This thesis deals with sustainability as a prerequisite for supply chain resilience. Considering the COVID-19 pandemic, which has shown to a considerable extent how fragile existing supply chains are, the need for implementation of resilient and sustainable supply chains becomes necessary. Due to climate change, environmentally sustainable action should be focused on and need to be implemented in companies’ value chains. In this thesis, it is examined to what extent sustainability must be considered as a prerequisite for supply chain resilience.
Global political backgrounds are highlighted. Theoretical backgrounds are given regarding sustainability, global supply chains and approaches for measuring sustainability. Furthermore, characteristics of a sustainable and resilient supply chain are presented, by literature review and considering actual, global developments. Finally, recommendations for action are given. Global supply chains need to incorporate regional aspects as far as possible and promote cooperation along the value chain. This is promoted by digitalization processes, effective risk management and binding supply chain alignments toward sustainability.
Table of Contents
1. Introduction
1.1 Problem Statement
1.2 Objectives
2. Theoretical Background
2.1 Sustainability
2.1.1 Historical development
2.1.2 Sustainable Development Goals
2.1.3 Triple Bottom Line
2.2 SCM and SSCM
2.3 Global Value Chains – resilience, sustainability and efficiency
2.4 Summary
3. Creation of resilient and sustainable GVCs
3.1 Importance of sustainability and transparency in GVCs
3.2 Characteristics
3.2.1 Due Diligence
3.2.2 Circularity
3.2.3 Digitalization
3.2.4 Global-regionally cooperation networks
3.2.5 Sustainable public procurement as a role model
3.2.6 Mandatory alignment of supply chains with sustainability
3.2.7 Risk Management
4. Result
5. Conclusion
Research Objectives and Focus Areas
The primary objective of this thesis is to investigate the extent to which sustainability functions as an essential prerequisite for achieving supply chain resilience in a globalized economic context, especially in the wake of recent crises. The research analyzes the intersection of supply chain management, sustainability models, and risk management to derive practical recommendations for creating more stable and future-proof value chains.
- The role of sustainability in strengthening supply chain resilience.
- Implementation of Sustainable Supply Chain Management (SSCM) practices.
- Impact of global crises, such as the COVID-19 pandemic, on supply chain fragility.
- Strategic importance of transparency, digitalization, and circular economy approaches.
- Alignment with the Sustainable Development Goals (SDGs) as a global framework.
Excerpt from the Book
3.2.1 Due Diligence
Anchoring due diligence in supply chains contributes to the exchange of information and increases transparency. A risk-based due diligence is a process through which companies identify, prevent and mitigate their actual and potential negative impacts and analyze how those impacts can be addressed. Responsibility has to be anchored in supply chains. During the last years, calls to implement Responsibility in form of Conducts in company’s guidelines has grown. Due diligence gained importance in the context of the adoption of the United Nations Guiding Principles on Business and Human Rights in the year 2011.
Specifically, the concept requires companies to establish appropriate procedures to identify their potential and actual negative impacts and to take appropriate measures to prevent or, if damage has already occurred, to remedy these impacts and to remedy such effects. In Germany, the NAP (Nationaler Aktionsplan Wirtschaft und Menschenrechte) should have anchored such UN guiding principles. In 2019, G7 Social Ministers committed to promote human rights due diligence in GVCs. In the last few years, laws have been passed in countries such as UK, Australia, France and Germany, to strengthen due diligence requirements to address supply chain and sustainability risks.
Focusing on GVC sustainability, due diligence laws are of high importance. For increasing resilience of GVCs, frameworks such as the OECD Guidelines for Multinational Enterprises can be used which can help companies and lead them to avoid and address adverse impacts related to workers, human rights, the environment, bribery, consumers and competition.
Summary of Chapters
1. Introduction: Provides an overview of the importance of global value chains and highlights their fragility, particularly after the COVID-19 pandemic and recent political crises.
2. Theoretical Background: Defines sustainability, introduces the Triple Bottom Line and the Sustainable Development Goals, and discusses how these concepts relate to Supply Chain Management.
3. Creation of resilient and sustainable GVCs: Outlines specific strategies for building resilience, including due diligence, circularity, digitalization, and sustainable procurement.
4. Result: Summarizes how recent crises and global trends necessitate a fundamental rethink toward sustainable resilient management and global cooperation.
5. Conclusion: Synthesizes the findings, emphasizing that transparency, circular economy, and mandatory legislative frameworks are critical for future supply chain success.
Keywords
Sustainability, Supply Chain Resilience, Global Value Chains, Sustainable Supply Chain Management, Due Diligence, Circular Economy, Digitalization, Risk Management, Agenda 2030, Triple Bottom Line, Transparency, Resource Scarcity, SDG 12, Resilience Strategy, Sustainable Procurement.
Frequently Asked Questions
What is the core focus of this thesis?
The work focuses on the necessity of aligning global supply chains with sustainability standards to enhance their resilience against shocks, such as pandemics or climate-related disruptions.
What are the primary thematic areas?
The main themes include the definition and measurement of sustainability, the operational requirements for building resilient value chains, and the role of corporate responsibility in a globalized economy.
What is the central research question?
The central question examines to what extent sustainability must be explicitly considered a prerequisite for maintaining and securing supply chain resilience in the long term.
Which scientific methods are employed?
The thesis utilizes a literature review approach, synthesizing existing academic research, global sustainability frameworks, and industry reports to build a conceptual argument for sustainable supply chain management.
What does the main body cover?
The main body provides a theoretical foundation of sustainability (SDGs, TBL), defines SCM and SSCM, and details specific characteristics for resilience, such as due diligence, circularity, and digitalization.
Which keywords characterize the work?
Key terms include Supply Chain Resilience, Sustainability, Global Value Chains, Sustainable Supply Chain Management (SSCM), and the Triple Bottom Line (TBL).
How does the concept of "decoupling" influence the proposed supply chain models?
Decoupling aims to break the link between economic growth and environmental degradation, suggesting that companies should prioritize resource efficiency to ensure both economic profitability and long-term environmental viability.
What role does digitalization play in supply chain resilience?
Digitalization is highlighted as essential for increasing transparency and data exchange along the chain, which allows companies to identify and mitigate risks more effectively.
- Quote paper
- Isabelle Jaeschke (Author), 2023, Sustainability as a prerequisite for supply chain resilience, Munich, GRIN Verlag, https://www.grin.com/document/1334143
