Improve Sustainability Performance of a Global Supply Chain : Proposal of LARGS framework and case study in Airinum

Abstract: Leanness, agility, resilience, greenness, and sustainability of a supply chain are critical factors that organizations have to consider to increase the competitiveness of their supply chain. Lean & Green (L&G) practices have been proven to enhance performance related to sustainability when deployed. Simultaneously, agility and resilience have gained significant attention due to the Covid-19 pandemic, as its outbreak revealed the fragility of various supply chains globally. The LARGS (lean, agile, resilient, green, and sustainable) framework is an essential tool which considers all LARGS paradigms holistically to facilitate LARGS performance improvements. In this study, a systematic literature review (SLR) was conducted to explore the current development of the LARGS framework. A case study was performed in Airinum, a company which produces personal protective equipment (PPE). Furthermore, an LCA was conducted using collected internal data as a tool to identify the hotspots of carbon dioxide (CO2) emissions and the ecological footprint (EF) of the supply chain operations. Moreover, with the help of interviews conducted with company representatives and questionnaires answered by Airinum’s partners, L&G practices were evaluated and proposed for implementation. The L&G practices were prioritized according to (1) weight, (2) integration categories, (3) potential agility risks, and (4) potential resilience risks. To consider the triple bottom line (TBL), potential economic and social sustainability influences were also investigated. The results from the LARGS framework indicate that the case company would benefit from frequent interaction with suppliers and customers to improve the production process and reduce waste. Integration of the material and information flow facilitates accurate supply and demand forecasting in addition to real-time monitoring of the material flow. Green transportation was found to be an essential practice for the reduction of CO2 emissions. Furthermore, the company would benefit from using a higher proportion of renewable and recycled materials in addition to using various tools to monitor and decrease resource consumption. Results indicate that the practices may influence economic sustainability while those proposed have no significant effect on the social sustainability performance of the company. Future research is directed toward the validation of the proposed LARGS framework.