Extending the supply chain to address sustainability

Abstract

In today's growing economy, overconsumption and overproduction have accelerated environmental deterioration worldwide. Consumers, through unsustainable consumption patterns, and producers, through production based on traditional resource depleting practices, have contributed significantly to the socio-environmental problems. Consumers and producers are linked by supply chains, and as sustainability became seen as a way to reverse socio-environmental degradation, it has also started to be introduced in research on supply chains. We look at the evolution of research on sustainable supply chains and show that it is still largely focused on the processes and networks that take place between the producer and the consumer, hardly taking into account consumer behavior and its influence on the performance of the producer and the supply chain itself. We conclude that we cannot be talking about sustainability, without extending the supply chains to account for consumers' behavior and their influence on the overall system performance. A conceptual framework is proposed to explain how supply chains can become sustainable and improve their economic and socio-environmental performance by motivating consumer behavior toward green consumption patterns, which, in turn, motivate producers and suppliers to change their operations.

Examination of Short Supply Chains Based on Circular Economy and Sustainability Aspects

“…Examining societal aspect may be recommended directly in the field of Circular Economy too [106]. According to Taghikhah et al (2019) [107], it is impossible to talk about sustainability without extending the supply chain to consumers' behavior itself and its impact on system performance. In their work, they show how a supply chain can increase its socio-environmental and economic performance by motivating consumers towards green consumption, and how consumers motivate producers (and suppliers) to change the way they operate in this regard.…”

Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures

“…Over the past few decades, profitability improvement and cost leadership have been the main goals of SCM. However, more recently, the increasing rates of environmental degradation and resource depletion triggered by rapid economic growth have shifted this focus to socio-environmental issues; in the context of supply chain research this has led to greater concern over sustainability, with the concept of supply chain sustainability emerging [3][4][5][6][7]. Consumers' levels of environmental awareness as well as the implementation of various governmental regulations have forced enterprises in supply chains to employ environmental practices such as green SCM and green innovation.…”

Pricing Decisions in a Competitive Closed-Loop Supply Chain with Duopolistic Recyclers

“…Over the past few decades, profitability improvements and cost leadership have been the main goals of supply chain management. However, more recently, the increasing rates of environmental degradation and resource depletion triggered by rapid industrialization have shifted this focus to socioenvironmental issues; in the context of supply chain research, this has led to more concern about sustainability, with the concept of supply chain sustainability emerging [1]. For many industries, supply chain sustainability is one of the most critical tasks of their operations and long-term planning.…”