Sustainable Supply Chain

Explain the importance of developing a sustainable supply chain

Being environmentally responsible in today's businesses creates good business sense. As stakeholders, become more environmentally friendly they are demanding that companies do the same. Factors such as a balance between sustainable goals and revenue goals are pushing leaders to rethink their business practices and overall environmental organizational performance. In order to have a level sustainable supply chain, organizations must also include suppliers and customers in to the plan. The final organizational level factor is environmental performance. An important factor that encourages supply chain employees to engage in environmental behaviors is supervisory support.

Describe three initiatives that IKEA is doing to make its supply chain sustainable.

IKEA is making good progress in creating a sustainable global supply chain. One initiative is that Ikea uses mainly glass, cotton, and wood in their products. Chopra & Meindl (2013) state, "A focus on sustainability allows a supply chain to better serve more environmentally conscious customers while often improving supply chain performance" (p. 500). During product development, their testing facility in Älmhult, Sweden works closely with their designers, product developers, and technicians to further enhance the sustainability of the supply chain. Developing sustainable supply chain is important in order to make the world a more viable place, improve overall financial performance, and help reduce risk within the supply chain. IKEA is making the world more sustainable by being environmentally conscious.