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t indicates that pressure to support SCS came from multiple sources, both internal and external to companies, but increased the most among investors and industry associations. Internally, company executives were standout champions of SCS, indicating that the growth in SCS is a business trend and not a fad.
The MIT Centre for Transportation & Logistics (MIT CTL) and the Council of Supply Chain Management Professionals (CSCMP), a leading, global, professional membership association, collaborated on data collection in order to attain the broadest audience of practitioners and input from various sectors.
Mark Baxa, CSCMP Interim President and CEO
David Correll, MIT CTL research scientist, said, “We believe cooperation between sectors is vital to thoroughly understand the complexity and evolution of sustainability efforts more broadly. Our work with CSCMP and our sponsors helps us to embed this essential research and its findings within the context of the real-life practice of supply chain management.”
The report findings are beginning to shed light on how supply chains are becoming increasingly recognised for their impact on a firm’s sustainability objectives and public image. Mark Baxa, CSCMP Interim President and CEO, said, “Our members tell us that now, more than ever before, the very notion of embedding sustainable practices from within their company’s supply chain delivers real, tangible results. Competing in today’s global marketplace is not just about the high-quality products supply chains plan, procure, make and deliver. It’s about doing the right things right for the whole of society.”
Although there are many approaches to investing in SCS according to the report, interest in human rights protection, worker welfare and safety, and energy savings and renewable energy increased significantly over the last year. Supplier development was found to be the most common mechanism used by firms to deliver on their SCS promises.
However, there are formidable obstacles to overcome too. For example, it is notable that most of the momentum behind SCS appeared to come from large (1,000+ employee) and very large (10,000+ employee) companies covered by the research. Small to medium-sized enterprises appeared far
less committed. More work may be needed to bring them into the fold through a better understanding of the barriers they face, a possible topic for future reports.
A broader concern is that more attention from stakeholders – notably consumers, investors, and regulators – will bring more scrutiny of firms’ SCS track records, and less tolerance of token efforts, to make supply chains sustainable. Improved supply chain transparency and disclosure are critical to firms’ responses, the report suggests.
The MIT CTL/CSCMP research team is laying the groundwork for the 2022 State of Supply Chain Sustainability report. Over time, this annual status report aims to help practitioners and the industry to make more effective and informed sustainability decisions.
To read the report in full, visit www.news.mit.edu
