Innovators and transformers: Enhancing supply chain sustainability: a methodology combining dynamic simulation and case studies

Purpose This paper scrutinizes existing assessment methodologies in supply chain sustainability literature and identifies a gap in microeconomic methods for comprehensively estimating current and prospective supply chain performances, encompassing both financial and environmental aspects. It presents a case study where quantitative, dynamic simulation modeling is applied to articulate and amplify a company’s sustainability performance, demonstrating that a holistic approach to performance metrics can significantly refine decision-making and action prioritization in sustainability. Design/methodology/approach Introduced here is the “ISSSC Approach, ” which employs dynamic simulation modeling to quantify the flux of materials, value, and emissions within a supply chain. This methodology facilitates the construction of representative models and subsequent scenarios to inform sustainable decision-making that aligns with business objectives. The utility of the ISSSC Approach is evidenced through a case study within the dairy industry. Findings The case study offers three pivotal insights: the innovation of a fact-based sustainability framework over traditional anecdotal methods, the harmonization of competitive and sustainable performance indicators within a company’s strategic ambit, and the presentation of a novel tool for precise sustainability measurement and enhancement, attuned to context-specific constraints. Originality/value While dynamic simulation modeling is well-established, its application to sustainability in a manufacturing context is markedly innovative. The ISSSC Approach bridges the gap between regulatory directives and the realization of tangible benefits for all stakeholders, positioning it as a critical tool for operationalizing sustainability in corporate strategy.