Innovative Supplier Management Processes for Sustainability - Explorative Findings from German Stock Corporations

Abstract

Companies which have to manage global supply chains face a high level of complexity in that there is a large number of suppliers in diverse socio-economic contexts as well as a growing demand for control of social and environmental criteria in these supply chains. Sustainable supply chain management (SSCM) therefore argues for the need to consider social and environmental next to economic aspects in the management of supply chains. This integration can only be achieved by process innovations, in the way that sustainability criteria are integrated into the key processes of supplier management (evaluation, selection, and development). The presented survey-based exploratory study focuses on these processes in large German stock corporations. The results show that some companies are already considering sustainability aspects in their supplier management processes. Moreover, processes which are easier to implement, such as written requirements and standards, are more often implemented than resource-intensive processes of evaluation and audits. At the same time, the increasing importance of supplier development and related innovative approaches become apparent, as supplier development can lead to long term partnerships with suppliers and can cause a reduction of transaction costs.

Keywords: Supplier management, Process innovation, Sustainable supply chain management

JEL Classification: M11, O31, O32