This study examines the resilience and sustainability of supply chains amid global disruptions, with a particular focus on the essential role of reverse logistics. Through a game-theoretic approach, we explore manufacturer decisions to source from either reliable but expensive raw materials or cost-effective yet riskier recycled or recyclable materials from the reverse logistics channel. Our analysis outlines three primary sourcing strategies: sourcing exclusively from suppliers (SS), sourcing solely through retailer reverse channel (RS), and a balanced dual sourcing (DS) approach. Our findings reveal the economic viability that recycling outsourcing is influenced by market demand and disruption risks. Notably, in scenarios of constrained market potential, the cost advantage of using recycled materials from less reliable reverse logistics channels surpasses the risks associated with supply chain disruptions, suggesting a complex cost-benefit landscape amidst supply uncertainties. Moreover, the stability of suppliers emerges as a pivotal factor in strategic sourcing decisions, underscoring the need to consider both economic efficiencies and supply reliability. The study also evaluates the dynamic competition between manufacturers and retailers, shedding light on how strategic adjustments driven by sustainability and resilience goals can enhance profitability and sustainability. It was found that despite the threat of disruptions, manufacturers benefit more from engaging with risky reverse channels under specific conditions, underscoring the nuanced decision-making required in uncertain supply scenarios. This research advances sustainable supply chain management by highlighting strategic complexities and the need for understanding economic efficiencies and supply stability, offering insights for navigating disruptions and fostering resilient, sustainable supply chains.
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Cooperating With “Open Cards”—The Role of Small Intermediary Businesses in Realizing Sustainable International Coffee Supply
Despite improvements, international food supply in general and coffee supply in particular continue to cause significant greenhouse gas emissions, economic inequities, and negative impacts on human well-being. There is agreement that dominant economic paradigms need to change to comply with the sustainability principles of environmental integrity, economic resilience, and social equity. However, so far, little empirical evidence has been generated to what extent and under which conditions sustainable international coffee supply could be realized through small intermediary businesses such as roasteries, breweries, and/or retailers. This case study reports on a collaborative project between a small coffee brewery and its customers in the U.S. and a small coffee roastery and its suppliers in Mexico that demonstrates how sustainable coffee supply could look like and explores under which conditions it can be realized. A research team facilitated the cooperation using a transdisciplinary research approach, including field visits and stakeholder workshops. The project (i) assessed the sustainability challenges of the current supply and value chains; (ii) developed a vision of a joint sustainable coffee supply chain; (iii) build a strategy to achieve this vision, and (iv) piloted the implementation of the strategy. We discuss the project results against the conditions for sustainable international coffee supply offered in the literature (why they were fulfilled, or not). Overall, the study suggests that small intermediary coffee businesses might have the potential to infuse sustainability across their supply chain if cooperating with “open cards.” The findings confirm some and add some conditions, including economic resilience through cooperation, problem recognition, transparency, trust, and solidarity across the supply chain. The study concludes with reflections on study limitations and future research needs.
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- Award ID(s):
- 1832196
- PAR ID:
- 10310378
- Date Published:
- Journal Name:
- Frontiers in Sustainable Food Systems
- Volume:
- 5
- ISSN:
- 2571-581X
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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