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Service Quality Versus Sustainability: A New Conflict of Objectives
Abstract
Sustainability cannot be obtained at no charge. This is the first and most fundamental goal conflict we are exposed to after accepting sustainability as a new substantial requirement which all our future decisions and actions will have to fulfill. This article deals with a further goal conflict which is more specific and arises in the field of logistics. The fact that demanding service requirements can restrict our efforts to promote sustainability (and vice versa) is not obvious and has not yet been scrutinized in depth up to now. The article delivers an analysis of the drivers of this conflict and the barriers which have to be removed in order to advance sustainability.
... We developed a consumer interface for the software design of the obtained mathematical model. In VisualStudio.NET_2019work environment, we built a conceptual model in the form of ERM diagrams (Fig. 1b) depicting business processes included in the supply chain [4]. ...
... If the ecological component exerts a stronger influence on strategic design, for instance, the aim is to bundle transports optimally and to minimize express transports. This procedure can have an extremely negative effect on the achieved service level (Bretzke, 2014). ...
Purpose: This paper provides an overview of analytical optimization models and simulation-based approaches coping with upcoming challenges concerning the growing requirements within the field of sustainable supply chain design. It aims to combine the two highlighted solution methods in order to propose a holistic approach for decision-making support in this area.
Methodology: Initially, a literature review on current application solutions for sustainable supply chain design is given. The regarded and analyzed approaches will be clustered and allocated to supply chain design tasks. Synergetic effects of combining simulation and optimization are identified and an integrated approach is outlined.
Findings: Sustainable supply chain design tasks can be encapsulated in specific modules which are optimized simultaneously. Partial solutions are created which simplify the simulation model and reduce the necessary configurations to verify the robustness.
Originality: Current approaches focusing on sustainable supply chain design mainly use simulation or optimization. A well-defined approach using various preceded optimizations for modularized strategic tasks like partner selection, allocation of resources or determination of transport relations with subsequent verification of the results in a simulation has not been proposed yet.
Purpose
The aim of this paper is to explore the role of inventory and warehousing within international supply chains and, from this, to develop an exploratory framework that assists understanding in the area.
Design/methodology/approach
The research is based on case studies of 13 supply chains in six companies, using pipeline mapping techniques, questionnaires, quantitative measures of lead times, and Likert scales to measure the perceptions of supply chain managers to risk.
Findings
The results indicate that, for these case study supply chains, the supplier lead times were far in excess of the customer lead times and that, with the exception of new product lines, demand therefore needed to be supplied from inventory. In addition, inventory was a common risk mitigation strategy against the possibility of random demand variability and transportation delays. Based on these findings, an exploratory framework was developed to integrate such factors as inventory reduction strategies, risk management and inventory control theory.
Research limitations/implications
Further research is required to develop this exploratory framework in more detail so that it can help practitioners arrive at the most appropriate solutions. It is proposed that this is conducted initially in the fast moving consumer goods or retail sectors, so as to build on this research, and that this should include the upstream supply networks. Other types of industry sectors should then be explored.
Practical implications
It is intended that the exploratory framework put forward in this paper can form the basis for further research in the area and to develop useful tools for practitioners.
Originality/value
The literatures on inventory control theory and inventory reduction strategies have been largely separate to date. The findings of this paper lead to an exploratory framework to start to bring these areas together.
Editor's Note: John Elkington's new book, Cannibals with Forks: The Triple Bottom Line of 21st-Century Business, has been hailed as “practical, compassionate and deeply informed, a brilliant synthesis of his genius for cutting through the thicket of tough issues–in the world of business and sustainability–and producing elegant solutions that can be applied today” (Paul Hawken). We are pleased to have the opportunity to publish a selection from this award-winning book. In this discussion of partnerships, Elkington explores how effective, long-term partnerships will be crucial for companies making the transition to sustainability and offers approaches and examples of keen interest. Special thanks to Capstone Publishers, U.K., for their gracious cooperation.
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