The Influence of Sustainable Supply Chain Cooperated with Lateral Transshipment on Economic Profitability in Tunisian Companies: A Real Case Study

Purpose: This paper investigates the influence of sustainable supply chain management integrated with lateral transshipment on the economic profitability of Tunisian companies.The study focuses particularly on the textile distribution sector in Tunisia, with emphasis on the Sfax industrial region, where inventory-sharing and collaborative distribution strategies are increasingly relevant.Design/Methodology/Approach: The study adopts a case-study approach based on a real Tunisian textile distribution network.It examines the integration of sustainable supply chain management practices with lateral transshipment and inventory-sharing strategies.Lateral transshipment enables cooperating retailers to redistribute available inventory among locations, thereby reducing shortages and excess stock.The analysis considers the economic and environmental effects of combining inventory-sharing mechanisms with sustainable logistics practices.Findings: The results indicate that the integration of sustainable supply chain management and lateral transshipment can improve both economic and environmental performance.The combined approach contributes to reducing logistics and inventory-related costs, improving service levels, decreasing CO₂ emissions, and increasing overall profitability.The Tunisian textile distribution case further indicates that partial-pooling transshipment strategies can generate significant benefits by improving inventory utilization while limiting unnecessary transportation and resource consumption.Practical Implications: The findings highlight the importance of supply chain cooperation and inventory-sharing mechanisms for improving the competitiveness of companies operating in emerging economies.Tunisian textile distributors and retailers can potentially strengthen their economic performance while reducing their environmental impact by adopting collaborative transshipment and sustainable logistics practices. Originality value:The results suggest that partial inventory pooling can provide a practical balance between operational flexibility, cost efficiency, and environmental sustainability.