Supply chain refers to the enterprises that make their contribution to getting a service or a product to reach the customer. It can include raw materials, information, parts, finances, and packaging, warehousing, transport and contract services. The way supply members respond to sustainability issues will have an impact on the total sustainability of the products and services of the business (Pullman et al, 87-89). These impacting factors on supply chain sustainability include social, environmental and economic issues.
The social sustainability issues can be reflected in how suppliers handle and treat their workers and the surrounding community. In treating their workers well, companies and organizations have a responsibility of respecting human rights of workers and ensuring a fair treatment of workers. Business organizations have a responsibility of taking steps in support and promotion of employee human rights. Business organizations should strive to uphold international labor standards within their supply chains which include the right to freely chose employment, collective bargaining, freedom from discrimination and the freedom of association.
Workers along the supply chain should not be subjected to long working hours, inhibited movement and degrading treatment by employers. This is because workers can influence the perception of the business by the local community and other customers in general. Workers have a right to equal pay and a right to have enough rest and leisure. The chances of getting a promotion should also be fair. The complaints from workers are to be handled carefully and to the satisfaction of the parties involved (Carter et al, 87-89). This should include provision of insurance to workers and occupational health. In order to include people in the local community, organizations should give priority to buying raw materials from the community and using local suppliers along the supply chain.
Supply chains usually have environmental factors that can have severe impacts especially where environmental regulations are lax, natural resources are abundant and price pressures significant (Pullman et al, 87-89). These environmental issues can include toxic waste, loss of biodiversity, water pollution, deforestation, long-term damage to ecosystem, high greenhouse gas emission as well as hazardous air emissions and energy use. Companies and organizations should make supplies while ensuring that they apply precautionary approach and use of clean technologies.
Consumers and other business customers are increasing their commitment to sourcing of products and those service providers that are sustainable. The business information on sustainability of a product includes features such as energy efficiency, innovative use of materials, and reuse and recycling systems. The product information can also give a reflection of the carbon footprint which usually refers to carbon dioxide level that is generated throughout the production and final delivery of the product (Seuring & Muller, 122-124). The product information could highlight the renewable sources of energy and recycled materials used in production.
There are a number of areas that a company can focus their efforts in ensuring economic sustainability. The first is through payments to the employees, governments and suppliers. These payments should be made in consideration to production, and through well analyzed monetary flows throughout supply chains and beyond. Policy procurement decisions and their flow in the supply chains should be procedural whereby risks and opportunities should be identified (Seuring & Muller, 122-124). In ensuring that costs are minimized, there should be costing analysis and measurements that assist in making supply chain decisions and these might include lean accounting and full cost analysis. Companies that make their supply chains more economically inclusive are able to support further economic development.
References
Carter, C.R., and Easton, P.L. "Sustainable supply chain management: evolution and future." International Journal of Physical Distribution & Logistics Management (2011): 46-62.
Carter, C.R., and Jennings, M.M. "The role of purchasing in corporate social responsibility." a Journal of Business Logistics (2004).
Seuring, S., and Muller, M. "From a literature review to a conceptual framework for sustainable supply chain management." Journal of Cleaner Production (2008): 1699-1710.
United Nations Global Compact, 2010, “Supply Chain Sustainability: a practical guide for continuous improvement”
Pullman, Madeleine, and Margaret Sauter. Sustainability Delivered: Designing Socially and Environmentally Responsible Supply Chains. New York: Business Expert Press, 2012. Internet resource.
