Sustainability Enablers in Supply Chain Projects - Report Example

Sustainability enablers in supply chain projects Department: There is increased need in companies to venture in businesses in a sustainable manner. Every business aims at implementation of a sustainable supply chain management. This is through the purchasing and supply of goods taking consideration the society and environment. This research aims at exploring sustainable SCM issues in businesses that are part of the leaders in the area. The factors that influence sustainable SCM form the major part of this study. The method comprises the practices in sustainable SCM, in a case study of Jimco Oil Company. Data was corrected through interviews and secondary collection methods. On the findings, various factors came up with broad categories of internal and external factors that determine sustainable SCM. These factors ranged from enablers to challenges in sustainability. The study dwells on the contingency theory, to develop an approach of sustainable SCM. Introduction Firms are majorly concerned with profit making. In the current world, this is proving no longer enough. There are numerous returns that these companies should consider. There is a need to offer back to the society that forms the basis of the firms’ success. These firms also need to check the way to minimise their negative implications on the environment. This calls for well managed systems in the supply chain sector. The supply chain can be defined as a network of organisations that deals with different processes and activities that give value in the form of products and services to the consumer. It is a bridge between a single enterprise and the global economy thus the name meta-structure. Supply chain management can be defined as the management of a network of companies that are interconnected in the provision of product and services to the further end customers. Currently, the way organisations address sustainability in supply chains is a major concern. Sustainable supply chain management holds that organisations should be responsible for their suppliers’ environmental and the social performances. Sustainable SCM is defined as the pursuit of sustainability objectives via the process of purchase and supply. This incorporates the economic, social and environmental elements in SCM. There is a variety of concepts that sustainable SCM incorporates to smoothen the path. These ideas include the green or environmental SCM. This is where organisations seek to reduce negative environmental impacts in their supply chains. Another significant point is the consideration of the social issues. This aspect ensures that suppliers have good working conditions and goods are sourced ethically and fairly in the supply chain. Economic aspect includes buying from the local suppliers in the support of local economic regeneration. Different organisations have a different way of handling supply chain activities. This mainly arises on the point of emphasis or prioritization which may be on social aspects or green issues. Sustainable development came along as a result of growing awareness of the world links. These check on the increasing environmental problems (Chen, 2005), concerns of future human health and the social-economic issues. Every organisation has barriers in the sustainability of SCM. They also have various enablers that range from internal to external to the organisation. In this research, the aim is to delve deeper into whether the support for sustainable SCM in firms lies within or outside the firm. This will help develop a typology upon which to classify organisations. The several factors that drive firms to engage in sustainable SCM may include directives from top management to engage in sustainable supply matters. It may also be as a result of bowing to reactions from external sources such as customer requirements or stakeholders’ pressure. Any sustainable SCM approach is contingent on the circumstances and setting that a firm performs its roles (Yin, 2003). In this case, a contingency theory approach is adopted to explore the approach that Jimco Oil Company have to sustainable SCM. This theory is suitable in this research as it is assumed that it is the best approach of sustainable SCM. It is also assumed that the proper course of action is contingent on the external and internal firm situations. Literature review In this study, great detail of the contingency theory approach is considered. The contingency theory provides that there is no single organisation structure that is more efficient than the rest. Different organisations have different tasks and different fields of operation (Meehan et al, 2006). A proper organisation structure is thus a function of factors such as market, technology, and tasks predictability. This study targets the development of a typology of organisational responses to sustainable SCM (Verghese, 2007). This is based on the enablers and challenges either within or outside the organisation. Thus, a contingency theory view is suitable in SCM. Previous researches noted that organisations face these barriers and enablers to sustainable SCM. Internal enablers are differentiable between broad organisational factors and those that are specific to purchasing and supply (Meehan et al, 2006). Having a supportive culture and top management commitment underlines a broad organisational perspective. It is also necessary to involve employees and to adopt an environmental management system in SCM. Thus taking proactivity in sustainable supply chain may lead to firm competitiveness. This is significant in building reputation and environmental risk management. Focusing at the purchasing and supply functions is necessary to develop capabilities in business (Yin, 2003). It is also of importance to specify a sustainable SCM strategy that aligns with corporate strategy (Freeman, 1984). These strategies in relation to other internal CSR practices influence sustainable supply chain management. There are various stakeholders in external enablers. A mass of customers may impact emerging smaller suppliers to meet sustainable SCM. It is through a sustainable SCM that a competitive advantage is enhanced (Chen, 2005). Pressure from NGOs and investors also influences SCM. Other important enablers include policies and regulations set by the government. Research approach This research adopts a qualitative approach to investigation. This is because, in this case study, the subject of interest is in its beginning. The ‘how’ and ‘why’ questions were efficient in evaluating the applicability of sustainable SCM (Yin, 2003). In this case, an explorative study was done based on interviews from top management of Jimco Oil Company. The main motive remained exploration of the challenges and the enablers to sustainable SCM practices. Taking views from different personnel in the top managing team helped in increasing the analytical generalizability of the study. This company has a recognised platform of its activities and can be regarded as one of the leading companies in sustainable SCM, in the sector. The company provided its records of its long standing work dating back ten years ago. The point of analysis of the study stood as sustainable SCM projects that the company had engaged in. An analysis of the plans also got its share. These interviews from about five top management team members provided an almost comprehensive outline of the required information. The members included the director, two purchasing specialist and two supplies managers. All interviews had to be recorded for future references and the purpose of study analysis. Reports, website, environmental policies and internal newsletters provided access to secondary data. A conducted triangulation helped in enhancing the reliability of the study. A well-formulated interview protocol helped in enhancing the reliability of the study (Yin, 2003). The protocol has assisted in acquiring information about how the company does on the verge of sustainable SCM. It also helped in inquiring on the period the company had been in active sustainable SCM and extent of the activity. The factors that led to the practices, the most important and the enablers of sustainable SCM formed part of the protocol. The protocol also helped in assessing challenges faced by the company and the view of the future for SCM practice. The literature review provided an analytical framework of the gathered information. Discussion Observations from the case study provided a structure to gauge the organisation within the typology. This helped in the identification of dominant factors in the success of the company. Most of the sustainability enablers in the literature review had been identified within the organisation. Several challenges came on during the analysis that the company had been experiencing. Sustainability enablers These are grouped into internal and external sustainability enablers. These determine the level of success in an organisation. They are factors that affect firms from the management all the way to the customers. Environmental, social and economic factors form the basis of the two sustainability enablers. Internal enablers These are important variables that inhibit the sustainability in the supply chain. They were selected based on the literature review and discussions in the interview of Jimco Oil Company top management team. The major enabler found is the commitment from top management. The management had played its role in the customers and the suppliers’ awareness. Another factor underlying the success of Jimco has been the eco-literacy amongst the supply chain partner. This is commonly known as the green purchasing. This entails the provision of design specifications to suppliers that include the environmental requirements for sold items (Christopher, 1998). The company dwells on ensuring cooperation with suppliers towards meeting environmental objectives. The company has adequate implementation of reverse logistics. This ensures that there is a reduction of solid wastes and air emissions (Sage, 2003). It also portrays suitable measures in decreasing consumption of toxic materials and decrease in the number of environmental accidents. These measures underpin the company’s ability to cater for the environmental situation. Other evident internal enablers comprised of the corporate social responsibility. The corporate have measures that check on the environmental standards and the auditing programs. The company management seemed committed on continuous improvement of its workforce. It has training and development programs for its workers. This ensures that company gets on foot with emerging trends in the field. External enablers There are several factors noted in Jimco underlined in the literature review. The company has well developed strategies that ensure cooperation with customers. These also include environmental conditions. The company has a wide customer platform that can be accorded to the success of the company (Orsato, 2006). Customer requirements proved to be one of the major enablers of sustainable SCM. NGOs activities and government policies and regulation are the other factors that the company pointed out as the driving force towards its success. The public sector has been rampant in the promotion of sustainable procurement amongst public sector buyers (Lee, 2000). This had an effect on the company’s sustainable SCM awareness. Intense competition from other stakeholders in the field also has an influence on the creation of a sustainable SCM in Jimco Oil Company. Challenges in projects These barriers in project management are either internal or external (Hamprecht, 2006). Internal barriers comprise of issues with the workforce. Mostly this occurs in the management due to lack of commitment. In the case study, this challenge showed minimal effect in the company. Other challenges are strategic and functional issues. The challenges of cost, resources and organisational size, account for the strategic barriers (Carter & Jennings, 2004). On the other hand, functional issues include purchasing and supply chain, inadequate training and other SCM priorities. External factors are other major challenges in project management. They include competitive pressures from other firms within the same scope of business. Government policies and regulations are other challenges in the implementation of projects. There are also customers who may desire lower prices and suppliers who may not be committed in their work (Christopher, 1998). These create more challenges in project management. Jimco Oil Company for instance has to bow to government policies and regulations. Project management methods There are several project management techniques. These techniques ensure that projects flow faster and less effort wasted. An earlier review of these methods is required to ensure that the best methods are selected. They are employed to ensure that firm’s workflow is efficient. These methods include waterfall method, agile, chain and prism methods. Critical project management method This method focuses majorly on schedules and tasks. The main motive is geared towards solving resource problems. In Jimco, there are many resources that need attention thus efficient methods must be put in place. Thus, each project towards solving the issue of resources must be attended in a minimum timeline. This methodology devotes available resources to the chain while others are left to run other tasks concurrently. The method is ideal for resource-heavy teams. Agile project management This method focuses on the adaptability on changing situations in a company. Jimco employs this method in most of its activities. This is because most of its activities require regular feedbacks from every member of the company (Carter & Ellram, 1998). It is ideal when the management or clients need to be in output processes. This method results in changing requirements and drastic shifts in the team assignments. PRiSM Projects integrating Sustainable Methods (PRiSM) is a methodology that takes account on environmental factors in project management. This method checks on efficient process that can be easily incorporated in the smooth running of large scale projects. Jimco Oil Company uses this method in attending the environmental requirements. Sustainability A sustainable development should address the three goals. These are social equity, environmental performance and economic efficiency. Economies should be able to adapt to changes in changing economic environments (Bowen et al, 2001). The ability to cope with these changes underpins sustainability. It takes into account the full cycle of the project at hand. Environmental sustainability entails the designing of optimal friendly environment that meets technical requirements in projects (Darnall et al, 2008). It also takes into consideration ways of minimizing negative effects on surroundings as well as addressing accidental releases. On the other hand, economic sustainability entails the restructuring of a product with the purpose of minimizing company waste. It is characterised with recycling, decrease of companies’ energy use and generation of products with reduced environmental footprint (Bowen et al, 2001). Finally, social sustainability aims at creating a platform of the human aspect (Hall, 2001). It majors on employment stability, health and safety, human capital among other social factors. These three aspects underline sustainability of economies in developing countries. Conclusion This study aimed at investigating sustainable supply chain management. In the study, the top management of Jimco Oil Company shared their story on the sustainable SCM of the company through an interview. The main purpose was the identification of the factors that encourage or challenge organisations in the implementation of sustainable SCM. Adopting a contingency theory, it became possible to explore the company response towards sustainable SCM. In the literature review, several enablers and barriers of sustainable SCM had been identified. The important enablers were organisational factors, customer requirements, reputational risks, government and NGOs. The main barriers included other organisational priorities, pressure to reduce the cost and sectorial pressure (Lee, 2000). The study found that all the factors underlying sustainable SCM in the literature review existed in the company and several others identified. It is evident that the study met its aim of finding the scope of sustainable SCM. Future work The study found that the company aimed at expanding its scope of its project. In the coming years, the company targeted more adaptability to competition. This seemed possible based on the training and product strategies on the verge of implementation of the company aims put in place. Bibliography Bowen, F., Cousins, P., Lamming, R., Faruk, A 2001b "The role of supply management capabilities in green supply", Production and Operations Management, Vol. 10, No.2, pp.174-89 Christopher M 1998, Logistics and supply chain management. 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