Sustainability: The future of supply chain management
Supply Chain Management is a massive global force that keeps the production of goods moving. Supply chain management drives nearly every industry that you could think of. From the food we eat to the cars we drive, everything is at our fingertips because of logistics. To ensure we meet these daily needs, we rely on effective supply chain management.
The life cycle
A product always has a “start.” Whether tangible, such as clothing, or intangible, such as software. Supply chain management encompasses the life cycle of a product– , the journey from raw materials to a final product. The entirety of this process is the life cycle.
The supply chain lifecycle consists of:
- Planning: develop an efficient strategy for the supply chain, forecast demand, set metrics, and research a supplier
- Sourcing: select a supplier, agree to a contract, and place orders
- Production: Organize workflows, ensure quality control, improve processes
- Logistics and Distribution: manage inventory, optimize storage, and ensure reliable delivery
- Returns: manage returns, repairs, and disposal or recycling of the process
Why is sustainability in supply chain management important?
In recent years, consumers have demanded that companies use a sustainable focus throughout their products’ life cycles. Supply chains use a lot of resources and are often culprits of unnecessary waste. According to Dr. Lisa Eshbach, Program Coordinator and Professor of the Operations and Supply Chain Management (OSCM) program, sustainability is becoming a priority for product success.
“Integrating sustainable practices helps organizations operate more efficiently, manage risk, and make more informed future-focused decisions. This approach not only supports strong relationships with customers and suppliers but also strengthens an overall competitive advantage,” Dr. Eshbach said.
Sustainability in supply chain management
Historically, conventional supply chain management focused on the bottom line. It aimed to create the most efficient, cost-effective process possible and often showed little regard for the environment.
On the other hand, sustainable supply chain management considers environmental and human factors throughout the product lifecycle. This includes the materials used to create the product and the supplier of those materials. The theme continues to what transportation is necessary, and ultimately, where the product ends up.
Dr. Eshbach explained, “The goal of sustainability in supply chain management is to create supply chains that are efficient, reliable, adaptable, and resilient over time. This includes managing resources responsibly, building and maintaining strong supplier relationships, and minimizing risks that could disrupt operations.”
As sustainability becomes more important in supply chain management, people in the field need a broad skill set. This integrated skill set must combine data-driven, ethical decisions with problem-solving and relationship management.
“Ferris State students are encouraged to approach supply chain challenges with a mindset that considers operational resilience and the long-term impact of decisions with respect to organizational performance,” said Dr. Eshbach. Several hands-on learning projects linked to specific program courses strengthen this approach. Students complete these projects with real companies throughout the OSCM program.”
A key practice of sustainable supply chain management: take-make-waste vs. circular economy
More broadly, sustainability has shifted supply chains from a linear economy to a circular economy.
A linear economy, also known as “take-make-waste,” extracts resources to make products that people soon throw away. Think of single-use plastic or fast fashion.
In contrast, a circular economy aims to operate similarly to a natural cycle. It is regenerative by design, with improved designs that optimize a product's life cycle. It keeps products within use by repair and recycling. This not only reduces waste but also increases resiliency to disruptions and strengthens customer relationships.
"A well-developed supplier base and greater transparency enable organizations to better anticipate challenges and respond quickly to different supply-related situations,” explained Dr. Eshbach.
Circular economies offer a new way to tackle global challenges like climate change and biodiversity loss. They reduce waste by decoupling economic activity and growth from the use of finite resources.
The circular economy in action
Two Ferris State Kendall College alumni, Jared Seifert and Lauren Copping, launched Design Declassified, following the circular economy model. Design Declassified turns locally sourced plastic waste from West Michigan into furniture, lighting, and home goods.
Seifert and Copping focus on easy-to-find post-consumer and industrial waste. They turn it into 100% recycled sheets, with no added glues, resins, or colors. They partner with local recyclers and compounders. These partners capture waste streams during the shredding phase, thereby reducing chemical and greenhouse gas emissions.
As a business, they have a streamlined process to inspire sustainable design.