This study demonstrated the effectiveness of decarbonising automotive products through sustainable dynamic supply chain decentralisation. A case study was used to examine a dynamic decentralised supply chain as a tool to decouple the large supply chain, and system dynamics was used to simulate the impact of reducing kilometres travelled on transportation costs, illustrating how sustainable supply chains can drive profitability. Reduced kilometres travelled per fuel tank has resulted in a significant reduction in Greenhouse Gas Emissions (GHG). The simulation demonstrates a  73% reduction in logistics costs and 75% reduction in carbon emissions. This study suggests that the automotive industry can explore a decentralised supply chain to reduce its carbon footprint and improve cost-effectiveness. The novelty is demonstrating that pursuing sustainable development goals reduces carbon emissions and transportation costs. The research demonstrates progress toward the Sustainable Development Goals (SDGs). SDG 13: Climate action, by actively reducing and striving to reduce greenhouse gas emissions within the supply chain and SDG 12: Responsible consumption and production, by actively looking for ways to reduce the distance travelled of each component of the product.

Keywords

Sustainability, Supply chain, Automotive industry, Fuel tank