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Why green supply chain management is important
Green supply chain examples
Why green supply chain management is important
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Vital to improving any green supply chain performance would be to understand the current level of efficiencies in materials management. Understanding the business processes that help support the complete cycle and material flow, from purchasing, to internal controls, and manufactured materials, through planning and controlling the work in progress, to warehousing, shipping, and distribution of finished products. Improving these functions is essential because the distribution and logistics functions contribute to the highest percent of carbon emissions reported to the EPA each year.
One of the most significant trends within a Green Supply Chain will be how effective a manager is at improving their materials management performance. This means they must first understand which decisions for improvements will affect the purchasing, storage, handling, and asset recovery movements throughout their organization. One area and key component within a green supply chain will be the planning and implementation of all logistics activities. This will mean planning and obtaining incoming material...
On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac...
The company whose supply chain that I chose to evaluate was Lockheed Martin. Lockheed Martin is a company that is headquartered in Bethesda, Maryland, and they specialize in global security and aerospace. They employ approximately 97,000 people around the world and to a large extent are engaged in the research, design, development, manufacture, integration and sustainment of various advanced technology systems, products and services. Their mission specifically involves solving complex challenges, advancing scientific discovery and delivering innovative solutions to help their customers keep people safe. The vision Lockheed Martin has is to be the global leader in supporting their customers' missions, strengthening security and advancing scientific discovery, while their values include doing what's right, respecting others, and performing with excellence. As a global security, innovation, and aerospace company, a vast majority of Lockheed Martin's business is with the U.S. Department of Defense and U.S. federal government agencies. In addition, Sikorsky (a Lockheed Martin Company) dispenses military and rotary-wing aircraft to all five branches of the
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).
The USPS strives to enhance sustainability at its facilities for employees and customers working in and conducting business at postal facilities across the country (USPS, n.d.). The Postal Service relies on products and services from suppliers to support their mission of universal delivery at an affordable cost. They have established procurement principles that ensure product quality and reliability, and also reduce costs. This sustainable acquisition and planning delivers timely, lean and sustainable supply-chain solutions.
Comparison of the two supply chain management practices showed that despite being from different industries, with different company philosophies, Wal-Mart and Toyota both have similarities in their supply chain management practices. In particular, the two companies are similar in their responses to challenges and risks faced, as well as the incorporation of sustainable strategies in their supply chain practices, and their usage of technology to increase the efficiency of their supply chains.
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)
Consumers are more apt to purchase product from a company they believe to be environmentally friendly, “green marketing is strongly related to the building corporate image, which further enhances the capability of the firm,” (Kushwaha & Sharma, 2016, p. 119). Marketing is also going to go hand in hand with advertising; the consumer needs to be aware of the products and practices. The company also needs to build strong alliances throughout the supply chain with suppliers that are in the same mind set, which will reinforce the company’s image. A company sustaining alliances and creating a partnership along the supply chain will enhance the green capabilities of the supply
The instead shiv could implement two bin system to improve productivity and decrease inventory cost. The domestic/ local suppliers may supply lower cost and reduce transportation time and cost this is called availability of nearest to supply of raw materials, nearest to power supply.
Similarly, cost reduction requires an element of inventory management. The focus here is on acquiring the right quantity and quality of raw materials at the right time. This eliminates wastage through perishability of inventory and reduction of storage costs. Another important thing on inventory managem...
Sustainable operation management is a management approach that involves planning, implementation and control of business operations that translate available resources into the required product or service. It is the management of business practices, traditions and operations to promote the highest level of efficiency, smooth workflow, and increased productivity in an organization. This management strategy ensures that the available labour force and materials are changed into products or services in a cost effective way to increase the company’s returns (Corbett, 2009). It also involves production waste management, food waste reduction, creating new opportunities, environment protection, and improving customer health. Sustainable operation management in the retail industry around the world has gained momentum in the recent years, in the face of customer pressure and media interest. It is particularly linked to the concepts of corporate social responsibility and global warming (Morrison, 2013).
It includes the planning, organization and control of all aspects of inventory management, procurement, warehousing, work-in progress, shipping, and distribution of finished goods. Thus, activities in materials management in the FMCG Sector include anticipating materials requirements, sourcing and obtaining materials, introducing materials into the organization and monitoring the status of materials as a current asset. This also involves management of a huge amount of important information – for example, engineering, supplier, project management, cost, and delivery are part of materials
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...
There are two main phases that are important in the movement of materials: material management and physical distribution. Materials management is the timely movement of raw materials, parts, and supplies. The physical distribution is the movement of the firm’s finished products to the customers. Both phases involve every stage of the process including storage. The ultimate goal of logistics is to coordinate all efforts of the company to maintain a cost effective flow of goods.