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Sustainable supply chain management
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2.0 Literature Review
2.1 Sustainability in supply chain management (SSCM)
Supply chain sustainability is the management of three pillars (Environmental, Social and Economic) impacts, with the encouragement of good governance practices throughout the lifecycles of goods and services. The objective of supply chain sustainability is to create, protect and grow long-term environmental, social and economic value for all stakeholders involved in bringing products and services to market (BSR, 2000).
In recent years, the sustainability concept has pushed organizations to re-evaluate their manufacturing processes, reconfigure their supply chains and transform the competitive landscape. These will influence companies to change the business models,
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As the future risks are unpredictable, researchers believe that by putting effort focusing on identifying and assessing risk with collaboration of stakeholders and being proactive into supply chain operations can drive to prevent supply chain disruptions and mitigate risks.
2.5 “R’s” of Sustainability
The simple framework which consisted of three parts, Reduce, Reuse and Recycle are focused primarily on waste reduction known as the “3 R’s”. Organizations quickly adopted the 3 R’s concept to reduce cost while also promoting their efforts as being environmentally friendly. 3 R’s Sustainability has been extensively exercised and these actions have broad appreciation due to their potential cost-saving and waste-reduction prospects (Cooper & Griffis, 2015).
2.6 Reverse Flows
Robinson (2014) explained that reverse logistics stand for all operations related to the reuse of products and materials. It is the process of capturing product lifecycle end value and properly disposal. Reverse flow or logistics could increase aftermarket customer satisfaction, reduce overall costs and effectively maximize recovery assets
With forward movement in society, it is important to consider not just what will propel most toward success, but also what will help to sustain the environment along the way. What may have been considered appropriate decades ago, may no longer be socially acceptable due to the changes observed in both the business world and the environment (Fiske, 2010). Therefore, it is important for organizations thriving in today?s economy to consider how they may capitalize most effectively from their product or service of choice while minimizing or eliminating any damages along the way (Knoke, 2012).
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.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Risk can be defined as “potential disturbances with their negative consequences”. Sharma & Bhat (2011). The objective of this assignment is to examine Mattel’s Toy recalls. In doing so a risk assessment of Mattel’s supply chain practises before the recall will be formed, the actions taken by all parties involved in the production of those toys that were recalled will be examined, the recalls impact on Mattel will be examined, the transparency and accountability of global supply chains will be identified, and Mattel’s current supply chain will be assessed to identify whether they now effectively managing risk.
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.
Globalization has resulted in broadened relationships worldwide. These connections have created challenges for organizational leaders. The concept of liability extends far beyond customers and suppliers; organizations have become responsible for worldwide social welfare and the environmental impact of operations. Within integrated supply chains, managers have looked across traditional boundaries to interfirm relationships to manage risk and advance corporate social responsibility (CSR) requirements, such as sustainability.
Manufacturing businesses and business leaders need to increase their focus on key success factors such as: innovation, productivity improvement, investment in people & skills, and funding. Innovation is not just about retention and development, or the latest technology. It’s also about practical and efficient problem solving and business transformation. In the manufacturing industry, this can be achieved by: refining or exploring new supply and distribution channels, establishing new business offerings, developing leaner organizational arrangements, improving processes, providing a better customer experience, and accessing green, clean technology – high on the agenda for environmentally conscious customers (Performance, 2011)
Sustainable supply chains (SSC) are a process, which employ purchasing policies and procedures that assist sustainable development at the centers of tourism. This aspect of tourism is particularly vital to implementing feasible tour operator practices. The final tourist product featured in both glossy brochures and enticing websites must be considerate of viable sustainable supply chain management to create long lasting destinations for the consumer. This report will discuss the benefits and drawbacks of SSCs, and attempt to assess how SSCs are used as a popular management tool in the tourism industry. “Sustainable supply chain management (SSCM) encapsulates the trend to use purchasing policies and practices to facilitate sustainable development at the tourist destination.” (Font and Tapper et al., 2008, pp. 260--271). To expand on this, there is an expectation that Supply Chain Management “emphasizes the logistics interactions that take place among the functions of marketing, logistics, and production within a firm and those interactions that take place between the legally separate firms within the product- flow channel.” (Pulevska-Ivanovska, L, 2007: 11) This definition encompasses the three main components of supply chain management: marketing, logistics and production. According to Dr Xavier Font, the tour operators’ product depends on 3 major sections: accommodation, transport and activities. (Font, X, 2011: 260) Supply chains vary depending on the nature of product and/or service. (‘UNEP’ 2013: 273) The diagram below illustrates the three main areas of impact: economy, society and environment.
In this century green Supply Chain Management is used to eliminate or reduce waste i.e. Energy, Emission, Chemical /hazardous, solid wastes along supply chain. Green Supply Chain Management has played an important role to achieve profit and market share by minimizing company environmental risks and impacts, while increasing their ecological efficiency. A study has shown that green supply chain management can be divided into ...
While a number of organizations have not adopted a sustainable operations management strategy, large retail firms like Morrison, Wal-Mart, Marks and Spencer, and Sainsbury’s have adopted this concept into their management strategies in order to reflect customer concerns and thus sustain the competitive advantage. Many larger firms are willing to promote sustainable operations in their markets because this strategy arguably attracts and retains customers.
The concept of minimizing waste impacts in terms of quantity or ill-effects, by reducing quantity of wastes, reusing the waste products with simple treatments and recycling the wastes by using it as resources to produce same or modified products is usually referred to as “3R” (Shimizu, 2006). Purchasing and using resources with care can reduce the pace of consumption of resources and further connected energy and resources. Ultimately reducing wastes in multifold streams. When long lasting goods are reused time and again, it offsets harvesting of new similar or same products. This saves fresh resources exploitation and waste generation quantity. Some waste products can be consumed as resources for production of different goods or the same product, meaning recycling the same resource. This too saves fresh resources and offsets waste generation. All in all, the 3Rs individually or collectively saves fresh resources exploitation, add value to the already exploited resources and very importantly minimizes the waste quantity and its ill effects. Waste minimization efficiency is stated to be better achieved applying 3Rs in a hierarchical order; Reduce, Reuse and Recycle (Shimizu, 2006).
Without doubt the XXI century has changed our priorities, especially when it comes to the way we do business. Popular sustainable business models, as advertised in the media, have evolved into much more than a moral obligation or an external requirement to generate money. Essentially, are forcing companies to reinvent the systems and approaches with which they generate value and profitability to the company.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
The best strategy for waste management is to practice the three r’s: reduce, reuse and recycle. Hotels must take steps
Introducing 3R’s of environmentalism (Reuse reduces and recycle) to be implemented at grass root level by all communities as a family toprotect environment for the future.