Track: Supply Chain and Logistic Competition

Abstract

This study discusses the soft drink supply chain sustainability, which includes the production of carbonated soft drinks made from carbonated water, flavors, and sweetened with a non-nutritive sweetener or sugar, their packaging, storage, and distribution. The study targeted three soft drink companies in Kuwait, to successfully identify sustainability problems relating to the three pillars of sustainability in the companies’ supply chains. We used the identification of the problem; analysis; design; evaluation of alternatives; and implementation approach in the project design. To identify the sustainability problems in these companies, a list of questions and an analytical hierarchy process (AHP) questionnaire were sent to them. The answers to the questions/and the AHP questionnaire revealed a packaging and water waste problem. As a solution methodology, we first implemented benchmarking to identify industry best practices in the soft drink industry. As a solution to the water waste problem, after conducting a feasibility analysis, reverse osmosis (RO; as compared to ultrafiltration) was chosen as the best sustainable water recycling method; as it has a longer life span than ultrafiltration. As a solution to the packaging problem, when analyzing between rPET and PlantBottle, rPET was chosen because it is less costly. Moreover, a simulation of RO was conducted using Arena software for a real-life illustration. Lastly, to illustrate the benefit of the sustainability initiatives, a multiple regression model was built by collecting data from the Refinitiv database. The regression results showed that there is a U-shaped relationship between the firm value and environmental sustainability performance.