Sustainable supply chains: Their Potential to Develop New Value Chains - Manasvi Bansal TERI University, Delhi use of available resources, strong governance practices and ethical decision making at all levels. All stakeholders in the supply chain have to be equally responsible and sensitive towards being sustainable. Greening an organisations’ supply chain has the potential of creating a significant impact in the sphere of human rights, fair labour practices, environmental protection and corruption. Sustainable supply chains do not just create value, they create shared value; value for all the stakeholders involved in the chain.
In
this economic world, organisations want to sell the goods they have produced and consumers want to receive these goods. What makes this transaction possible is a smooth and well-connected supply chain. All that was needed was a smooth supply chain. The transaction was as simple as this until a few years back. Today consumers not only want goods, they want goods from sustainable and responsible organisations. Supply chain of an organisation involves all individuals, partners (like suppliers or contractors), resources, technology and activities that are involved in the production and sale of a good.
The need for greener supply chains arise not solely out of environmental concerns, but also out of economic and social concerns. We all want stability, and so do organisations. And a sustainable supply chain creates exactly that; stability. Businesses are in the businesses for consumers and when consumers start demanding sustainability, they should start embracing sustainable practices across their premises as well as across their supply chains. Organisations should also understand there exists a solid business case for greening their supply chains.
Being a sustainable organisation does not guarantee a green supply chain. An organisation itself can be extremely sustainable, with efficient usage of electricity, water and fuel and with fair labour practices, but its supply chain may not be sustainable. Greening the supply chains is easier said than done. Supply chains are long, complex and fragmented in some cases. Transforming into sustainable supply chains is a tiresome task that requires time, energy and of course money. However, there exists no other option today. Organisations need to be committed to greening their supply chains not only for environmental and social gains; but for economic gains as well.
Contrary to popular opinion, sustainability does not solely encompass environmental stewardship. It entails overlapping of the economic, environmental as well as the social aspect. A greener supply chain helps creates value under all these three heads. Shared value by shifting to sustainable supply chains can be in the form of
A sustainable supply chain encourages minimum wastage of resources, effective Momentum | Mar’ 20 Edition, Vol. XI
17
Sustainable supply chains: Their Potential to Develop New Value Chains