The importance of supplier development for sustainability

Abstract

Combining social responsibility, environmental consciousness, and economic performance in supply chain operations has led to sustainable supply chain management (SSCM) programs. In recent years, the growth and importance of sustainability in supply chains has increased due to an insurgence of interest in climate change, environmental pollution, energy price fluctuations, and basic consumer behavior. This trend is especially prevalent in supply chain management. Due to the highly competitive business environment, it is not only the performance of the firm that is critical, but also the performance of the suppliers of a firm. The sustainability of an organization depends on the relationship fostered with suppliers. Supplier development, defined as the activities organized by buyers to increase the performance of their suppliers, has originated from this concept. Thus, supplier development projects can play an important role in sustainability for the firm and for the supply chain. This chapter, using extant literature, gives a general framework for supplier development and the effects on sustainability.