Traceability as a means to investigate supply chain sustainability: the real case of a leather shoe supply chain

In recent years, the growing attention to environmental challenges has shown that these issues are becoming of more and more interest to both research and industry. Companies are expected to ensure their products are fully traceable and more sustainable, which requires the involvement of all of the actors in the production network. According to this aim, this study proposes a structured approach that uses the traditional traceability concept as a means to identify the main information needed to assess environmental impacts along the whole supply chain (SC). The proposed approach is composed of four main steps: (i) SC modelling to identify all stakeholders and their inter-relations, (ii) data sharing to collect all relevant data, (iii) data elaboration to calculate performance at different levels of detail and (iv) result interpretation to optimise the SC. The distributed implementation of the approach at different SC steps represents a useful means to practically realise a sustainable SC management. A case study involving a leather shoe SC is used to demonstrate the effectiveness of the approach in identifying criticalities, supporting the selection of the most appropriate suppliers and correctly setting a management strategy towards the optimisation of internal and external traceability and environmental sustainability performances.     

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.     

The impact of supply chain disruption on the closed-loop supply chain configuration profit: a study of sourcing policies

A closed-loop supply chain configuration (CLSCC) encompasses the decisions related to the optimal selection of options at each stage of a closed-loop supply chain (CLSC) for the introduction and reconstruction of new products. The extant literature ignores the impact of supply chain disruptions on CLSCC. An attempt is made to fill this gap in this study. Thus, an integrated multi-sourcing CLSCC optimisation model for new and reconstructed products is developed. The optimisation model presented is a mixed-integer nonlinear programming (MINLP) model. Based on a real-world case study of an auto-parts manufacturer in India presented, a comprehensive set of computational experiments, scenario analyses are conducted. The key finding/observation that resulted from our computational experiments is that multi-sourcing generates higher net present value of total profit compared to single sourcing under the risk of supply chain disruption. Several other observations and managerial insights are drawn from computational experiments, and scenario analyses. Firms interested in configuring their CLSC under the risk of supply chain disruption may use the study's outcomes to understand the profit impact of various CLSCC parameters, individually and in combination.     

Transition to the circular economy: the story of four case companies

Shifting from a linear sales model to a circular service-based business model is far from straightforward. Many challenges accrue in the transition process, including finding the right market for the recirculated product/service, setting up the reverse supply chain, selecting the right partners, and making sure the new business model is sustainable in the short, medium and long term. This paper discusses the challenges of four companies trying to close the loop while preserving current profit levels. It describes their initial ideas on how the circular business model should be designed, the process they went through, challenges faced, and the eventual outcome. Based on the learnings of the four case companies, we summarise recommendations about preparatory steps required before making the transition towards a circular business model.     

Quick response strategy with cleaner technology in a supply chain: coordination and win-win situation analysis

Quick response strategy (QRS) has been widely adopted in a supply chain where members collect timely market information for better forecasting, and then respond promptly to the market changes by adjusting initial inventory decision. After adopting the QRS, sustainability issues such as greenhouse gas emission and energy waste may be more serious as production lead time is shorter. In this study, due to this dilemma, we develop a two-stage quick response supply chain with cleaner technology, where the manufacturer determines the cleaner technology investment and afterwards the retailer decides the ordering quantity. Based on Bayesian theory, we depict an information updating process for the QRS with cleaner technology. First, we find that the inventory service level significantly affects both manufacturer’s and retailer’s performance under the QRS with cleaner technology. Moreover, our analytical results indicate that the performance of centralised supply chain system is always better than the decentralised one. As a result, we propose two supply chain contracts, minimum ordering quantity (MOQ) and MOQ with buyback (MOQ-BB) to achieve supply chain coordination. Comparing with the MOQ, the MOQ-BB is more flexible to allow better allocation of the ‘additional’ expected profit between the channel members through the buyback price negotiation.     

Assessing the economic and environmental impact of remanufacturing: a decision support tool for OEM suppliers

The circular economy is often presented as a solution for companies to increase the sustainability of their business. In many situations where suppliers produce subassemblies or modules for OEMs in a B2B context, dependency on their clients limits their options for profitable closed-loop supply chains. In this paper, we develop a simple tool suppliers can use to quickly assess whether remanufacturing is economic and environmentally attractive compared to producing new components. We derive optimal acquisition and reuse quantities that minimise total costs. Based on our analysis with a supplier in the automotive industry, we find that used core prices and remanufacturing yield rates have a large impact while an optimised design for remanufacturing can only marginally improve the situation. The tool is applicable to a wide variety of suppliers and industries that remanufacture their modules or subassemblies, or are exploring the option to engage in remanufacturing operations.     

Methods for mitigating disruptions in complex supply chain structures: a systematic literature review

Supply chain risk management is extremely important for the success of a company. Due to the increasing complexity of supply chains, avoiding and mitigating the effects of disruptions is very challenging. This article presents the results of a systematic literature review and content analysis in order to provide a comprehensive overview of the methods that are currently used for mitigating supply chain disruptions. The results of the review indicate that research in this field is interdisciplinary and that no common modelling language has emerged thus far. Prior research mostly redraws to graph theory and/or social network analysis, although a few methods have been developed recently specifically for supply chain risk management. We observe that prior contributions addressed risk and structure mostly separately and that only a few works focused on their intersection. The results of this review are consolidated in a research agenda that calls for research on the risk-structure-interface and the development of proxy methods.     

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.     

Disruption risks in supply chain management: a literature review based on bibliometric analysis

Disruption risks in supply chain management have a great negative influence on the performance of supply chain members. Therefore, the field of supply chain disruption (SCD) has received increasing attention on mitigating the risks and improving the supply chain performance. This paper presents a comprehensive bibliometric overview and visualisation of the field of SCD based on 1,310 publications derived from the core collection of the Web of Science. The influential authors, organisations, and SCD keywords are discussed in detail based on some visualisation tools. Then, the leading publications and main clusters of SCD are identified to find out the key research topics based on citation analysis and reference co-citation analysis. The paper will be a helpful resource for researchers and practitioners who are interested in the field of SCD to capture the current research hotspots and potential research directions.     

Sustainable supply chain flexibility and its relationship to circular economy-target performance

The circular economy (CE) is an evolving economic and sustainable development model. In this new environment, companies face a more dynamic, uncertain, and complex market environment. These challenges arise from material closed-loop flows necessary for a functioning CE. It is important to build flexibility capabilities into sustainable supply chains to address CE operational challenges. Building this operational capability needs to occur without incurring performance degradation, increasing costs, or compromising product quality. Supply chain designers have recognised the importance of sustainable supply chain flexibility (SSCF) efforts for meeting CE-targeted performance. CE-targeted performance includes reuse of materials and energy, closed flow of materials, and pollution reduction. Exploration of relationships between SSCF efforts and CE-targeted performance is limited. An objective-DEMATEL method is used to evaluate the relationship between a new SSCF measures framework and CE-targeted performance. A field study helps to identify and refine significant SSCF measures (efforts) to effectively improve CE-targeted performance. Managerial implications and future research directions for sustainable supply chain flexibility within the CE environment are presented.     

Developing sustainability in the Italian meat supply chain: an empirical investigation

Although sustainable supply chain (SC) management has been widely investigated in recent years, the focus has mainly been on the practices adopted by a single company, so missing the big picture at SC level. This study of the Italian meat industry considers the SC as a whole, identifying the critical points for each stage in terms of economic, environmental and social sustainability. To this end, a first set of case studies was conducted of companies at different stages of the SC before turning to focus on the meat processing stage, which was identified as critical and highly relevant. A second set of case studies analysed how these companies leverage SC management practices to develop sustainable SCs. In so doing, specific attention was paid to drivers and contingent variables that foster the adoption of sustainable practices. The results of the two steps were then merged to illuminate how practices adopted by the meat processors can impact on the whole chain, confirming their pivotal role in driving sustainability. These results provide a holistic view of the phenomenon, encompassing the entire chain from end to end and highlighting the interdependences across various stages of the meat SC.     

Recent advances and opportunities in sustainable food supply chain: a model-oriented review

Faced with the challenges associated with sustainably feeding the world’s growing population, the food industry is increasingly relying on operations research (OR) techniques to achieve economic, environmental and social sustainability. It is therefore important to understand the context-specific model-oriented applications of OR techniques in the sustainable food supply chain (SFSC) domain. While existing food supply chain reviews provide an excellent basis for this process, the explicit consideration of sustainability from a model-oriented perspective along with a structured outline of relevant SFSC research techniques are missing in extant literature. We attempt to fill this gap by reviewing 83 related scientific journal publications that utilise mathematical modelling techniques to address issues in SFSC. To this end, we first identify the salient dimensions that include economic, environmental and social issues in SFSC. We then review the models and methods that use these dimensions to solve issues that arise in SFSC. We identify some of the main challenges in analytical modelling of SFSC as well as future research directions.     

Assessing relations between Circular Economy and Industry 4.0: a systematic literature review

Industry 4.0 (I4.0) and Circular Economy (CE) are undoubtedly two of the most debated topics of the last decades. Progressively, they gained the interest of policymakers, practitioners and scholars all over the world. Even if they have been usually described as two independent research fields, there are some examples presenting overlaps between these topics, represented by hybrid categories like Circular I4.0 and Digital CE. Starting from these two perspectives, an innovative framework both highlighting the links between I4.0 and CE and unveiling future research fields has been developed. Basing on one of the two perspectives, results show as it is possible to enhance a set of different relations. Depending on a dedicated area of either CE or I4.0 it is possible to see the prevalence of some I4.0 technology than others. However, the influence of I4.0 technologies on CE is always verified.     

Military supply chains and closed-loop systems: resource allocation and incentives in supply sourcing and supply chain design

The US military operates some of the largest and most complex supply chains in the world and their experience provides insight into a variety of supply chain issues. This paper taps that experience to study how the design of a supply chain is influenced by its economic environment. Consider these circumstances: the military is not a profit-seeking enterprise, they want to achieve a particular state of readiness and cost is secondary to that goal. Modern weapons systems are complex, expensive, push the envelope of technology, and the volume requisitioned is often small such that few manufacturers can afford to be in the business; and these expensive weapons systems operate in harsh operating conditions where wear and tear is substantial, consequently remanufacturing of systems and parts is a critical source of supply. Focusing on the supply chain of the US Army, this paper uses an economic model to study their responses to these conditions, how supply chain design is affected by these conflicting goals, and how those designs affect cost and efficiency.     

Mapping the future of supply chain management: a Delphi study

Supply chain management, a field that developed from business practice and research, is undergoing a major transformation. It is changing from tactical in nature (where the major focus is on cost and delivery) to a field that is strategic in nature. However, the future issues and challenges facing managers and executives are just now becoming understood. This paper reports these issues by drawing on the findings generated by a three-phase study consisting of a literature review, a two-round Delphi study, and a workshop. Unique in this Delphi study is that it brings together leading practitioners in supply chain management with leading supply chain management researchers. The findings show that while the focus of the current tactical supply chain view is relatively limited to issues of delivery, risk, and leadership, the supply chain view of the future (i.e., five years from now) is more complex and demanding. The findings also show that there is generally no difference between researchers and practitioners in terms of how they view the issues. Finally, the study uncovers major obstacles that must be resolved before the strategic potential of future-state supply chains can be realised.     

Nature inspired supply chain solutions: definitions,analogies, and future research directions

ABSTRACT

Supply chains are becoming increasingly complex, and many companies and researchers are looking to nature for finding solutions. In this paper, we provide a narrative synthesis and systematic review to explore state-of-the-art, and identify key areas for exploration of nature inspired solutions in the supply chain area. We consider strategic, tactical, and operational decisions within supply chains and identify analogies between biological systems and supply chains to create a new research agenda. Our findings show that the majority of the research in nature inspired supply chains from the systemic perspective focuses on closed loop supply chains. In contrast, similar systemic solutions such as industrial symbiosis, circular economy, and industrial ecology have not been explored as frequently. Reducing production waste (industrial symbiosis) in addition to end-of-life product waste (closed loop supply chains), optimising raw material use and extending the life of used resources (circular economy), investigating the interactions between biosphere and technosphere (industrial ecology), and seeking solutions to industrial problems from nature (biomimicry) are all possible paths for reaching a zero-waste economy. These systemic solutions have a considerable impact on the supply chains at the strategic, tactical, and operational levels, which need to be explored to identify efficient and effective solutions.     

Revealing interfaces of supply chain resilience and sustainability: a simulation study

Dynamics of structures and processes is one of the underlying challenges in supply chain management, where multiple dimensions of economic efficiency, risk management and sustainability are interconnected. One of the substantiated issues in supply chain dynamics is resilience. Resilience has a number of intersections with supply chain sustainability. This paper aims at analysing disruption propagation in the supply chain with consideration of sustainability factors in order to design resilient supply chain structure in regard to ripple effect mitigation and sustainability increase. Ripple effect in the supply chain occurs if a disruption at a supplier cannot be localised and cascades downstream impacting supply chain performance. This simulation-based study helps to identify what sustainability factors mitigate the ripple effect in the supply chain and what sustainability factors enhance this effect. The results indicate that (i) sustainable single sourcing enhances the ripple effect; (ii) facility fortification at major employers in regions mitigates the ripple effect and enhances sustainability; and (iii) a reduction in storage facilities in the supply chain downstream of a disruption-risky facility increases sustainability but causes the ripple effect.     

Boosting sustainability and financial performance: the role of supply chain controversies

In recent years, numerous scandals concerning working conditions in Asia have threatened the reputation of large companies like Wal-Mart and Inditex. Since such scandals call attention to activities harmful to sustainable development, it is very important to study the relationships between concerns for sustainable supply chain management (SSCM), sustainability, and organisations’ market value. The added value of our study is, first, to explore SSCM controversies as drivers of or pressures for adopting and applying sustainability practices; and, second, to contribute to the recent but growing literature that analyses the channels through which SSCM and sustainability practices influence the firm’s value. We introduce sustainability environmental, social, and governance (ESG) practices as a mediator between SSCM controversies and market value to examine whether SSCM controversies with firms’ stakeholders lead to improvements in the ESG dimensions of organisational sustainability. We also examine the relationships between the ESG dimensions and market value, measured as Tobin’s Q ratio. The results confirm both the positive relationships of SSCM controversies to the ESG dimensions two years later and a positive relationship of the dimension of governance to Tobin’s Q. We also confirm a negative and significant relationship of the social dimension to Tobin’s Q, and a non-significant relationship of the environmental dimension to Tobin’s Q.     

Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil

This paper provides a circular supply chain perspective of packaging recovery ecosystems being implemented by Tetra Pak, a prime global player in the food packaging industry, in two major emerging economies: China and Brazil. The circular supply chain archetype considered in the research allowed a consistent comparative analysis of Tetra Pak's circular supply chains in both countries. Through a case study approach, the research provides theoretical propositions and learning points that are valuable for academics and practitioners interested in the Chinese and Brazilian markets as well as in the supply chains supporting recovery ecosystems in the packaging industry. In particular, the distinct environments in the Chinese and Brazilian markets render Tetra Pak opportunities to design circular supply chains in different ways showing adaptation and learning to local market characteristics. The industrial perspectives from these emerging economies add to the contributions offered in the paper. Overall, the conceptual considerations and practical recommendations presented in the paper provide useful insights for the development of further studies and implementation of industrial practices advocated by the circular economy.