The paper 'How Sustainability in Logistics and Supply Chain Management Affects Corporate Social Responsibility" is a great example of business coursework. In current management practice, the concepts of supply chain management and logistics are identified as key parameters in corporate performance. Many corporations are using supply chain management and logistics to gain a competitive edge in the marketplace. However, the use of supply chain management and logistics for corporate success depends on the role they play in corporate social responsibility. Sustainability in supply chain management and logistics can be of great value to corporate performance.
The objective of this paper is to show how sustainability in supply chain management and logistics affects the reputation of a firm as well as the overall success of business corporations. This is done in three parts: in part one, a brief overview of the differences and interrelationships between supply chain management and logistics is examined. Included are general definitions, concepts and an examination of the role of both concepts in the current theory and practice of management. The second part explores the concept of sustainability in supply chain management and logistics.
A detailed evaluation of the role of sustainability in corporate social responsibility and how this contributes to the overall success of business organisations are given. Supply chain management and logistics: Differences and interrelationships Supply chain management is a complex concept which is central in the current theory and practice of management. There have been several attempts at providing a comprehensive definition of the concept. According to Handfield and Nichols (2002, cited by Jespersen & Skjort-Larsen 2005, p. 2), supply chain management can be defined as a process of integrating and managing all organisations involved in the supply chain as well as all activities in the supply chain.
This is done through establishing and maintaining relationships which create cooperation, organisation, effective business processes and high levels of sharing information across the entire network of firms. These relationships create high performing value systems which provide a sustainable competitive advantage for member organisations. Separately, Mentzer (2001, p. 14) observes that the concept of supply chain management incorporates two separate yet related concepts: supply chain orientation and the concept of the supply chain.
Supply chain orientation is defined as the process by which corporations recognise the strategic implications of all the activities and processes involved in managing all the various flows in its chain of supply. It covers the tactical activities of distribution flows as viewed within a broader strategic context. Supply chain management is, therefore, the actual implementation of this orientation across various companies within the supply chain. The modern concept of supply chain management is characterised by five key principles (Mentzer 2001, p. 34). The first one is that in current practice, business corporations have shifted competition to the management of their supply chains.
This is in contrast to early practice where competition between companies was based on core business processes. Second, the competitiveness of supply chain management is based on the value-added exchange of information. The third principle is that supply chain partners provide the best opportunities for cost-cutting and value-added measures for corporations. This is evident in the interface between supply chain partners of a business organisation. The last principle of supply chain management is that basing business competitiveness on supply chain management requires the collective determination of business strategy as well as complete integration of all business processes of the organisation.
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