Sustainable Supply Chain: towards implementation of a Sustainable Supply Chain in the Food Retail industry

Details

Supervisors

Desmet, Carlos

Faculty

Louvain School of Management

Degree label

Master [60] en sciences de gestion

Abstract

Today’s society is more and more concerned about the concept of sustainability. Every year, new objectives or regulations are put place, and consumers are more and more concerned about the products they consume. As a result, the Food Retail industry is regularly criticized for its non-sustainable practices and is facing increasing pressures from various stakeholders. Because most Food industry’s sustainable issues are located in the upstream part of the Supply Chain, becoming more sustainable required the implementation of a Sustainable Supply Chain Management (SSCM). In this study, we are going to discuss through a literature review the different topics related to the concept of SSCM and exposed the linked challenges. This first analysis will lead us to concentrate our efforts on Retailers’ procurement department. Indeed, it is the one that creates the most value for Retailers and maintains close relationships with suppliers. Then, the research question: “how to implement a Sustainable Supply Chain Management in the Food Retail industry?” will be developed by means of a guide developed by the United Nations, called: “Supply Chain Sustainability: A Practical Guide for Continuous improvement”. It developed four steps that companies who want to implement a SSCM must follow. Then, two interviews with experience buyers have taken place to link the guide and the Food Retail industry. As a result, various drawbacks towards the implementation of a Sustainable Supply Chain Management are developed. First, an important lack of education. Indeed, the two interviews exposed that Retailers focus mainly on one part of the concept of Sustainability and that the linked benefits are not understood. This required trainings and involvement from the top management to guide the entire Retailers’ organization towards more sustainable understanding. Then, the fact that, to compete in the sector, prices are a key element. However, Sustainable products are more expensive than classic ones. This leads to the need of building collaboration among Retailers to increase power while facing national brands. In addition, there is a need to develop private labels to decrease the size of the Supply Chain and increase control.