Resilience and Sustainability in Supply Chains
This chapter presents an overview of issues regarding supply chain resilience and sustainability and how the two interact. Here, sustainability is discussed in terms of environmental, ethical, and social responsibility criteria, rather than taken to mean being able to continually function at an acceptable level over time. Initially, supply chain resilience and supply chain sustainability are discussed separately, and commonalities are highlighted. Drawing on results from the literature, each is analyzed along three dimensions: An economic/cost-related dimension; an environmental dimension; and a social impact dimension. A more direct relationship between the two concepts is then presented. We frame the resilience-sustainability relationship by presenting four possible cost/benefit categories: operational, compliance, direct, and indirect. These categories, analogous to total cost of quality categories used when analyzing quality management decisions, can serve as a basis for informing decision makers when seeking to make decisions regarding resilience-sustainability strategies. Underlying our discussion are concepts drawn from business continuity and risk management, which are used to develop strategies to improve the resilience-sustainability relationship. Drawing on these concepts, we finally discuss how they can be employed by practitioners.
KeywordsSupply chain Sustainability Resilience Risk management Costs and benefits Quality
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