Strategies to Implement Sustainability Programs

strategic emerge reach focus Individual Assignment circumvent of Contents Content Introduction What is summate kitchen range Sustainability? Why is hang on Chain Sustainability important? tralatitiousistic release bowed stringed instrument vs sustain fit show range utilitys of put out Chain Sustainability Strategies to appliance sustainability in tack orbit process Step1 entrance the reliable deliver arrange Step 2 Access environment Current, Potential, and Future Imp transaction Factors Step 3 Evaluation Identifying Potential Risks and Opportunities Step 4 Extend or Re-design the Supply Chain Strategy Step 5 & step 6 Implementation with the sustainable Supply Chain calling card completion References Page No 2 2 2 2 3 3 5 6 6 6 7 8 9 AHMG Kibria Page 1 Strategic Supply Chain counselIndividual Assignment Topic Strategies to implement sustainability programs in the tot kitchen range firms Introduction Environmental issues are becoming the main concerns of man y global bring chain practitioners in todays world. In raise to address these emerging environmental issues, commercial enterprisees around the creation are looking for a total solution on the reduction of the waste generated from the current append chain process. Meanwhile, implementation woo that is needed to implement these environmental issues plays a major part in their considerations in selecting an implementation system.Recent studies by Carter and Rogers (2008) emphasised that sustainable yield chain flummoxment in foothold of social, economical, and environmental emoluments should be taken into consideration in a add together chain practice. More specifically, appending chain management thunder mug be defined as the integration of the social, economic, and environmental practices within a global interpret chain that provide green products, excellent services and accurate information sacramental manduction that beneficial to all employees, shareholders, bus iness partners and the wider community.The intent of this look for is to propose strategies to implement sustainability in supply chain firms. thither are many different strategies have been used by the supply chain firms. This subject field analysed six step process approaches to implement sustainability in the supply chain process. What is Supply Chain Sustainability? Supply chain sustainability is the management of environmental, social and economic impacts, and the encouragement of expert governance practices, throughout the life cycle per seconds 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 (consumers, community, government, society, employees etc). Why is Supply Chain Sustainability important? There are many reasons why companies start a supply chain sustainability journey. Primary among them is to ensure compliance with laws and regulations and to su pport international principles for sustainable business conduct.In addition, companies are increasingly fetching actions that final result in better social, economic and environmental impacts because society expects this and because there are business benefits to doing so. By managing and seeking to improve environmental, social and economic exertion and good governance throughout supply chains, companies act in their own interests, the interests of their stakeholders and the interests of society at large.According to Penfield (2009) Supply chain operations are fundamental to sustainability performance and supplying for sustainability is being touted in management circles as the future of war-ridden supply chains. Traditional supply chain vs sustainable supply chain Conventional supply chains are more than fire in serving the purpose of logistics than optimization. On the other hand a focus on sustainability aims at creating and protecting value with reference to long-term soc ial, environmental and economic components in bringing goods AHMG Kibria Page 2 Strategic Supply Chain ManagementIndividual Assignment and services to the market. The primacy of operations is to adequately catch current demands while making reserves for future generations. Linton et al (2007), indicates the focus of sustainable logistics is on optimization of resources along the entire production so that final production is of the highest value at the lowest cost. There is strategic optimization of resources, reduction of wastages, as well as utilization of supply by-products. In addition, it entails a focus beyond delivery to consumers, to other areas beyond the traditional scope of supply chain management.According to IBM constitution (2009) supply chain management in contemporary business practice faces five key challenges cost containment, supply chain visibility, risk management, growing market demand and globalization impacts. Conventional chains exactly focused on deliveri ng the end-products and, as such, suffered diminished returns owing to the growth in market and volatile consumers. On the other hand, supply chain sustainability seeks to not only deliver the utility, but also seeks to improve social, economic and environmental performance.As such, companies and supply chain managers deliver their own interests and those of the stakeholders and the society (Misra, et al. 2010). Advantages of Supply Chain Sustainability Social Advantage Primary benefits are derived from positive environmental and social externalities that are enjoyed by both customers and companies stakeholders alike. For example Wal-Mart has apply a program that successfully minimises the waste allocated to landfill within the USA (19. 1%), and increasingly China and brazil-nut tree (52%), which has the potential to prevent 11. million metric tons of CO2 emissions annually (Wal-Mart, 2012). Financial Advantage- Companies are realizing militant benefits from investing in supply c hain efficiency, Wal-Mart generated in excess of $231million in 2011 through a crew of increased recycling revenue and decreased expenses (Wal-Mart, 2012). Enhanced supply chain security Improvements in tire out conditions has the compounded benefit of reducing employee induced work stoppages and can positively impact a callers ability to continuously manufacture goods and services, increasing customer satisfaction and revenue.Increased war-riddenness of suppliers Buyers increasingly interprets suppliers good CSR performance as a sign of strong overall management, which affects other elements of supplier development, such as quality and on-time deliveries. In the long run, suppliers that work to continuously improve their environmental and social performance exit gain better access to markets and clients (BSR Survey). Strategies to implement sustainability in supply chain process In order to develop strategies supply chain managers need to consider what a supply chain scheme is, cerebrate the scheme to the hawkish schema and sustainability.The following figure shows the three important elements in order to develop a successful sustainable supply chain. AHMG Kibria Page 3 Strategic Supply Chain Management Individual Assignment Figure Three areas to integrate sustainable supply chain Cetinkaya (2011) This report analyses an reiterative six step process approach to implement sustainability in Supply chain firms. A self-opinionated approach to strategy design and integration can help companies developing a sustainable supply chain to create a value proposition.This iterative six-step approach has to be seen as a cycle which should be executed regularly in your supply chain, since relevant conditions may commute quite cursorily and sometimes radically for example, the oil price spike of 2008. AHMG Kibria Page 4 Strategic Supply Chain Management Individual Assignment Figure Steps of a sustainable supply chain strategy Cetinkaya (2011) Step1 Access the current supply chain Step 1 aims to take stock of the current call down of federation- and supply chain specific characteristics regarding strategy, resources, and current and planned practices.It is mainly concerned with internal factors and considers elements which are ordinarily within the control of a company. It seeks to discover whether there is a common strategic alignment, and whether the goals of each strategy element are integrated, aligned, and complementary. A companys own supply chain strategy which is not aligned to the corporate and cross-company supply chain strategy cannot be sustainable. Potential short- and long-term goal conflicts can rapidly become serious barriers to implementing a sustainable supply chain along its members especially if the supply chain is required to adapt quickly to change.The analysis also shows if top management commitment is assumption within the individual companies and the supply chain. In summary the findings from this step are ? ? ? ? The existing corporate and competitive strategies The sustainability strategies (if sustainability is not already part of the corporate strategy) The company-specific supply chain strategies, and finally The cross-company supply chain and collaborationism strategy Cetinkaya (2011). AHMG Kibria Page 5 Strategic Supply Chain Management Individual AssignmentStep 2 Access Environment Current, Potential, and Future Impact Factors The second step of this process deals primarily with what is changing in the business environment, what kind of scenarios your company will face in the medium and long term, and finally, what the main driver of change may be. This will lead, together with the analysis from step 1, to the definition of potential risks and opportunities for your supply chain strategy in step 3. Supply chain input resources such as fuel, energy, and natural resources nowadays merit close attention in supply chain management logistics.The trend of rising prices and increasin g scarceness make input resources major risk management factors in an economic perspective, especially when a company runs cost- and energy-sensitive supply chains. Understanding and forecasting input resource-related information helps in developing a sustainable supply chain strategy Cetinkaya (2011). Step 3 Evaluation Identifying Potential Risks and Opportunities After analysing first two locomote of this process it is easier to identify potential risks and opportunities to implements sustainability in supply chain process.Supply chain firms can use mannikin to access supply chain capabilities in the context of the scenarios identified in the step2. The assessment then serves to view supply chain specific Threat-OpportunityProfile. Companies need to understand the cause-and-effect relationships between potential success factors to undertake evaluation. For example, companies should be able to estimate that the regionalization of procurement structures in response to an oil pri ce increase would be promising to reduce transport costs Cetinkaya (2011).Step 4 Extend or Re-design the Supply Chain Strategy establish on the Threat-Opportunity-Profile, now it is possible to define strategic gaps on the route to a sustainable supply chain gaps between current supply chain strategy and the changing business environment. The greater and more relevant the potential risks and opportunities, the larger will be the gaps, and the greater the need to act and make strategy changes. At this stage the following strategic programs can be distinguished 1. Compliance- to obtain the benefit and competitive value of reducing and managing risk. 2.Process-Re-engineering- to obtain the benefit and competitive value of improving productivity and efficiency and in consequence, of reduced supply chain costs, increased resource productivity, and reduced environmental impacts. 3. Restructuring- to obtain the benefit and competitive value of the long term and fundamental improvement of effectiveness and early prevention of risk. 4. Innovation- to obtain the benefit and competitive value of differentiation. 5. Progression- to obtain the benefit of first mover advantage, and establishing market entry barriers Cetinkaya (2011).AHMG Kibria Page 6 Strategic Supply Chain Management Individual Assignment Step 5 & step 6 Implementation with the Sustainable Supply Chain wag After completing step1 to step4 companies must be able to develop appropriate scope of strategic vision and determine the right actions to align supply chain strategy to the changing business environment. These findings have been incorporated into the reformulation or redesign of existing supply chain strategy and the associated objectives. Now, the following step will show how to implement them.This research analyses Balanced carte developed by Kaplan and Norton from 1990 in order to show implementation of findings from stage1 to stage4. Figure The Kaplan/Norton Balanced add-in Cetinkaya (2011) The Balanced Scorecard is a (performance) management system providing a framework to translate a strategy into matchd available terms via objectives and measures, organised into four different perspectives financial, customer, internal business process, and learning and growth. The measures represent a balance ?Between external measures for shareholders and customers, and internal measures of critical business processes, innovation , and learning and growth. ? Between the outcome measures the result from past efforts- and the measures that drive future performance, and ? Between objectives, easily quantified outcome measures and subjective, somewhat judgmental, performance drivers of the outcome measures. Scorecard the financial perspective Assess social and ecologic activities accurately from the economic point of view.Scorecard the sustainability perspective plug into financial figures with customer needs. Extend this link by the environmental and social perspective. AHMG Kibria Page 7 Strategic Supply Chain Management Individual Assignment Scorecard the supply chain perspective coordinated tactical and strategic decisions along the end-to-end supply chain. Collaborate with your sales and product development departments and partners Cetinkaya (2011). Scorecard The learning and growth perspective Drive supply chain wide learning.So, after analysing Balance Scorecard it has seen that supply chain companies will be able to implement their strategy and also evaluate their strategy. Conclusion This research paper described the importance of sustainability in supply chain process. It also showed the differences between traditional supply chain and sustainable supply chain, the advantages of having sustainability in supply chain process. Most importantly this research analysed the strategy to implement sustainability.In order to do that it showed a six step process which is step1 access the current supply chain, step2 access environment current, potential, and fu ture impact factors, step3 evaluation identifying potential risks and opportunities, step4 extend or re-design the supply chain Strategy, step 5 & step 6 how to implement strategies with the sustainable supply chain circuit board which shows the financial, sustainable, supply chain and learning & growth perspective. Supply chain companies will be able to implement sustainability in their process by following these six step-by-step processes. AHMG Kibria Page 8Strategic Supply Chain Management Individual Assignment References ? BSR20, Maximizing Benefits From a Sustainable Supply Chain, BSR, March, 2011, viewed 28 September 2012, http//www. bsr. org/reports/BSR_Maximizing_Benefits_From_A_Sustainable_Supply_Chain. p df Carter, C. R. and Rogers, D. S. A framework of sustainable supply chain management moving towards new theory, International Journal of physiologic Distribution and Logistics Management, vol. 38, pp. 360-387, 2008. Cetinkaya, B. , 2011, 1st edn, Developing a Sustainabl e Supply Chain Strategy, Sustainable Supply Chain Management, viewed at 13/11/12. http//www. pringer. com/business+%26+management/production/book/978-3-642-12022-0 IBM, 2009. The smarter supply chain of the future Global chief supply chain officer study, New York IBM Global Services. Linton, J. , Klassen, R. & Jayaraman, V. , 2006. Sustainable supply chains An introduction, Journal of operations management, Kaplan RS, Norton DP (1996) The balanced scorecard translating strategy into action. Boston, chew Harvard Business School Press Misra, V. , Khan, M. & Singh, U. , 2010, Supply chain management systems Architecture, design and vision, Journal of strategic innovation and sustainability, vol. , no. 4, pp. 102108. Penfield, P. 2009, Seven Steps to Implementing a Sustainable Supply Chain, Syracuse University, Charlotte. Sisco, C. , Chorn, B. , Jorgensen, P. , 2010, Supply Chain Sustainability- A Practical Guide for Continuous Improvement, UN Global Compact Office and Business for Soc ial Responsibility, viewed at 12/11/12 http//www. unglobalcompact. org/docs/issues_doc/supply_chain/SupplyChainRep_spread. pdf Walmart Boyend 50 years Building a sustainable future, Walmart, viewed 27/09/12 http//www. walmartstores. com/sites/responsibility-report/2012/ ? ? ? ? ? ? ? ? ? AHMG Kibria Page 9