Introduction Environmental pressures have caused green supply chain management to emerge as an important corporate environmental strategy for organisations’ processes. Our discussion will describe, illustrate and critically evaluate the purchasing process of Woolworths. It will further identify the steps of the purchasing process, the effect of green purchasing and sustainable purchasing. Moreover, the essay will go on to look at the effort that Woolworths has made through their programmes and initiatives of green purchasing. Background Woolworths is a large retail business selling a wide range of products including clothing, food, and general merchandise in South Africa and Country Road in Australia. The company was founded in 1931 by Max Sonnenberg assisted by his sons Richard and Fred Kossuth. The purchasing structure is centralized having two main distribution centres, one located in Cape Town (Montague Gardens) and the other in the Midrand between Johannesburg and Pretoria. All Woolworths’ purchases go through these two main distribution centres. The company takes responsibility for the entire lifecycle of their products including the reduction of direct environmental impacts which requires it to take custodianship of the supply chain and at the same time to convince customers and suppliers in the network to reduce their environmental impact (Annual Report, 2010). Purchasing Process Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We... ... middle of paper ... ... management ande-procurement: creating value added in the supply chain”,Industrial Marketing Management, Vol. 33 No. 2, pp. 219-26. Svensson, G. and Wagner, B. (2012b), “Implementation of a sustainable business cycle: the case of a Swedish dairy producer”, Supply Chain Management: An International Journal, Vol. 17 No. 1, pp. 93-7 Woolworths (2009), Annual Report, pp. 1-192. Woolworths Holdings Ltd (2010), Good Business Journey, pp. 1-60, Sustainability Report. Živković, Snežana; Takić, Ljiljana; Živković, Nenad UNAPREĐENJE EKOLOŠKIH PERFORMANSI PRIMENOM STANDARDA ISO 14001 - STUDIJA SLUČAJ.. Chemical Industry & Chemical Engineering Quarterly. 2013, Vol. 19 Issue 4, p541-552. 12p. DOI: 10.2298/CICEQ120513088Z. , Zsidisin GA, Siferd SP. 2001. Environmental purchasing: a framework for theory development. European Journal of Purchasing and Supply Management 7(1): 61–73.
One thing is for sure, large number of companies are starting to face problems and trying to come up with solutions to this crisis. Many suggestions have been made towards companies and some include changing more environmental friendly supply chain. (Carbon dioxide supply chain reporting in a Swedish multinational corporation, 2010). Swedish multinational corporation Entra has stated the fact that there is a relationship between their costs and energy sourcing. Since they are sometimes supplier to their suppliers, the environment pushes Entra and all organizations to look into how they can influence their supply channels. BP Amoco as many other companies, have set a target on reducing Greenhouse gasses. One step that they took was...
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Coles is a large Australian supermarket with many extents of the company. Due to it being such a sizable corporation, the environmental and sustainability problems that come with it can be difficult to manage efficiently. The information that Coles has released demonstrates that they are putting in substantial efforts to try to manage their sustainability and environmental state, but is it as much as they can do? Following is an analysing of Coles’ environmental and sustainability information, which will look into energy, water, waste, products, pollution, transport, education and training, and packaging.
Supplying eco-friendly products has been on the Walmart agenda since the early 1990s. After a failed first attempt and much criticism, the company decided to try again. In a speech made in October of 2005, CEO of Walmart, H. Lee Scott Jr., declared Walmart would devise a “business sustainable strategy” to reduce the environmental impact the company had. Walmart could not pull this off alone. If they only focused on the confines of themselves, rather than all that they were involved with, it was estimated that they’d only reduce their impact by about 10%. To reach that goal of 100%, Walmart had to involve stakeholders to make networks which achieve sustainability. These networks proved to be vital in not only Walmart’s goal in minimizing its environmental impact, but recovering their reputation, avoiding criticism, saving money, raising awareness, improving customer satisfaction, and creating incentive for other businesses to work towards sustainability.
Michael P. Broadribb, C. (2006). Institution of Chemical Engineers . Retrieved July 26, 2010, from IChemE: http://cms.icheme.org/mainwebsite/resources/document/lpb192pg003.pdf
Woolworths is one of the biggest retail group in Australia. Its motto is to provide fresh food to customer with in an affordable price. The company procures goods from the manufactures and also produces few products from their manufacturing plant. With its corporate office in Sydney it operates all the distribution channels, petrol sites and support centres. It has a trusted food, liquor and general merchandise brands.
At present Woolworths is Australia’s one of the largest supermarket chain which operates around 872 stores across Australia and employs around 111,000 staffs in its various stores, distribution centers and support offices to provide its customers with a qualitative service, superior range, value along with ease and convenience in shopping.
...and sustainable supply chain are the steps taken by the small and medium enterprises of the country as this leads to the effectiveness of the process. Looking and comparing the past data with the current we can reach to the conclusion that though the pace of implementing green strategies in manufacturing and supply chain is slow in developing countries but we have achieved certain mile stones in this. We need to take proper steps so as to decrease the cost and make the sustainable practices more effective.
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Australia has an extremely thought market for basic supply and ranch produce retailing. Coles and Woolworths together record 78 for each penny of piece of the pie according to Australian Food and Grocery Council (Smith, 2006). The general store industry has been changed from being a divided market in right on time years to being a concentrated market at present. The different difficulties that face Australian store industry have been its topography. The extensive area mass and inadequate populace has prompted confused logistics and a concentrated supplier (Round, 2006). However Coles and Woolworths have defeated these difficulties to be market pioneers by giving most extreme quality to
Available at: http://www.theguardian.com/sustainable-business/asda-food-waste-risk-climate-change [Accessed 23 Jan. 2015]. • LAWSON, A. Analysis: Is Asda’s five-year strategy the right one? In-text: (Lawson, 2013) Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?.
In the recent research (Walker, Klassen, Sarkis, Seuring, 2014, p. 1), it was found that the research regarding sustainable OM has been increasing in last two decades which can be considered as a sensible changes in recent business and society. The underlying concern was that if we continue to consume resources at current rates, we would need over three planets worth of resources (Weizsacker et al. 1997, cited in Walker et al, 2014, p. 1). Consumers are concerned about how products are sourced and firms are being pressured to address the TBL.
...h worldwide media coverage, it is more important than ever for a company to recognize the impact it is having on the environment. The purchasing department must be the frontrunner in this area. Through the purchasing function, new potential suppliers are found, assessed and brought on as partners in the business. And, “We didn’t know” is not accepted as an excuse when an environmental impact is discovered and brought to the attention of the world.
Step 1, need recognition: the organizational buying process is a form of problem solving resulting from a buying situation that is created when someone (the purchasing manager, the consulting manager or as regulatory requirement) in the organization recognizes a problem that can be solved through some buying action so that the discrepancy between a desired outcome and the prevailing situation can be resolved.