德勤咨询：2024年供应链管理报告：导论与应用治理视角

SUPPLYCHAINMANAGEMENT

AnIntroduction&AppliedGovernancePerspectives

June2024

FOREWORD

Theprocessofmanagingtheflowofproductsandservicesintoandoutofabusiness'soperationsisknownassupplychainmanagement.Governanceandsupplychainmanagementarerelated.

ThegovernanceprofessionalshouldbeawarethattheStockExchange'sESGReportingGuide

mandatessupplychainmanagementdisclosures.ThesedisclosuresincludepoliciesonmanagingenvironmentalandsocialrisksofthesupplychainanddisclosureonvariousKPI'ssuchasthe

numberofsuppliersbygeographicalregion,thepracticesrelatingtoengagingwiththedifferentsuppliersandhowthosepracticesareimplementedandmonitored.

Onemajoremergingconcernwillbe,forinstance,meetingtheincreasedgreenhousegasdisclosurerequirementsbasedontheInternationalSustainabilityStandardsBoard's(ISSB)

reportingofScope3emissionsaspartofthenewlypublishedclimate-relateddisclosuresand

announcedbytheStockExchangetobeadoptedforalllistedcompaniesfrom1January2025.Also,materialdisclosuresonlabourandemployment,theenvironment,andoperatingproceduresare

needed.Dependingonwheretheircompanyisinthesupplychain,thegovernanceprofessionalmayalsofindthattheirbusinessoperationsareatthereceivingendofinformationrequests.

Hence,tohelpthegovernanceprofessionbecomemoreknowledgeableinthisfield,offeradvice,andputgovernancepracticesintopractice,HKCGIandDeloittetakethisopportunitytointroducebroadconceptsrelatedtosupplychainmanagement.Toimprovetheirgeneralunderstandingof

supplychainmanagement,decision-makersinthesupplychain,includingchairpersonsandCEOs,shouldfindreadingthispaperinsightful.

MrDavidSimmondsFCGHKFCG

President

TheHongKongCharteredGovernanceInstitute;

ChiefStrategy,SustainabilityandGovernanceOfficerCLPHoldingsLimited

MrEdwardAu

ManagingPartner,SouthernRegionDeloitteChina

ACKNOWLEDGEMENTS

TheauthorsofthereportareDrPascalVuichard,Director,ClimateChange&Sustainability,DeloitteChinaandMrMohanDatwaniFCGHKFCG(PE),DeputyChiefExecutive,TheHongKongCharteredGovernanceInstitute.

TheInstituteexpressesgratitudeto:

•MrDavidSimmondsFCGHKFCG,President,TheHongKongCharteredGovernanceInstitute;ChiefStrategy,SustainabilityandGovernanceOfficer,CLPHoldingsLimitedforhisinputtothispaper.

•MsMelissaFung,Partner,RiskAdvisory,DeloitteChina.

•MrErnestLeeFCGHKFCG(PE),ImmediatePastPresident,TheHongKongCharteredGovernanceInstitute;andTechnicalPartner,DeloitteChina.

•MsElliePangFCGHKFCG(PE),ChiefExecutive,TheHongKongCharteredGovernanceInstitute.

MrMichaelLingFCGHKFCG,JointCompanySecretary,CLPHoldingsLimited,supervisedthisprojectasChairman,TechnicalConsultationPanel(TCP)ofTheHongKongCharteredGovernanceInstitute,with

contributionsfromtheInstitute'sTCPmembers.

4

ABOUTTHEAUTHORS

DrPascalVuichard

Director,ClimateChange&SustainabilityRiskAdvisory

DeloitteChina

DrVuichardisaDirectorwithDeloitteClimate

&SustainabilityinHongKong.Heisassisting

clientsindrivingsustainabilityprojectsspanningacrossdifferentsectorsincludingthepublic

sector,energy,mobility,wastemanagement,andthebuildingssector.

Pascalhasledvariousprojectsfocusingon

strategicplanning,policydevelopment,and

researchinitiatives.Hisrecentfocusison

actionableNetZerostrategiesforcompanieswithaspecificfocusonprovidingfeasibility

studiesandbusinesscaseassessmentsfor

market-readyandforward-lookinglow-carbon

solutionswiththeaimtofostergrowthforthesetechnologiesaswellasondeliveringlearning

programmeswiththegoaltoequipexecutiveswiththetoolsetstotackleclimatechangeandcaptureopportunitiesonthepathtoalow-

carboneconomy.

PascalholdsaPhDinRenewableEnergy

ManagementandMaster’sDegreesin

InternationalManagementandAccountingandFinancefromtheUniversityofSt.GallenandtheLondonSchoolofEconomicsandisappointedasanAdjunctAssistantProfessorforclimateactionatTheHongKongUniversityofScienceand

Technology.

MrMohanDatwaniFCGHKFCG(PE)

SolicitorLLB,LLM,MBA(Iowa)(withDistinction)DeputyChiefExecutive

TheHongKongCharteredGovernanceInstitute

MohaniscurrentlytheDeputyChiefExecutiveofTheHongKongCharteredGovernanceInstitute

(HKCGI),torepresentCharteredSecretariesand

CharteredGovernanceProfessionalsinHongKongandChina.

Inadditiontohisday-to-daymanagerialduties

atHKCGI,Mohan,athoughtleader,develops

practicaladviceandresearchtoadvancegood

governance.Additionally,asamemberofthe

globalgovernanceprofession,hecollaborateswithTheCharteredGovernanceInstitute,whereHKCGIoriginates,onresearchprojectsandcontributes

toglobalthoughtleadershipinitiatives.Tooffer

viewpointsonlaw,governance,andmanagementinthepublicsector,Mohanalsoservedonmanygovernmentboards.Hewashonouredasa

DirectoroftheYear(2018)byTheHongKong

InstituteofDirectorsforhiseffortswiththeEqualOpportunitiesCommission.

TABLEOFCONTENTS

01

ExecutiveSummary

02

CHAPTER1

Introduction

06

CHAPTER2

SupplyChainEvolution:StrikingaNewBalance

09

CHAPTER3

SupplyChainInnovation:AddressingtheScope3Challenge

12

CHAPTER4

DrivingSustainableValueCreation

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|1

EXECUTIVESUMMARY

Supplychainmanagementhasgovernanceconcerns.

Forexample,theStockExchange'sESGReporting

Guidehighlightsenvironmental,social,andgovernance(ESG)reportingdisclosuresandrequirementsinsupplychainmanagement.Apartfromenvironmental,labour,andoperationalpracticesconcerns,managingthe

supplychain'scarbonfootprintisbecomingincreasinglyaprioritywithclimatedisclosurerequirements.This

paperaimstobringthesechallengestotheattentionofgovernanceprofessionalsandbusinessowners

sotheycanunderstandthebasicsofmanagingandaddressingtheseevolvinggovernanceissuesintheirsupplychains.Thegovernanceprofessionaloughtto:

❶Staycurrentonregulatorydevelopments,includingthosefromtheISSB,particularlyconcerningScope3emissionsreporting,whichaccountsforupto80%ofan

organisation'scarbonfootprint.

❷Haveageneralunderstandingofthe

importanceoftheinsights,industry

collaboration,traceability,andoperationalexcellencethatarediscussedinthispaper.

目Recognisethewiderangeofrisksrelated

tosupplychainmanagement,including

technology,policy,disclosure,compliance,

reputation,finances,andphysicalrisksthatmustbemanagedinconjunctionwithsupplychains.

❹Maketheirbusinessesawareofthispaper'stacticsforevolvingthesupplychain,

creatingvalue,andaddressingScope3requirements.

Fromtheappliedgovernanceperspective,thispaper

aimstoincreaseunderstandingofthechallengesandhelpthegovernanceprofessionaleffectivelyprovide

high-leveladvisoryperspectives.Planningandcreatingmoreresilientsupplychainsisabroaderprocessinto

whichgovernanceprofessionalscanundoubtedlyofferinsights.

2|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

CHAPTER1

INTRODUCTION

Asageneralintroductiontosupplychainmanagement:themainreasonssupplychainsweredevelopedweretooptimisecostandtimeefficiency.Theprimary

objectivewastonavigatethemostefficientand

economicalpathfromrawmaterialstofinished

productswhileupholdingstringentsafetyandreliabilitystandards.However,thelandscaperapidlyevolvesas

stakeholderexpectationsandregulatorymandatesshiftprofoundly.Forexample,thegovernanceprofessionalmayneedtoremindthoseinvolvedinsupplychain

managementofthedisclosure'srequirementsunder

theESGReportingGuideandotherreportingregimes,includingthoserelatingtoScope3emissionsand

othermaterialenvironmentalandsocialrisks.

Aspartofgeneralsustainabilityconcerns,companiesalsoassumeheightenedsocialobligationsin

responsetochangingconsumerdemandsfor

sustainablesolutions,oftenpropelledbyregulatoryframeworksadvocatingsustainablepractices.These

stakeholderpressuresandlegislationcompelsupplychainmanagerstopivottowardsanewoperationalparadigm.Consequently,businessesneedto

reimaginesupplychainmodels,withresponsibilities—andopportunities—forsustainablevaluecreation,

expandingupstreamanddownstreambeyondtheirimmediateoperationsalongwithothermaterial

environmentalandsocialgovernanceconcerns.

Whilevariousfactorsmustbeconsidered,some

sector-specific,threepivotalenablersemergefor

companiesembarkingonthejourneytowardsamoresustainable—andultimatelymoreresilientandwell-

governed—supplychain:

•OperationalExcellence:Longconsideredthecornerstoneofsupplychainmanagement,

operationalexcellenceremainsparamount.

Cost-efficientsolutionsneednotbeatoddswithsustainability.Optimalphysicalfootprint

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|3

designs,enhancedassetutilisation,and

rigorousqualitymanagementarecriticaldriverstowardssustainability.

•IndustryCollaboration:Collaborativeeffortswithintheindustryarekeyforsustainable

supplychaindesign.Businessesmust

broadentheirecosystemperceptions,

fosteringextensivedatawhichisessentialtomakingsoundgovernance-relatedmaterial

andenvironmentalandsocialgovernance

disclosures,aswellasinformation,andasset-sharingcollaboration.Suchcollaborationneednotcompromisecompetitiveadvantages;it

canyieldmutualbenefitsthroughenhancedinsights,reducedwaste,andheightened

accuracy.

•TraceabilityandInsight:Whileessentialfor

effectivesustainablesupplychains,traceability

andinsightpresentsignificantchallengesand

opportunities.Ascompanies'responsibilities

extendbeyonddirectsuppliers,tightercontrolisessentialformanagingthewiderecosystem.Technologyisimportanttoensurecompliancewithsocialresponsibility,emissionscontrolandcarbonfootprint,toenableeconomicallyand

environmentallysustainableimprovements,andtoenablethecorporategovernancedisclosurerequiredbystakeholders,includinginvestors

andregulators.

ArecentDeloittesurveyof2,082C-levelexecutivesworldwideunderscoresthemountingpressureon

companiestoaddressclimatechangeacrossdiversestakeholdergroups.Giventheurgencyofthiscalltoaction,achievingamoresustainablesupplychainisnotmerelya"shoulddo";ithasbecomeabusinessimperative.

4|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

SupplyChainRisks:AcknowledgingtheBusinessImperative

Thegovernanceprofessionalwillbeawarethat

climatechangeimpactsarefeltalreadytodayboth

physicallyandfinancially.Inresponse,governmentsare

craftingnewpolicies;investorscraveclarityonrisks,opportunities,andtechnologycosts.Suchshifting

regulationsandbehavioursamongstakeholders,

whicharegovernanceissues,couldresultinproductandservicealterations,lostassetvalues,andmarketdislocationifnotproperlymanaged.Amidstthis

backdrop,businessesfaceevolvingriskprofiles,evenasnewprospectsemergeindevelopingindustries.

Today'scompaniesarechallengedtomanagethe

followingrisksconcerningtheiroverallbusinesses

andsupplychains,whichthegovernanceprofessionalshouldgenerallyknow.

•PolicyRisk:Governmentresponsesto

climate-relatedeconomicimpactshintata

heightenedlikelihoodofpoliciesthatcould

reshapethecompetitivenessofcarbon-

intensiveproducts.Enactmentofsuch

policiescouldforcecompaniestointernalise

externalities,incorporatingCO2emissions

damagesintoproductcoststhroughcarbon

taxesorsubsidies.Clearpolicysignalsare

imperativetoalignprivatesectorexpectations,enablingcapitalmobilisationandorderly

redistributionofinvestments.Timingis

critical,withcompaniestaskedtogauge

policymakers'trajectories.Prematureaction

risksescalatingcostsandbusinessrisks,whiledelayedactioncouldnecessitatemoredrasticshifts,potentiallyleadingtoassetstranding

anddisruption.Theseconsiderationswillhaveaprofoundimpactonthemanagementof

supplychainsandcooperationwiththevariousstakeholdersalongthesupplychain.

•DisclosureandComplianceRisk:Companies

confrontacomplexarrayofmandatoryand

voluntarydisclosurerequirementsestablishedbyentitiesliketheTaskForceonClimate-

relatedFinancialDisclosure(TCFD),the

TaskforceonNature-relatedFinancial

Disclosures(TNFD),andtheInternational

SustainabilityStandardsBoard(ISSB).The

ISSB'sinauguralstandards,IFRSS1andIFRS

S2,unveiledinJune2023,furthercontributetotheevolvinglegislativelandscapewithHKEX'sannouncedendorsementby1January2025

forlistedcompanies,includingtheneedfor

Scope3emissionreportingrequiringdatafromupstreamanddownstreamprocessesalonga

company’svaluechain.Fromasupplychainperspective,theregulatoryterrainisrapidly

evolving,withemergingmandatoryvalue-

chainduediligencelegislationandanticipated

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|5

regulatorydemandsaroundtransparency,traceability,andduediligence.

•TechnologyRisk:Thecostcompetitiveness

ofcleantechnologieshassignificantly

evolvedoverrecentyears,withtechnologicaladvancementsdrivingdowncostsandleadingtoincreasedadoption.Forinstance,between

2009and2019,pricesoflarge-scalesolar

photovoltaicsplummetedby89%,asperthelatestUnitedNationsHumanDevelopment

Report.Similarly,lithium-ionbatteriesarenow97%cheaperthanin1991.Thiseconomic

viabilityofrenewableenergysources

acceleratesthetransitionfromtraditional

energysources,reshapingindustries'cost

structuresandbusinessmodels.Italsoleads

tostakeholderexpectationswithsupplychainmanagement,andbusinessescannotbeseenfallingbehind.

•ReputationRisk:Inadequatemanagementofenvironmentalriskswithinsupplychainscanleadtoreputationaldamagetocustomers,

employees,andotherstakeholders.As

theenvironmental,social,andgovernance

(ESG)landscapeevolvestomeetregulatoryrequirements,organisationsmustenhance

visibilityintoextendedvaluechains,buildingresilienceagainstriskssuchasoversized

emissionfootprints,poorlabourpractices,corruptionandbribery.Thereisaneedtocarefullyassesspotentialexposuresfromsupplychains.

•FinancialRisk:Stagnationinsustainability

effortsrisksyieldinglowESGratings,

translatingintohigherinsurancepremiums

andincreasedcapitalcosts.Followingthe

COVID-19pandemicandgeopoliticalshifts,

investorsshowheightenedinterestinsecuringinvestmentsagainstsocialandenvironmentalshocks.

•PhysicalRisk:Whilecompaniespresently

prioritisetransitionrisks,Physicalriskis

growingasthefrequencyofextremeweathereventsincreases.Physicalriskscanbeevent-

driven(acute)orlonger-term(chronic)and

comeinvariousforms.Forinstance,water

shortagesmaycauseproductionissues;

increasedstormscoulddisruptshipping,thus

delayingthereceiptofpartsanddelivery

ofproducts.Regardless,companiesshould

considerbothadaptationandmitigation

strategies.Adaptationisactingtominimise

theimpactofthechangingclimateona

business,includingoperationalorsupplychaindisruptionscausedbyextremeweatherevents.Climateresiliencemeansusingforward-lookingtools,suchasscenarioanalysis,toadapt

operationsandbusinessmodelsbeforeacrisisoccurs.Thelikelihoodofheatwaves,droughts,hurricanesandfloodsoccurringunderdifferentemissionsscenarioscanbeexaminedusing

climatemodels.Understandingwhatthefuturemightlooklikeiscriticaltoeffectivelydesign

ongoingandfutureassetsandoperations.

Recognisingthebusinessimpact,manycompaniesareactivelypursuingdecarbonisation

initiativesacrossproducts,supplychains,andstrategies.TheScienceBasedTargetsinitiative

(SBTi)reportssignificantadoptionofscience-basedtargetsandnet-zerocommitmentsundertheSBTi'sCorporateNet-ZeroStandard–revealingthatthenumberofcompanieswithvalidated

science-basedclimatetargetshasdoubledoverthepastyear,reachingmorethan4,000companiesattheendof2023.Theseactionsarenotmerelyaltruistic;theyreflectbusinesses'drivetoremainrobustandagileamidstevolvingglobaldynamics.Sustainableandresilientsupplychainsarepivotalfornavigatingrisksandensuringlong-termviabilityinanever-changingworld.

6|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

CHAPTER2

SUPPLYCHAINEVOLUTION:STRIKINGANEWBALANCE

Manysupplychainleadershavehistoricallyfocused

onachievingtop-quartileperformanceincost,service,

assetmanagement,andagility,especiallyduring

theCOVID-19pandemic.Today,sustainabilityandresiliencearecrucialperformancemetricsalongsidethesetraditionalmeasures.Recentgeopolitical,

regulatory,andsocialpressureshavepresentedparadigm-shiftingchallengesforsupplychain

professionals,whichgovernanceprofessionalsneed

tounderstand.However,whilesustainabilityand

resilienceareacknowledgedas"must-haves,"many

organisationsarestillintheearlystagesofintegratingtheseinitiatives.Thepaceofchangeremainssluggish,hinderingtheimpactmanycompaniesstrivefor

andthatstakeholdersdemand.Thegovernance

professionalsshouldbeawarethatthereisaclear

opportunitytoembedsustainabilityintothesupply

chainwhileconsideringitsbroaderimpactonresilienceandviceversa.Leveragingsynergiesbetween

thesegoalsholdsimmensepotentialforlong-term

optimisation.Neglectingthisopportunitycouldprovecostly,jeopardisingthecompany'sprospects.

Incraftingaroadmap,threeprinciplesarethe

foundationforbuildingafuture-readysupplychain.

Thegovernanceprofessionalcanpointouttotheir

respectiveorganisationsthatifeffectivelyadopted,

theseprinciplescanfacilitatetheseamlessintegration

ofsustainabilityandresilienceintosupplychain

operationswhileupholdingtraditionalperformanceattributes.

Lookbeyondtheobvious:Adoptstrategic,

long-term,andmulti-dimensionalthinking

toavoidreactiveandcostlytacticsdriven

byimmediatetrends.Intoday'sfast-paced

world,organisationsmustrespondtomultipledevelopmentssimultaneously.Whilereactingtoeventsisnecessary,swingingbetween

effortstooptimisesustainabilityandresiliencecanbecounterproductive.Forinstance,

prioritisingcostcontrolthroughlow-cost

providerswithlaxpollutioncontrolsmay

seemprudentamidsteconomicuncertainty.

However,suchshort-termtacticscanhinder

long-termstrategicobjectives,leadingtobranddamageand"greenwashing."Strategic,multi-

dimensionalthinkingcansafeguardagainst

suchreactiveapproaches,mitigatingnegativeimpacts.

Thinkpartnership:Embraceanintegratedapproachtosupplychainsustainabilityandresilience,focusingonleveragingsynergiesandmitigatingtrade-offs.Whilesomeviewresilienceasaby-productofsustainabilityandviceversa,bothareequallyvital

attributes.Organisationsshouldprioritisesustainabilityimprovementsguidedby

resilienceconsiderationsandviceversa.

Sustainablepractices,suchasinvestingin

risk-visualisationtechnologies,canenhance

resiliencebyprovidingdata-driveninsightstoanticipatedisruptions.Leveragingpredictive

analyticsandAI-poweredtechnologiescan

helpallocateresourceseffectivelyandpreventenvironmentalandhumanharm,enhancing

sustainabilityandresilience.

Emphasisetechnology:Investinandenhancedigitaltechnologyanddatacapabilities,

particularlytransparency,traceability,and

trackability.Comprehensivedatavisibility

iscrucialforinformeddecision-makingand

targetedresponses.Transparency,traceability,andtrackabilitytechnologiesprovidereal-timeinsightsintoproductlocation,touchpoints,

andtransformations,enablingorganisationstoidentifyrisks,vulnerabilities,andimprovementopportunities.Getting"theThreeTs"right

shouldbeapriority,astransparentnetworksandtrackabilitysolutionsinformeachother,makinginsightsmoreimpactfulinenhancingsupplychainsustainabilityandresilience.

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|7

8|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|9

CHAPTER3

SUPPLYCHAININNOVATION:ADDRESSINGTHESCOPE3CHALLENGE

ThegovernanceprofessionalshouldknowthataddressingScope3emissions,whichoriginate fromentitiesthroughoutanorganisation'svaluechainratherthanitsdirectoperations,iscrucialforenhancingsupplychainsustainability,resilience,andenvironmentalimpactreduction.Managingtheseemissionseffectivelyhelpsmeetstakeholderexpectations,mitigaterisks,andgainacompetitiveedge.Wetaketheopportunitytoconsidertheissueinmoredetailfromtheperspectiveofappliedgovernanceconcerningsupplychains.

10|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

•Scope3emissions:Amandatorydisclosure

areaunderthenewlyendorsed–ISSBIFRS

S2standardandthereforeapplicabletolisted

companiesinHongKongasof1January

2025–arewidespreadandoftenconstitute

over80%ofanorganisation'semissions

inventoryassupplychainsneedtobetaken

intoaccount.However,reducingthempresentschallenges,requiringengagementacrossthe

entiresupplychain.Acomprehensiveapproachinvolvesidentifyingemissionsources,setting

meaningfulreductiontargets,collaborating

withsupplierstodecarbonise,andtracking

progress.Sustainableprocurementpractices

arekey,includingselectingenvironmentally

responsiblesuppliers,promotingenergy

efficiency,andencouragingrenewableenergyadoption.Collaborationwithsuppliersto

optimisetransportation,reducepackaging

waste,andembracecirculareconomyprinciplesisalsovital.Thegovernanceprofessionalwill

nodoubtbeconcernedfromtheperspectiveofESGreportingdisclosure.

•Emissionreduction:Developingeffective

sourcingstrategiesandunderstandingvalue

creationwithinsupplychainoperationsare

essentialforemissionreduction.ASustainableSupplyChainRoadmapofferspracticalinsightstoenhanceoperationalexcellence,industry

collaboration,andtraceability,whichare

necessaryforaddressingtheScope3challenge(pleaserefertotheDrivingSustainableValueCreationsectionandFigure1).

•Climate-relateddecisions:Whilegreenhouse

gasemissions,includingScope3,arevital

forESGreporting,it'scrucialtoconsiderthe

broaderESGlandscapewhenmakingclimate-relateddecisions.Thedatarequiredfor

effectivesupplychaindecarbonisationaligns

withsustainabilityreporting,financialreporting,andregulatoryfilings.Thus,companiesmust

viewdatamanagementasacompany-wideinitiative,establishingacentralised'singlesourceoftruth'forallESGdata,similartofinancialdatacontrols.

•Reportingapproaches:Asorganisations

advanceinScope3emissionsunderstanding,theytransitionfromspend-basedtoactivity-

basedreportingapproaches.Accessing

supplier-provided,activity-levelemissionsdataenhancestheaccuracyofover-generalised

emissionsfactorsappliedtospending.Whileuncertaintymayaccompanythistransition,

companiesmustprioritiseprogressamid

stakeholderpressuresandevolvingreportingstandards.Emergingtechnologiesoffer

real-timedataaccessandfacilitateESG

reporting,butsuccesshingesonfoundational

dataintegrity.Strategicinvestmentsin

comprehensive,real-timedataarenecessarytoidentifyinefficienciesandenableagile

responses.Viewingreal-timevisibility

investmentsasopportunitiesratherthan

burdenscansignificantlyimprovesupplychainhealthandperformance.

SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives|11

Figure1:SustainableSupplyChainRoadmap

Therightapproachiscriticalforsuccessfulsupplychaintransformation

Providedirection,purposeand

motivationtoachieveacommongoal

Setprocess-performance-recordingKPIsinaccordancewithaleading

standards

Vision&Ambition

PerformanceManagement

Createadesignthatmeets

desiredrequirementsandthe

needsoftheuser.Assistintestingandvalidatingthefeasibilityandviabilityofideas.

BusinessModels

ConceptualDesign

Ecosystem&Partnership

Provideathorough

analysisofproposedbusinessmodels,

includingeconomic

andenvironmental

benefits,costs,and

risks.Thegoalisto

assistdecision-makersinmakingdecisions.

Business

&Benefits

Case

Regulate

cooperationandtheresponsibilitieswithpartnerswithina

definednetwork

MaturityAssessment

Createandsustain

valuebydefiningthevalueproposition,

distributionchannels,andrevenuestreamsofnewbusiness

opportunities

Transformation

Plan&

Implementation

Providethecurrentanddesiredstate,aswellasareasforimprovement

Provideaclearandillustrative

representationoftheproject'sobjectives,milestones,and

timeline

12|SupplyChainManagement–AnIntroduction&AppliedGovernancePerspectives

CHAPTER4

DRIVINGSUSTAINABLEVALUECREATION

Intoday'sunpredictability,disruption,andgrowingregulatory

pressures,enhancingsupplychainresilienceandsustainabilityis

astrategicimperative.Despitethechallengesofbalancingthese

objectives,organisationscannavigatethroughbyadoptingalong-

termstrategicvisionastheirguidingprinciple,leveragingtheinherentsynergiesbetweensustainabilityandresilience.Thegovernance

professionalneedstounderstandthatitiscrucialtorealisethat

organisationsneednotcompromisebetweensustainabilityand

otherkeybusinessattributessuchascost-efficiency,customerfocus,assetoptimisation,oragility.Theycaneffectivelypursueallthese

objectivessimultaneously.

Thesupplychainrepresentsacriticalarenawherecompanies

encountersignificantrisksanddiscovervastopportunitiesfor

sustainab