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.
In a world surrounded by a growing population, an increased awareness of ecological issues, and push for sustainable development, businesses are being pressured to create plans for sustainability. Sustainability offers businesses, and society as a whole, the opportunity to create a more stable and economically friendly environment. Not only is sustainability involved within the environment, but it is also used in economic and social settings. Economic sustainability involves the use of taking a company’s assets and allocating them in an efficient way such that it allows the company to reach profitability. Moreover, social sustainability of a business environment involves using a business and their process to support and maintain current and future societies. The business world has invested heavily in sustainability in order to maintain a healthy ecosystem and social setting, but it has offered many difficulties. Sustainability is the future of our planet, and it needs to be taken seriously in order to benefit societies for years and years to come.
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
Sustainable Supply Chain – working with and influencing suppliers to manage and reduce the environmental and social impacts of their operations and of the products and services they provide to Telstra.
being more sustainable and profitable are present at each stage of supply chain, including material
Sustainability has become a great topic of interest in many arenas. Particularly, leading organizations are recognizing sustainability needs to be an essential aspect of their long term strategies. With this recognition, better business practices are being sought by investors as well as sustainability is becoming a driving force for better efficiencies and innovation. Two organizations, Wal-Mart and Starbucks, have both took on sustainability as long term initiatives to address their customer needs and affect how their suppliers operate.
Walmart has the scale and resources to invest in a premium research and development center in partnership with a top university (known for its supply chain programs) like MIT or Michigan State University, to leverage country’s top brains and conduct research in developing pioneering sustainable solutions for all the levels of supply chain. Previously the suppliers have been burdened with the task of researching, developing and adopting green methods and materials. However suppliers do not operate on the same scale as Walmart. Therefore they lack the necessary resources to develop or access innovative techniques that would enable them to transition to sustainable standards, without incurring huge upfront costs. Through its research center Walmart can leverage and develop solutions that would enable the suppliers to improve efficiency and also comply with the strictest sustainability standards required by
Sustainability from a strategic business perspective is the potential for the long-term well-being of the natural environment, including all biological entities, as mutually beneficial interactions among nature and individuals, organizations, and business strategies. (O.C Ferrell, Fraedrich, Ferrell, 2015). Business sustainably is often defined as managing the triple bottom line – a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. (Business sustainability definition from financial times lexicon, no date). This essay will discuss the idea of sustainability being an important element within a businesses and its core strategies and the importance of it within different businesses. Secondly, this study will look at how different stakeholders are affected and influenced by sustainability as this could be seen as a catalyst to improving the environment as a whole and. Then this study will look at how businesses not focusing
Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.
Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.
Green supply chain management transpire as a new approach to attain environmental and financial benefits by diminishing impact and environmental risk at the same time . Now a day’s globalisation is increasing chances or offers for buyers. If the buyers will demand environment friendly product, the supplier will make more green products which will lead to environment protection. An organisation should focus on green supply chain as a social cause not for social cause or public image. Manufacturers should need to work with their raw material suppliers to provide them environmental friendly products, through this manufacturers can set a benchmark for the suppliers in process of supply chain management . The manufactured goods are further transported in ecofriendly manner, big companies are adopting techniques to maintain sustainability. The main aim of the organisations to perform green supply chain management is to fulfil the expectations of international markets to improve financial and environmental performance. Manufacturers are only involving those suppliers who are engaged in ecofriendly supply of raw material, and transportation which can meet the environmental regulations and standards.
Kohl’s Department Stores has expanded its commitment to supply chain sustainability in 2012 to include analysis of 50 private brand vendors, as well as the company’s top 325 national brand vendors, which represents approximately 90 percent of the company’s merchandise spend. The company also surveyed 38 non-merchandise business partners in the areas of transportation and consumables, according to its newly released 2012 corporate social responsibility report. Kohl’s leverages these scores in key areas of sustainability to foster consistent dialogue and education and to help vendors establish their own programs and commitments.
Another problem that Zara’s information system is facing is that it is not sustainable in an ecological way. Indeed, the amount of shipping required by the actual centralized business model is already massive and it is expected to grow exponentially with the participation of the booming Asian economies. Such a model is not complying with the current ecological trends and reforms. For instance, the Global Commerce Initiative (GCI), a group of manufacturers and retailers working together to simplify and promote global commerce has lately been working on the elaboration of the 2016 Future supply chain design. Roland Dachs and Xavier Derycke, members of the GCI Future Supply Chain Work Team, announced in a report “In the future, the (supply chain)