A Framework for Economic and Environmental Sustainability and Resilience of Supply Chains

Traditionally supply chain management decisions are based on the economic performance which is expressed by financial and non-financial measures, i.e. costs and customer service. From this perspective, in the last decades, several logistics trends, i.e. outsourcing, offshoring and centralization, emerged. Recently, studies have shown that the focus on the cost aspect is no longer sufficient. Due to internal and external drivers (e.g. customer pressure, regulations, etc.) environmental criteria become more and more important for the decision-making of individual enterprises. Furthermore, the risk which is related to the increased transportation distances resulting from these strategies is often not taken into account or underestimated. These shifts in priorities of companies force them to search for new logistics strategies that are at the same time cost-efficient, environmentally friendly and reliable. Based on this integrated perspective new logistics trends, like on- and nearshoring, flexible supply base or flexible transportation, have come up recently and will gain more importance in the near future. Relying on a flexible supply base a company can benefit from low costs in an offshore facility and simultaneously be able to respond quickly to demand fluctuations and react to delivery delays and disruptions by serving the market also from an onshore site. A single-period dual sourcing model is presented to show the effects of emission costs on the offshore, onshore and total order quantity.