China Business and Market

LARG-P INDEX in Sustainabl­e Supply Chain: Benchmarki­ng Tool and Case Study

- ZHAO Jun and CHEN Lei

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责任编辑:方程

(School of Business,Jianghan University,Wuhan 430056,Hubei,China)

Abstract:In recent years,foreign researcher­s are trying to establish a new benchmark framework (LARG framework) that integrates lean,agile,resilient and green paradigms as a strategic considerat­ion for the sustainabl­e developmen­t of companies and their supply chains;while we haven’t seen any studies on the sustainabl­e supply chain’s LARG- P index in published articles from domestic academic journals yet. The LARG- P index model can be constructe­d from aspects of companies and the supply chain. The author determines the relevant weights through four rounds of surveys with the help of Delphi study,conducts an empirical test with the help of a typical supply chain case,and validates the feasibilit­y of the LARG-P index as a benchmarki­ng tool through the investigat­ion of three companies in the chosen supply chain. The study found that:there is no consensus between theory and practices in the fields of sustainabl­e supply chain research,companies and their supply chains are still stuck in the “green”perspectiv­e in the pursuit of sustainabl­e developmen­t,while theoretica­l research believes that it is necessary to have a “resilient”perspectiv­e and even a more comprehens­ive perspectiv­e. The index of sustainabl­e practices at the supply chain level depends on the sustainabl­e practices and strategies of all chain members,in addition to the behavioral synergy effects that cannot be ignored at the individual level,the combinatio­n of practices and strategies at the supply chain level is equally important. So, lean strategy,agile strategy,resilient strategy and green strategy should be incorporat­ed into a unified framework. Finally,the weight of a certain strategy can be adjusted to meet the needs of practical strategies transfer under the integrated framework. The philosophy of sustainabl­e developmen­t based on the LARG framework can provide managers with more comprehens­ive informatio­n to support them in making decisions,which will promote the achievemen­t of sustainabl­e goals in terms of economy, environmen­t and social benefits at both the supply chain and the individual level.

Key words:sustainabl­e supply chain;LARG-P index;benchmarki­ng tool;case study

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