| dc.description.abstract | This thesis will present how firms today are expected to evolve from traditional supply chain management (SCM) to sustainable supply chain management (SSCM) and why more comprehensive and collective consideration towards social, economic, and environmental aspects in managing their supply chain networks is of paramount importance for firms today. Many firms are inadequately prepared for this demanded shift, which poses an existential risk towards their long-term competitiveness.
This thesis consists of a comprehensive qualitative study of existing knowledge within the field of SSCM and an in-depth study of a case firm, namely Kverneland Group (KG) a major manufacturing firm within the agricultural sector. The case firm was found unprepared for the expected SSCM challenge with its existing business practices. This thesis offers practices, a screening process for and specific initiatives, and an implementation process for the firm to close the gap towards existing knowledge establishing appropriate SSCM at the firm. Key elements include to view environmental, social, and economic challenges holistically and select initiatives based on the triple bottom line and embedding SSCM in business practices. Particular attention is given towards sustainable design as a focal point in life cycle considerations an area which can also benefit from cooperation with the firm’s supply chain.
Regulatory pressure was identified to be the most prevailing external driver towards SSCM practices at the case firm, with view on cost and current lack of customer demand as main barriers. The firm’s reactive response strategy is likely linked with the current lack of customer demand. However, customers are already demanding equipment offering enhanced sustainability functionality during end-customer use, and together with the general change the firm should position for a significant shift in customer demand for SSCM practices to avoid falling behind.
Many SSCM practices depend on cooperation beyond the firm’s internal boundaries and the contract and supplier relationship influence the implementation process. The study suggests that employing relational exchange and informal governance can increase transparency and cooperation beyond internal boundaries acting as enablers for the implementation of SSCM practices. | |