But even as outsourcing allows organizations to develop cost-efficiency; it increases certain issues of ethics and corporate social responsibility for the organizations. Outsourcing has to be properly managed since it raises ethical concerns such as the misuse of labor and the impact on the environment as pollution increases as a result of transportation. In this proposal, we attempt to present a strategy for Co-op Supermarket to develop an environmental friendly approach while remaining competitive in terms of price and choice. Supply Chain Management and Ethics Before we proceed further, we first need to understand the concept of supply chain management and its relation with ethics. ‘Supply chain management has been defined as “the management of upstream and downstream relationships with suppliers, distributors and customers to achieve greater customer value-added at less total cost” (Wilding, 2003). The term relationship within the context of supply chain management is vital since it pertains to relationship with not just the suppliers but also the customers. The customers demand that the supply chain management be ethically sound or else the organization runs the risk of losing its loyal customers. The concept of ethics in supply chain management was activated when BBC Panorama exposed the unethical supply chains of sports and clothing companies such as Nike and Gap. These companies hired under-aged Cambodians at minimum wages in order to keep down prices for the end users. However, the end users after realizing the real cause behind the low prices revolted and soon organization began to explore the concept of ethical supply chain management. Along this issue, the issue of increased pollution as a result of outsourcing suppliers was raised. Though managers cannot control all aspects of the supply chain manager, they still are accountable for the issue and thus the responsibility lies with them. With respect to ethical supply chain management, the concept of green supply chain management has emerged. Green supply chain management understands the environmental impact of the supply chain and takes steps to ensure that the negative impacts are kept to a minimum. For example, Wal-Mart introduced a new packaging scorecard for its suppliers including Unilever, Proctor & Gamble, and Walmart in order to reduce waste production (Basu and Wright, 2007). The Current Dilemma The biggest challenge that Co-op Supermarket is facing at this time, with regard to its supply chain management, is the lack of integration between its supply chain management and ethical policy. Currently Co-op’s fashion products being sold in the supermarket are outsourced from China which raises the issue of pollution through increased transportation. Outsourcing may reduce costs for the organization but at the same time, it is increasing the impact on the environment. Since fashion products are basically innovative products, the organization needs a responsive strategy in its supply chain management which is able to deal with the changing demands of the customers. When the fashion changes, demand for the products also change and thus the organization cannot hope to reduce transportation costs by shipping finished products in bulk. Proposal When adopting a green supply chai
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Running Head: SUPPLY CHAIN MANAGEMENT Supply Chain Management [The name of the writer will appear here] [The name of the institution will appear here] [The name of the Professor] [Course] Introduction With the increase in competition and the growing awareness within consumers concerning business ethics, organizations have taken conscious steps to improve upon their supply chain management in order to achieve competitive advantage…
Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
Now the business firms are not competing individually in the markets rather they are the part and parcel of different supply chain links. The only way in order to succeed in the market is that the business managers must have the ability to link different business networks or supply chain links in an effective and efficient way.
Organizations have come up with various innovative methods in all these process, which not only provide good SCM but also add value to their businesses as well as the environment including their suppliers, society as well as economy. Supply chain strategy is critical to its sustainability.
By 1990s, it became one of the most well-liked management term (Hugos, 2006). A supply chain can be seen as the alignment of three or more firms that are directly linked by the downstream as well as upstream flows of goods, services, information and finances from a particular source to the customers.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
To bring the main actors in the market together, for example, suppliers, manufactures, and stores are put together to simplify the production of commodities being produced, and then circulated at the right time. The captions are going to capture the
It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless
The micro-economic approach in regard to market logistics and strategic plans of an organization is extensively discussed. The effective warehouse management and transport arrangements are basic market logistic constituents (Jespersen & Skjøtt-Larsen, 2005). It is
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