Sustainable Supply Chains in Bolivia: Between Informality and Political Instability

Abstract

AbstractNowadays, Bolivia is experiencing big social and economic changes. Due to strong economic growth and deep political changes, the Bolivian society has high expectations for a better future. Multiple factors, most rooted in changing consumer realities, are driving the awakening to the importance of the management and sustainability of supply chains in developed and developing countries. More consumers are also looking for reassurance from manufacturers that their purchased goods are sourced and produced in an environmentally, socially sustainable, and safe fashion. As a consequence, more national regulations are expected to appear in the future to reflect these new consumer demands. Due to social and political instability, attaining supply chain sustainability in Bolivia is far from realistic. However, manufacturers should take several steps to address some of the factors that limit their control over supply chains. Bolivian firms will have to reduce suppliers’ complexity, improve supply chain transparency, integrate third parties, and improve material procurement practices. Therefore, our study analyzes sustainable supply chain management practices in the foods and beverage industry of Bolivia. In this chapter, we study the case of Bolivia and attempt to summarize the challenges and opportunities faced by Bolivian firms in the development of sustainable supply chains. In particular, we collected data from nine foods and drink manufacturers of the foods and beverage industry. We find that the implementation of sustainability practices in Bolivian supply chains is still at an early stage. Moreover, due to high political instability and a huge informal economy, supply chains in Bolivia are highly uncertain and extremely challenging to manage.KeywordsSustainable supply chainBoliviaFoods and beverage industryInformalityPolitical instability