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Improving supplier performance and assuring the acceptable performance standard are crucial objectives of supply chain management. This chapter provides insight for manufacturing firms to address both environmental and social sustainability practices across multi-tiers supplier. A framework based on the analysis of influential organizational factors for enhancing the diffusion of sustainability practices across the supply chain is presented. For that, the supplier sustainability performance of four sustainability leading manufacturing firms namely beverage (soft drink and coffee), cosmetic and textile sector were examined based on interviews (30 director or managers) and an extensive array of documents. In general, the performance assessments are based on individual measures (e.g. carbon management and marker efficiency) and a set of measures covering different sustainability themes. The supplier performance programs were helpful for transferring knowledge and improving not only certain deficient measures or compliance with the regulation and requirements, but also individual and general performance measures. Moreover, the feeding back process and collaborative approaches with suppliers to build improvement plans helped suppliers to improve not only their performance but also to build up capabilities to manage sustainability performance. The chapter has potential to serve as an analysis tool to uncover gaps in supplier performance assessment that could lead to greater adoption of sustainability practices by suppliers, as well as gathering practice in a structured way. |
