Sustainable Supply Chains: The Future of Commerce – With Special Reference to Chennai, India

Sustainable Supply Chains: The Future of Commerce – With Special Reference to Chennai, India

Dr. M. Vijaya Ragunathan¹, Dr. S. Vivekanantha²

¹Department of Commerce, Kodaikanal Christian College

²Department of Management Studies, Kodaikanal Christian College.

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90300345

Received: 28 March 2025; Accepted: 04 April 2025; Published: 21 April 2025

ABSTRACT

Sustainable supply chains (SSCs) have become the part and parcel of global business. The efforts initiated towards Sustainable supply chains (SSCs) are not limited to creating and adopting more environmentally responsible business practices, but also ensuring higher economic efficiency and social equity. This paper describes the development of Sustainable Supply Chains (SSCs) and their importance in the present-day business scenario. This is a concept-based paper on specific sustainability initiatives undertaken in Chennai, India. The case studies were taken from leading Chennai-based enterprises. This research highlights present-day challenges, practical implications and strategies for implementing SSCs. The findings emphasise certain aspects. Both state and central governments must intervene in framing suitable policies, compelling corporations in the form of stricter compliance, and insist upon them towards highly sophisticated technological advancements in mainstreaming SSCs as one of the core business strategies.

Keywords: Sustainable Supply Chain, Commerce, Chennai, environmental responsibility, corporate commitment

INTRODUCTION

Sustainability considerations require an instantaneous shift to eliminate the bottlenecks of the conventional model of supply chain practices over the years. Historically, old practices focused only on two things, namely, Speed of delivery and cost efficiency.   Whereas, SSCs focused on integrating eco-friendly practices, ethical sourcing, and economic viability to mitigate the long-term adverse impacts of commerce. Chennai, a major commercial and industrial hub in India, has been witnessing an increased transition towards sustainability, driven by regulatory frameworks, corporate social responsibility (CSR) initiatives, and evolving consumer preferences. This paper examines the role of sustainability in supply chain management and the specific measures undertaken by organizations in Chennai.

LITERATURE REVIEW

Sustainable supply chains are defined as networks that integrate environmental, social, and governance (ESG) factors while maintaining operational efficiency (Seuring & Müller, 2008). Research suggests that companies adopting SSC practices benefit from enhanced long-term profitability, stronger brand reputation, and reduced operational risks (Carter & Rogers, 2008). Studies on Indian enterprises indicate that sustainability adoption aligns with global environmental goals and provides competitive advantages, such as cost reductions and improved stakeholder trust (Dubey et al., 2017). However, transitioning to sustainable models requires overcoming infrastructural and economic barriers.

METHODOLOGY

This study deployed a qualitative research approach, analysing case studies from Chennai-based companies that have successfully integrated sustainability practices into their supply chain operations. The data sources include corporate reports, government publications, and interviews with industry experts to provide a comprehensive understanding of sustainable supply chain practices in the Chennai region.

Case Studies from Chennai

TVS Motor Company

A Chennai-based leading automobile manufacturer, TVS Motor Company,   has applied extensive green supply chain initiatives. The company reduced carbon emissions significantly by adopting renewable energy sources and integrating eco-friendly materials in the production process. Additionally, TVS promoted sustainability practices among its suppliers through stringent environmental compliance requirements and the adoption of more energy-efficient technologies (TVS Motor Annual Report, 2022).

Chennai Metro Rail Limited (CMRL)

CMRL has combined its sustainability practices into its supply chain by ranking eco-friendly construction materials and active waste management systems. The metro system harnesses solar energy to power its operations and promotes green building initiatives to minimize its environmental impact. Furthermore, CMRL also promotes sustainable transportation alternatives by reducing reliance on fossil fuels (CMRL Sustainability Report, 2023).

ITC Limited (Chennai Operations)

ITC Ltd became the pioneer of sustainable packaging solutions by discarding plastic waste and moving towards biodegradable alternatives. The company’s paper and packaging division in Chennai focuses on reliable and responsible sourcing by practicing circular economy, and supply chain optimization to minimize the environmental footprint. These formidable initiatives align ITC, on par with global sustainability standards, continuously by reinforcing its hard-core commitment to eco-conscious commerce.

Challenges and Opportunities:

Despite the growth in implementing SSCs at all levels, Business Organisations in Chennai faced several challenges. Costlier Sustainable raw materials, little awareness among suppliers, and poor infrastructure for green logistics are some of the formidable barriers. But, with increasing consumer demand for sustainable products, the government’s support in policy decisions and advancements in digital tracking technologies are scaling up the present opportunities for SSCs in the region. These challenges can be overcome if these companies dare to invest time and capital in innovations and stakeholder collaborations.

RECOMMENDATIONS

To enhance the adoption of SSCs in Chennai, businesses should:

1. Take initiatives to invest generously in renewable energy sources and energy-efficient logistics to minimize carbon footprints.
2. Find out opportunities to collaborate with government bodies and NGOs to develop and implement sustainability initiatives.
3. Should implement digital tracking systems to ensure greater transparency and reliable accountability in supply chains.
4. The government should offer suitable incentives to promote sustainable practices among the suppliers and be stringent in implementing regulatory compliance frameworks to bring the suppliers under one umbrella.
5. Educate consumers on the benefits of sustainable products to drive market demand and foster responsible consumption.

CONCLUSION

Sustainable supply chains are integral to the future of commerce, ensuring business longevity while addressing pressing environmental and social concerns. The evolving business landscape in Chennai demonstrates that with the right policy support, corporate commitment, and technological integration, SSCs can drive economic growth and environmental stewardship. The insights from Chennai’s sustainability journey can serve as a valuable model for other cities and industries aiming to integrate sustainability into their supply chain operations.

REFERENCES

1. Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), 360-387.
2. CMRL Sustainability Report. (2023). Chennai Metro Rail Limited.
3. Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., & Fosso Wamba, S. (2017). World-class sustainable supply chain management: Critical review and further research directions. The International Journal of Logistics Management, 28(2), 332-362.
4. Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710.
5. TVS Motor Annual Report. (2022). TVS Motor Company Limited.
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7. This study examines sustainability programs implemented in the supply chains of India’s FMCG and pharmaceutical sectors, highlighting challenges and strategies for effective SSCM adoption.
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