Supply Chain Management - GlaxoSmithKline - Essay Example

?Supply Chain Management Organization no GlaxoSmithKline Globally speaking, GlaxoSmithKline (GSK) is a research based organization that reached heights of fame after two companies, GlaxoWelcome and SmithKline joined hands in the year of 2000. The merger thus resulted in one of the giants organizations in the pharmaceutical industry, and grasped almost 7 percent of the market share. The company proudly produces more than 4billion packsof medicine and caters to almost 6 major diseases such as asthma, virus control, infections, mental health, and many more (GSK, 2012). The company has a mission to help many individuals through innovation in the field of medicine. Certainly, when great service and quality is the focus, the supply chain becomes the center of attention of the company. When it comes to dealing with issues like rising energy and materials prices and the growing challenges of global supply chains, GSK is focused on factors like countering market dynamics, Global Pack Management, speeding up packaging, efficient communication, and other production and operational challenges of the supply chain. According to sources, when energy and material prices rose, GSK turned to the late pack customization program in which production runs were labeled as 30,000numbers for cost effectiveness with 100-5packs at one point in time. In order to match the packaging speed, GSK also introduced online printing that reduced the costs of online printing. Other than that, the company has also initiated coordination efforts through electronic CAD package. The package manages to communicate minor details regarding packaging as well as reviews so that regulations are kept under strict check with its suppliers. In future, the aim of this company is to maintain similar tooling and machines among its suppliers. In order to meet the global supply chain challenges, GSK has very efficiently introduced several implementation programs for standardized changes in packaging, pack catalogue for optimization in packaging, and standard Apple Macintosh computers and software for uniform output as well as input (SCM, n.d.). As far as the corporate response to environmental degradation is concerned, GlaxoSmithKline has encouraged a responsible use of most of the dangerous and harmful chemicals in the production.Inculcating this concept in its supply chain, GSK has managed to apply strict and steady standards in its manufacturing operations. GSK makes sure that its suppliers operate according to requirements that arelegal (Schatsky,2012). It has also managed to establish standardized global EHS requirements for both, the suppliers as well as the manufacturers. In this process, it is made sure that the potential suppliers undergo strict pre-contract EHS evaluations. GSK also manages to perform audits where it is made sure that the concerned parties are provided with the needed encouragement and assistance. The parties in this context are referred to as manufacturers and key suppliers. The GSK thus maintains a sound EHS performance metrics that makes it to the Corporate Social Responsibility Report of the GSK, mentioning the performance of suppliers and manufacturers. The chemicals of priority are hence communicated to the suppliers and contract manufacturers that encourage responsible care programs (Global Public Policy Issues, 2011). Organization no. 2: InterfaceFLOR After its inception in the year of 1995, InterfaceFLOR evolved from a square idea in a broadloom to shaping the future on its industry. Over the years of its operations, the company has always focused on reducing the deadly toxins from the facilities as well as the products it provides to ensure greater sustainability as it has become one of the biggest requirements for today’s organizations (Appendix).InterfaceFLORalso aims at erasing wastes, and thus uses new and creative manufacturing processes to deal with the global challenges. According to the company’s mission, InterfaceFLOR aims to get rid of any bad impact its operations have on the environment by the year of 2020 (InterfaceFLOR, 2012). When it comes to dealing with the challenge of environmental degradation, InterfaceFLOR believes in the Environmental product declarations which serve as a central point for the environmental policy instruments. With the use of EPDs, the organization manages the entire supply chain and assesses the methods of production by analyzing the effect each stage poses to the environment. The company further divides these stages into impact categories that further assess the climate change, use of water, and various air emissions and their effects (InterfaceFLOR, 2011). The approach InterfaceFLOR uses to deal with environmental degradation, rising energy, materials prices, and the growing challenges of global supply chains are all handled through one tool; the EPD. The organization claims that even though many companies claim being carbon neutral and pure green electricity users, they still need a holistic overview of the entire lifecycle, which can be achieved through EPD against Greenwash. Other than that, labeling through EPD in production is also considered as a sound alternative which means that a reduction in green labeling will be observed (Arratia, 2012). InterfaceFLOR, being a strong believer of teamwork has recently teamed up with Aspera Recycling, Inc. The initiative is madeas a corporate response to the increasing costs and its related global challenges with the introduction of ReEntry 2.0. The process is a recycling project that is implemented in the organization, which has been able to gather used carpets of worth 220 million pounds and more. The relationship thus established with the Canadian company is knowledge based and has enabled the recycling processes that are regional in nature with their own facilities. When we consider the advantage to Apera, the answer is recycling carpets that are near the end of their life into a reusable fiber. As for InterfaceFLOR, the company is well aware of its position as the biggest carpet tile manufacturer and also realizes that a micro industry for recycled carpet can be easily developed.Therefore, with this step, the biggest advantage that InterfaceFLOR has achieved is the fact that it can easily drive its supply chain with PVC backing (InterfaceFLOR, 2011). Other than that, the supply chain will also be driven with the reusable fiber that is used in the, InterfaceFLOR’s processes and is thus aiming towards steady growth. Also, this step will enable the organization to transfer its technology of ReEntry 2.0 to various scales of production. Where currently regional suppliers have been targeted, the future is more growing for companies that collaborate with InterfaceFLOR; also there is an increase in the circulation of InterfaceFLOR’s products leading to more revenue and growth. Sources state that with the increasing costs, the company is easily using even the unluckiest of materials to its advantage where reused carpet is further combined with fiber, resulting from rescued commercial fishnets and post-industrial waste that results in a total of 78 percent recycled content (SABMag n.d.). Organization no. 3: Stagecoach Stagecoach Group, is one of the world’s top international public transport businessesthat caters to areas like the UK and North America. The operations are conducted by bus and rail where coaches are also used(StageCoach Group; KPI 2012). The company’s statistics state a total of 30,000 employees that manage and operate the functions of the organizations who handle around 13,000 buses and trains. The company is of the belief that although they have seen the heights of success, Stagecoach still needs inspiring leadership and innovative policies that will encourage more investment in the rail and bus services of the country. The mission of this company mainly relies upon bringing a change to the community at both, individual as well as the business level. Stagecoach has its main focus over a greener and smarter working which is attained through its internal program (Stagecoach Sustainability Strategy, 2010). The company is very proud of its Carbon Management Program to deal with the environmental degradation that manages to align its supply chain processes and the requiredKPIs. One of the current movements by this company has been an investment of GBP60 Million for greener buses and coaches (StageCoach Group; Carbon Emissions 2012). The greener buses and coaches being 390 in numberwill be operated in the local areas, and be tangibly available in the fiscal year of 2012-13 (ABR, 2012).These buses will emit 30 percent less carbon than the normal buses and is also the best solution for the increasing costs. As stated by the managing director of Stagecoach UK Bus, that even though the current project is a multi-million pound investment, the greener buses are a smarter choice as the fuel prices are rising and cost of operations are also increasing dayby day (Sneesby n.d.). The introduction of the previously mentioned approaches, thus works very effectively towards reducing the global emission of carbon. However, it has also been observed that it will be very helpful globally. According to the Stagecoach research, the advantages obtained through the carbon management program and the greener buses will not only be able to minimize congestion, but will also be able to initiate a modal shift that will manage to maintain the fuel efficiency and improved flows of traffic in its supply chain. The other part of the supply chain that will be directly affected by these approaches is the consumer end of the model. This is said because a consumer prefers to travel with a company that is ethical. Therefore, as they have their preference for greener public transport, revenues are bound to increase. Lastly, the long term costs are expected to reduce because of the conformity, clean-up as well as the purchaseof carbon credits for carbon emissions (Stagecoach Sustainability Strategy, 2010). Conclusion: Therefore, it is easy to state that the presence of a greener supply chain has become an important factor to be considered. Companies like GSK, InterfaceFLOR and StageCoach have all built their corporate responses to various challenges with a supply chain that now favors environment friendly inputs, using change agents in the middle and attain outputs that can be reused in the future. Therefore, the entire idea of the organization revolves around a sustainable supply change that is not only environment friendly, but also a savior from cost. All three organizations have thus used a greener supply chain to reduce costs and thus attained more sustainable processes. Appendix: Source: Blowfield, Blowfield and Murray, 2008 Reference: ABR, 2012. “Stagecoach to invest GBP60m in new green buses”, Accessed 15April, 2012, Arratia, R., 2012.“European Commission Consultation on Delivering more Sustainable Consumption and Production: Our response, cut the fluff”, Accessed 15 April, 2012 Blowfield, M., Blowfield, M. and Murray, A.2008. “Corporate Responsibility: A critical Introduction”, The origins of corporate responsibility, The meaning and origins of corporate responsibility”, chapter 2, From The Amazon.com. Global Public Policy Issues, 2011, GSK Position, GSK and Hazardous Chemicals Management,.A publication of GlaxoSmithKline Environment, Health and Safety GSK, 2012, GSK worldwide,.Accessed 15 April, 2012, InterfaceFLOR, 2012, “Our Brand.Our Promise.Our Passion”, Accessed 15 April, 2012, InterfaceFLOR, 2011, “Sharing Is Sustainable: ReEntry 2.0 Gets Some New Friends”. Accessed 15 April, 2012, SABMag, “InterfaceFLOR teams with AQUAFIL to achieve carpet tiles with 100% non-virgin yarn”.Sustainability News, Accessed 15 April, 2012, Schatsky, D., 2012.“What 2011 taughtus about the Green Supply Chain (and What It Means for 2012)”, Environmental reader, Accessed 15 April, 2012, SCM, “GlaxoSmithkline Supply Chain Challenges –Part II”, Accessed 15 April, 2012, Sneesby, M., “From the fryer, to the fuel tank, Case Study: Greener Buses”, GreenFleet, Accessed 15 April, 2012, StageCoach Group, 2012. “Tracking our progress, Carbon Emissions”, Accessed 15 April, 2012, StageCoach Group, 2012. “Tracking our progress, KPIs”,Accessed 15 April, 2012, Stagecoach Sustainability Strategy, 2012.“Revolution in the way we travel, Stagecoach Group plc, Sustainability Strategy” Read More