The Ikea case concerns the assessment of the steps the corporation is taking to strengthen supply chains and reduce the negative impact on the environment in the context of the COVID-19 pandemic. The issues of environmental safety, sustainability strategies, and food waste are part of the discussion. The Ikea example proves that by adapting operational processes to specific socio-economic factors, it is possible to maintain an efficient business and address current problems through rational optimization solutions.
Significant impacts on traditional aspects of life have become the result of the spread of coronavirus infection. Based on the Ikea case described by Simchi-Levi et al. (2021), one might note that the habitual and convenient ways of delivering household goods have been transformed by COVID-19. Prior to the pandemic, the level of carbon emissions was a serious topic of discussion due to the continuous aggravation of the situation. Against the background of a significant decline in buying activities, the need for increased opportunities for green production has increased, which, as Gaubert et al. (2021) state, is the result of the persistence of pollutants in the atmosphere despite a decrease in the average traffic dynamics. Conventional production methods are difficult to replace quickly, and even despite the current situation, the world cannot switch to alternative methods of energy production at lightning speed.
At the same time, the COVID-19 pandemic can be seen as a significant incentive to move towards green production and reduce the share of harmful emissions. Balsalobre-Lorente et al. (2020) note a critical decrease in the proportion of pollutants in the atmosphere due to limited citizens’ activities and little use of transport due to quarantine deterrents. Ikea, as many other companies, has begun to produce fewer products, which directly correlates with a reduced share of harmful emissions. The carbon footprints that have always accompanied the activities of large enterprises have declined, and the pandemic has become an impetus for this. As a result, while ignoring the acute socio-economic problems that the coronavirus infection has brought to the world, from an ecological perspective, COVID-19 has become a driver for improving the environmental situation and more actively applying green production principles.
In light of the numerous constraints and barriers related to both socio-economic and business nuances, constructing supply chain risk management strategies can be coordinated with sustainability strategies. Settembre-Blundo et al. (2021) pay particular attention to flexible forms of work and the ability to adapt appropriate corporate mechanisms to external factors. Based on the Ikea example, Simchi-Levi et al. (2021) argue that the company is shaping its supply chains during the pandemic by assessing the optimal cost-benefit ratio not to lose money and, at the same time, maintain the image of a strong market participant. Therefore, any risk management initiatives can and sometimes even should be part of sustainability enhancement programs.
Sustainability standards may differ depending on relevant criteria and drivers. For instance, according to Liang and Renneboog (2017), companies pursuing corporate social responsibility initiatives often formulate appropriate programs based on economic data from a particular target region. In a general context, the combination of risk management and sustainability projects can be achieved through partnerships with other enterprises involved in environmental protection. In addition, while addressing current sustainability objectives, companies simultaneously analyze the financial means to spend, which is an essential part of risk management procedures. Therefore, the combination of two types of tasks is possible and sometimes necessary.
The task of reducing food waste for a retailer implies finding and eliminating specific waste drivers. One of the factors behind excess waste may be an inefficient recycling system and hence an increase in the share of waste. By using Walmart as an example, Simchi-Levi et al. (2021) show that operational improvements, such as the optimization of automated systems, can help strengthen the technical base and achieve better green production results, which is a trend today. Keller and Alsdorf (2012), in turn, cite poor shipping and storage as the causes of food spoilage and unnecessary costs. To reduce waste, a sustainable recycling system must be put in place. Martin-Rios et al. (2018) note that those organizations who experience the issue in question should engage with third parties or adopt appropriate innovative solutions to reduce waste. A weak technical base can be strengthened through investment in infrastructure and improved sustainability and performance of dedicated equipment. Through these steps, there will be less waste in large volumes of food products supplied to retailers, which is in line with the current trend toward green production.
The Ikea example has shown that competent actions to reduce harmful emissions and maintain supply chains during the COVID-19 pandemic are real, but they require additional efforts. Sustainability, as a significant criterion, can be coordinated along with supply chain management if objective information is used as a background for analytical work and the necessary investment policies are promoted. Food waste can be minimized through the optimization of technical bases and interaction with third parties.
References
Balsalobre-Lorente, D., Driha, O. M., Bekun, F. V., Sinha, A., & Adedoyin, F. F. (2020). Consequences of COVID-19 on the social isolation of the Chinese economy: Accounting for the role of reduction in carbon emissions. Air Quality, Atmosphere & Health, 13(12), 1439-1451. Web.
Gaubert, B., Bouarar, I., Doumbia, T., Liu, Y., Stavrakou, T., Deroubaix, A., Darras, S., Elguindi, N., Granier, C., Lacey, F., Müller, J.-F., Shi, X., Tilmes, S., Wang, T., & Brasseur, G. P. (2021). Global changes in secondary atmospheric pollutants during the 2020 COVID‐19 pandemic. Journal of Geophysical Research: Atmospheres, 126(8), e2020JD034213. Web.
Keller, T. & Alsdorf, K. (2012). Every good endeavor: Connecting your work to God’s work. Penguin Random House.
Liang, H., & Renneboog, L. (2017). On the foundations of corporate social responsibility. The Journal of Finance, 72(2), 853-910. Web.
Martin-Rios, C., Demen-Meier, C., Gössling, S., & Cornuz, C. (2018). Food waste management innovations in the foodservice industry. Waste Management, 79, 196-206. Web.
Settembre-Blundo, D., González-Sánchez, R., Medina-Salgado, S., & García-Muiña, F. E. (2021). Flexibility and resilience in corporate decision making: A new sustainability-based risk management system in uncertain times. Global Journal of Flexible Systems Management, 22(2), 107-132. Web.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2021). Designing and managing the supply chain: Concepts, strategies and case studies (4th ed.). McGraw-Hill Education.