The project is aimed towards moving from a supplier selection concept to a supplier development concept, so that the suppliers take a proactive approach in determining their own sustainability strategies and objectives. To this end, it is of extreme importance to identify, collect, and analyze appropriate sustainability information of the suppliers in the supply chain. In 2016 Philips launched a new and innovative “beyond audit” approach. The main objectives of this approach are to create structural sustainable impact based on increased transparency, clear commitments and ownership at the partners across the supply chain. However, current code of conducts, international guidelines (e.g. OECD), legislative requirements and even additional company specific requirements resulted in an overwhelming demand of information and insights in suppliers’ operations. Creating a more predictive and customized (supplier specific) concept covering the supplier life cycle is required by all stakeholders to maximize efforts and efficiencies. In this project the research team will first translate past audit and self-assessment data into useful and actionable information, through (big) data analytics, standardization, benchmarking, and classification. We will develop mathematical models employing this information and utilizing the best trade-off between cost, service, and sustainability, which will help making decisions to determine the necessary actions. Moreover, relying on the people who are closest to the day-to-day mechanics, and shortcomings, of existing procedures and support them as well as their leaders to recognize and raise up areas of improvement is essential for the implementation of sustainability. We will also investigate the means of improving the “useful data collection” process by providing the best incentives for truthful declaration, supported by investigating how technology can help with this, such as the blockchain technology which creates transparency and traceability to certify genuineness. Our research aims to introduce and analyze practices that can lead to actual transition towards sustainable supply chains. To answer this research question, we will build an interdisciplinary framework that captures the following four crucial research elements of sustainable supply chains: 1) Identification, collection, and analysis of appropriate sustainability information of the suppliers in the supply chain. 2) Making use of this information, decision making to take necessary actions by utilizing the best trade-off between cost, service, and sustainability, using mathematical models. 3) Transition from supplier selection to supplier engagement and development. 4) The human factor in the acceptance processes of the entire supply chain in order to enable and manage actual transition to sustainability.
