Sustainable optimization of supply chains - A global shift in logistics view on social, economic, and environmental sustainability

Abstract

The purpose of this report is to explore the sustainability aspect of supply chain optimization by presenting how sustainability is affected by different methods of supply chain optimization. The entirety of the work was conducted in Gothenburg, Sweden at Chalmers University of Technology. The research topics were how sustainability is affected by supply chain optimization and how sustainability can be used to gain market advantages. Different methods of supply chain optimization was used such as generic algorithms to improve lead times and quality and lateral collaboration to tighten the supply chain. Interviews were conducted with employees of different levels at a single global LSP to get practical input from the industry. A theoretical case was created and used to simulate an optimization and to see how it can improve sustainability. It was found that effects on sustainability depends largely on the metrics used to measure the three pillars. By the units of analysis of this report it was concluded that optimizing a supply chain directly leads to an increase in all three pillars of sustainability.