United Biscuits is a British multinational food manufacturer of biscuits including brands such as Jacobs Cream Crackers, and Twiglets and a leader in green sustainability. This aim of this report is to analyse their green sustainability strategy and how it relates to the enhancement of their triple bottom line.
In this report I will examine their current supply chain strategy and goals with specific reference to the operational improvements they have made in each facet of their supply chain network, critically analyse its effectiveness on achieving their goals, address the challenges they face in the sustainability model and finally provide workable recommendations on how they can improve their model in the future.
The report will conclude
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What this might mean is that although their green initiative has shown a positive effect on their environmental bottom line, this has not spilt over into their financial bottom line. There is certainly a dilemma between reducing environmental impact of business activities and increasing financial cost (McIntyre et al, 1998). This might be because the efficiencies in their supply chain are not reflected in the price of their goods market their green supply chain effectively. Finally this could be because United Biscuits have chosen to adopt a long term view to their green strategy and an outcome of a long term strategy is a short term reduction in profits due to increased investment. This view is supported by (Abbasi, Nilsson, 2012,pg 517-530) when they propose …show more content…
An increase in inventory is likely to lead to an increase in the cost of managing the goods and also waste output due to the fact that some of their goods might perish if stored for too long.
Sourcing
With the adoption of the SEDEX system, United Biscuits has raised the ethical standards of its suppliers ensuring that they are in alignment with their overall sustainability strategy.
The trade-off however is a reduction in the pool of suppliers and also an increase in cost due to the fact that the suppliers might have to increase the price of their goods in order to stay competitive. The use of direct sourcing agreements also increases the time and cost of finding and managing new suppliers.
Transport
The recent innovations of using waste oils as an alternative to fuel , optimising product pack and pallet fill to maximise load and also using canal transport instead of lorries in Belgium is a cost saving and energy efficient strategy. However the trade-off is that it reduces the frequency at which shipments can be made, which might result in a longer consolidation period and a reduction in inventory turnover, which leads to added
Corporate social responsibility (CSR) is an useful concept that has been performed by global companies in order to contribute a better society and cleaner environment. Greggs has been performed a successful business for several years in UK and holds a leading position in Bakery industry. Greggs has also made responsible duties to benefits the society through their business activities and made large investment for social and environmental development. This research proposal mainly focused on the introducing low fat baked foods to improve human health conditions and eliminate the chances of occurring several health hazards caused by fat contained food products. In order to achieve this, appropriate research methodology has been selected and through discussion of project management plan has also been included in this proposal. At the end of this research proposal appropriate recommendation has been made.
Situation analysis: Ivan Guillen was asked to develop a marketing strategy in Canada to improve the business portion of the Pillsbury refrigerated baked goods category of General Mills (pg 1).
Cooperated with partners and leaders in the field of supply chains and transport, the World Economic Forum’s Global Agenda Council on the Future of Logistics and Transportation started to conduct research on the supply chain. The report “Beyond Supply Chains Empowering Responsible Value Chains” analyses the impact that supply chain practices has brought to business, society and environment, and explores the issue how shared value can be made through better supply chain decisions. The report identifies “a set of 31 proven supply chain practices which provide companies with a blueprint of where they can gain both commercial and socio-environmental advantage (both environment and local economic development)—driving a triple advantage” (). In addition, the report “provides a framework for evaluating the potential value at stake behind each of these practices, and an implementation framework for
As a result of this overproduction, another negative effect of just-in-case manufacturing is a decrease in cost efficiency. The most obvious costs would include storage and warehouse expenses (Conrad “The Advantages of…”). In order to have these large inventories, there have to be places to hold such large quantities of goods. Storage costs comprise of preserving the accumulated product to ensure that it functions properly. If the cars or parts are unable to perform, stock might have to be discarded, increasing physical waste. The products lost mean that money and opportunity for profit are lost. In addition to storage costs, there are also warehouse expenses, in which energy consumption, personnel, and assorted equipment are needed to maintain the facility and product. Since our just-in-case manufacturing method requires that we make large amounts of cars, we need places to store them. The more product, the more warehouses, which means there are more warehouse costs that will diminish any profit that we make.
Companies around the world are focussing on incorporating sustainability policy and practices in their supply chain (Ageron et al, 2011). The topic of sustainability has been of great interest for the last decade and businesses have adopted a certain level of commitment towards sustainability practices (Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply chain model.
In 2003, there has been increased pressure on many companies and managers to acknowledge their responsibility to society, and act in a way which benefits society overall (Lindgreen and Hingley, 2003). The major societal issue threatening food retailers has been environmental issues, a key area for companies to act in a socially responsible way. Hence, by recognizing this trend within the broad ethical stance, Tesco 's
I developed my interest on M&S, one of the largest retailers in UK and significant international presence, during my study of other entity’s profile. As an ethical entity M&S earned respect from people. Fairtrade and Plan A was very much appreciated by all level of people. Plan A dramatically increase the environmental sustainability of the business with in 5 years and expected to cost £ 200 million. The Plan covers 100 commitments over 5 years to address the key social and environmental challenges facing M&S today and in the future. The commitment span five themes: climate change, waste, sustainable raw materials, fair partnership and health, with the aim that by 2012. It will
Boards of directors use financial statement to review and supervise the performance of management. Employees, of course, are potential users of financial statements as well. Employees can also be investors, so they need financial reports of the company to decide if it would be worthwhile to invest in the company. Also, companies pay bonuses, promote, and demote employees sometimes based on the company 's net income, which is reported on the income statement. (Users of Financial Statements, ref)
A key issue facing management was balancing the company’s desire for environmentalism with its existence as a for-profit business. The idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders ( I think it should be stockholder since it is financial return). A commitment to the environment can raise costs and hurt margins because environmentally-friendly policies are not the most financially savvy. This issue is important because Patagonia’s entire brand and
Transforming a supply chain into a sustainable network is not an easy thing to do. Amongst the existing obstacles that Johnson (2004) gives us is the considerable size of this network: all along the differents ranks of suppliers that constitute the upstream of the chain, it is very hard to track the original source of the material and to broadcast best practices all accross that path. Furthermore, the lack of legal framework for labor conditions and environment preservation in developing countries makes it the more difficult to enforce
Competitors might face increasing costs when firms deliberately increase the price of supplies or when competitors are forced to bid for remaining inputs. However, this does not mean it will increase competitor’s cost if supplies are available from alternative suppliers.
The following paper explores environmentally friendly strategies utilized in the UK based multi-million-dollar corporation, Marks and Spencer. Marks and Spencer is a food and retail corporation, with headquarters in London, England. The following paper will analyze the effectiveness of utilizing environmentally friendly strategies in a large corporation, such as M&S, and how those strategies could be implemented in a US based startup food and retail business, specifically located in central Florida.
If suppliers are limited, they have a greater opportunity to charge higher prices for raw materials, and they may also pose a threat of forward integration to the industry. Similarly, if an industry has few buyers, or buyers can cheaply and easily change suppliers, they can make demands for less expensive higher quality products, causing impact to profit (Porter, 2008, p. 83).
The consequences of having limited storage space are increased storage costs. As such, expanding existing space via purchasing or renting should be considered to hold all inventory produced. The firm should be particularly careful in not producing more than it can store.
Supply chain has gained importance in the current world of business. With the advent of globalization and competitive advantage being key aspects of organizational existence, it is essential to look into sustainability of the same. This research paper focuses on the need for this sustainability and how supply chains can make a difference to the sustainability of the planet. It will also explore supply chain practices that could be a source of competitive advantage.