What is sustainability in SCM and typical metrics?

• A. Delivering goods with minimal environmental and social impact; metrics include carbon footprint, energy use, waste reduction, and supplier sustainability practices.
• B. Maximizing short-term profits regardless of social impact.
• C. Delivery lead time.
• D. Backorder rate.

Answer: (A)

Sustainability in SCM means designing and operating the supply chain so that we meet current needs with minimal negative environmental and social impacts, while still maintaining economic viability. It blends environmental stewardship, social responsibility, and governance into decision making—not just cost or speed.

The best choice captures this by describing delivering goods with minimal environmental and social impact and listing measurable indicators like carbon footprint, energy use, waste reduction, and supplier sustainability practices. These metrics give concrete ways to track progress across sourcing, production, and logistics, tying everyday decisions to broader sustainability goals.

Other options miss the point: focusing on maximizing short-term profits without regard to social impact conflicts with sustainability principles; measuring delivery lead time or backorder rate addresses operational performance rather than environmental or social effects.