Customer relationship management (CRM) is an approach to managing a company’s interactions with current and future customers. It often involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

CHARACTERISTICS OF CRM

CRM is a customer-oriented feature with service response based on customer input, one-to-one solutions to customers’ requirements, direct online communications with customer and customer service centers that help customers solve their issues.

Sales force automation . This function can implement sales promotion analysis, automate tracking of a client’s account history for repeated sales or future sales, and also сoordinate sales, marketing, call centers, and retail outlets in order to realize the salesforce automation.

Use of data warehouse technology. This feature is about following the technology trends and skills of value delivering using technology to aggregate transaction information, to merge the information with CRM products, and to provide KPI (key performance indicators).

Opportunity management . This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history with sales projections.[2]

Developing and maintaining client relationships. CRM is expanding outside of the core sales and marketing areas and

systems are available that incorporate support and finance data also into the CRM view that a user gets, enabling a wider holistic view of a customer from one screen for a user.

Customer relationship management systems track and measure marketing campaigns over multiple networks. These systems can track customer analysis by customer clicks and sales.

IMPLEMENTING CRM IN A COMPANY

The following are general guidelines on implementing a CRM system.

Making a strategic decision on what problems the CRM system is to address, what improvements or changes it should bring in the business processes of the organization.

Choosing an appropriate project manager. Typically IT will be engaged, however a manager with a customer service/sales and marketing focus should be involved, as the impact of the project will be mainly on the business side.

Ensuring executive sponsorship and top management support. Empowering team members with the required authority to complete the

tasks. Selecting the correct implementation partner. They must have

both vertical and horizontal business knowledge, as well as technical expertise.

Defining KPI's that will measure the project's success. Using a phased approach. Working towards long-term enterprise-scale

implementation through a series of smaller, phased implementations. [3]

Impact of social networking on E-CRM[edit]

A majority of World Wide Web users use social networking sites, such as Facebook, LinkedIn, Twitter or chat rooms. and many others. These sites provide users with a variety of services, including interaction with friends or the business community to exchange information and interests. Balaram (2010)[5] presented evidence of a significant increase in the use of social networking sites, especially among young people. This causes companies to use these sites to draw attention to their products, services and brands, thus increasing demand for its products.

Social networks are online service or online sites allow the establishment of an online community or group of people to interact and share common interests and activists.[6]

Internet services allows users to send and retrieve information quickly. Through the use of social networking sites, users can communicate and get information about other users, and information about individuals or companies. Promote the exchange and sharing of benefits. Social networking provides options for users to search and browse based on the needs and interests required information and access to them is. This will include the needs of the organization, in order to reach the largest number of individuals and the composition of the substrate vast level.Through social networking sites can create comments and suggestions of a special account or group can posts, and even job-related information and project work.

Use of enterprise portals for the integration and cooperation organizations, can be an important means to achieve the maximum benefit to the organization. The ability to manage and use information via the Internet increases the overall efficiency. It is possible to manage business knowledge, and to provide information needed for a simple manner.[7] In addition, social networking sites to provide users with the possibility to build their own account, and add their own things or comments, for example, what they like,

they hate, date of birth, place of residence and other problems. Therefore, it is easy to communicate with and contact them with the others, even some of the media to send a message or post notification. Users can also choose to select who will have permission to share or communicate, and build their own privacy options.

In short, social networking should be considered as a platform for online businesses or individuals and effective tool, because it is free and easy to use. Therefore, it is possible for companies to adopt through effective communication and social interaction provides the company's vision, from the advantages of this platform. And the company may exercise its own marketing, sales, and for their clients to provide services in a broad range. In addition, these sites can be deployed a lot of information, which will help the company move from its place to the whole world.

Impact on Customer Satisfaction[edit]

According to Bolton, customer satisfaction has significant implications for the economic performance of firms[8] Because customer satisfaction has been found to have a negative impact on customer complaints and a positive impact on customer loyalty and usage behavior.[9]

Benefits of implementing CRM include

Increased customer loyalty may increase usage levels [8]

Secure future revenues [10]

And minimize the likelihood of customer defection [11]

Anderson, Fornell, and Mazvancheryl (2004) found a strong relationship between customer satisfaction and Tobin’s q (as a measure of shareholder value) after controlling for fixed, random, and unobservable factors. More generally, the financial impact of customer satisfaction on various outcomes related to customer management, firm-revenues and profitability, stock market outcomes, and customer relationship behaviors (repurchase, word-of-mouth etc.) is summarized in an Marketing Science Institute Report from 2010.[12]

The implementation of CRM is likely to have an effect on customer satisfaction for at least three reasons:

1. firms are able to customize their offerings for each customer. By accumulating information across customer interactions and processing this information to discover hidden patterns, CRM applications help firms customize their offerings to suit the individual tastes of their customers. Customized offerings enhance the perceived quality of products and services from a customer’s viewpoint. Because

perceived quality is a determinant of customer satisfaction, it follows that CRM applications indirectly affect customer satisfaction through their effect on perceived quality.

2. in addition to enhancing the perceived quality of the offering, CRM applications also enable firms to improve the reliability of consumption experiences by facilitating the timely, accurate processing of customer orders and requests and the ongoing management of customer accounts. For example, Piccoli and Applegate (2003) discuss how Wyndham uses IT tools to deliver a consistent service experience across its various properties to a customer. Both an improved ability to customize and a reduced variability of the consumption experience enhance perceived quality, which in turn positively affects customer satisfaction.[13]

3. CRM applications also help firms manage customer relationships more effectively across the stages of relationship initiation, maintenance, and termination[14] In turn, effective management of the customer relationship is the key to managing customer satisfaction and customer loyalty. Several issues in this regards are also summarized in a paper by Bohling et al.

Types[edit]CRM in customer contact centers[edit]

CRM systems are customer relationship management platforms. The goal of the system is to track, record, store in databases, and then determine the information in a way that increases customer relations (predominantly increased ARPU, and decreased churn). The CRM codifies the interactions between company and customers so that the former can maximize sales and profit using analytics and KPIs to give the users as much information on where to focus their marketing and customer service to maximize revenue and decrease idle and unproductive contact with customers. The contact channels (now aiming to be omni-channel from multi-channel) use such operational methods as contact centers. The CRM software is installed in the contact centers, and help direct customers to the right agent or self-empowered knowledge.[20] CRM software can also be used to identify and reward loyal customers over a period of time.

Growing in popularity is the idea of gamifying customer service environments. The repetitive and tedious act of answering support calls all day can be draining, even for the most enthusiastic customer service representative. When agents are bored with their work, they become less engaged and less

motivated to do their jobs well. They are also prone to making mistakes. Gamification tools can motivate agents by tapping into their visceral need for reward, status, achievement, and competition.[21]

CRM in Business-to-Business (B2B) market[edit]

According to a Sweeney Group definition, CRM is “all the tools, technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners throughout the enterprise”.[22] It assumes that CRM is involved in every B2B transaction.[2]

Despite the general notion that CRM systems were created for the customer-centric businesses, they can also be applied to B2B environments to streamline and improve customer management conditions. B2C and B2B CRM systems are not created equally and different CRM software applies to B2B and Business-to-Customer (B2C) conditions. B2B relationships usually have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B environment, the software must bepersonalized and delivered at individual levels.[23]

Differences between CRM for Business to Business (B2B) and Business to Customers (B2C)[edit]

B2B and B2C marketing operates differently, and that is why they cannot use the same software. All the differences are focused on the approach of these two types of businesses:

B2B companies have smaller contact databases than B2C. The amount of sales in B2B is relatively small. In B2B there are less figure propositions, but in some cases they cost a lot

more than B2C items. Relationships in B2B environment are built over a longer period of time. B2B CRM must be easily integrated with products from other companies.

Such integration enables the creation of forecasts about customer behavior based on their buying history, bills, business success, etc.

An application for a B2B company must have a function to connect all the contacts, processes and deals among the customers segment and then prepare a paper.

Automation of sales process is an important requirement for B2B products. It should effectively manage the deal and progress it through all the phases towards signing.

A crucial point is personalization. It helps the B2B company to create and maintain strong and long-lasting relationship with the customer. To help

the company communicate with their clients more effectively, there should be integration with the company's email system.

SaaS CRM Software[edit]

Often referred to as "on-demand" software, software as a service (SaaS) is delivered via the Internet and does not require installation on a local computer. Instead, the software is accessed via a web browser. Businesses using the software do not purchase the software, but typically pay a recurring subscription fee to the software vendor.[24]

Small business[edit]

For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.[citation needed] CRM systems available for specific markets (legal, finance) frequently focus on event management and relationship tracking as opposed to financial return on investment (ROI).

Social media[edit]

CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and services.[25] Enterprise Feedback Management software platforms such as Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply.[26]

Non-profit and membership-based[edit]

Systems for non-profit and also membership-based organizations help track constituents, fund-raising, Sponsors demographics, membership levels, membership directories, volunteering and communication with individuals.[citation needed]

Customer-centric relationship management (CCRM)[edit]

CCRM is a style of customer relationship management that focuses on customer preferences instead of customer leverage. This is a nascent sub-discipline of traditional CRM to take advantage of changes in communications technology.

Customer-centric organizations help customers make better decisions and it also helps drive profitability. CCRM adds value by engaging customers in individual, interactive relationships.[27]

Customer-centricity differs from client-centricity in that the latter refers almost exclusively to business-to-business models rather than customer-facing firms.

Features of CCRM[edit]

Customer-centric relationship management is used in marketing, customer service and sales, including:

tailored marketing, one-to-one customer service, retaining customers, building brand loyalty, providing information customers actually want, subscription billing, rewards.

Value-oriented CRM[edit]

Companies are seeking new ways to deliver better customer value in order to build and maintain close relationships with customers, thereby strengthening their sustainably competitive advantage. Therefore, a better understanding of customer value is the key to successful CRM application.[28]

Customer value[edit]

Customer Value can be divided into functional value, social value, emotional value and perceived value. Functional value is that a product may offer convenient and methods to help customers solve problems in real life. The contribution of social value is that the responsibility and commitment of the customers - the customers through using their practical activities to satisfy the physical and psychic needs of society or others. Emotional value means that when the people’s physical needs are met, they begin to pursue social activities, self-esteem and achievement needs, mainly for seeking leisure, entertainment, lifestyle and emotional experience, such as a sense of interest, pleasure, and satisfaction. Perceived value refers to customers’ overall evaluation of the product or service, the cost that customer can perceive its benefits and pay.[28]

Features of customer value[edit]

Closely related to customer value and provide material Offer a customer from the customer's perception of the utility of judgment,

not by the vendor and other objective decision Customer perceived value is perceived core interests, such as loss of

interest and perceived quality trade-offs, interest and other utility. It is a

customer of the product attributes, attribute effectiveness and use of the results of the evaluation

Preferences and perception of customer value, customer value and therefore the substance is considered to the desired level, based on customer perceived loss of profits and interest, such as the total cost includes monetary and non-monetization differences for products / services overall evaluation of the utility.

Brand loyalty[edit]

For brand loyalty, definitely, brand loyalty is the key way for customers to achieve more profit.[28] Usually brand loyalty is considered to be a repeated purchase, but sometimes we cannot know if the customers are truly willing to have the second, third, or forth purchase. So there is another way which has been referred that is according to customers’ attitude to test their loyalty. Companies can send out questionnaires or web links that are about some choices comment on the different aspects on product and service. By using this way, companies can get some true feedback and purchase experience from customers in order to figure out if the customers are happy to use the product or not.

Results[edit]

Only if the activities and operation of companies can stimulate the purchase motivation of customers，and good attitude and preference of brands such as repeat purchase and share good shopping experience to others, basically it can be considered that enterprise has achieve a good performance on CRM. Also another benefit we can get is that good customer value and brand loyalty is a good drive to improve CRM performance, so providing better customer value and experience for customer is also a key way to implement CRM well. Accenture [29]  and Emerald Insight [30]  are now beginning to focus on CCRM as a discipline, with studies appearing onMendeley.[31]

SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM) is the management of the flow of goods and services.[2] It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.[3] Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."[4]

Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners led to the creation of

the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement.

Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.[13] In Peter Drucker's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies.

In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organisational supply network can be acknowledged as a new form of organisation. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances, and business partnerships, significant success factors were identified, complementing the earlier "just-in-time", lean manufacturing, and agile manufacturing practices.[14] Second, technological changes, particularly the dramatic fall in communication costs (a significant component of transaction costs), have led to changes in coordination among the members of the supply chain network (Coase, 1998).

Many researchers have recognized supply network structures as a new organisational form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and "Next Generation

Manufacturing System".[15] In general, such a structure can be defined as "a group of semi-independent organisations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001).

The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by the ISO and theIEC.Supply Chain Management draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.

Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. In an example scenario, a purchasing department places orders as its requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through process integration.

Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow. However, in many companies, management has concluded that optimizing product flows cannot be accomplished without implementing a process approach. The key supply chain processes stated by Lambert (2004)[19] are:

Customer relationship management Customer service management Demand management style Order fulfillment Manufacturing flow management Supplier relationship management Product development and commercialization Returns management

Much has been written about demand management. Best-in-class companies have similar characteristics, which include the following:

Internal and external collaboration Initiatives to reduce lead time Tighter feedback from customer and market demand

Customer-level forecasting

One could suggest other critical supply business processes that combine these processes stated by Lambert, such as:

a. Customer service managementb. Procurementc. Product development and commercializationd. Manufacturing flow management/supporte. Physical distributionf. Outsourcing/partnershipsg. Performance measurementh. Warehousing management

a) Customer service management process

Customer relationship management concerns the relationship between an organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships:

determine mutually satisfying goals for organization and customers establish and maintain customer rapport induce positive feelings in the organization and the customersb) Procurement process

Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products. In firms whose operations extend globally, sourcing may be managed on a global basis. The desired outcome is a relationship where both parties benefit and a reduction in the time required for the product's design and development. The purchasing function may also develop rapid communication systems, such as electronic data interchange (EDI) and Internet linkage, to convey possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling, and quality assurance, many of which include the responsibility to coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new sources or programs.

c) Product development and commercialization

Here, customers and suppliers must be integrated into the product development process in order to reduce the time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched with ever-shorter time schedules in order for firms to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must:

1. coordinate with customer relationship management to identify customer-articulated needs;

2. select materials and suppliers in conjunction with procurement; and3. develop production technology in manufacturing flow to manufacture

and integrate into the best supply chain flow for the given combination of product and markets.

d) Manufacturing flow management process

The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible in order to respond to market changes and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency in meeting customer demand. This process manages activities related to planning, scheduling, and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites, and maximum flexibility in the coordination of geographical and final assemblies postponement of physical distribution operations.

e) Physical distribution

This concerns the movement of a finished product or service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product or service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing. Thus it links a marketing channel with its customers (i.e., it links manufacturers, wholesalers, and retailers).

f) Outsourcing/partnerships

This includes not just the outsourcing of the procurement of materials and components, but also the outsourcing of services that traditionally have been provided in house. The logic of this trend is that the company will increasingly focus on those activities in the value chain in which it has a distinctive

advantage and outsource everything else. This movement has been particularly evident in logistics, where the provision of transport, warehousing, and inventory control is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling this network of partners and suppliers requires a blend of central and local involvement: strategic decisions are taken centrally, while the monitoring and control of supplier performance and day-to-day liaison with logistics partners are best managed locally.

g) Performance measurement

Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. Taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can both be correlated with a firm's performance. As logistics competency becomes a critical factor in creating and maintaining competitive advantage, measuring logistics performance becomes increasingly important, because the difference between profitable and unprofitable operations becomes narrower. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts, internal measures are generally collected and analyzed by the firm, including cost, customer service, productivity, asset measurement, and quality. External performance is measured through customer perception measures and "best practice" benchmarking.

h) Warehousing management

To reduce a company's cost and expenses, warehousing management is carrying the valuable role against operations. In the case of perfect storage and office with all convenient facilities in company level, reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system etc.

Theories[edit]

There are gaps in the literature on supply chain management studies at present (2015): there is no theoretical support for explaining the existence or the boundaries of supply chain management. A few authors, such as Halldorsson et al. (2003), Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide theoretical foundations for different areas related to supply chain by employing organizational theories. These theories include:

Resource-based view  (RBV) Transaction cost analysis (TCA) Knowledge-based view (KBV)

Strategic choice theory (SCT) Agency theory (AT) Channel coordination Institutional theory (InT) Systems theory (ST) Network perspective (NP) Materials logistics management (MLM) Just-in-time  (JIT) Material requirements planning  (MRP) Theory of constraints  (TOC) Total quality management  (TQM) Agile manufacturing Time-based competition (TBC) Quick response manufacturing (QRM) Customer relationship management  (CRM) Requirements chain management (RCM) Available-to-promise  (ATP)

However, the unit of analysis of most of these theories is not the supply chain but rather another system, such as the firm or the supplier-buyer relationship. Among the few exceptions is the relational view, which outlines a theory for considering dyads and networks of firms as a key unit of analysis for explaining superior individual firm performance (Dyer and Singh, 1998). [20]

One of the most recent developments about supply chain theory has been presented under the name of "Supply Chain Roadmap®", which is a method whereby an organization’s supply chain strategy can be reviewed in an organized and systematic approach in order to assure alignment of the supply chain with the business strategy. Method is supported in the most important and recognised theories and practices about supply chain strategy and business strategy. The method allows the characterisation of the supply chain under analysis by 42 factors in a single page view called "The Map" -a downloable version of the map is available onhttp://www.supplychainroadmap.com-, and allows the comparison of this supply chain with 6-Supply Chain Archetypes (Fast, Efficient, Continuous Flow, Agile, Custom Configured, Flexible), in order to find gaps between supply chain under analysis and the most proper supply chain archetype. Method is applied in four steps (Scope, Understanding, Evaluation, and, Redesign & Deployment). Method was developed by Hernan David Perez, an experienced supply chain manager in several industrial sectors, and, professor and international speaker in supply chain strategy. An academic

version of the method is available on www.supplychainroadmap.com, and a book about the professional version of the method is available. The book "Supply Chain Roadmap: aligning supply chain with business strategy" deepens and extended the concepts presented in his recognized article "Supply Chain Strategies: Which one hits the mark?" published by CSCMP's Supply Chain Quarterly in 2013, which was the third highest read article of the magazine in 2013, and, is a top search-result in Google for Supply Chain Strategy.

Supply chain centroids[edit]

In the study of supply chain management, the concept of centroids has become an important economic consideration. A centroid is a location that has a high proportion of a country's population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centroids have been defined, one near Dayton, Ohio, and a second near Riverside, California.

The centroid near Dayton is particularly important because it is closest to the population center of the US and Canada. Dayton is within 500 miles of 60% of the US population and manufacturing capacity, as well as 60% of Canada's population.[21] The region includes the interchange between I-70 and I-75, one of the busiest in the nation, with 154,000 vehicles passing through per day, 30–35% of which are trucks hauling goods. In addition, the I-75 corridor is home to the busiest north-south rail route east of the Mississippi River. [21]

Tax efficient supply chain management[edit]

Tax efficient supply chain management is a business model that considers the effect of tax in the design and implementation of supply chain management. As the consequence of globalization, cross-national businesses pay different tax rates in different countries. Due to these differences, they may legally optimize their supply chain and increase profits based on tax efficiency.[22]

Sustainability and social responsibility in supply chains[edit]

Supply chain sustainability is a business issue affecting an organization's supply chain or logistics network, and is frequently quantified by comparison with SECH ratings, which uses a triple bottom line incorporating economic, social, and environmental aspects.[23] SECH ratings are defined as social, ethical, cultural, and health' footprints. Consumers have become more aware of the environmental impact of their purchases and companies' SECH ratings and, along with non-governmental organizations(NGOs), are setting the agenda for transitions to organically grown foods, anti-sweatshop labor codes,

and locally produced goods that support independent and small businesses. Because supply chains may account for over 75% of a company's carbon footprint, many organizations are exploring ways to reduce this and thus improve their SECH rating.

For example, in July 2009, Wal-Mart announced its intentions to create a global sustainability index that would rate products according to the environmental and social impacts of their manufacturing and distribution. The index is intended to create environmental accountability in Wal-Mart's supply chain and to provide motivation andinfrastructure for other retail companies to do the same.[24]

It has been reported that companies are increasingly taking environmental performance into account when selecting suppliers. A 2011 survey by the Carbon Trust found that 50% of multinationals expect to select their suppliers based upon carbon performance in the future and 29% of suppliers could lose their places on 'green supply chains' if they do not have adequate performance records on carbon.[25]

The US Dodd–Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama in July 2010, contained a supply chain sustainability provision in the form of the Conflict Minerals law. This law requires SEC-regulated companies to conduct third party audits of their supply chains in order to determine whether any tin, tantalum, tungsten, or gold (together referred to as conflict minerals) is mined or sourced from the Democratic Republic of the Congo, and create a report (available to the general public and SEC) detailing the due diligence efforts taken and the results of the audit. The chain of suppliers and vendors to these reporting companies will be expected to provide appropriate supporting information.

Incidents like the 2013 Savar building collapse with more than 1,100 victims have led to widespread discussions about corporate social responsibility across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers. They also demonstrate that visibility needs to be improved if supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully managing social responsibility in supply chains