1. digitalization
in logistics
SUSTAINABLE NETWORKS

2. Concepts
● Sustainability and Supply Chain
Management
● Pillars of Sustainability
● Sustainability practices
● Sustainability and Supply Chain
Drivers

3. Sustainability and Supply Chain Management
• Sustainability has become a key priority in the design and operation of supply
chains in the twenty-first century
• A focus on sustainability allows a supply chain to better serve more
environmentally conscious customers while often improving supply chain
performance.

4. Sustainability and Supply Chain Management
• In 1987, United Nations Brundtland Commission reported sustainable
development as “development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.”
• In 2005, the World Summit of the United Nations introduced a framework
identifying economic, environmental, and social sustainability as the “three
pillars” of sustainable development.

5. Three Bottom Line (TBL)

6. Three Bottom Line (TBL)
• Environment (Planet): pollution; climate change; the depletion of scarce
resources, etc.
• Economy (Profit): the effect on people’s livelihoods and financial security,
the profitability of the business, etc.
• Society (People): the reduction of poverty, the improvement of working
and living conditions, etc.

7. Three Bottom Line (TBL)
Social pillar
- Code of Conduct
 Starbucks: Coffee And Farmer Equity (C.A.F.E.) Practices
 Walmart: “Standards for Suppliers”
Environmental pillar
- Resource reduction
- Product innovation
- Emission reduction

8. Sustainability and the tragedy of the commons
• Tragedy of the commons is a dilemma arising when the common good does not
align perfectly with the good of individual entities.
• How can we avoid this “tragedy”?
 “Mutual Coercion”
 Emission Tax
 Cap-and-Trade

9. Supply chain decisions impact the resource footprint

10. Sustainability practices
• Circular Economy
• Corporate Social Responsibility (CSR)
• Reverse logistics
• “Closed-loop” supply chains

11. Circular Economy

12. Corporate Social Responsibility (CSR)

13. Reverse logistics

14. “Closed-loop” supply chains

15. Sustainability and Supply Chain Drivers
• Facilities
• Inventory
• Transportation
• Sourcing
• Information
• Pricing

16. Supply Chain Sustainability
Factors driving an increased focus on supply chain sustainability:
• Reducing risk and improving the financial performance of the supply chain
• Community pressures and government mandates
• Attracting customers that value sustainability
IKEA case study
• How IKEA achieved a more sustainable way of production?

17. Sources - References
• Christopher M., (2016), Logistics & supply chain management, 5th edition, FT Press
Pearson Education Limited,
• Chopra S., Meindl P., (2016), Supply chain management: Strategy, Planning, and Operation,
Pearson
• Simchi-Levi D., Kaminsky P., Simchi-Levi E., (2021), Designing and Managing the Supply
Chain, McGraw-Hill Education
• Rushton A., Croucher P., Baker P., (2014), The Handbook of Logistics and Distribution
Management: Understanding the Supply, 5th edition, Kogan Page Limited
• Closed loop supply chain: concept and relevance in the market
https://soluparts.com/closed-loop-supply-chain-concept-and-relevance-in-the-
market/

18. Sources - References
• Farooque M., Zhang A., Thurer M., Huisingh D., (2019), Circular supply chain management:
A definition and structured literature review, Journal of Cleaner Production,
https://www.researchgate.net/publication/332690616
• Moula M., Sorvari J., Oinas P., (2017), Constructing A Green Circular Society, Faculty of
Social Sciences, University of Helsinki, Finland
• A.P. Moller – Maersk, (2023), Closing the loop with circular economy logistics,
https://www.maersk.com/insights/sustainability/circular-economy-logistics
• C3controls, What is Reverse Logistics?, https://www.c3controls.com/white-paper/what-
is-reverse-logistics/
• CSR India, (2022) Corporate social responsibility benefits a firm as much as Community,
https://mycsrindia.com/corporate-social-responsibility-benefits-community/

19. Sources - References
• Jackson R., (2022), Corporate Social Responsibility - A Simple Guide,
https://www.thegivingmachine.co.uk/blog/posts/corporate-social-responsibility-a-
simple-guide/
• PT Suryacipta Swadaya, (2022), Circular Supply Chain: Turning Waste To Value,
https://suryacipta.com/en/circular-supply-chain-turning-waste-to-value/
• Bush G., (2008), Sustainable Sourcing: A New Approach to High Performance in Supply
Chain Management, Accenture
• Streeter M. (2018), How are smart cars designed to reduce the impact on the
environment?
https://www.quora.com/How-are-smart-cars-designed-to-reduce-the-impact-on-the-
environment

20. Sources - References
• Slack, N., Chambers S. & Johnston R., (2010) Operations Management, 6th Edition, London,
FT Prentice-Hall
• An Ecolate View of the Human Predicament by Garrett Hardin". Garrett Hardin Society. The
Garrett Hardin Society. Retrieved 2022-11-24 : Wikipedia
• European Commission: EU rules on treating waste electrical and electronic
https://environment.ec.europa.eu/topics/waste-and-recycling/waste-electrical-and-
electronic-equipment-weee_en#objectives
• European Commission: EU air quality standards
https://environment.ec.europa.eu/topics/air/air-quality/eu-air-quality-standards_en

21. Sources - References
• Peace J., Ye J. (2020), Market Mechanisms: Options for Climate Policy, Center for Climate
and Energy Solutions
https://www.c2es.org/wp-content/uploads/2020/04/market-mechanisms-options-
climate-policy.pdf
• Maersk, Logistics Insights (2023): Closing the loop with circular economy logistics
https://www.maersk.com/insights/sustainability/circular-economy-logistics
• United Nations Industrial Development Organization (UNIDO), What is CSR?
• https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-
trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-
integration/what-csr