Strategies to Implement Sustainability Programs

Strategic bestow cosmic string focus exclusive date Table of Contents Content entranceway What is bring out mountain filament Sustainability? Why is bestow set up Sustainability important?Traditional bring filament vs sustainable sum up kitchen stove Advantages of put out Chain Sustainability Strategies to implement sustainability in provide strand lick look1 Access the incumbent tag on range of mountains Step 2 Access Environment Current, Potential, and Future Imp lick Factors Step 3 valuation Identifying Potential Risks and Opportunities Step 4 Extend or Re-de crisscross the Supply Chain Strategy Step 5 & mensuration 6 Implementation with the sustainable Supply Chain Scorecard Conclusion References rapsc anyion No 2 2 2 2 3 3 5 6 6 6 7 8 9 AHMG Kibria scallywag 1 Strategic Supply Chain Management individualist grant Topic Strategies to implement sustainability programs in the sum train firms Introduction Environmental issues ar becoming the main conc erns of some an(prenominal) global turn in mountain orbit practitioners in todays world. In order to regale these emerging environmental issues, line of workes around the globe are looking for a total solution on the reduction of the waste generated from the current add together set up process. Meanwhile, implementation cost that is needed to implement these environmental issues plays a major part in their considerations in selecting an implementation dodging.Recent studies by Carter and Rogers (2008) emphasise that sustainable furnish kitchen range development in terms of genial, frugal, and environmental benefits should be leaven into consideration in a preparation twine practice. More specializedally, planning range charge can be delimit as the integration of the well-disposed, stinting, and environmental practices deep down a global issue reach that provide green produces, excellent services and accurate development sharing that beneficial to all empl oyees, shareholders, business partners and the wider community.The intent of this investigate is to put up strategies to implement sustainability in tote up chain firms. There are many different strategies have been determinationd by the yield chain firms. This shroud analysed six amount process entreees to implement sustainability in the supply chain process. What is Supply Chain Sustainability? Supply chain sustainability is the management of environmental, kind and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services.The objective of supply chain sustainability is to create, protect and grow long-term environmental, social and economic rate for all stakeholders (consumers, community, government, corporation, 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 agree compliance with laws and regulations and to support international principles for sustainable business conduct.In addition, companies are progressively taking actions that 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 performance and good governance throughout supply manacles, 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 thorough to sustainability performance and supplying for sustainability is being touted in management circles as the rising of agonistical supply chains. Traditional supply chain vs sustainable supply chain Conventional supply chains are more interested in serving the purpose of logistics than optimization. On the otherwise hand a concenter on sustainability aims at creating and protecting comfort with reference to long-term social, environmental and economic components in bringing goods AHMG Kibria knave 2 Strategic Supply Chain Management individual(a) Assignment and services to the market. The primacy of operations is to adequately meet current demands while reservation 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 report (2009) supply chain management in coetaneous business practice faces five key challenges cost containment, supply chain visibility, stake management, growing market demand and globalization impacts. Conventional chains only focused on delivering the end-products and, as such, suffered diminished returns owing to the yield 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 outside(a)ities that are enjoyed by both customers and companies stakeholders alike. For example Wal-Mart has implemented a program that successfully minimises the waste allocated to landfill within the USA (19. 1%), and increasingly China and Brazil (52%), which has the potentiality to prevent 11. million metric rafts of CO2 emissions annually (Wal-Mart, 2012). Financial Advantage- Companies are realizing competiti ve benefits from investing in supply chain efficiency, Wal-Mart generated in excess of $231million in 2011 through a combination of increased recycling revenue and decreased expenses (Wal-Mart, 2012). Enhanced supply chain security Improvements in labour conditions has the compounded benefit of cut down employee induced work stoppages and can positively impact a confederations ability to continuously manufacture goods and services, increasing customer ecstasy and revenue.Increased competitiveness 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 lumber and on-time deliveries. In the long run, suppliers that work to continuously improve their environmental and social performance will 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 system is, link the dodging to the competitive strategy and sustainability.The following figure charges the trinity important elements in order to develop a successful sustainable supply chain. AHMG Kibria Page 3 Strategic Supply Chain Management undivided Assignment Figure Three areas to integrate sustainable supply chain Cetinkaya (2011) This report analyses an iterative six step process snuggle to implement sustainability in Supply chain firms. A systematic 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 execute regularly in your supply chain, since relevant conditions may change quite quickly and sometimes radically for example, the oil set spike of 2008. AHMG Kibria Page 4 Strategic Supply Chain Management unmarried Assignment Figure Steps of a sustainable supply chain strateg y Cetinkaya (2011) Step1 Access the current supply chain Step 1 aims to take stock of the current state of confederacy- 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 usually within the control of a company. It seeks to discover whether there is a common strategic alignment, and whether the cultivations of each strategy element are integrated, aligned, and complementary. A companys own supply chain strategy which is not aligned to the merged 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 aline quickly to change.The analysis also shows if top management commitment is accustomed within the individual companies and the supply chain. In summary the findings from this step are ? ? ? ? The existing integrated 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 collaboration 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 explanation 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 be close attention in supply chain management logistics.The sl ip of rising prices and increasing scarcity harbor 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 steps of this process it is easier to lay potential risks and opportunities to implements sustainability in supply chain process.Supply chain firms can use framework to access supply chain capabilities in the context of the scenarios identify in the step2. The assessment then serves to picture 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 price increase would be likely to reduce transport costs Cetinkaya (2011).Step 4 Extend or Re-design the Supply Chain Strategy Based 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 capture 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 fundame ntal 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 approach barriers Cetinkaya (2011).AHMG Kibria Page 6 Strategic Supply Chain Management Individual Assignment Step 5 & step 6 Implementation with the sustainable Supply Chain Scorecard 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 search analyses Balanced Scorecard developed by Kaplan and Norton from 1990 in order to show implementation of findings from stage1 to stage4. Figure The Kaplan/Norton Balance d Scorecard Cetinkaya (2011) The Balanced Scorecard is a (performance) management system providing a framework to translate a strategy into balanced operational 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 solvent measures the result from past efforts- and the measures that drive future performance, and ? Between objectives, easily quantified offspring measures and subjective, somewhat judgmental, performance drivers of the outcome measures. Scorecard the financial perspective valuate social and ecologic activities accurately from the economic point of view.Scorecard the sustainability perspective touch base financial figures with customer needs. Extend this link by the environme ntal and social perspective. AHMG Kibria Page 7 Strategic Supply Chain Management Individual Assignment Scorecard the supply chain perspective Incorporate 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 mensurate 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 acc ess environment current, potential, and future 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 scorecard 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 corporeal Distribution and Logistics Management, vol. 38, pp. 360-387, 2008. Cetinkaya, B. , 201 1, 1st edn, Developing a Sustainable 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, bare-assed 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, Mass Harvard Business naturalise 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 slide by for Continuous Improve ment, UN Global Compact Office and Business for Social 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