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The Impact Of Environmental Performance On The Consumption Of Products / Services Essay

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Companies face a multitude of challenges when it comes to Supply Chain management ranging from profitability and cost management to visibility and customer satisfaction. With the increased awareness of environmental practices, there is an expectation that businesses should evolve to be more environmentally conscious. As stated from a 1987 Brundtland Report known as “Our Common Future”, (WCED, 1987) sustainable development is one that “meets the needs of the present without compromising the ability of future generations to meet their own needs.” The influence of environmental performance is a growing decision criteria for customers in the consumption of products/services. This is evident from a survey conducted by the Natural Marketing Institute (Kaiser, 2008) which reveals that 30 percent of American consumers are willing to pay 20 percent more for products made in an environmentally friendly and sustainable way.
A growing number of companies are working towards incorporating environmental and socially responsible business practices to their value chains, from suppliers to customers. By doing so, the not only tackle the many risks, social and environmental, and challenges inherent in supply chain management, but also reap the many benefits that supply chain sustainability can offer.
IKEA, one of the world’s largest retailers is on the forefront of successful sustainable supply chains: from raw material acquisition to delivering the final product to the customers. They work
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