The application of sustainable supply chain management in tourism enterprises in nha trang city

ORIENTED DEVELOPMENT AND RECOMMENDATIONS IN IMPROVING SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM INDUSTRY IN NHA TRANG CITY .... LIST OF TABLES Table 1.1 Business strategy levels and

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THE APPLICATION OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN

TOURISM ENTERPRISES IN

NHA TRANG CITY

Member of the topic group:

LIST OF FIGURES

LIST OF TABLES

LIST OF ABBREVIATION

INTRODUCTION

CHAPTER 1 OVERVIEW OF SUSTAINABLE SUPPLY CHAIN

MANAGEMENT IN TOURISM 1

1.1 Definition of sustainable supply chain management 1

1.2 Contents of tourism sustainable supply chain management 3

1.2.1 Supply chain assessment 6

1.2.2 External environment review 8

1.2.3 Risks and opportunities evaluation 10

1.2.4 Supply chain management responsive programs 11

1.2.5 Sustainability practices engagement 16

1.3 The advantages and disadvantages of applying sustainable supply chain management in tourism 24

1.3.1 Advantages 24

1.3.2 Disadvantages 25

1.4 The needs in applying sustainable supply chain management in Nha Trang tourism 26

CHAPTER 2 THE REALITY OF THE APPLICATION OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM FROM 2010 – 2016 29

2.1 Overview of tourism industry in Nha Trang City 29

2.1.1 The number of tourists 29

2.1.2 Average guest stay 30

2.1.3 The revenue of the whole industry 31

2.2 The application of sustainable supply chain management in tourism in Nha Trang city 32

2.2.1 Supply chain assessment 33

2.2.2 External environment review 35

2.2.4 Supply chain management responsive programs 39

2.2.5 Sustainability practices engagement 40

CHAPTER 3 ORIENTED DEVELOPMENT AND RECOMMENDATIONS IN IMPROVING SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN TOURISM INDUSTRY IN NHA TRANG CITY 56

3.1 Opportunities and challenges in applying sustainable supply chain management in tourism in Nha Trang City 56

3.1.1 Opportunities 56

3.1.2 Challenges 58

3.2 Targets and orientation of Nha Trang city in developing sustainable tourism to 2020 60

3.2.1 Orientation 60

3.2.2 Target 62

3.3 Recommendations for developing sustainable supply chain management in tourism in Nha Trang city 62

3.3.1 Recommendations for the city authority 62

3.3.2 Recommendations for tourist companies 65

CONCLUSIONS 68 REFERENCES

ANNEXES

LIST OF FIGURES

Figure 1.1 Primary and secondary supply chain networks 8

Figure 1.3 Scope of sustainable supply chain management

implementation

12

Figure 1.4 Kaplan & Norton Balanced Scorecard 17 Figure 1.5 The Sustainable Supply Chain Scorecard Perspectives 18 Figure 1.6 Sustainable Supply Chain Scorecard – relations of the

perspectives

19

LIST OF TABLES

Table 1.1 Business strategy levels and types 7 Table 1.2 An example of threat-opportunity profile 11 Table 2.1 Number of tourist arrivals to Nha Trang from 2010-2016 29 Table 2.2 Total guest stay in Nha Trang from 2010 to 2016 31 Table 2.3 Total revenues from tourism of Nha Trang city from 2010

to 2016

31

Table 2.4 Awareness of Nha Trang’s tourism businesses about

sustainable supply chain management

Table 2.7 The application of risk management of Nha Trang’s

tourism businesses in practice

36

Table 2.8 Reality of applying strengths and weaknesses evaluation

procedures of Nha Trang’s tourism businesses

38

Table 2.9 Evaluation of Nha Trang’s tourism businesses on the cost

of applying sustainability practices

40

Table 2.10 Reality of environmental and social impact assessments of

Nha Trang’s tourism businesses

Table 2.14 Evaluation of tourists on the diversity of tours visiting

historic heritages

46

Table 2.15 Evaluation of tourists on the diversity of tours visiting and

exploring community/traditional villages, traditional

cultures and customs

46

Table 2.16 Reality of applying certification standard system of Nha

Trang’s tourism businesses

47

Table 2.17 Reality of tourism businesses’ activities in relations with

supplier

48

Table 2.18 Opinions of Nha Trang’s tourism businesses about

cooperation with suppliers

48

Table 2.19 Opinions of Nha Trang’s tourism businesses about

cooperation with suppliers

49

Table 2.20 Reality of Nha Trang’s tourism businesses activities

towards human development

50

Table 2.21 Evaluation of tourists on the cooperation among transport

companies, restaurants, hotels and tour operators to

deliver conveniences to tourists

52

Table 2.22 Evaluation of tourists on the promotion/ advertising/

information provided on the internet for traveling in Nha

Trang city

53

Tabe 2.23 Evaluation of tourists on the density of hotels/motels

distributed in Nha Trang

54

Table 2.24 Evaluation of tourists on the quality of hotel rooms and

other facilities

55

No Abbreviations Content

1 ASEAN Association of Southeast Asian Nations

3 ISO Internation Organization for Standardization

4 SAI Social Accountability International

5 IUCN International Union for Conservation of Nature and

Natural Resources

6 PCI Provincial Competitiveness Index

INTRODUCTION 1.1 Necessity of the research

Tourism has long been an important factor for the development of many countries all over the world Some countries consider tourism as the main income for the country while some would deem this industry as a tool for payment balance or the key industry of the whole economy For Viet Nam, it is a crucial factor for the economy However, despite our potential not only in natural resources but also in our glorious history and breadth of culture, Viet Nam has not taken remarkable consideration into this promising field Doing business in tourism, it requires a lot of preparation from different stages not only from transport, accommodation or excursions but also tour designs, bars and restaurants, waste disposal, infrastructure and human power, etc There is no escaping the fact that tourist companies in Viet Nam are still working individually There have not been many connections between them This creates many obstacles for them to deliver the best service quality to tourists such

as lag in communication between transportation agents and tours operators, price variations in tours, etc Moreover, environmental issue is also a noticeable problem for tourism businesses to consider Environment degradation will directly threaten our lives and also the future generation These common problems forces companies to pursue their links between each other in order to avoid wastes, better communication and leads to a brand new resolution, sustainable supply chain management in tourism

Tourism, like all other supply chains, operates through business-to-business relationship, and supply chain management can be applied to deliver sustainability performance improvements alongside financial performance, by working to improve the business operations of each supplier in the supply chain Many countries in the world have adopted this field of management and it has brought positive outcome so far Seizing this emerging trend, Vietnamese tourism enterprises have shaken their hands to create a closed-loop supply chain and create their competitive advantages

Nonetheless, in practice, many companies have had to bitten the bullet due to their lack of management skills in tourism supply chain, especially sustainable supply chain To adopt this management strategy successfully, they will have to place more

emphasis on not only social, environmental or economic aspects of the business but also the collaboration relation or the network with other businesses in the chain The benefits of applying sustainable supply chain management are remarkable It will help upgrade service quality to meet versatile customers demand, encourage provincial economy as well as preserve and embellish natural resources for a sustainable tourism

of the country

Nha Trang city is one of the most famous tourist attraction in the world in general and Viet Nam in particular Thanks to its possession of many beautiful natural scenery and beaches as well as fascinating heritages through the transformation of history, Nha Trang are becoming more popular and attracting tourists from all over the world However, together with the advancement of tourism, shortcomings and problems unquestionably appear In practice, many companies working in tourism industry are still taking too much care of the short-term profit without consideration about the long-term vision for a continual future of tourism This leads to the existence

of an unplanned development and may cause harm to the environment, the society and also the economy in the future Therefore, to create a bright future for our economy and evoke the potential of this beautiful beach city, sustainable tourism is an indispensable resolution at the present

With the hope to make a little contribution to the revolution of Viet Nam tourism, especially Nha Trang city, I decide to choose the topic for my graduation thesis as “The application of sustainable supply chain management in tourism enterprises in Nha Trang city” Through this work, I would like to give a new approach

to achieve sustainable tourism as well as the improvement in the operation of tourism companies in Nha Trang city

2 Overview of the research

Although studies of sustainable supply chain management are not rare, the examination of hospitality supply chains is burgeoning While the hospitality supply chain was discussed in a broader framework of tourism supply chain management by Zhang et al (2009) and Huang et al (2012), the conceptual framework provided by Xu and Gursoy (2015) is among the first to discuss the hospitality supply chain

management systematically This study utilizes the conceptual framework developed

by Xu and Gursoy (2015) Xu and Gursoy (2015) define a hospitality supply chain (HSC) “as a network of hospitality organizations engaged in different activities including the supply of various components of hospitality products and/or services such as raw food materials, equipment and furniture from various suppliers; distribution and marketing of the final hospitality products and/or services to the customers for a specific hospitality business such as a hotel or a restaurant.” Hospitality supply chain delivers both products and services from initial suppliers to end users with a value incremental process (Kothari et al., 2005) It incorporates the

characteristic of both manufacturing supply chain and service supply chain

A higher and more innovative level of applying supply chain management is engaging sustainability into the chain Sustainable supply chain management (SSCM)

is the integration of economic, environmental and social dimensions, sustainably and ethically, across the supply chain This is carried out through the integration of key features, i.e concepts, process and practices, extended across industries and business activities while collaborating with partners As the concept of sustainable supply chain management has been gaining attention across academia and industry, the focus of understanding ‘why’ it is necessary is now shifting towards ‘how’ the two fields of

‘sustainability’ and supply chain management merge (Gunasekaran et al., 2015; Luzzini et al., 2015; Winter & Knemeyer, 2013) Scientific evidence is stronger

than ever that the planet and people are under the greatest levels of stress ever experienced regarding climate change, environmental degradation, poverty, energy

issues and resources scarcity (IPCC et al., 2014) Business as usual, in terms of the old

model of economic growth and consumption, is not sustainable In terms of corporate social responsibility and ethical business, it is incumbent on companies to take greater account for their impacts not only on its stakeholders but society and the environment as a whole

This approach agrees with Hall, J., Matos, S., & Silverstre, B (2012) They conducted a research named “Understanding why firms should invest in sustainable supply chains: a complexity approach” It stated that sustainable supply chain

management should consider the three aspects economy, society, and environment as listed in the triple bottom line approach and a successful sustainable supply chain must

be able to satisfy the tripple bottom line criteria

There have been lots of researches relating to sustainable supply chain management but litte ones are conducted to go into the specific case of sustainable supply chain management in tourism One of the most relevant researches on this topic

is the study by Xu, X., & Gursoy, D (2015) named “A conceptual framework of sustainable hospitality supply chain management.” Firms must have a detailed hospitality supply chain framework to develop It study also discusses the antecedents, consequences, actions, evaluation mechanisms, and sustainability practices that can be implemented by all members of the supply chain on three dimensions (environmental, social, and economic) of the sustainable supply chain management in hospitality business following the principles of triple bottom line reporting (3BL) approach The author also cited that a true sustainability can be achieved only if all members of a supply chain participate in sustainable practices This study is one of the researches that provides the most complete framework for applying sustainable supply chain management in tourism as it mentions all the parties involved in tourism supply chain

Xavier Font, Richard Tapper, Karen Schwartz and Marianna Kornilaki (2006) also follow the 3BL approach with the research “Sustainable supply chain management

in tourism” This study stated that companies has focused too much on environmental aspects of manufacturing, while other aspects of sustainability or the challenges for the service sector are largely ignored The unique approach of the study is that it takes special care of tour operators as the product depends on the activities of suppliers, such

as accommodation, transport and activities, who mostly deal with tour operators Therefore, tour operators’ contribution to sustainable tourism will be more effective through the definition and implementation of policies that acknowledge responsibility for the impacts of suppliers The study provides a set of priorities for tourism companies to implement in order to achieve sustainability in tourism supply chain The set of priorities mentions all the sectors involved including accommodation, transport, ground handlers, excursions and activities, and food and crafts However, as they take

tour operators as the center of the chain, it is quite subjective in evaluating sustainability of the whole chain and lack of recommendations or instructions for other parties involved in the supply chain

Few organisations make significant progress in sustainable development without the benefit of strong and committed leadership which empowers the management team

to include social and environmental considerations alongside the economic ones Often waste management and resource recovery is left to junior management and considered

as ‘housekeeping’, and purchasing decisions are made without any consideration of the wider issues (that New Zealand Business Council for Sustainable Development, 2003) Organisations need to recognise that they have to identify, understand and manage issues within their own organisation before they start working with other organisations

in their supply chain to ensure that these issues are successfully managed throughout

The study named “Is the concept of sustainable tourism sustainable? Developing the Sustainable Tourism Benchmarking Tool” by Lucian Cernar and Julien Gourdon (2005) has systematically learned the evaluation framework for sustainable tourism In detail, the standard evaluation tool named “The sustainable tourism benchmarking tool” (STBT) has been published STBT evaluates the level of sustainability in tourism based on 4 dimensions: economic sustainability, social and ecological sustainability, infastructure sustainability and attractiveness sustainability In order to measure the sustainability degree of the 4 aspects above, the author has provided instructions and equations for quantiative analysis

A more holistic approach is provided by Cetinkaya, B (2011) Cetinkaya, B (2011, p.57) provides practical ideas and a systematic generic process for companies to develop their supply chains to sustainability Cetinkaya, B (2011) has listed out the four main ingredients for a successful sustainable supply chain management application Also, based on those 4 factors including holistic approach, risks and opportunities management, implementation of economic, environmental and social objectives, and balancing those three dimensions, the study has provided a 6-step iterative process for companies to regularly assess their supply chain and adjust their supply chain’s components and actions to moving towards sustainability

3 Purpose of the topic

The purpose of this thesis is to provide a clear understanding about sustainable supply chain management in tourism industry in Nha Trang Based on that, the author would like to suggest the framework for applying a brand new management approach

in tourism This strategy can encourage Nha Trang tourism to develop sustainable in the three main dimensions: the society, the environment, and the economy

In order to achieve the target of this thesis, there are some essential issues for resolving:

- Contents of sustainable supply chain management in tourism and the reason Nha Trang city needs applying this strategy

- Provide the framework for applying sustainable supply chain management in Nha Trang tourism and analyze features that influence sustainable tourism supply chain management in Nha Trang and its effect to the sustainable development of tourism business in Nha Trang

- Recommendations for the improvement of sustainable supply chain in tourism

4 Research subject

The subject of this thesis is the application of sustainable supply chain management in Nha Trang city together with facts and figures collected relating to revenues, number of tourists, the condition of the environment, the infrastructure, and the human resources of tourism industry

5 Scope of the research

Mentioning the contents, the author picks the most 5 suitable action steps for the application of sustainable supply chain management in Nha Trang tourism to analyze and evaluate

Regarding research period, the author uses the practice of tourism industry in Nha Trang from 2010-2016 to analyze the features that affect sustainable supply chain management Also, the author takes into account the orientation and targets of the government for tourism development in Nha Trang until 2020

Relating to research space, the author conducts study and surveys within Nha Trang city area

Observation method: Collecting information subjectively through observing tourism activities in some famous tourist sites, Cam Ranh airport, bus stations and railway station in Nha Trang, etc

Statistics collection method: The author gathers and analyzes survey information by Excel software From there, the author statistics each variable and sets the formula to calculate the average value and percentage for each variable

7 The meaning and practical values of the thesis

This thesis recommends a new trend for developing tourism and tourism businesses in Nha Trang city in particularly and even in Viet Nam in the future Sustainable development has long been a subject undergoing intense study by many countries in the world Regarding tourism, one of the key spikes for the development of Viet Nam so far, sustainability and stability of the advancement of tourism should be taken into consideration more seriously than ever before This research brings out a full-framed picture about the application of sustainable supply chain management in tourism and the reality of tourism activities relating to sustainable development aspect

in Nha Trang and on that basis suggests some solutions for improving the operation system of the whole industry to make it work more transparently and effectively

Moreover, the unique idea of this thesis is its emphasis on the collaboration between firms working in tourism Because collaboration is the only way to make tourism industry sustainable and ensure the three main pillars: society, environment, and economy

Through this research thesis, tour operators, transport agents, or restaurants and resorts, etc can change their mindset about cooperation with other firms and have a clear guideline to conduct this strategy Furthermore, thanks to this thesis, the authority may have a fair understanding about sustainable development and manage policies to assist tourism companies Finally, this thesis also places an emphasis on the importance

of educating the local people and reminding tourists about sustainable tourism, especially environment protection and waste saving

8 Thesis’s structure

Apart from the introduction, conclusion, list of references, and annexes, this thesis contains three main chapters:

- Chapter 1: Overview of sustainable supply chain management in tourism

- Chapter 2: The application of sustainable supply chain management in tourism from 2010 – 2016

- Chapter 3: Oriented development and recommendations in improving

sustainable supply chain management in tourism industry in Nha Trang city

In order to finish this thesis successfully, the author would like to express a sincere thank to all lecturers and staffs of Foreign Trade University during the time was studying here Specially, the author would like to thank Mr Tran Quoc Trung for the dedicated help and instruction for the whole period from December 2016 to April

2017 Also, the author would like to give great appreciation for the support of Nha Trang authority, particularly Department of Culture, Sports and Tourism, as well as the friendly local people and tourism businesses in Nha Trang

Due to the limit of time, sources of references as well as knowledge and experience, this thesis may have mistakes that needs correcting The author is looking forward to receive feedbacks from Foreign Trade University teachers and readers to improve and supplement it

Ho Chi Minh City, May 4th 2017

The Author

Nhan Quang Nhat Linh

CHAPTER 1: OVERVIEW OF SUSTAINABLE SUPPLY CHAIN

MANAGEMENT IN TOURISM 1.1 Definition of sustainable supply chain management

Over the past decades, companies from various sectors have come up with different strategies and tools to influence their suppliers towards better environmental and social practices All these companies believe that no enterprise can exist independently, and the success of company depends on its supply chain partners Tourism is a special industry This industry has an essential attach to natural resources, heritages, and human resources Hence, an over-exploitation of tourism can directly do harm to the environment and the living conditions of many people Therefore, it is such

an emergent need that companies working in tourism arm themselves a mindset of sustainable supply chain, an emerging trend for business management, and a great care for the social issues Moreover, when tour operators start to design tours and expenditure for tourists, tourism has naturally been a chain itself It requires companies such as transport companies, tours agencies, restaurants, resorts, etc to cooperate to form a complete tour Therefore, it is undeniable that sustainable supply chain management is so suitable a solution for tourism industry operation.This new strategy,

if conducted in a proper way, can evoke a new way to cut costs, avoid risks, protect the environment, and consequently win public relations battles

There were some preliminary definitions for sustainable supply chain management by some scholars and scientists in the past Through the revolution of time, these opinions and ideas are complementary to each other and create diverse aspects regarding sustainable supply chain Svensson, (2007) stated that “The sustainable management of a supply chain requires a broader vision (than ordinary supply chain management) and must highlight the economic, environmental and social aspects of business practice.” It seems that most studies on sustainable supply chain management are based on the triple bottom line model which covers the three main dimensions of a business Carter and Rogers, (2008) added in that sustainable supply chain management must be “The strategic, transparent integration and achievement of

an organization’s social, environmental and economic goals in the systemic

coordination of key inter-organizational business processes for improving the term economic performance of the individual and its supply chain”

long-In another perspective, Seuring and Muller, (2008) poined out the main three flows of a specific supply chain Accordingly, they defined “Sustainable supply chain management as the management of material, information and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental and social, into account which are derived from customer and stakeholder requirements.” Pagell and

Wu, (2009) perceived in the business perspective as developing but still satisfies two environmental and social elements They said “A sustainable supply chain is then one that performs well on both traditional measures of profit and loss as well as on an expanded conceptualization of performance that includes social and natural dimensions”; “If a sustainable chain is one that performs well on all elements of the triple bottom line, sustainable supply chain management is then the specific managerial actions that are taken to make the supply chain more sustainable with an end goal of creating a truly sustainable chain.” The same idea was shared by Hassini et al., (2012)

as “The management of supply chain operations, resources, information, and funds in order to maximize the supply chain profitability while at the same time minimizing the environmental impacts and maximizing the social wellbeing.”

Later in 2013, Ahi and Searcy, (2013) developed those previous ideas an defined sustainable supply chain management as “The creation of coordinated supply chains through the voluntary integration of economic, environmental, and social considerations with key inter-organizational business systems designed to efficiently and effectively manage the material, information, and capital flows associated with the procurement, production, and distribution of products or services in order to meet stakeholder requirements and improve the profitability, competitiveness, and resilience

of the organization over the short- and long-term.”

Recently, in a report named “Supply chain sustainability – A Practical Guide for Continuous improvement”, UNGC has defined supply chain sustainability management

as “the management of environmental, social and economic impacts, and the

encouragement of good governance practices, throughout the lifecycles of goods and services.” They also stated that “The objective of supply chain sustainability is to create, protect and grow long-term environmental, social and economic value for all stakeholders involved in bringing products and services to market.”

Based on these prominent and complementary definitions of supply chain management, and our review of the sustainability literature, we define sustainable supply chain management as the strategic, transparent integration and achievement of

an organization's social, environmental, and economic goals in the systemic coordination of key inter-organizational business processes for improving the long‐term economic performance of the individual company and its supply chains This definition of sustainable supply chain management is similarly based on the triple bottom line and the four supporting facets of sustainability– risk management, transparency, strategy, and culture

As tourism has its products as holidays and tours and customers usually travel to its products to enjoy them, tourism is a special industry However, just like any other industries’ supply chain, tourism supply chain also involves core and ancillary tourism goods and services Moreover, just similar to any other sustainable supply chain, the management and application of sustainable supply chain in tourism also focus mainly on three dimensions: economic, environmental and socio-cultural issues

Defining sustainable supply chain management exactly is very important to help companies and entrepreneurs to understand this strategy properly and realize its good effects on their businesses as well as on the environment And understanding this definition correctly will help to create a good guideline in achieving this level of management

1.2 Contents of tourism sustainable supply chain management

There has been a remarkable number of researches conducted relating to tourism supply chain However, discussion of how to make the chain sustainable is still very rare It is believed that true sustainability cannot be achieved by efforts of a single firm; achieving true sustainability requires participation of all or most players in sustainability efforts (Xu, X., & Gursoy, D., 2015) For example, sustainable actions

taken by firms who aim to use products in an environment-friendly manner may not contribute much to sustainability efforts if those products were made from environmental threatening materials This obviously explains the reason why companies need to implement sustainability actions from the upstream of the supply chain and, thus, sustainable supplier selection and cooperation remarkably contribute to sustainable supply chain management

Previous studies suggest that sustainable supply chain management must satisfy environmental, social, and economic dimensions as indicated in the triple bottom line approach (Mentzer et al., 2002; Lambert et al., 2006; Hall, J., Matos, S., & Silverstre, B.,2012; Xu, X., & Gursoy, D., 2015; Xavier Font, Richard Tapper, Karen Schwartz and Marianna Kornilaki, 2006) The triple bottom line approach provides a holistic set

of goals for companies when engaging sustainability in their supply chain Each dimension of this model has their emphasis on different essential issues for a “Healthy” supply chain Many researches have come up with many application frameworks based on this model However, no studies provide a clear roadmap for companies to apply sustainable supply chain management properly A sustainable supply chain involves more than the implementation of sustainable practices Rather, individual practices must be assembled to integrate meaningful long-term sustainability principles along the end-to-end supply chain

Balkan Cetinkaya (2011) in the study named “Developing a Sustainable Supply Chain Strategy” established a systematic process for firms to engage sustainability into their existing supply chain in a broader perspective This 6-step process not only suggests companies practices to achieve the final goal of balancing economic, environmental, and social issues but it also provides instruction to assess existing internal and external factors that may hinder the application of sustainable supply chain management and recommends proper responses to those scenarios The implementation of sustainable practices is originally based on the Kaplan/Norton Balanced Scorecard as they cover the four main perspectives including financial, sustainability, supply chain, and learning and growth perspectives However, the application process established by this study only mentions issues in the supply chain

in general but have not yet introduced specific practices to improve the sustainability of the supply chain

Recently, Weihua Liu , Enze Bai, Liwei Liu and Wanying Wei (2017) has come

up with a framework for sustainable service supply chain developed from original frameworks for manufacturing firms Their study clearly stated out main parties involved in the service supply chain including service providers, service intergrators, and customers and detailed practices to achieve the objectives of the triple bottom line model However, practices they suggested were mainly related to managing partnerships with suppliers and strategic approach to improve upsteam partners without mentioning issues with other partners and stakeholders such as the employees, tourists,

or the local community Combining the process of Balkan Cetinkaya (2011) and the detailed framework provided by Weihua Liu, Enze Bai, Liwei Liu and Wanying Wei, (2017) together with sustainability practices guided by Environmentally and Socially Responsible Tourism Capacity Development Programme (ESRT) and adjusting them for the case of Nha Trang tourism, we have a systematic 5-step process for the application of sustainable supply chain management in Nha Trang city Based on the original 4 main perspectives, this systematic approach to strategy design and integration can help companies developing a sustainable supply chain to create a value proposition There are 5 main steps for a company to develop their sustainable supply chain management strategy:

- Step 1: Supply chain assessment

- Step 2: External environment review

- Step 3: Risks and opportunities evaluation

- Step 4: Supply chain management responsive programs

- Step 5: Sustainability practices engagement

The first three steps allow tourism companies to re-define their existing supply chain and review external impacts that may influence their operation and long-term development The other two steps provide the key to sustainability and the orderly instruction to open the door to that sustainability of not only businesses’ supply chain but also the whole tourism industry

1.2.1 Supply chain assessment

It is important to evaluate the current state of the supply chain before engaging a new management strategy to it Companies need to identify their resources and capabilities necessary for applying sustainable supply chain management The purpose

of this step is for companies to locate where they are on the journey to sustainability

Moreover, the integration of sustainable supply chain strategy is not a field development, which is likely to re-engineer the whole supply chain Otherwise, it

green-is preferable as a step-by-step adaptation In thgreen-is initial step, companies along tourgreen-ism supply chain need to take stock of:

- Their existing corporate and competitive strategies

- The sustainability strategy (if sustainability is not already part of the corporate strategy)

- The company-specific supply chain strategies

- The cross-company supply chain and collaboration strategy

The identification of these strategies provides the understanding of potential intra- and inter-organizational goal conflicts because potential short- and long-term goal conflicts can rapidly become serious barriers to implement a sustainable supply chain along its members It seeks to discover whether there is a common strategic alignment, and whether the goals of each strategy element are integrated, aligned, and complementary A company’s own supply chain strategy which is not aligned to the corporate and cross-company supply chain strategy cannot be perceived as being sustainable It is easily understandable that a tour operator heading forward a cost leader in the market cannot adopt an agile, service strategy or build short-term partnership with their suppliers and customers It is because these strategies will raise

or maintain their high cost level instead of cutting costs in order to become a leader company The following table lists out some business strategies along a supply chain

cost-Table 1.1 Business strategy levels and types

Competitive strategy Cost leader strategy, differentiation

strategy Supply chain strategy Lean, cost and efficiency driven strategy;

Agile, service, speed-driven strategy Cross-company collaboration strategy - Long-term partnership or short-time

partnership

- Hierarchal or heterarchal control

- Horizontally or vertically integrated networks

Company’s own sustainability strategy Defensive or offensive strategy

(Source: Summarized by the author)

It is recommended that tourism companies should have a management team who would in charge of implementing as well as evaluating sustainability in the businesses’ supply chain first This management team will be responsible for sustainability practices of the company and evaluate performances to keep track the progress to a sustainable supply chain The management team is also in charge of reviewing their company’s competitive strategy with their supply chain strategy as well as with their suppliers’ strategies They should compare those strategies to identify conflicts between them and then recommend adjustments to form a unified set of strategies Furthermore, tourism companies should also collaborate with their partners to build sustainability criteria to verify the sustainability progress of each company

Step one ends with an “as-is” analysis of the current state of company and supply chain specific characteristics The next step aims to identify current and forecast potential future developments and trends emerging from external factors influencing the supply chain It is an external view, and considers aspects which are usually not under the direct influence of a company

1.2.2 External environment review

In this step, companies need to locate current, potential, and future impact factors that may affect the operation of tourism sustainable supply chain Impact factors also mean stakeholders along supply chain that may have influence on the business of the company

Figure 1.1 Primary and secondary supply chain networks

(Source: Developing a Sustainable Supply Chain Strategy, Balkan Cetinkaya, 2012,

p.36)

It is necessary for tourism companies to understand and forecast all the information and trends relating to their relevant stakeholders in order to develop their sustainable supply chain strategy in the right way One well-known tool for this step is

“Scenario planning” This is a method of medium- and long-term planning, simulation, and of forecasting probable future developments based on the continuous observation

of indicators Scenario planning allows supply chain managers to gain a better understanding of the possible business environments they will need to tackle in the future In this prediction process, companies need to identify what are going to be big shifts in their partner status, as well as society, economics, and politics One of the

most useful tools to review uncertainties is “360° Stakeholder Feedback” This tool is a survey instrument containing open as well as closed questions about concerns that may have influence on the company in the future Different stakeholder groups are selected and asked to answer this questionnaire They can be external ones such as the top biggest suppliers, top biggest customers, and also internals like one or two of employees, top managers as well as strategic planners, and additionally people from key operational positions such as marketing, sales, R&D or external specialists Next, they are to identify their critical uncertainties that may impact their business and their future goals and objectives And finally, they will need to pick out the main uncertainties and draw possible scenarios that will potentially led by these uncertainties In a highly uncertain business environment like tourism, it makes sense

to analyze the scenario drivers according to their predictability and degree of impact The following graph exhibits an example for analysis of scenario drivers for a tour agency

Figure 1.2 Analysis of scenario drivers

(Source: Summarized by the author) For each part of the matrix, we will have different ways of approach for solutions An uncertainty with high impact and high predictability should be well planned by the company to deal with it On the other hand, an uncertainty with low impact and low predictability should be carefully reviewed as we don’t know how and when it will occur However, because it doesn’t have a great influence on the company, managers just only need to keep track with it in case that uncertainty increases its

impact or harder to forecast Regarding concerns with high impact but hard to predict,

it is suggested that companies collect more information and learn about them to understand them better in order to acknowledge their characteristics And the last part

of the matrix is uncertainties with low impact but high predictability, these uncertainties should be regularly monitored by companies to response well in case they change their forecasted attributes

Step 2 ends with a set of current, potential, and future requirements for different stakeholders and input resources These feed into the next step, where they will be assessed together with the status quo of the supply chain

1.2.3 Risks and opportunities evaluation

Based on the assessment of the supply chain and the surrounding environment, tourism companies then can identify potential risks and opportunities These subjective evaluations will serve in the next step for top management to decide whether to change

or re-design the existing supply chain strategy

Sustainable tourism holds a long-term view; ethically, socially and culturally adapted, ecologically viable and economically sensible and productive requirements Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive or corrective measures whenever necessary Indicators are variables that help achieve the monitoring needed

to assess progress toward sustainability Selection of international and local indicators must meet not only important technical criteria but policy relevant criteria as well

The following evaluation allows companies to access their supply chain capabilities in the context of the scenarios they have prioritized from step 2 Businesses need to understand clearly the cause-and-effect relationships between the scenarios which may happen to their supply chain and their existing capabilities to undertake this evaluation For instance, transport companies need to optimize their transport route in response to the increase of oil price in the future Only with an effective understanding

of the relevant levers in the supply chain and their potential impact on the planned scenarios can we obtain precise analysis of strengths and weaknesses and finally the

“right” definition of risks and opportunities

Table 1.2 An example of threat-opportunity profile Company’s changing environment Company’s strengths and weaknesses

(1: very weak ; 5: very strong Driver Prioritized

scenarios in the next 5 years

Logistics and supply chain management success factor

1 2 3 4 5

Customer Demanding “green”

or friendly” tours

“environmental-Invest in R&D Develop ecotours, cultural tours, adventurous tours Prefer tours to

Europe

Setting new tour lines to Europe by dealing with foreign agencies

Governments Lengthen visa

expiration period for European tourists

Partnership with European booking agencies and foreign office establishment (Source: Developing a Sustainable Supply Chain Strategy, Balkan Cetinkaya, 2012,

p.38) The above table demonstrates a threat-opportunity profile for the sustainable supply chain management strategy Companies should identify one strength or weakness matching with one scenario If the response factor to the scenario is a strength, the scenario will be considered as an opportunity On the other hand, if the response factor is a weakness, then the scenario will be deemed as a threat to the supply chain

1.2.4 Supply chain management responsive programs

Actually, supply chain always exists in companies’ daily operations Supply chain covers every party from the transport companies, food processing factories to hotels and restaurants, tour agencies, and even the-end customers However, most companies rarely recognize that chain to utilize the power of collaboration and effective management Therefore, in this step, after having mapped the supply chain and drawn critical scenarios that may impact businesses, it is important for companies

to classify responsive actions to impacts that may affect their supply chain Tourism is

an industry that requires continuous innovation of the business to adapt to the changing needs of its customers It is because of its dependence on customer satisfaction that companies must ensure the smooth running of their operations as well as the careful planning of risks or unexpected situations

Based on the threat-opportunity profile, we can now define strategic gaps on the route to a sustainable supply chain; gaps between current supply chain strategy and the changing business environment The greater and more relevant the potential risks and opportunities, the larger will be the gaps, and the greater the need to act and make strategy changes As mentioned earlier, the integration of sustainability principles into the supply chain is usually not a green-field development; it has to be a step-by-step approach The scope of this supply chain review can vary The larger the gaps, the broader the implications for implementing change, and the more aggressive the strategic program and the associated action plan must be The extension or the re-design of your existing supply chain strategy should be precisely defined Let’s have a look at the following figure:

Figure 1.3 Scope of sustainable supply chain management implementation

Source: Developing a Sustainable Supply Chain Strategy, Balkan Cetinkaya,

2012, p.39)

The scope of sustainable supply chain strategy can vary The implementation level determines who will involve in the implementation initiatives These actors can

be the member of our own supply chain who we may influence directly; or they could extend further to individuals who are external from a broader chain (customers, investors, suppliers, etc.), or even further to scope 2 stakeholders such as the governments, employees, or the local community The implementation level shouldn’t

be mixed up with the driving forces in the previous step For example, the

“compliance” program naturally requires a good understanding of governmental and regulatory requirements, but you will not aim to develop and implement compliance solutions proactively together with policy makers

The strategic sustainable supply chain program in the vertical axis determines set of actions needed to close the gap and create a customized sustainable supply chain

in the long term of the company There are 5 different programs matching with different levels of customization: Compliance, process optimization, restructuring, innovation progression

The bigger the gap between the supply chain and its desired sustainable supply chain, the stronger and more aggressive will be the actions that need to be taken The first two programs are quite defensive and rely mainly on the company’s own supply chain The last three programs are more aggressive and require an extended implementation to stakeholders beyond the company’s supply chain Let’s have a brief look at each strategic program”

Strategic program “Compliance”: This program is mainly driven by compliance requirements of stakeholders such as the government, customers, or other specific interest groups As companies need to gain the competitive advantage and benefit of reducing and managing risks of conflicts by these stakeholders, they are to follow the

“Compliance” program by precautionary responses to customers, employees, interest groups, etc Some examples of this type of program can be a certification requirement

by the government for some compulsory standards, or a certification of adherence to customer-specific standards

The second one is the “Process optimization” In this program, supply chain managers aim to obtain the benefit and competitive value of “Improving productivity and efficiency” and in consequence, of reducing supply chain costs, increasing productivity, reducing environmental and social impacts This program is usually driven by additional supply chain and logistics costs, unexpected occurrences such as increased input prices, increased regulation compliance costs The main point of this kind of program is the fact that it doesn’t aim to change existing structures but instead, improve that system based on optimization and improved planning To achieve the goal of this program completely, top managements should begin the scope of activities within the company and then extend to the whole supply chain Information as well as targets and objective must be regularly exchanged by parties along the chain Moreover, it is recommended that the first activities should focus on the “Low-hanging fruit” or areas in which the companies have been ready to response and change This kind of program is quite common for international corporations as these companies always seek to improve their operation For example, training drivers and staffs to improve service quality and reduce lead time is what a tourist transport company usually does to gain competitive advantage over its competitors

The third strategic program recommends companies “Re-design” their supply chain Companies applies “Re-design” program when unfavorable scenarios happen and the existing structure cannot response to those schemes properly Managers implement this kind of program to obtain the benefit of “The long term and cardinal improvement of effectiveness and early prevention of risk” The scope of activities in this program covers the whole supply chain Therefore, it is unquestionable that collaboration is the key success factor The decision-making processes need to be quantified and reviewed as much as possible, in order to draw up and assess several scenarios, since re-design actions are mostly linked to high costs and investments, and are often irreversible Closed-loop supply chain management or regional network of tourism companies to form complete tour routes are typical instances of this program

The most complicated as well as the most effective program is “Innovation”: This type of program is driven by external stakeholders such customers, NGOs, or

suppliers who demand new solutions, innovative products and services Therefore, in order to satisfy those requirements and moreover, achieve a sustainable image and increase credibility of the company, managers have to change existing business models, break existing supply chain mindsets and replace them with more optimal and sustainable strategies The scope of activities in this program is quite broader than the four previous strategies Actions need to be unifiedly implemented inside as well as outside the company’s business This means that communication and awareness of every company in the whole supply chain must be maintained continuously Top management commitment among those businesses is also a must Profit-sharing models for suppliers and wholesalers or price differentiation for premium, sustainable supply chain services and products are some examples of this program

The last one is “Progression” Supply chain managers follow “progression” program to achieve the benefit and competitive value of “Differentiation, first mover advantage, and establishing market entry barriers” The main drivers for this program usually come from the issues of the industry or even the society as a whole: lack of standards, knowledge, regulations, or the highly developed corporate social responsibility, or the lack of market direction The actions around “Progression” do not have a direct, short-term measurable payback for a given time period On the other hand, the benefits are long-term and qualitative The reach of activities is wide spread mainly in the relevant sector such as government institutions, NGOs, customers, suppliers, employees, etc As the set of actions are complex and conducted on a broad range, a focused approach with concrete milestones is the key success factor Moreover, high commitment among companies and stakeholders is also essential Actions relating to this program can be listed as establishing a new exchange platform,

or funding relevant NGOs in support of the operation of the businesses in the industry,

or big companies in communication, discussion, and consulting with politics and regulation regarding the industry

The fourth step provides recommended responsive set of programs for companies to manage risks and opportunities in step 3 It is suggested that companies should be proactive in addressing threats as well as leveraging on opportunities to grow

their businesses as well as contribute to the sustainable development of the tourism supply chain Therefore, only in the situation that there are compulsory policies issued

by the governments or inevitable problems arose from special interest groups or NGOs should tourism companies apply “Compliance program.” Also, they can simultaneously apply different types of programs but in different time span For example, as customers are tougher in making decisions of tours and operating costs are rising, companies need to immediately response to this trend by optimizing their process to cut down as much costs as possible However, in the long term, to deal with the same scenario, they need to focus more on “Re-designing” their supply chain by collaborating with suppliers in order to cut down operational costs and wastes or even

“innovating” with a wide range of new exciting tours to attract tourists or coming up with new management model Moreover, the need to change or to innovate the supply chain is even more crucial when stakeholders create strong direct and indirect pressure

on the supply chain or when sustainability drivers such as rising environmental issues, increasing concerns of industrial pollutions impact forcefully on the current and future supply chain operation

1.2.5 Sustainability practices engagement

After having selected the appropriate scope of strategic vision and determined the right related actions to align a supply chain strategy to the changing business environment, the next question is how to put those strategies into operation and balancing economic, environmental, and social objectives of sustainability Potential tradeoffs along the supply chain are still not visible The lack of cause-and-effect understanding is likely to lead to an imbalance in these three dimensions of sustainability The capability to translate the new strategy elements into a structured KPI system, explaining cause-and-effect relationships and justifying implemented practices, remains a challenge ahead

One well known tool/concept for translating strategic goals into operations is the

“Balanced Scorecard” developed by Kaplan and Norton from 1990

Figure 1.4 Kaplan & Norton Balanced Scorecard

(Source: Developing a Sustainable Supply Chain Strategy, Balkan Cetinkaya,

2012, p.44) Balanced Scorecard is a (performance) management system providing a framework to translate a strategy into balanced operational terms via objectives and measures, organized into four different perspectives: financial, customer, internal business process, and learning and growth.The Balanced Scorecard is used as a communication, informing, and learning system, not a controlling system The Balanced Scorecard is in use in many companies worldwide Its success led to the application of the concept to other areas such as marketing, environmental management, production – or supply chain management Indeed, several sustainability scorecards and supply chain management scorecards have been developed, but separately Literature analysis on well-known scorecards shows that none of them integrate both perspectives The following illustrations show such an integrated Sustainable Supply Chain (SSC-) Scorecard and the relations between its four perspectives

Figure 1.5 The Sustainable Supply Chain Scorecard Perspectives

(Source: Developing a Sustainable Supply Chain Strategy, Balkan Cetinkaya, 2012,

p.45) The four perspectives Finance, Customers, Processes, and Learning and Growth, are retained, and are extended by several other aspects regarding supply chains and sustainability In accordance with this vicious cycle, we systematize these four score cards into a complementary process This process covers four main areas that companies need to simultaneously satisfy To adopt a successful sustainable supply chain management strategy, tourism companies need to balance the three dimensions

as stated by the triple bottom line model Therefore, in order to monitor the progress of the sustainable supply chain as well as evaluate the effectiveness of sustainable practices, sets of KPIs relating to these three dimensions on the financial point of view must be established Besides, partnerships between companies and their suppliers and customers must be built to encourage the integration and beneficial collaboration of sustainable tourism supply chain

Figure 1.6 Sustainable Supply Chain Scorecard – relations of the perspectives

(Source: Summarized by the author)

It is undeniable that sustainable financial results are the key objectives of all companies, and justify their existence in today’s business environment In this customized sustainable supply chain scorecard, the traditional financial perspective is extended further to environmental and social impacts: The socio- and eco-efficiency dimension The idea behind this new dimension is to link the financial perspective with the other two sustainability dimensions The aim is to assess social and environmental activities from an economic viewpoint This is one fundamental step to achieve the desired balance between economic, environmental, and social objectives, because compromises will only be offered or accepted by the people involved if the activity shows a high level of improvement while balancing environmental, economic, and

social concerns The basic calculation of the eco- and socio-efficiency measure is according to World Business Council for Sustainable Development (WBCSD):

= Product or Service Value / Environmental or Social Influence

Using this basic equation, companies can calculate eco-efficiency in a number

of ways The choice of indicators will depend on the needs of individual decision makers The WBCSD therefore has developed a common framework for eco-efficiency indicators, with terminology consistent with the ISO 14000 series and the Global Reporting Initiative (GRI)

Regarding the sustainability perspective, it extends the customer perspective into the environmental and social performance dimensions Its purpose is to measure the impact of the supply chain on environmental and social performance The reason why it exists the integration of these three perspectives is their potentially strong links Especially in tourism industry, customer and market segments create direct environmental and social pressure Therefore, companies need to balance these three dimensions which have been stated in the triple bottom line model Economic KPIs such as profit, revenues besides environmental and social investment costs should be simultaneously measured and considered Only with positive profit will companies be eager to adopt sustainability practices and by adopting those practices to protect the environment and contribute to the society, they can additionally gain good image from customers and promote their revenues in return To enforce the economic foundation of their companies, business owners or top managers must ensure their growth of revenue, control of costs, and growth of market share For social issues, they have to take care of people internal to their businesses and get along well with people external to theirs Internal people are their employees while external people might be customers, suppliers, or the local community The last dimension of the 3BL to be considered is the environment Practices inside the operation of the companies as well as outside the organization should be implemented to create positive environmental impact Consequently, it is important that the sustainability perspective between the financial and supply chain perspective extends these concepts by measuring the value proposition in environmental, social and economic terms

Moving upstream, the supply chain perspective provides a set of sustainable supply chain practices that companies need to conduct to improve their supply chain operation In this step, let’s simplify the service supply chain of tourism by narrowing internal parties into the three main participants: Service providers, service integrators, and customers As being an industry with labor intensive characteristics and intangible products, tourism has service integrators as the core factor as they connect service providers from transport parties, hotels, restaurants, manufacturing companies providing complementary products, to even souvenirs local producers and local tour agents They collect different types of services to form complete service products to serve the customers Therefore, it is unquestionable that service providers, service integrators, and customers maintain a high degree of interaction and cooperation

In the strategic level, based on triple bottom line, not only service integrators such as tour agencies but service providers like hotels, restaurants, resorts, etc should also carry out standardization in the environmental and social dimensions and try their best to achieve the upstream and downstream integration to gain supplier support and priorities Moreover, when setting long-term partnership, it would be helpful if companies apply risk and profit sharing strategy to ensure suppliers, customers, and companies obtain the common profits In response to these strategic objectives, the tactical level provides 4 sets of practices for a sustainable supply chain There are four essential areas in sustainable service supply chain management, which are divided into green, organizational, planning, and implementation

For a greener supply chain, it is suggested that companies operating in tourism industry follow international standard certificate system such as ISO or SAI to improve their chain ISO 14001:2015 is now one of the most popular standards for companies to improve their environmental impact It sets out the criteria for an environmental management system and can be certified to It maps out a framework that a company or organization can follow to set up an effective environmental management system It can be used by any organization regardless of its activity or sector The ISO 14001 standard is based on the Plan-Check-Do-Review-Improve cycle Besides, companies should also create social impact The most common management systems standard that

companies can follow is the SA8000 standard – an auditable certification standard developed by Social Accountability International (SAI) It measures the performance

of companies in eight areas important to social accountability in the workplace: child labor, forced labor, health and safety, free association and collective bargaining, discrimination, disciplinary practices, working hours and compensation By following ISO 14001 and SA8000, companies can ensure their environmental and social impact and gain reputation for good practices

Concerning organization, integrators should monitor the upstream providers to establish a set of evaluation systems, especially their social responsibility, and to encourage providers to establish their own self-evaluation system Every company must have at least three best-choice suppliers and at least one strategic supplier In order to monitor their supplier’s performance, they should implement vendor evaluation system The evaluation structure will depend on specific priorities of each company but mostly it covers 4 major criteria including purchasing, quality, logistics, and environment Fulfillment of these criteria is measured on a scale between 0 and

100 points by applying specific definitions Taking into account weighting factors, the results show in rates for the fulfillment of the main criteria on which the overall assessment is based Depending on the point score, a supplier is evaluated as A, AB, B

or C-supplier Next, companies will aim at maintaining long-term relations with A or B suppliers By setting a detailed evaluation system, companies can quantitate the sustainable performance of their suppliers and also provide motivation and framework for their suppliers to develop their own evaluation system This, in the long-term, will create domino effect and improve the whole chain

In planning, service integrators have to establish communication channels in the supply chain from the source to the end-market by their corporate culture in order to ensure the quality of services and products Establishing an open, transparent, and trust-valued culture, companies can persuade their partners to set long-term relations With those strategic collaborations, they can enhance information sharing to communicate with each other about risks, opportunities as well as difficulties of each

company to support each other Also, profit sharing or risk sharing model can help them engage each other more in a win-win relationship

For implementation, in this area, the life cycle assessment of the whole supply chain must be established on the incentive policy, to set up barriers to the supplier’s entrance A life-cycle assessment (LCA) is a tool that can be used to evaluate the potential environmental impacts of a product or process Adopting life-cycle assessment, companies need to analyze the life of their products or services such as tours, complementary products and then make sure those products create at least no negative effects on the society and the environment

The last perspective aims to drive learning and growth in the supply chain This perspective lists out the 5 important drivers to achieve a sustainable supply chain successfully The first is the people capabilities This means that companies need to focus on their employees’ quality and skills Training and education to improve service quality are essential to the sustainable development of their businesses The second factor is the cooperation and communication It is easily accepted that a sustainable supply chain must be a unified chain in which every party well acknowledge the common vision and goals Therefore, trust, alignment, and empowerment are what they need to have in order to support each other in the journey This also explains why information systems capabilities are put into the learning and growth perspective as they make the exchange of information much easier Technologies and infrastructure capabilities should also be improved continuously It is due to the fact that technology plays an important role in today’s supply chain and logistics Transportation, warehousing, packaging, identification, and handling are increasingly impacted by technological developments With alternative fuels or renewable energies, companies have more solutions to make their companies “greener” and more sustainable Finally,

as logistics and transport use infrastructure such as roads and energy resources are very important especially for tourism, infrastructure factor should be taken care

1.3 Advantages and disadvantages of applying sustainable supply chain management in tourism

• Competitive advantage: going green or sustainable can leverage a business as outperforming its competitors In accordance with Michael Porter’s idea, companies involving in a sustainable supply chain will be able to achieve competitive advantages over its rivals on both two dimensions: cost and differentiation advantage Cost advantage may be gained through a unified green supply chain as companies use economical products and differentiation one comes from their good reputation for applying sustainable practices

• Brand image: a company taking social responsibilities into serious consideration will possess a positive image for customers A good brand image provide that business positive support from public relations such as newspapers, social organizations and customers’ preference in choosing specific products or services, therefore drives company’s revenue

• Employee morale and loyalty: Employees may be inspired by working in good companies who care of their welfare, interests and even social issues As a result, they want to choose that company as a place for their long-term career and contribute dedicated work to the company

• Customers’ loyalty and higher satisfaction: The application of sustainable supply chain management needs full cooperation as well as information transparency As a result, the speed and flexibility of the chain in reacting to