Sustainable Supply Chain's Environmental Impact: A Detailed Report

This report delves into the critical relationship between sustainable supply chains and the environment. It begins by defining the importance of sustainability in supply chain management and the increasing pressure on businesses to adopt eco-friendly practices, referencing academic literature on the subject. The report then explores various strategies for improving sustainability across the supply chain, including supplier scorecards, rewards, and collaboration. The core of the discussion revolves around the concept of a green supply chain, outlining its advantages such as cost savings, enhanced brand image, and improved resource management, while also acknowledging the disadvantages, like the need for significant investment in IT and potential employee resistance to change. A conceptual model illustrates the link between green supply chain management practices and environmental, economic, and social performance. The report concludes with recommendations and conclusions, offering a comprehensive overview of the topic.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Name of the Student
Name of the University
Author Note

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Abstract
The aim of the research paper is to discuss how sustainability in the supply chain affects
the environment. Knowing the level of environmental, social, economic impact and the viability
of the vendors and the customers is becoming very common in the industries which move
towards the sustainable future. Further the paper will discuss the advantages and disadvantages
of the green supply chain. In the ends the paper will conclude with the recommendations and
conclusions.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Literature Review............................................................................................................................4
How to improve sustainability across the supply chain...............................................................5
Body of Discussion - Green supply chain.......................................................................................6
The advantages of Green Supply Chain Management practices.................................................8
The disadvantages of Green Supply Chain Management practices...........................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Introduction
Supply Chain management is an indispensable part of an organization’s sustainability
program. The government pressures are very unlikely to change the pressure of the corporate on
the vendors and the suppliers. In the present days the organizations are striving very hard to
operate in a more better and sustainable manner in order not to affect the environment.
According to the authors Fahimnia, Sarki & Davarzani (2015) going green and being
environmentally friendly is the only way to get a sustainable supply chain in the near future.
Therefore the business organizations are making their products and services in a way
which will not affect the environment and decrease the natural resources. It will in a way not
contribute the sudden climatic changes in the environment.
Literature Review
In order to be sustainable in the supply chain management organizations are looking into
the entire management process that is the whole process of obtaining the raw materials through
the entire process within the plant till the ultimate disposal of the products and services.
According to the authors Badi & Murtagh (2019) sustainability is a much growing concern in the
companies which is the reason why they are changing the business that is done in the present era.
there are various types of reasons for which the organizations are developing various types of
sustainable strategies in the growing environment. Reasons like consumer demand to cost
savings or the risk avoidance organizations are developing premium CSR reports and sustainable
strategies.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
However in few of the industries and organizations the challenges to sustainability are
from external and dependent suppliers across the supply chain. In fact according to the authors
Chin, Tat & Sulaiman (2015) companies impacts on the environment come directly from their
supply chain. A Mc Kinsey report has found out that the companies are betting higher in the
sustainability process which will help them have higher growth rates and creating value to the
company. The authors Chin, Tat & Sulaiman (2015) speaks out how sustainability allows the
organizations to save money, avoid the present and future regulations on the cost so as by
improving their reputation among the competitors. The authors Fahimnia, Sarkis & Davarzani
(2015) also reports that most of the customers or the consumers of a certain product is known to
buy the products and services from the company which has a good reputation for their
sustainability. Also big organizations are known for shifting their organizational structure from
bottom to top line. They are trying to make the changes within the direct operational cost which
are imposed by the organization. Most of the companies in the southern region are setting up the
solar panels, managing their waste and reducing the amount of the use of plastic and paper used
in the functions. The most important thing which the organizations are unable to control directly
is the pollution and eco friendliness (Govinda, Mishra & Shukla, 2018).
How to improve sustainability across the supply chain
The big multinational organizations are the only ones who are trying to improve their
operations and gaining sustainability, when they are realizing the importance and weight age of
the supply chain in the present date. The organizations are applying the supplier score card that is
one of the best possible ways to differentiate the suppliers of and choose them accordingly with
cost and quality. The authors Feng, et al (2018) also says that the supplier score card can be
identified by asking the suppliers for their life cycle assessments or by conducting the surveys

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
which will be able to find out their practices. This will help the organization to understand and
estimate how eco friendly their suppliers are.
Also providing the suppliers with good amount of reward will help them or encourage
them with their behavioral changes. It is all about rewarding the suppliers for the efforts which
they are making to improve the organization’s sustainability. These types of efforts can be
measured by developing some new materials from the waste or else making the operation of the
functions more effective. It will help the workers in gaining advantage over the suppliers and
encourage them to improve their work.
Collaboration is one of the most important thing which is known to include direct
engagement between various level of the supply chain in which the focal organization commit
itself with the improvement of its suppliers environmental performance. Few of the case studies
have been found out where the organization General Motors has started various kinds of general
advisory programs which will be helping the suppliers of the company to improve their energy
efficiency in the materials that are utilized by them and in order to reduce the excessive pollution
in the environment. After this process the organization came up with a team of members who
will be responsible for exploring the ways the company can work effectively with the suppliers
and implement new designs, sourcing new manufacturing process which will help them to
integrate the environmental concerns. As reported by the authors Geng, Mansouri & Aktas
(2017) the team of members were successful in designing the environmental metrics through
effective supply chain.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Body of Discussion - Green supply chain
Business activities are known to pose a very significant threat to the environment with the
harmful emission of gases such as the carbon monoxide gases, discarding of the plastic materials
in open areas, congesting traffic areas with organization’s transporting vehicles and by other
forms of industrial pollutions. According to the author Hugos (2018) the Green Supply Chain
Management or the ( GSCM ) is considered as an environmental innovation. The concept of the
Green Supply Chain Management is to integrate the environmental thinking in t the supply chain
management or SCM. according to the author it is also said to aim to minimize or eliminate the
organizations waste which includes the hazardous chemicals extracted from the organization or
the industry, emission of various types of harmful gases and various types of solid wastes which
starts directly from the selection of raw materials, manufacturing process and to the final
delivery of the product and services offered to the customers. Therefore it can be said that the
Green Supply Chain Management plays a very vital role in influencing the overall environmental
impacts which are proposed by the organization. According to the author Geng, Mansouri &
Aktas (2017) the Green Supply Chain Management is evolved from the Supply Chain
Management. In the present era there is an high demand of the concept of the Green Supply
Chain Management by the organizations in the present era as because they have to act in an
social responsible manner as well as an ethical manner.
A conceptual mode has been proposed to the companies in order to deal and link the
relationship between the Green Supply Chain Management practices, environment collaboration,
and the sustainability performance. The Green Supply Chain Management practices which are
owned by the organization are known to include the practices of green procurement, green
manufacturing process, green distribution process and green logistics. The author Hugos (2018)

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
in the diagram proposes that the diagram is linked with inter organizational functions and value
creating function in order to gain a sustainable supply chain for a long term.
Fig 1. Conceptual Model
Source : (Govinda, Mishra & Shukla, 2018)
The advantages of Green Supply Chain Management practices
According to the author Hugos (2018) there will be a positive i0mpact on the financial
performance of the company. The author says that despite a huge number of evidence there is a
myth that going green will cost additional expense to the organization for a short term. Various
factors includes where the employees might not agree with the changes or will shown an
Green Supply Chain
Management practices
 Green Procurement
 Green Manufacturing
 Green Distribution
 Green Logistics
Sustainability Performances
 Economic Performance
 Environmental
Performance
 Social Performance
Environmental Performance

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
unwillingness to the change in thinking that it is necessary to create a green supply chain. But
however keeping aside these factors the organization will be benefited for the long term if they
are able to undertake green supply chain. It will save huge amount of financial expenses made by
the company for long run.
The green supply chain will support or sponsor effective utilization of the available
resources of the organization. according to the authors Jabbour & de Sousa Jabbour (2016). by
incorporating the green supply chain the organization will think through the overall business
decision making process and will propose to purchase the green input resources which will be
environment friendly and produce desired green output.
The author Hugos (2018) says that at the core the principle of reducing the waste so as
by increasing the efficiency lies in Green Supply Chain Management practices. Therefore the
organizations will impose an effective management of resources as well as the suppliers, this will
in a sense reduce the cost and reduce the production cost of the company and promote the
recyclable objects and reuse of the raw materials. The production of the hazardous objects will
be reduced which will there by prevent the business organizations from being charged with high
fines for violating the rules and regulations which are related with the environment
(Rostamzadeh, Esmaeili & Sabaghi 2015).
It also help to position itself along with the products and services to be environmental
friendly. the term environmental will help attract the customers. Not only this will be much
profitable move by the company it will alos give it a competitive advantage over the competitors
available in the market. Thus it will strengthen the brand image of the organization and create a
good reputation in the market.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Also according to the authors Jabbour & de Sousa Jabbour (2016) organizations which are
known for producing products and services that are much technologically advanced and
environmentally friendly will enhance the brand image in the mind of the customers.
Besides the above stated advantages there are more additional advantages which are :
 effective management along with the suppliers
 advanced use of technology and capital among the chain partners of the organization.
 transparency with the supply chain management
 large amount of investment and risks are also shared by the partners in the supply chain.
The disadvantages of Green Supply Chain Management practices
Few of the disadvantages of Green supply chain management includes that the
organization has to impose or provide a bulk investment of money in order to integrate the fully
functioning IT system. without proper information system the organization will lack the easy
flow of functions which will be implemented by them to attain a Green supply chain
management.
Due to the implementation of the new methods and techniques in the organization
there will be a huge number of employees who will not accept the advancement or changes to be
implemented with the new technology. Therefore they might have a apathy of working in the
same organization anymore and might see for other alternatives.
The organization might face various types of barriers with the lack of skilled people
and human resource professional in the sustainability and GSCM. Due to the lack of skilled
workers the organization might not be able to develop new product and services and implement
green services in the organization.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
Also if the organization is able to implement the Green supply chain management
procedures the government of the geographical area might not take the initiative to implement
them. The government might not make industry friendly laws and policies and might not give
special benefits to the organizations that have an aim of implementing the Green supply chain
management in the organization’s performance. Also the author says that if there is a poor
implementation of green practices within the supply chain there will be a lack o-f consideration
of the services by the organization. The organization might not be able to solve the problems
relating the hazardous solid waste disposal, consumption of the energy and further reuse and
recycling of the waste materials (Laari, Töyli & Ojala 2018).
The disadvantage of the Green supply chain management is that few of the top management
might not be flexible in supporting the change within the organization. This means that the
suppliers will also be unwilling to support the change.
Conclusion
In order to conclude the above research paper it can be said that business organizations
should make their products and services in a way which will not affect the environment and
decrease the natural resources. It should adopt the Green supply chain management which will
help it to sustain for a long period of time and be environmental friendly. The paper has
discussed that how does sustainable in the supply chain affect the environment. The paper has
also discussed the advantages and disadvantages of the green supply chain.

Running head: HOW DOES SUSTAINABLE SUPPLY CHAIN AFFECT ENVIRONMENT
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