SUPPLY CHAIN & INFORMATION SYSTEMS AND SUSTAINABILITY
What are the Fundamental Concepts in Sustainable Supply Chain Management?
Supply chain management is evolving through the GreenSCOR model, which enhances the traditional SCOR framework by integrating environmental and social factors. GreenSCOR helps organizations identify hidden sustainability risks and improve performance across planning, sourcing, production, delivery, and returns. By adopting this model, companies can reduce negative impacts, drive innovation, and align operations with sustainability goals.

Supply chain and information systems functions are essential for generating data-driven insights into environmental and social impacts. Key frameworks include Life Cycle Assessment (LCA), Environmental Impact Assessment (EIA), and Social Impact Assessment (SIA). These tools enable sustainable decision-making by identifying risks, guiding improvements, and aligning operations with sustainability objectives.

Traditionally, supply chains focused on forward logistics—from production to the customer. Today, the circular economy prioritizes returning materials into the value stream through technical cycles (durable goods) or biological cycles (organic materials). This approach extends resource life, reduces waste, and supports a more sustainable, efficient system.

As supply chains evolve, procurement becomes a key lever for positive impact. Sustainable procurement expands the traditional criteria—price, quality, delivery—to include environmental, social, and long-term economic considerations. It emphasizes full life-cycle evaluations, risk management, and alignment with broader sustainability goals.

Sustainable manufacturing minimizes energy use, resource consumption, and waste, while promoting worker safety and community well-being. Techniques include cleaner production methods, lean manufacturing, and process innovations that reduce environmental impact. Similar principles apply to warehousing, where advanced technologies improve efficiency and optimize performance for people, profit, and the planet.

Logistics and transportation are essential components of supply chain performance—and major opportunities for sustainability gains. By optimizing packaging, shipping materials, and transport methods, companies can reduce environmental impact, ensure worker safety, and enhance operational efficiency.

Supply chain leaders have a unique role in embedding labor and human rights into business decisions. In cost-driven markets, the temptation to lower labor standards is high. But growing scrutiny from consumers, investors, and regulators demands transparency and accountability. Proactively addressing these issues not only reduces risk, but also strengthens brand integrity, operational resilience, and long-term value.
