Sustainability in Supply Chains and Logistics - Literature review Example

Sustainability in Supply Chains and Logistics

Introduction

According to Ayers (2002), sustainability in supply chain, as well as the logistics is highly imperative features that end up that can determine the overall success of the supply chain of an organization. On the other hand, the aspect is also very vital when it comes to determining the logistic network, which can be used to assess important aspects such as the cost of wastes, risk, and environmental impacts (Ayers, 2002). In fact, the effective integration of the environmental issues is considered one of the most effective choices to be made with regard to the management of the supply chain (Cetinkaya, 2011). Today, the top most executives in any organization have prioritized on depicting the importance of the supply chain in relation to increasing the profitability gap of their organization. In fact, it is deemed an important factor that can define the long-term benefits, as well as profitability of the organization (Handfield& McCormack, 2008). As a result, it has, successfully, replaced the traditionally known factors such as the monetary cost, the speed of conducting several business issues, and the value of doing businesses. Indeed, a sustainable supply chain can create good opportunities, as well as increase the competitive advantage of an organization, especially when it comes to the early adopters and the innovators (Cetinkaya, 2011). Therefore, this paper will delve on determining how the sustainable concept in the supply chain, as well as the logistics involved end up affecting on improving the general reputation of the firm. In fact, the paper is set to determine in what way does the issues of supply chain management considered highly significant in trying to define the concept of sustainability in the supply chain considered highly imperative in defining the overall success of the business and whether the generally held concept is usually true or not.

The Three Basic Rights of Sustainability and How They Define the Overall Success of the Organization

It is worth noting that there are three major aspects that define the sustainability of the supply chain management, as well as the logistics of an organization and how they lead to the overall success of the organization (Handfield& McCormack, 2008).The first tier is related to the definition of the basic rights in relation to the sustainable business practices of an organization. In fact, this is deemed to be the principle level that defines the sustainability of the organization (Golińska&Kawa, 2015). It includes the application of the simple but appropriate measures that can define the sustainability concept (Luo, 2013). The majority of the organizations are considered to be operating under this category (Golińska&Kawa, 2015). At this point, the involved organizations carry out simple measures or practices that enhance their sustainability (Afrazeh&Kersten, 2007). For instance, the majority or the organizations ensure they carry out simple tasks such as the switching off the lights, as well as the PC (Ayers, 2002). Here, the business organization seeks at ensuring there is minimal consumption of the electricity or power by putting off any idle lights (Luo, 2013). On the other hand, some organizations make sure they carry out proper and effective recycling of any papers they utilize (Cetinkaya, 2011). The main aim of carrying out the above mentioned practice is to make sure there is minimal utilization of papers or related material from outside the company (Brockhaus, 2013). Apart from that, the organization makes sure they use ‘greener’ travelling measures that are carried out on a daily basis (Cetinkaya, 2011). The principle aim of carrying out such sustainable management measures is to make sure there is minimal release of any carbon print (Cetinkaya, 2011). For instance, a sizeable number of today’s organizations have embarked on the long seasoned use of the teleconferencing and procurement as a way of reducing their traveling expenses(Cetinkaya, 2011). Briefly, the intensive employment of such technological procedures can be considered highly beneficial in bolstering the process of business growth apart from enhancing the realization of its sustainable management goals (Cetinkaya, 2011). For instance, the business that has preferred applying the teleconferencing and procurement have also succeeded in cutting down on the travelling costs, thus, allocating such funds in more productive and relevant activities (Cetinkaya, 2011).

Secondly, the next sustainability tier relates to the process of learning how one can think in a sustainable manner (Cetinkaya, 2011). At this juncture, the company starts to realize and conceptualize on the significance of thinking in a sustainable manner. The companies have begun to realize the importance of including the sustainable business practices when operating their supply chain (Golińska&Kawa, 2015). In most cases, the tries is deemed highly applicable whenever such activities are considered to have far reaching impacts to the local communities. Some of the issues considered highly imperative in managing and improving the concept of sustainability in this category include the supplier chain, manufacturing rationalization, product/production design, and mode of optimizing the distribution channel (Cetinkaya, 2011). Therefore, the careful consideration of the above mentioned aspects is considered highly imperative in creating an effective mode of mitigating the several ambiguities involved during the whole production process (Golińska&Kawa, 2015). Moreover, this is also considered highly in defining how a company can create an effective production procedure that can reduce the overall operating cost in the long run.

The third and the last tier relates to the careful application of the sustainability concepts and science. At this juncture, the concept is considered highly imperative as it uses the benchmarking and auditing procedures to assess the sustainability concept(Golińska&Kawa, 2015). As a result, the organizations are able to conduct some significant production and management procedures. Here, it is able to define the agility, flexibility, as well as the determination of the costs involved and that can help to maintain an effective network of the supply chain (Waters, 2003). The companies are driven by the important aspects related to the bolstering the process of saving the extra incurred costs. Furthermore, they are also able to safeguard their operations as they are able to stick to the standards, as well as the regulations that are defined by the government and at the industrial level(Wang, 2014). In short, the careful application and adherence to this green management procedure helps to improve the image of the organization (Husby & Swartwood, 2009). This is due to the fact that many potential and target customers are keener in evaluating the effectiveness of an organization in terms of managing its green production activities. For instance, they are more interested in understanding how the organization is able to observe the green production procedure from the process of collecting raw materials in the process of defining the distributing and storage of the final or finished products (Husby & Swartwood, 2009).

The Organizational Benefits Realized Through the Appropriate Application of the Green Ways of Production

It is imperative noting that the application of the sustainable management practices in the supply chain, as well as the logistics of a company leads to multifaceted benefits(Kachitvichyanukulet al., 2015). Apart from bolstering the process of reducing the carbon footprints, the procedure is also considered to be highly imperative in improving the face and the overall reputation of the company (Husby&Swartwood, 2009). First, the application of the green or sustainable procedures in the logistics, as well as the supply chain management is considered highly imperative in reducing the overall energy a company consumes (Wang, 2014). As a result, this also translates to the overall reduction in the amount of resources that are consumed by a company. Thus, this acts as a very important aspect that can improve the image of the company in totality (Wang, 2014). For instance, in the contemporary world, the companies that are considered to adhere to green ways of production or to the concept of sustainability are ranked highly compared to those that do not pay special attention to such matters. In fact, the sustainability concept has become a highly imperative issue, especially when it comes to defining the competitiveness and the effectiveness of the production process of any organization today. As a result, the bigger and most influential companies have made adhering to the set sustainability rule must in order not to ruin their overall reputation or their image internationally (Kachitvichyanukulet al., 2015).

The application of sustainable logistics and supply chain management procedures is deemed a perfect way that can improve the overall financial performance of a business. The financial results can be improved in significant manners in case the overall management procedures are sustainable transformed from the bottom line (Kachitvichyanukulet al., 2015). Here, the significant aspects such as the mode of conducting the research procedure is deemed important as a move can improve the overall performance of the company. Apart from that, the companies that adhere and stick to the appropriate sustainable procedures are also able to earn recognition by other international parties. For instance, the consumer, as well as the Wall Street have made it a norm of recognising the organizations that adhere to the green ways of production (Golińska & Kawa, 2015). In fact, they have been running a competition where organizations deemed to be more sensitive towards the environmentally friendly production issues are considered to be highly imperative (Husby & Swartwood, 2009). As a result, the move helps to improve the overall sales, as well as the valuation of the shares of the company. This is due to the fact that such organization are given a proper platform where the target and potential are interested in assessing their effectiveness in carrying out sustainable production practices (Golińska & Kawa, 2015). The contemporary consumers are interested not only on the finished products but also in assessing the manner in which the production process is carried out in different sections of the production.

On the other hand, the organization that observes and apply the effective sustainable management procedures are also able to benefit from various government initiatives related to. For instance, the United States government rewards the organizations that seem to have adhered to the set sustainable productions (Husby & Swartwood, 2009). Some of the accrued benefits include the reduction in the tax and being given higher priority when it comes to providing critical investment opportunities. In fact, the practices has not only been accentuated in the US, but in several other countries(Golińska & Kawa, 2015). In fact, the need for regulating the supply chain management, as well as the logistic procedures involved has need given rise to the need for coming up with laws and other regulatory procedures (Husby & Swartwood, 2009). The most encouraging thing is that the trend is spreading at a very high rate. On the other hand, the corporation that engage in sustainable logistics and supply chain procedures are also deemed to be well conversant with the concept of the corporate social responsibility. Here, they are considered to adhere to the appropriate business practices that showcase the need for enhancing the stewardship procedures. Briefly, the organizations that adhere to the sustainable business procedures are deemed to be responsible stewards of any future corporate development (Song & Panayides, 2012). As a result, they end up having an improved positive relationship with other beneficial parties. This trend is considered important, especially when it comes to the marketing of the company and its products. The people are interested in understanding how the company can identify, as well as implement the appropriate practices that showcase the need for embracing sustainability (Song & Panayides, 2012). Indeed, the companies and other organizations that have effectively adhered to the above mentioned supply chain, as well as logistic management procedures have registered numerous advantages, For instance, they have recorded an ever increase in the base of their target customers in addition to improving the awareness about the products they offer. On the other hand, the suppliers and also the corporate customers have intensified their efforts in relation to calling for observation of the sustainable business practices by their vendors (Christopher, 2016). Therefore, this serves as a clear indication that the appropriate application of the sustainable business practices is an imperative aspect that can help to improve the overall and multifaceted business performance. In short, the practice is associated with several benefits such as improving of the overall image of the company and the anticipated profitability margin (Song & Panayides, 2012). Lastly, the appropriate application of the appropriate sustainable practices is also deemed a perfect way of mitigating the level of waste associated with the whole production process (Christopher, 2016). For instance, when all aspects regarding the appropriate application of the sustainability concepts and principles, the organization is able to make and have hallmark achievements. As a result, this becomes a clear indication that the concept regarding the sustainability is one of the effective management procedures that any organization cannot afford to ignore (James, 2016). This is due to the fact that this may lead to the overall improvement of the company in terms of the profit increment of the volume of the sales (Kachitvichyanukul et al., 2015).

How Sustainability improves a firm’s reputation

The use of sustainability in improving the reputation of a firm is considered one of the most important issues that can help improve the reputation of a firm. This is due to the fact that it leads to the improved efficiency of various factors related to the efficiency (Choi & Cheng, 2015). For instance, the improved sustainability practices will lead to the overall reduction in the cost involved during the production process (Christopher, 2016). Based on the earlier analysis, the sustainability factor can be applied to improve the process of carrying out various organizational aspects such as the planning for the logistic management are considered important (Deepen, 2007). Some of the important aspects that are considered important during the whole process of logistics include the warehousing and the transportation of an organization’s materials (Christopher, 2016). As a result, this makes it important having a sound system that can improve the sustainability of the company’s logistic system. Here, there should be creation of an effective system that can enhance the transportation, as well as the storage system of the company’s resources (Palevich, 2012). Therefore, this makes the process of applying the principles of sustainability one of the most effective, especially when it comes to bolstering the whole process of business operation, as well as improving its reputation (Leppelt, 2013). For instance, the increased use of the sustainable ways of production can be highly effective, especially in reducing the overall cost related to the transportation (Christiansen, 2016). Furthermore, it can also lead to the reduced cost associated with the storage of different finished products. For instance, it is worth noting that the process of the application of the sustainability principle is considered highly imperative, especially when it comes to determine the right place and time for the delivery of the products of a company (Leppelt, 2013). Therefore, this means that the effective application of the sustainability factor will lead to the overall reduction on the cost involved during the storage of the organization’s finished products (Thomas, 2011). Apart from that, the process will also help to improve the efficiency and the reputation of the firm as the whole process will help to reduce the ambiguity that is involved during the process of determining the right time and place of delivering such products (Thomas, 2011).

Conclusion

Sustainability is one of the most common factors that can be used to improve the whole process of the organizational production. To be specific, it can be used to improve the process of carrying out various supply chain management practices, as well as logistic practices (Leppelt, 2013). As a result, it can lead to some sound effects in terms of bolstering the illumination of the organization’s image. First, it is worth noting that the use of the sustainability concept when carrying out any procedure during in supply chain, as well as logistic management is considered one most effective way of improving the company’s reputation (Christiansen, 2016). First, the majority of the potential customers are interested in understanding how the whole process of production was carried out before a finished product is realized. As a result, the important aspect can be considered to be highly effective in determining how such customers perceive such processes. Finally, they either abscond buying such products all at ones or cut down on their expenditure. Therefore, it is beyond reasonable doubt that the sustainability is a very important aspect that can be used to develop the whole business process involved during the process of supply chain management, as well as the logistic management. This concept has become very apparent, especially in the contemporary world, which underpins the importance of all organizations of reviewing on how they can include it in all aspects of production in order to remain relevant in the contemporary world.