Sustainible Supply Chain Management

Topics: Supply chain management, Sustainability, Supply chain Pages: 2 (716 words) Published: June 12, 2013
The reading on sustainable supply chain management (Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami, 2009; B. Ageron, A. Gunasekaran, A. Spalanzani, 2012) shows that the sustainable business development has received a great deal of attention from governments and both profit and non-for-profit organizations to environmental, social and corporate responsibility. It is vital for companies to take seriously thinking about manufacturing and service sustainability, and underscore the importance of sustainability in supply chain management. Companies could develop sustainable operations by analyzing each link in the value chain. Not only to create a better image of companies, but also reducing costs or creating new businesses. (Nidumolu, Prahalad, & Rangaswami, 2009) According to Nidumolu, Prahalad, & Rangaswami (2009), the central challenge for companies to make value chains sustainable is to increase efficiencies throughout the value chain. Several competencies are needed to overcome this challenge. For instance, companies need expertise in techniques such as carbon management and life-cycle assessment (Nidumolu, Prahalad, & Rangaswami, 2009); as well as the ability to redesign operations to use less energy and water, produce fewer emissions, and generate less waste. Besides, companies should have the capacity to ensure that their suppliers and retailers make their operations eco-friendly. (Nidumolu, Prahalad, & Rangaswami, 2009) Wal-Mart is one of the well-known companies that are leveraging their buying power to increase sustainability throughout their supply chains. Recently, Wal-Mart made an announcement that it will require its suppliers to evaluate and disclose the full environmental costs of their products. It is worth to notion that when the world’s largest retailer makes an effort on value chains sustainable (Nidumolu et. al, 2009), asks more than 100,000 businesses around the world to assess their environmental and social sustainability, the responses may...
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