Triple Bottom Line
Supply chain management is a field that is continuously experiencing the influence of new trends, and sustainability is one of the most recent ones. Sustainable supply chain management refers to the practice of embracing a holistic view of all factors involved in supply chain processes taking into consideration the environment, society, and economy (Panigrahi et al., 2018). Sustainable supply chain management enables companies to operate more efficiently and have a smaller negative impact on the environment. One of the key theories in the realm of sustainable supply chain management is the Triple Bottom Line, developed by John Elkington, a notable management consultant. The theory explains that enterprises must focus on the three main goals in their operations: profit, people, and the planet (Miller, 2020). Sustainable supply chain management principles apply to different spheres, including distribution, storage, purchasing, manufacturing, warehousing, usage, disposal, and recycling (Panigrahi et al., 2018). Essentially, when adhering to sustainability in terms of its supply chain, a company must simultaneously consider its economic, environmental, and social activities.
Economic
Voss is a brand of water that is openly committed to the notion of sustainability and therefore relies on sustainable supply chain management practices. When applying the Triple Bottom Line to the company’s supply chain management, it becomes clear that its economic practices correspond to its sustainability commitment. For instance, lead time is one of the key concepts in logistics, and it refers to the time spent on the delivery or production of goods (Wisner et al., 2018). In order to improve its lead time, Voss launched a special train to go from Kristiansand, the place where water is sourced, to the production factory in Vatnestrom (“Sustainability,” n.d.). Additionally, the deployment of the train enabled the company to address the problem of capacity and the business’ capability to generate output over a certain period of time (Wisner et al., 2018). According to the company’s CEO, Voss was able to increase its capacity by 50% using rail transportation (Del Buono, 2017).
Environmental
As mentioned above, the economic changes brought by the company still align with its environmental policies. For instance, the use of the train allowed Voss to replace 30 truck movements daily and achieve an annual Co2 emissions reduction of 170 tons (“Sustainability,” n.d.). Another major practice employed by Voss is green procurement, which is the use of materials, goods, utilities that have a reduced effect on the environment (Panigrahi et al., 2018). Voss switched to polyethylene terephthalate bottles in its Voss+ line, which are 100% recyclable and thus can be reused on numerous occasions, greatly reducing their environmental impact. Additionally, Voss utilizes glass in the bottles for its other product lines, the material which is much more sustainable than any type of plastic (“Sustainability,” n.d.). Finally, the company introduced a recycling program and a water stewardship program to reduce waste and water consumption.
Social
Finally, the company also upholds the principles of sustainable supply management in the social realm. Corporate social responsibility is a term coined by Howard Bowen and refers to the need for companies to be socially accountable to their stakeholders and the public in general (Wisner et al., 2018). For instance, Voss provides clean drinking water to regions in crisis and has already distributed more than 1 million bottles (‘’Corporate,” n.d.). At the same time, the social aspect of sustainability can be maintained through the support of socially responsible suppliers (‘’Corporate,” n.d.). Voss prefers to work with regional suppliers, which helps the company to reduce its lead time. Moreover, by choosing the regional suppliers, Voss contributes to the creation of new jobs and economic development in the region.
Key Learning Points
To sum up, companies engaging in sustainable supply chain management tend to utilize the Triple Bottom Line by addressing economic and environmental. And social factors businesses can achieve sustainability. Voss is an example of a company that managed to sustainably improve its lead time and capacity. Moreover, the company utilizes the principles of green procurement, which allows it to reduce its emissions. Finally, Voss recognizes its Corporate social responsibility by creating new jobs and donating water bottles to people in crisis regions.
References
Corporate responsibility. (n.d.). Voss. Web.
Creating value with sustainable procurement. (n.d.). Inverto. Web.
Del Buono, A. (2017). Voss Water of Norway expands to retail and international markets. Beverage Industry. Web.
Miller, K. (2020). The triple bottom line: What it is & why it’s important. Harvard Business School. Web.
Panigrahi, S., et al. (2018). Sustainable supply chain management. Management of Environmental Quality: An International Journal, 30(5), 1001–1049. Web.
Sustainability. (n.d.). Voss. Web.
Wisner, J., et al. (2018). Principles of supply chain management: A balanced approach. Cengage Learning.