Driving Sustainability in Supply Chain and Logistics - Essay Example

DRIVING SUSTAINABILITY IN SUPPLY CHAIN AND LOGISTICS by Student’s Name Code + Course Name Professor University City/Sate Date Driving Sustainability in Supply Chain and logistics Introduction Over the past years managers have had a growing concern in an effort to achieve an endurable logistics and supply chain management strategy. This has been possible by incorporating the manageable long run specialized and globally workable tools in a move to achieve a considerable impact in sustaining logistics and supply chain performance. It has solely lied on the decisions that the procurement entity makes in regards to best engineered product design and packaging, acceptable purchasing and procurement tools and green production. The whole process must also take into consideration the environmental effects of freight transport, similarly warehousing and storage standard that are admissible, integrating supply chain with 3PL- logistics and recycling that brings about financial viability (Gold, Seuring & Beske, 2010, p 232). With the rise of today’s awareness of adding sustainability into the supply chain and logistics strategy, it has been about meeting the expectations of the potential markets while taking into account the long term effects that operations have on the community and environment. A broad focus on supply chains is a step towards the adoption and development of sustainability, through considering product development from initial processing of raw materials to delivery to the customer (Gold, Seuring & Beske, 2010, p 240). Managers in supply chain ought to engage in every phase of business processes and integrate logistics, strategic planning, Intel services, marketing and sales, and commercial aspects, in a step equip managers with capability to workable logistics and supply chain strategies that are gainful in the long run. It is worthwhile for supply chain managers to understand that day to day operations will greatly impact stakeholders in a positive facet or negative point of view. If decisions reached at seem to have negative impacts in the later future, it would be less viable to be implemented due to the risks these decisions carry with them. For organization to have sustainable strategies that amalgamates environmental stewardship, social responsibility and financial viability. Wilson (2015, p 435) claims that it takes creativity to add sustainability to an organization by managers differentiating themselves from competitors, reducing cost and coming up with improved services for their clients. Financial Viability The interaction between supply chain, logistics and sustainability is the next important step from recent look of operations and the environment and sustainability of operations. However, little has been done to comprehend the role and significance of logistics in an organization quest to sustainability. Logistics operation represents integrating management of relevant activities required moving products through the supply chain and 3PLS, factoring the logistic cost the expression of monetary value for consumed resources in the course of product displacement (Wilson, 2015, p 437). For most firms, logistics costs are considerable and are second to the cost of goods sold. Environmental stewardship Managers have broken down supply chain into, distribution chain, value adding chain, 3rd party logistics and transportation of which is essential because billions of products are being transported each day. There is a wide advocacy for companies to move away from use of petroleum based fuels as the fossils deposits are slowly drying up. It is also because the burning of these fossil fuels causes emissions that can have great negative impacts on our environment and human health. To ensure that there are minimal risks associated to the emissions’ from the fossil fuels, logistics managers are making strides by coming up with favorable decisions on the most appropriate mode of transportation they will use to move products from manufacturing point to end user point. Firms that often use particular mode of transport in a bid to go green often base their argument on the level of utilization while using various based factor on available competing modes. When evaluating the amount of mass a certain mode can accommodate, rail and ocean freight are the most efficient international modes of trade since the concentration of carbon for these modes are of a higher fraction to that of airfreight. Firms that are capable of moving goods by means of water and rail for long distances usually cut down time spent on road while greatly making a positive impact in both financial stewardship and conserving the environment (Galpin, Whitttington & Bell, 2015, p 11). Furthermore, more attention has been concentrated on clean vehicle technology through improving the efficiency of road transport daily operations and seeking alternative sustainable fuel technology sources while adapting to low rates that come with technologies that are increasingly viable which cascades to commercially endurable strategies in the long runs. Outsourcing Relationship Development of a product influences the various stages of logistics and supply chain management. This means that the supply chain needs to be engaged in development process of end user product in order to appropriately design product transportation means that are fit for humans as well as for the environment. A well versed knowledge for product lifecycle is critical same as information about the end user consumptions, end life, costs associated in disposing and environmental effects for the product in every stage. Shippers and buyers make decisions that operatively drive positive upstream and downstream activities in the supply chain. Buyers and shippers need to have a mutual agreement on customized standards and targets on weight to be packaged, what requires elimination and try to find cross-industry standards on modularization of packaging materials on transit. They should also establish sustainable sourcing policies that factor the impact of carbon on primary production, rework activities and manufacturing and incorporate emissions of carbon effects. Suppliers need to employ codes of conduct and standards that guide customers and suppliers to behave in socially and environmentally responsible manner. In regards to logistics and supply chain management concerns there is need to heighten collaboration and mutually beneficial relationship among suppliers, customers stakeholders and competitors in an increasingly global environment and interconnected which has positive impacts for supply chain and logistics sustainability (Henriques & Richardson, 2004). For example, competitors can absorb cost associated with transportation and warehousing facilities to avoid trucks transiting in partial capacity and also furnish the opportunity of reverse logistics. Choosing sustainable and strategic partners Companies that achieve competitive advantage and maintain it in a long term basis are those that adapt to change in their business environment. Change is therefore inevitable for most firms. Given the recent change in the technological advancements, it is important for firms to computerize their activities given the advantages technology brings to the companies. Having said this, companies need to partner up with firms that bring about development in their daily operations and do away with those that will not be around during a rainy day. For instance, finding strategic suppliers who has a stake in the company such as hold shares, is very paramount for effective business. This means that the supplier will ensure that raw materials reach the firm on time, in the right quality and quantity. Such strategic partners will also be involved in the development of new products as well as advice on how to better the existing products in order to satisfy the customer base. Cutting back Carbon Footprint Service providers for Logistics and transport are aspiring to come up with carbon offsetting solutions that undertake their own operations and clients in a bid to achieve balanced desire of business needs. Policy makers together with service providers should work in a joined effort to develop inclusive carbon measurement and standards, developing a carbon trading system that is open, countering productive incentives by reviewing tax regimes (Khalid, et. al., 2015, p 684). The full cost of carbon that is absorbed in energy tariffs all over the states and all modes of transport should be ensured. Technology drives SCM Sustainability In the modern world, technology has become an important factor in the global supply chain since it facilitates faster, better and more reliable transfer of information. Managers have embraced interfaces for logistics and supply chain management that have a wide array of functions such as sharing of information between focal firm, customers, suppliers and customers. Transfer of Intel is key in ensuring efficient functioning of integrated supply chain systems and logistics The increased growth of computing power and storage over the past decade has facilitated communication technology and therefore increasingly automating the processes involved in logistics and supply chain (Henriques & Richardson, 2004). This has in turn fostered innovation in firms such as developing faster and longer supply chains with ability to trail and track materials in production, goods in storage and in transit. Organizations as well need to come up with Order processing systems that capture customer orders, order status and responding to customers’ orders by fulfilling and making the product available to the customer through use of electronic data interchange, scanning technology and electronic funds transfer that fast track, guarantees accuracy and speed up the process in tracking and trailing the products. Conclusion In conclusion, incorporation of the environmental thinking into supply-chain management is inclusive of product design, sourcing of material, manufacturing processes and delivery of the final product to consumers. It is also important to manage the third party relationship to ensure that there is mutual benefit in line of the daily activities. Strategic partnerships with key players in the supply chain will go a long way with creating a sense of security at all times which means that there will be continuous operations of the focal firm. Word count- 1564 References Henriques A and Richardson J, 2004. 'Triple Bottom Line : Does It All Add Up?: Assessing the Sustainability of Business and CSR', Earthscan publication (e-book). Galpin T, Whitttington JL and Bell G, 2015,'Is your sustainability strategy sustainable? Creating a culture of sustainability', Corporate Governance: The International Journal of Business in Society, vol. 15 no. 1, pp. 1-17. Wilson, JP, 2015, 'The triple bottom line: Undertaking an economic, social, and environmental retail sustainability strategy', International Journal of Retail and Distribution Management, vol. 43 no. 4/5, pp. 432-447. S Gold, S Seuring, P Beske, 2010, Corporate social responsibility and environmental management 17 (4), 230-245 RU Khalid, S Seuring, P Beske, A Land, SA Yawar, R Wagner, 2015, Putting sustainable supply chain management into base of the pyramind, Supply Chain Management: An International Journal 20 (6), 681-696 Read More