One of the concerns addressed by a strategy of sustainability is that of environmental protection, in particular the improvement of waste disposal. Such a goal is worthwhile; however, it can pose difficult choices. Take for example a major fast food restaurant chain that developed its supply chain to deliver low costs, consistent quality, and delivery speed. Operations were designed to minimize variations; consistency in operations worldwide enabled the dependable delivery of a good product at low cost to the customer. To a large extent the success of the business was due to the loyalty of the suppliers, who at times even proposed new products or better ways to produce them. One day, in an effort to be more environmentally responsible, the company decided to eliminate the Styrofoam clam containers it was using to package its hamburgers in favor of paper wrappings. This action required the certification of new suppliers for the paper wraps, the cancellation of contracts with several long-term suppliers of the clam containers, and a change to the waste disposal operations.
What are the potential benefits to the company for the elimination of the Styrofoam containers? What are the potential downsides to that decision?