The initial concept of global sourcing is to reduce cost overheads inherent to production and labor process. However, even in global sourcing, the need to reduce carbon emission has been on the forefront as companies strive to achieve higher ideal in their production process. Being sustainable in a global context requires a mix of strategies that will enable a company reduce cost while increasing profitability.
The first benefit of global sourcing is increase in a company’s sense of social responsibility (Rommahan 34). The term social responsibility holds a lot of weight because it considers several elements. First, the reduction in carbon emission leads to better air quality, which reduces the likelihood of developing malignancies that are related to poor air quality. Currently, the social systems are increasingly becoming aware of the challenges of air pollution including susceptibility to developing medical problems. This has made individuals and factions to become vocal demanding companies to reduce carbon emission and develop efficient production systems.
According to Christensen et al. (14+), sustainability on a global front leads to a reduction in cost. For instance, many companies invest heavily in commercials and other forms of advertisements. However, when a product is manufactured under favorable conditions, a strategic advertisement capturing environmental concern becomes far reaching and woes more customers to make purchase of the product. This reduces advertisement cost, which leads to an overall reduction in associated costs. A huge amount of research has shown that cost reduction by application of sustainable strategy is achievable.
When cost of production goes down, the amount of revenue increases leading t...
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Christensen, John, Christopher Park, Earl Sun, Max Goralnick, and Jayanth Iyengar. “A Practical Guide to Green Sourcing.” Supply Chain Management Review (2008): 14-21.
DeBolt, Tiffany. “The Cost of Waste.” Project Management Institute (2009): 1-2.
Garvin, D. A. “A Note on Quality: The Views of Deming, Juran, and Crosby.” Harvard Business School 687.11 (1990): 1-14.
Rommahan, Sonali. “Toward a More responsible Supply Chain.” Supply Chain Management Review (2009): 34-41.
Rogers, Dale, S. “Sustainability is Free – The Case for Doing the Right Thing.” Supply Chain Management Review (2011): 10-17.
Spear, Steven, and H. Kent Bowen. “Decoding the DNA of the Toyota Production System.” Harvard Business Review (2006): 1-12.
Turner, Martha, and Pat Houston. “Going Green? Start with Sourcing.” Supply Chain Management Review (2009): 14-21.
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