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.
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.
Companies are beginning to realise that every item they source from suppliers have a global environmental impact, and with careful sourcing they can reduce use of fossil fuels and in turn save money (Wisner et al,2009) . This has led to many companies having self-imposed commitments and long term strategies to protect the environment by forming strategic alliances with suppliers. But only a few are successful in achieving their objectives. A survey by Accenture, shows that only one in ten companies actively model their supply chain carbon footprints and have implemented successful sustainability initiatives (Accenture, 2009). Acco...
However a continuous rise in globalisation could be presented as a challenge for Sainsbury’s. One of the biggest economic factors is the rising costs of fuel which will impact right through the supply chain of Sainsbury’s leading to increase of its products. Social factors to consider due to increase in trend in healthy foods, so for Sainsbury’s to keep up with trends, it would be something to consider. The use of technology for great retailers such as Sainsbury’s is an important factor, persistent upgrading of technologies such as self-checkouts, computerised stock control etc., means less room for human errors. Concerning environmental, reducing carbon footprint is emphasised to big companies. “Companies like Sainsbury’s can contribute a lot of impact on the environment. To do this Sainsbury’s would have to put in more towards the green issue” (UK Essay 2014) Legally, Sainsbury’s would have to make sure to follow policies concerning label and packaging which could be an added financial load to Sainsbury’s. Sainsbury’s should act on its threats, to achieve its goals and
Supply chain management, then, is the vigorous administration of supply chain activities to exploit customer value and achieve a reasonable competitive improvement. Supply chain activities cover entirety from product development, sourcing, production, and logistics, as well as the statistics systems required to coordinate these events. It denotes a sensible effort by the supply chain firms to develop and run supply c...
This is not different with the retailing industry as this is one of the largest growing companies globally. Over the past years, this market was regarded to have less concern on environmental aspects but has since attracted significant changes. In terms of capacity, productivity and revenue, Tesco PLC boasts of being the third largest retailer globally. The firm is based in UK but operates in 14 states (Profile, 2014). The company also is known for its well established social respo...
From the starting itself Green supply chain goals should be combined with business goals which in turn will help the organization to have a vision about how to spend the money and plan for it in advance. This will in turn help the organization to attain goals such as ecofriendly packaging, establishing the guidelines so as to decrease the energy consumpti...
As the Sustainability Leaders badge provides an incentive for manufactures who supply Walmart to become more environmentally friendly, Walmart has taken more direct approaches. As Walmart is the world’s largest grocery store, it has taken initiative in improving agricultural practices by their suppliers in the their supply chain. Walmart has collaborated with fifteen large suppliers that account for thirty percent of their food and beverage sales to implement farming practices that optimize fertilizer and crop rotations with the goal of reducing greenhouse gasses by 2.3 million metric tons (MMT) (“Sustainable”). Highlighted by Joel Makower, an expert on sustainable business and founder of GreenBiz, Walmart has reached their goal set in 2010 by cutting 20 MMT from their supply chain (Makower). Makower states: “Walmart’s sustainability initiatives are having a real impact, both on its operations and those of the companies in its supply chain, though some of that progress is offset by the company’s growth”
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.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
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.
It is important to understand clearly what a Green Business is and what makes a Business Green (Friend et al, 2009 p.2):
Morrison is the largest supermarket in the UK and has integrated sustainable operation management in all its stores. Its management have put in place sustainable mechanisms such as sustainable designs, processes, operations, which are guidelines and policies used by the firm to decrease the...
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,