Weight Watchers Sustainable Supply Chain Strategies - Essay Example

746840 Weight Watchers – Sustainable Supply Chain Strategies Outline and nature of business Weight Watchers is a multinational company that specializes in providing people with products related to dieting as well as allied services. Headquartered in USA they have been in this particular business for quite some time and have gained wide recognition among their customers. Given their reputation within their industry as well as the segments of customers they cater to, it is imperative that the ways in which they operate would be akin to infusing sustainable ways of operations of the company. The salient product offerings of Weight Watchers include products that keep weight gaining under check as well as associated products that have ever since the company started functioning has proved immensely successful in various parts of the world. It is also globally known for offering weight management services to its clients and therefore have already carved a niche for themselves among their customers. The principal ways in which the firm operates is through master networks and franchises. Thus the supply chain through which it operates is at the core of their business. Given that they are globally present, thus the magnitude of their supply chain operations is huge and entails various strategies related to supply chain management. Also, in the light of the kind of business Weight Watchers is in or for that matter the kind of operations the company has to indulge in for their business transactions, it is obvious that the company would have to look for a rather futuristic supply chain model and it is rather needless to say that sustainability is at the core of their supply chain model. Focus of supply chain and issues of sustainability At the same time, in the world over, sustainability is one of the major issues concerning the business fraternity. In this regard it may be noted that the business fraternity has come a long way and have started being more responsible towards society as well as the environment at large. Various new concepts have come into the picture and firms are increasingly taking into consideration these factors such as corporate social responsibility, sustainability and the like. Furthermore, firms are more and more getting inclined towards linking these burning issues such as sustainability to their various business functions in order to operate in a much more socially responsible manner. Thus right from branding to advertising to finances to accounting to supply chain management, each and every managerial as well as business function has been closely linked with these broader perspectives of business. The key focus of the present study, sustainable supply chain management, is also one of these emerging areas that have found rising prominence as well as paramount importance from the long range plans of firms. Though not all firms are thinking with such a futuristic orientation, however, there are indeed many firms across the continents who have already started aligning their business processes in tune with the emerging issues in society, community as well as environment so as to operate in a much more responsible manner and also take care of the harmful effects of doing business and last but not the least ensure that the firm has other motives that are not restricted to making profits (Pagell and Wu, 2009). The basic concept of sustainability in business has been brought into the limelight with the researches of eminent researchers such as Gladwin, Kennelly and Krause (1995), Starik and Rands (1995), Jennings and Zandbergen (2005). Moreover, these researchers have been of the opinion that businesses should also include aims that take care of the social as well as environmental objectives of the firm. On the other hand, Clark (1999) has pointed out that most sustainability motives of firms are linked to managerial tools such as total quality management (TQM) and just in time (JIT). Again, various concepts such as reverse supply chain or for that matter ecocentricity (Shrivastava, 1994) makes it more than evident that the fraternity of supply chain management is changing for a completely different orientation. This reconceptualisation of the supply chain management function has led this area to undergo a sea change in the way business houses look at it. Again, in the context of sustainable supply chain management Rammus and Steger (2000) has noted that a much more proactive stance is required to ensure that sustainable supply chain management is in place. Thus, this takes us to the direct topic of research as to the level of interest firms have in executing their supply chain functions in tune with sustainability motives of the firm. Interview Process, interviewees and key content of interviews The methodology used to collect data for this particular case study is primary research and the data collection instrument is interview in this case. In this regard it may be noted that research methodology refers to the process of ascertaining the design of research as well as types of research and also the samples used along with the justification for doing the same. At the same time, research design of any research work is concerned with coming up with the most well-organized plan of collecting the information needed for the research. Research design of any research also refers to the specification of methods and processes for getting the information needed. It is the framework for performing the research. At the same time, since primary research has been undertaken, the reasons for doing the same may be explicated in some detail. When a study is performed to reveal original data, it is known as primary research. To facilitate this a new research plan has to be created which consists of collection of data, input of data and ultimately the production as well as analysis of the ensuing results. On the other hand “original data performed by individual researchers or organizations to meet specific objectives is called primary data” (Schiffman & Kanuk, 2007). Primary research is necessary in this case since it is required to first ascertain the actual level of interest of firms in initiating sustainable supply chain motives and subsequently trying to gauge the initiatives taken in this regard by those firms. The biggest advantage of primary research is that the data collected for the purpose of the study is only meant for that particular study and therefore much more precise and “reliable” also (Das, 2005). Primary data show exhaustive information and some explanation of the terms mentioned (DJS Research, 2005). However, the main downside is that the process might prove to be highly time consuming and a costly affair. The instrument used for primary research, as already mentioned, is the interview. Interview is an instrument of data collection wherein the researcher interviews the respondent in person to gather the required information. Again, the success of this method depends on the merits of the interviewer since he or she may also note other non verbal reactions of the respondents. However, any bias should be avoided while making such judgments. Also, this is time consuming and costly for research. Description of interview The interviews conducted for the purpose of the study were through telephone calls. The concerned people interviewed, i.e. the interviewees were carefully selected as people who were bonafide employees of Weight Watchers and working in responsible positions along with having substantial knowledge regarding the supply chain processes followed by the company. Though 4 people were targeted for the purpose of the interview, only 3 could ultimately be interviewed. The key areas of the interview questions are as follows: Stock management Procurement Manufacturing Transportation Carbon emissions Waste management Sustainable technology and electronic waste It therefore becomes clear that the focus of the questions in the interview had an all round viewpoint. The answers, for the most part, are futuristic and it becomes clear that nothing much has been done on the sustainability front. It also becomes clear from the varying versions to the responses elicited for the same question from the respondents that there is indeed much left to be done and that not much success has been achieved on this particular area of the supply chain. Suggestions Based on the responses elicited from the respondents of the interview, what has already been established is that most of the sustainability measures have been reserved by the management for future actions. Whatever is being done does not for the most part contribute to their core business activities. In terms of the suggested courses of action on the sustainability front that Weight Watchers may undertake are as follows: Integrating all the activities of the supply chain in order to function as an organic whole. This would indeed help the supply chain become leaner in terms of functioning as well as is highly likely to increase operational efficiency in the long run. Minimise the use of fossil fuel by decentralizing their manufacturing and operations. This may lead to opening of more number of facilities but is at the same time likely to lead to minimizing of carbon footprints in the long run given that less fossil fuel would be required. This is because the products would be sourced as well as delivered in closer vicinity of the facilities or offices than it was done before. The concept of paperless office should be initiated on a global scale for all operations. Though much work is being done through scanning but the entire office may become paperless and this would indeed be considered as a move towards sustainability. Waste management may also be looked upon from a sustainable point of view. The processes of recycling as well as using biodegradable products would make their operations more socially responsible and thus is likely to result in commendable sustainability measures. The procurement process may be made more stringent and more number of checks should be done so as to ensure that socially responsible suppliers only get a chance to become their procurement centres. If required, Weight Watchers may place random checks on their suppliers in order to ensure if the suppliers are living up to their words. The manufacturing process may be closely looked upon to increase efficiency and therefore reduce wastage. At the same time, the manufacturing process may be altered up to a certain extent so as to accommodate some sustainability measures. Budget and time constraints It is imperative that execution of a sustainable supply chain would not be an inexpensive task and is likely to take considerable time to execute the same. For the plans mentioned above in the report, the most time consuming part would be decentralization of their business activities so as to reduce carbon foot prints. Other than that selection of proper suppliers may also take some time. Other than that a specific budget should be allocated for these developments since apart from being time consuming these initiatives are also likely to increase the expenses the firm is currently bearing for its operations and supply chain activities. But these moves are likely to result in increased efficiency apart from posing as a company that is ready for the future as well as works in the present keeping the future in mind. References 1. Pagell, M & Wu, Z 2009, ‘Building a more complete theory of supply chain management using case studies of 10 examplars’, Journal of Supply Chain Management, April, 45(2), 37-56 2. Gladwin, T, Kennelly, J & Krause, T 1995, ‘Shifting Paradigms for Sustainable Development: Implications for Management Theory and Research’, Academy of Management Review, 20(4), 874-907 3. Starik, M & Rands, G 1995, ‘Weaving an integrated web: Multilevel and multisystem perspectives of ecologically sustainable organizations’, Academy of Management Review, 20, 908-935 4. Jennings, P & Zandbergen, P 2005, ‘Ecologically sustainable organizations: An institutional approach’, Academy of Management Review, 20(4), 1015-1052 5. Clark, D 1999, ‘What drives companies to seek ISO14000’, Pollution Engineering, Summer, 14-15 6. Srivastava, P 1994, ‘Ecocentric leadership in the 21st century’, Leadership Quaterly, 5:3/4, 223-226 7. Ramus, C & Steger, U 2000, ‘The role of supervisory support behaviors and environmental policy in employee ‘Ecoinitiatives’ at leading edge European companies, Academy of Management Journal, 43(4), 605-628 8. Schiffman, L & Kanuk, L 2007, ‘Consumer Behavior’, New Jersey: Prentice Hall 9. Das, N 2005, ‘Statistical Methods’, Calcutta: M. Das & Co. 10. DJS Research Ltd. 2005, ‘What is Primary Research?’, retrieved on December 15, 2010, from http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=802 Appendix People to be contacted: Alexandra Lanza Global Supply Chain Professional Greater New York City Area Logistics and Supply Chain http://www.linkedin.com/pub/alexandra-lanza/4/a23/b41 Samantha Rhodes Operations Director UK at Weight Watchers (UK) Ltd. uk.linkedin.com/in/samantharhodes Emma Hetherington Director of Programme Development Weight Watchers UK uk.linkedin.com/pub/emma-hetherington/1/8aa/1b2 Karen Miller-Kovach Chief Scientific Officer at Weight Watchers (USA) www.linkedin.com/pub/karen-miller-kovach/7/1b/131 Contact information UK HQ: Millennium House, Ludlow Road, Maidenhead SL6 2SL +44-1628-777-077 US HQ: 11 Madison Ave.17th Fl. New York, NY 10010 +1 212-589-2700 Plan Contact the head office in the UK as well as the US. Ask to speak to identified people Script Good afternoon. My name is Violetta Dudko. I currently study at Regents Business School. Is this (X;Y;Z)? Reason of the call- I am currently conducting research on Sustainability for Future Global Supply Chain. You were recommended as the best person to speak to. Would it be alright for me to just ask ten simple questions? If a person says that he/she is not the right one to speak to, say the following: “I would really appreciate it if you could direct me to someone who could answer these questions”. Ask questions. Thank you very much for your time! Findings Unfortunately, the attempt to contact Karen Miller-Kovach, was unsuccessful, however, it was possible to speak to Alexandra Lanza (A.L.), Samantha Rhodes (S.R.), and Emma Hetherington (E.H.). Interviews Stock management 1. How do you manage your inventory to ensure there is limited wastage? A.L.: We attempt to create efficiencies in out stock levels by using Oracle Supply management system. We find them most efficient. S.R.: We review our systems quarterly and we know that our suppliers eliminate wastage and inefficiencies. E.H.: We donate consumables, which are nearly expired, to local food bank. Procurement 1. Do you have sustainable suppliers and how do you ensure that they are socially responsible? A.L.: Yes, we do. We did a lot of research before choosing our current suppliers. S.R.: Yes, we care about the environmental issues. E.H.: Yes, but we do not really ensure that they are socially responsible because we trust them. Manufacturing 2. Do you primarily use organic products? What kinds of packaging do you use and how much of that is recycled? A.L.: Franchise owners manufacture most of our food products destined to supermarkets. Therefore we do not incur any direct impact production operations. We merely design the products and outsource our manufacture. S.R.: We do not produce the products ourselves. We produce a large amount of marketing material. However, we have no targets to reduce product and packaging waste in the grocery supply chain. E.H.: We do not have particular targets to cutting corporate food and drink waste. Transportation 3. What modes of transportation do you use to reduce your carbon footprint? A.L.: We do not use sustainable transport at the moment because it is expensive, however, we are planning to use it in nearest future. no, regular methods of transportation. S.R.: We do not use sustainable transportation ourselves, but our key supplier, Christian Salvesen, who specializes in transportation and warehousing, has a variety of sustainable strategies. E.H.: The transportation industry will depend on fossil fuels for the next two decades and right now we are not likely to shift to a cheaper model. Carbon emissions 4. Do you have a program to cut carbon emissions? (eg. for production of food, marketing resources and packaging, transportation and warehousing) A.L.: We have no targets to reducing the carbon impact of grocery packaging at the moment, but it is in our plans. S.R.: Not really. E.H.: We do not trade carbon credits. Waste management 5. Do you have any programs to improve waste management? A.L.: Yes, paperless tracking of member attendances. S.R.: We recycle out of date material. E.H.: We do not really have recycling programs for mixed plastics, however our suppliers recycle packaging on a regular basis. Sustainable technology and electronic waste 6. Do you use any sustainable technology and which? A.L.: Yes, lately we have introduced sustainable lighting for our meeting rooms; also in the UK we have paperless record keeping in our offices. S.R.: We recycle computer equipment in an environmentally friendly way. E.H.: Yes, we reduce the number of printers in our offices; we mainly use products, which we believe are more sustainable such as Xerox Document scanners. Read More