Supply Chain Sustainability

Introduction: What is sustainability?

Sustainability is a very broad topic, and consists of multiple definitions. It can be defined as:

• An activity that can be maintained at a certain rate (Oxford, 2012)

• Meeting present needs without compromising future ones (Bruntland)

• Balancing environmental, social and economic demands (UN World Summit, 2005)

In short, sustainability is concerned with a long-term feasibility of an activity, and being able to balance the three pillars of environmental, societal and economic needs

Examples of companies abiding by this may include Dell, who use as little packaging as possible to reduce waste, and minimize the use of harmful chemicals in their computer products (Dell, 2012). Starbucks collaborates with its coffee farmers, ensuring they get fair wages and are not being exploited (Starbucks, 2012). This creates a mutual benefit for both parties; the farmers learn more effective methods of farming, helping to increase their output and revenues. This in turn also benefits Starbucks, as they then reap the benefits of increased productivity and quality of raw materials. Microsoft provides software and training opportunities to help enhance communities, bettering third parties through education (source).

Defining supply chains

A supply chain is concerned materials, information and services involved in producing and delivering a good to its end customers (Fine, 1998). Its goal is to supply goods and services in a way that maximizes satisfaction for the end customer (Slack, 2008). In essence, Blanchard summarizes a supply chain as "Boiled down to basics, is the sequence of events and processes that take a product from dirt to dirt" (Blandchard, 2007)

Sustainable supply chain

Therefore a sustainable supply chain is the process which coordinates the planning, implementing, manufacturing and distribution of goods to the end consumer whilst considering the long term balance of environmental, social and economic factors. The operations of a sustainable supply chain must be able to create gains for it's company and it's community, whilst considering the needs of all stakeholders. The diagram below illustrates how sustainability is implemented at all stages of the supply chain, and is not just a chain, but also a continuous cycle. Once the product has reached the end consumer the process restarts, resources need to be put back into the supply chain. The supply chain consists of two directions; from raw materials to consumers, and vice versa from consumers back to raw materials. Materials need to be reused and recycled to fit the