Risk management in sustainable supply chain management (SSCM): lessons learnt from the case of GMO‐free soybeans

Abstract

A well designed risk-oriented supply chain management can put companies in a privileged position to deliver sustainable and reliable long-term benefits to all stakeholders in the value chain. The case of GMO-free soybean supply illustrates the various aspects of risk prevention that can lead to a systematic model of sustainable supply chain management. The article illustrates how -after consumers pressed the food industry to exclude GMO soybeans from their products -a sustainable soybean supply chain was established. Approaching the issue on a pragmatic basis, several tools have proved to be useful in constructing the supply chain. The authors show what the crucial points of sustainable supply chain management are. They point out the great contribution of standards and platforms such as BSCI, ETI, SA8000 and Fairtrade labelling, whereas process models such as AA1000 provide useful guidance on immunization against potential stakeholder risks. Finally, the article shows how a systematic approach can help companies to establish their tailored sustainable supply chain management. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment. T HE TREND OF PURCHASING GOODS AROUND THE GLOBE HAS LED TO AN ENORMOUS COMPLEXITYof supply chains. The inherent risks depend on many factors such as type of industry, number of suppliers, related production schemes, size of the buying company and type of public exposure. Figure 1 shows the location of risks along a supply chain.

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