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Building Sustainability into a Contract:

How to create more “Green” Supply Chain Contracts

 

STUDENT PAPER

By Souhaila Bouddou

SKEMA Business School

Lille, France

 



ABSTRACT

Sustainability in supply chain can have an important impact on the overall well-being of society and the environment. In fact, many companies work on adopting a sustainable approach since different activities can harm the environment, the economy or the society. In this paper, we considered the contract as an essential management tool for supply chain projects. As a matter of fact, we studied if it is possible to apply sustainability concepts to a contractual framework to create more “green” supply chain contracts. Using a Multi-Attribute Decision Making as well as relative and additive weighting techniques, we analyzed how different alternatives can be adopted. Finally, we demonstrated how including sustainability provisions in supply chain contracts and encouraging local provisions and employment can help integrating sustainability in supply chain project contracts.

Keywords: Sustainability, Supply chain, Procurement, Contract, Industry, Project Management

INTRODUCTION

Nowadays, organizations are facing several challenges. In fact, it is getting more complex to manage projects due to the fast-changing and highly competitive environments. Also, it became important to combine economic, social and environmental aspects to build sustainable projects. However, when focusing on sustainability issues, many firms do not pay attention to the contract as an essential management tool for organizing and implementing the different viable actions. As a matter of fact, contracts are regarded to be a critical and strategic factor in projects. For this reason, it could be very interesting to adopt a sustainable approach when dealing with contracts to support fundamental rights and environmental protection.

In all organizations, different activities are carried out to keep improving on many levels. For many companies, procurement directors are starting to implement sustainable procurement programs since at least 75% of carbon emissions are from the supply chain. Hence, it is very interesting to take a closer look at the supply chain area in which many projects are put in place. For example, some companies work on reducing costs and lead time, on rationalizing suppliers and inventories or on moving from a local to a global supply chain. This kind of business changes requires a good application of project management principles.

Therefore, we will focus on building sustainability into supply chain contracts. In fact, integrating the concepts and procedures of sustainability into the traditional supply chain contracts is believed to change supply chain practices to be more sustainable and to comply with the codes and standards of sustainability.

Step 1: Objective statement

The purpose of this paper is to consider whether it is possible to apply this sustainability concept to a contractual framework and to study how it can be adopted within the supply chain industry.

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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].

How to cite this paper: Bouddou, S. (2018). Building Sustainability into a Contract: How to create more “Green” Supply Chain Contracts, PM World Journal, Vol. VII, Issue XI – November.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/11/pmwj76-Nov2018-Bouddou-building-sustainability-into-a-contract-student-paper.pdf

 



About the Author


Souhaila Bouddou

Lille, France

 

 

 

Souhaila Bouddou is a fifth-year student at ITEEM Centrale Lille, an Engineering Management and Entrepreneurship school where the traditional boundaries between the fields of engineering, management and commerce are abolished. She is also pursuing a Master of Science in Project Management in Skema Business School.

Passionate about the subject of Supply Chain in industry, she is specialized in Production Management. She had many experiences in companies such as Tupperware where she did an 8 month internship as a Business Architect Analyst studying Supply Chain in the Production Planning and Control Department, and piloted a European Project, working with people from different countries.

During her education, she had done several internships in Waldner and Adeo, as Project Manager assistant. She has a keen interest in Sustainability and she is certified Green Project Manager by GPM Global. She is also interested in Project Management, and worked on many humanitarian projects in France and Burkina Faso. Souhaila can be contacted at [email protected].