sensitivity analysis is performed.     

Selection of Packaging Systems in Supply Chains from a Sustainability Perspective: The Case of Volvo

The purpose of this article is to develop an evaluation model for the selection of packaging systems in supply chains from a sustainability perspective. A theoretical evaluation model for comparing cost efficiency and the environmental impact of packaging systems in supply chains are developed from literature. The model is tested in a case study of a supply chain involving Volvo Car Corporation and Volvo Logistics Corporation, comparing the use of newly developed, one‐way packaging with the sustainability of returnable packaging. The model compares the environmental and economic impacts of two packaging systems in a specific supply chain. The criteria used in the model are (i) packaging fill rate, (ii) packaging material, (iii) transport, (iv) material handling, (v) waste handling and (vi) administration. In the case study, the one‐way packaging resulted in fewer economic and environmental impacts, thereby indicating the importance for companies to question their packaging systems. The model has been tested on one component in a case study. It provides a comparison of the packaging choices included using comparative, but not absolute, figures for the economic and environmental impacts. Managers can use the model to compare packaging systems for component supply and determine the most sustainable packaging from environmental and economic perspectives. The case study indicated that the returnable packaging system commonly used in the automotive industry is not always preferable in terms of sustainability. The article fulfils the need to evaluate the impact of packaging systems on supply chain sustainability in terms of economic and environmental criteria. Copyright © 2012 John Wiley & Sons, Ltd.     

Social sustainable supplier evaluation and selection: a group decision-support approach

Organisational and managerial decisions are influenced by corporate sustainability pressures. Organisations need to consider economic, environmental and social sustainability dimensions in their decisions to become sustainable. Supply chain decisions play a distinct and critical role in organisational good and service outputs sustainability. Sustainable supplier selection influences the supply chain sustainability allowing many organisations to build competitive advantage. Within this context, the social sustainability dimension has received relatively minor investigation; with emphasis typically on economic and environmental sustainability. Neglecting social sustainability can have serious repercussions for organisational supply chains. This study proposes a social sustainability attribute decision framework to evaluate and select socially sustainable suppliers. A grey-based multi-criteria decision-support tool composed of the ‘best-worst method’ (BWM) and TODIM (TOmada de Decisão Interativa e Multicritério – in Portuguese ‘Interactive and Multicriteria Decision Making’) is introduced. A grey-BWM approach is used to determine social sustainability attribute weights, and a grey-TODIM method is utilised to rank suppliers. This process is completed in a group decision setting. A case study of an Iranian manufacturing company is used to exemplify the applicability and suitability of the proposed social sustainability decision framework. Managerial implications, limitations, and future research directions are introduced after the application of the model.     

The impact of supply base complexity on disruptions and performance: the moderating effects of slack and visibility

In the face of increasing supply base complexity, organisations have to develop new ways to manage or mitigate risk. This paper investigates the impact of four dimensions of complexity on the frequency of disruptions and plant performance. We apply insights from organisational information processing theory to understand how organisations can mitigate against the impact of more frequent disruptions. We test the moderating effects of slack resources as a means to absorb the effects of disruptions and supply visibility as a means to improve the ability to handle disruptions. The model is tested with data from 264 supply chain management professionals. Our findings broadly support the original hypotheses and suggest that supply base complexity can increase the frequency of disruptions and reduce plant performance but that slack resources and visibility can help to mitigate the effects. The study offers valuable insights into the management of supply base complexity.     

Simulation modelling for food supply chain redesign; integrated decision making on product quality,sustainability and logistics

Food supply chains are confronted with increased consumer demands on food quality and sustainability. When redesigning these chains the analysis of food quality change and environmental load of new scenarios is as important as the analysis of efficiency and responsiveness requirements. Simulation tools are often used for supporting decision-making on supply chain (re)design when logistic uncertainties are in place, building on their inherent modelling flexibility. Mostly, the underlying assumption is that product quality is not influenced by or does not influence chain design. Clearly, this is not true for food supply chains, as quality change is intrinsic to the industry. We propose a new integrated approach towards logistics, sustainability and food quality analysis, and implement the approach by introducing a new simulation environment, ALADIN?. It embeds food quality change models and sustainability indicators in discrete event simulation models. A case example illustrates the benefits of its use relating to speed and quality of integrated decision making, but also to creativity in terms of alternative solutions.     

The critical success factors of using social media for supply chain social sustainability in the freight logistics industry

This paper pioneers the investigation of the significant factors that influence corporate decisions on the use of social media for supply chain social sustainability, and it highlights a crucial research area that is currently understudied in supply chain management literature. A theoretical framework was developed in this study based upon the Technology–Organization–Environment (TOE) and Human–Organization–Technology (HOT) theories to obtain the significant critical success factors (CSFs) which influence the use of social media for supply chain social sustainability in freight logistics firms in Nigeria. The Best-Worst Method was applied to analyse and rank the CSFs using their determined relative importance level. The research findings indicate that customer satisfaction, sufficient security and privacy, affordability and competitive pressure are the highest ranked CSFs to achieve supply chain social sustainability using of social media. This research has important implications for policy makers and practitioners to gain perspectives on how to foster the use of social media in the freight logistics sector for supply chain social sustainability.     

Structural-aware simulation analysis of supply chain resilience

Supply chain resilience (SCRES) refers to the ability of a supply chain (SC) to both resist disruptions and recover its operational capability after disruptions. This paper presents a simulation model that includes network structural properties in the analysis of SCRES. This simulation model extends an existing graph model to consider operational behaviours in order to capture disruption-recovery dynamics. Through structural analysis of a supply chain network (SCN), mitigation strategies are designed to build redundancy, while contingency strategies are developed to prioritise recovery of the affected SCN. SCRES indexes are proposed by sampling SC performance measures of disruption for each plant and aggregating the measures based on the criticality of the plants in the SCN. The applicability of this simulation model is demonstrated in a real-world case study of different disruption scenarios. The application of mitigation and contingency strategies is shown to both improve recovery and reduce the total costs associated with disruptions. Through such simulation-based analysis, firms can gain insight into the SCRES of their existing SCNs and identify suitable strategies to improve SCRES by considering recovery time and costs.     

Proposal of a multi-agent model for the sustainable truck scheduling and containers grouping problem in a Road-Rail physical internet hub

Physical Internet (PI) was introduced as a global standardised and interconnected logistics system based on PI-nodes, PI-movers and PI-containers as a mean toward global logistics sustainability. One important issue regarding PI-nodes concerns the planning and scheduling of operations and the management of PI-containers, both in a deterministic and a perturbed environment. This research considers the Road-Rail PI-hub sustainable truck scheduling and PI-containers grouping problem. In our research we consider the weighted sum of the number of used wagons, the internal distance travelled by PI-containers from PI-docks to wagons as well as the trucks’ tardiness, which translate the search for sustainable logistics. In this paper, an effective and reactive multi-agent system based model (MAS) is developed for the resolution of the trucks scheduling and PI-containers grouping. To ensure the efficiency of the MAS and improve the quality of each of its solutions, three concurrent hybrid meta-heuristics are embedded within three parallel scheduling agents. Then, a mixed integer linear programming model (MILP) is proposed to evaluate the performance of the MAS. Finally, the MAS is also evaluated under internal perturbations. The obtained results show the ability of the MAS to provide alternative sustainable solutions by rescheduling trucks in case of disruptions.     

Blockchain technology and its relationships to sustainable supply chain management

Globalisation of supply chains makes their management and control more difficult. Blockchain technology, as a distributed digital ledger technology which ensures transparency, traceability, and security, is showing promise for easing some global supply chain management problems. In this paper, blockchain technology and smart contracts are critically examined with potential application to supply chain management. Local and global government, community, and consumer pressures to meet sustainability goals prompt us to further investigate how blockchain can address and aid supply chain sustainability. Part of this critical examination is how blockchains, a potentially disruptive technology that is early in its evolution, can overcome many potential barriers. Four blockchain technology adoption barriers categories are introduced; inter-organisational, intra-organisational, technical, and external barriers. True blockchain-led transformation of business and supply chain is still in progress and in its early stages; we propose future research propositions and directions that can provide insights into overcoming barriers and adoption of blockchain technology for supply chain management.     

Sustainable supply chains for supply chain sustainability: impact of sustainability efforts on supply chain risk

Supply chain managers across the globe are finding it difficult to manage the increasingly complex supply chains despite adopting a variety of risk mitigation strategies. Firms on the other hand have also been adopting various kinds of environmental and social sustainability practices in recent times to reduce carbon footprint and improve their image on the social front. However, very few studies in the extant literature have examined the impact of sustainability practices on supply chain risk. We address this important gap in literature by empirically testing this relationship, using primary data from six manufacturing sectors and 21 different countries including developed as well as emerging markets across the globe. Our findings indicate that risk mitigation strategies do not always reduce the actual supply chain risk experienced by firms, whereas sustainability efforts help reduce supply chain risk, especially in emerging market contexts. In addition, we find that, while reactive risk mitigation strategies on their own fail to reduce supply chain risk, they are effective when used in conjunction with sustainability efforts. We also find that preventive risk mitigation efforts are only effective in mature supply chains such as the OECD countries.