My seminar with undergraduate students has concluded this week, after an engaging three-month exploration of a chocolate drink manufacturer's journey towards improving its environmental, social, and governance (ESG) performance. Through the immersive business simulation game, "The Triple Connection," we gained valuable insights into the challenges and opportunities of integrating sustainability into company operations, with a specific focus on the crucial role of supply chain management.
Supply chain management plays a pivotal role in achieving sustainability for organizations. It involves coordinating activities, resources, and information across the entire value chain, from sourcing raw materials to delivering final products to consumers. By strategically managing these interconnected processes, companies can reduce their environmental impact, enhance social well-being, and strengthen governance practices.
Throughout the simulation game, we witnessed firsthand the transformative power of supply chain management in driving sustainable practices. Supply chain decisions directly impact a company's environmental footprint. By optimizing transportation routes, minimizing packaging waste, and selecting eco-friendly suppliers, the chocolate drink manufacturer successfully reduced greenhouse gas emissions, water consumption, and waste generation. These actions not only contribute to environmental preservation but also lead to cost savings through improved resource efficiency.
Additionally, supply chain management has a profound social impact. The simulation game highlighted the significance of fair trade and responsible sourcing practices. By establishing partnerships with ethical suppliers, the chocolate drink manufacturer ensured that raw materials were sourced from farms adhering to social and labor standards, thereby promoting better livelihoods for farmers and workers. Transparency and traceability throughout the supply chain further built trust with consumers and addressed concerns regarding product safety and social responsibility.
Sustainable supply chain management is a multifaceted approach that requires collaboration and engagement from various stakeholders. The simulation game emphasized the importance of cross-functional teamwork, effective communication, and collaboration in achieving sustainability objectives. Supply chain managers must closely collaborate with procurement, operations, marketing, and other departments to align efforts and integrate sustainability into every aspect of the supply chain.
In conclusion, the business simulation game provided valuable insights into the challenges and opportunities of incorporating sustainability into a chocolate drink manufacturer's supply chain. Supply chain management emerged as a key driver of sustainable practices, impacting the environment, society, and governance aspects of the business. Equipped with these learnings, the students are now poised to embrace supply chain management as a catalyst for positive change and contribute to a more sustainable future – hopefully!
ASCM has recently released the new SCOR model including a sustainability standard. Supply chain performance metrics and data gathering are facilitated by the SCOR Model, which smooths the path towards sustainability reporting of supply chain practices in the corporate sustainability report. Find out more about the SCOR model and sustainability on the SCOR-DS Website
