Supply Chains and Networks - Essay Example

? Supply Chains Introduction The development of a Green supply chain has gained momentum and still more companies are coming to terms with how they can make achievements. Businesses have to consider the reduction in costs, the efficiency and the visibility towards a green supply chain (Wilsner 2011). Environmental observance requirements and the global competition are forcing a need for maintenance in the supply sequence. The Green Supply chain is now an opportunity for increased innovation, profits and efficiency. Companies are using a lot of power and resources to modify their supply chains and make them friendlier to the environment. Consumers are also inquiring about environmental strategies from the companies since they are aware of the global warming and the ecological matters. Companies will have to explain to the consumers how green their production processes are and how their waste materials are recycled. Supply Chains and networks Supply chains and networks plan is the act of finding and reducing services in the supply chain. In the plan, the mode of transportation, how to look for the market and the nature of the services are determined to provide the best service to the customer at the reduced cost possible. Two plants can produce a commodity and it can be supplied to three different chains before it gets to the customer. The plan offers the most convenient and efficient means to reduce such inconveniences. A good plan improves a company’s supply chain in the following areas Minimized costs Reduced account levels Low transport costs Good asset returns Good and reliable customer service A company enjoys competitive advantage when its goods and services are of better quality and prove to be acceptable by the consumer. A company’s competitive advantage can be determined by - Time- this is when a company can produce and process more goods quicker than the other processes. This advantage improves the profits and the product value. Cost- this is when a company spends less in the processing than the other. Cost advantage occurs where there is a better mechanized procedure and good mechanization which enhance competence. Quality Advantage- this is where a bigger company produces goods with less faults that the substandard ones. A company should ensure that all products of the same brand are of the same quality and result. The quality of the goods or commodities and their delivery is determined by the following factors:- Accessibility of resources When there are readily available raw materials, the cost of fetching for the materials is greatly reduced. Transport costs and the labour cost is greatly reduced. This also affects the quality of the goods supplied and how they are delivered to the consumer. Amount of purchases The amount of purchases a company produces greatly affects the quality and the distribution. A company delivers its products to the consumer depending on the necessity of the goods. Corporate responses Changes in climate have brought concern to business because it presents threats to companies (e.g. oil companies). In the 21st century, environmental dilapidation cost of materials and energy rise, in search of economic development have turned out to be clearer. Increased greenhouse emissions, destruction of the ozone layer and forests prove that there is a problem. Figures from the World Bank have shown that poverty has risen and many people live on fewer than 2 dollars each day (Wilsner 2011). This shows that issues of consumer options and control have been neglected. It is now the main challenge for humanity to find reasonable and sustainable behaviours to manufacture survive and consume. In 1992 a corporate, Rio Earth Summit assumed search of sustainability as its main aim. The challenge is to turn the goals into reality in the wake of hostile atmosphere and the global economy (Branch 2008). Social and ecological issues have been key hindrance to companies marketing their goods. The key issues in a supply chain management include- The planned intensity: - This is where a company’s decision entails long time objectives and lengthy effects. Working Level: - This concerns how a company manages its day-to-day activities such as loading goods in trucks and scheduling. Tactical level: - At this stage, decisions are made regarding the buying and invention issues. Transportation and accounting issues are also considered in this level. Total Quality Management Total quality management is a plan that seeks to develop quality, which meets or surpasses the consumer’s desires. It checks the overall measures including development, quality management, quality improvement and quality assurance. Companies have now changed consumer wants and increased policies leading to more concern on the environmental impacts on businesses. The regulatory risks are the main primary problem facing sectors despite the increased concentration on possible economic chances. Due to rise in climate change media and biased programmes, companies are now under increased pressure to reduce gas emissions from the greenhouses considerably. Mandatory and voluntary emission trading schemes have been established in North America and in Europe. In Africa, the efforts to account for greenhouse gas emissions have been restricted because of climate change governance (Branch 2008). The gap between companies’ revelations and the process of emission management in South Africa has caused baseless carbon management systems. Evidence that businesses are physical schemes that exist within a limited and susceptible physical surrounding has been really ignored as a marketing and administrative issue. The sustainability of marketing and the physical insinuations were critically discussed in the early 1990s by the marketing discipline. Green marketing can be traced back to the 1970s as it was a major worry to those industries with harsh environmental impacts and had to develop new skills to reduce particular environmental issues. Some observe the incorporation of the environmental issue as an addition to the community marketing perception. It is more helpful to view green marketing, which from the green movement of today has developed to expand and integrate the communal and environmental marketing ideas. Companies have responded to the green marketing and this has fetched an emphasis on the substantial sustainability of the business progression and the communal suitability. The atmosphere has also been treated as something with essential importance more and on top of its worth to the community. Comparing environmental distress which supported conservation marketing, which arouses and assists consumption, seems to be paradoxical (Branch 2008). Therefore, sustainability is the key to the green supply chain that gives answers to this conception. By enjoying a life that is good today, a life that will not interfere with the future generation, one develops a sustainable approach to production and consumption. Sustainability revolves against two parts, one of them being the use of the natural resources at a speed that ecological schemes or individual activity can restock them. Secondly, by causing effluence and waste at a pace most absorbable by ecological systems devoid of damaging their feasibility. The impressions of sustainability seem to be simple but they are complicated to achieve. The reason being that conservative organizational knowledge highlights specialism and reduction thus treating environmental issues as boundless and worthless. Due to the emission of the greenhouse gases, there have been corporate responses such as the Greenhouse accounting efforts. This ensures the measuring and openly reporting each company’s greenhouse emissions reducing the challenges in the climate change. This is a good start in ensuring the development of process innovations and thus a reduction in greenhouse gas emissions (Branch 2008). Greenhouse secretion can also be controlled without applying internal improvement by using efforts in the supply chain. Transportation and inputs such as raw products and electricity give options that can be used to outsource green house gas exhaustive actions. In greenhouse gas, accounting scope 2 emissions, which are connected to electricity consumption, are necessary. Scope 3 emissions connected to corporate supply chain are highly expected as elements of high-quality greenhouse reporting. A company can for instance generate energy from burning fossils and incorporate carbon confinement instead of using electricity to lower scope 2 discharges. To lower scope three discharges, it is necessary for a company to use inputs based on a company’s greenhouse gas tracking and encourage suppliers to lower greenhouse emissions (Branch 2008). The improvement in procedure is a vital feature of the plan to enhance competition taking into consideration a company’s internal activities. It includes the importance of innovation, supply efficiency so that the output is enhanced and thus reducing the costs. Improvement in the process can affect demand in the inputs to lower the environmental impact. By substituting the air fleet with new planes that are fuel proficient, fuel use is greatly reduced and the capacity improved. Innovation also contributes greatly to environmental sustainability. Fundamental change in the nature of supplies and services produced is required in environmental sustainability. Environmental innovations experience problems from market malfunction and the systemic malfunction. Innovations for instance energy and structural changes influence the atmosphere by lowering demand and the production of infecting goods and services. Because of these characteristics, it becomes difficult for companies to devise corporate schemes to improve environmental performance (Wilsner 2011). Companies should also expand products and services that are friendly to the climate and those that react well to the change in climate. It is also the role of the company to market the climate friendly merchandise and services to the suppliers and also the general public. In the last three decades China’s swift economic growth and industrialisation has also incorporated extensive environmental dilapidation. There is now better knowledge on the importance of environmental fortification among the public, government and the business community. Environmental protection is crucial for China so that it can further its growing process. There has been focus on the improvement of the environmental security and energy effectiveness in the 11th and now the 12th five year schemes (Larsen 2007). Challenges of international global supply chains Management Overseeing the smooth running of a supply chain is an everyday challenge that the chain executives encounter. To have a continuous order the stores and the customers must be properly supplied with enough goods and services. Utmost service and the required inventory order should be balanced to lower the costs. Supply chain uncertainty has increased price sensitivity and market simplicity have led to a reduction in customer loyalty (Wilsner 2011). Variety of the members The variety of the members in the supply chain also causes a major challenge and adds the length of the process. Because of this variation, incompetence, cost and doubts are formed in the financial and product chains. Firms found beneath the buyer are disconnected due to inefficiency and uncertainty. Extension in the terms of payment alleviates a firm’s motivation because it lowers the time of the cycle and boosts account velocity. Merging Bringing together two or more supply chains involves indentifying that the chains are not jointly restricted but they are real so that there can be a reduction in the accounts and in the cost. Logistics and economics work together because information is shared in between them. They do not join the chains but they rather modify the procedure and new ones that maintain the chains are developed (Wilsner 2011). These have to be done to ensure there is a reduction in risk, time and worries. New Rules New rules and regulations which assist in reducing accidents caused by fatigue and long working hours increase the amount of resting hours. Firms are therefore required to have more additional drivers to cover up for reduced working hours. Loading and unloading the truckers will complicate payment issues between shippers and carriers (Larsen 2007). The distribution centres in existence are also affected by the rules since servicing their area of work is now complicated. There is need for additional warehouses to lessen the increase in transport expenditure. There is increased need for importers to be aware of their supply chain. Globalising corporations are making the mistake by thinking that all customers and natural features are fitted built in one supply chain. References Branch, A (2008), Global Supply Chain Management and International Logistics, NY, Taylor & Francis Larsen, TS, (2007), Managing the Global Supply Chain, NY, Copenhagen Business School Press DK Wilsner, JD (2011), Principles of supply chain management, London, Cengage Learning Read More