Marketing Channels and Logistics - Annotated Bibliography Example

Marketing Channels and Logistics Table of Contents Table of Contents 2 Element Annotated Bibliography 3 Element #2: Marketing Channels and Logistics 8 Introduction 8 Effect of the Sustainable Supply Chain on the Product 8 Effect of the Sustainable Supply Chain on the Cost 9 Sustainable Operation of the Company 11 Conclusion 12 References 13 Element #1: Annotated Bibliography Hitchcock, T., 2012. Low Carbon and Green Supply Chains: The Legal Drivers and Commercial Pressures. Supply Chain Management: An International Journal, Vol. 17, Iss.1, pp. 98 – 101. With reference to Hitchcock (2012), the concept of supply chain management can be defined to play an important role in the production and the distribution process. The paper describes that supply chain management trends are growing as the range of business conducts have increased. Hitchcock (2012) thus argues that supply chain management has been creating pressure upon businesses on both legal terms and commercial terms. It is in this context that with the growing population and demand, it has become a vital factor for increasing pressure of supply chain management. Hitchcock (2012) further elaborates that the large supply chain management is mainly focused upon the increasing consumer market of the current century. The study also describes that the pressure of supply chain management has been increasing in those sectors, constituting the larger dimension of consumer market, such as in the case of the UK, China and many other countries, which are having a large base of consumer markets are mainly focused on the growth of sustainable supply chain management (Hitchcock, 2012). According to the study conducted by Hitchcock (2012), the growth in the sustainable supply chain management has evidently shifted the focus of businesses on the commercial factor rather then the legal factor in the current phenomenon. Nevertheless, the new regulatory factors have become a grave challenge for the supplier country. As per Hitchcock (2012), the green supply chain management concept has become more important as the customers are becoming more cautious regarding the sustainable approaches taken by companies, which in turn has raised the challenge to balance both legal and commercial concerns. Carter, C.R. & Easton, P. L., 2014. Sustainable Supply Chain Management: Evolution and Future Directions. Centre for Logistics Management, Vol. 41 No. 1, pp. 46-62. According to Carter & Easton (2014), sustainable supply chain management has emerged as one of the most important factors in the society, with the sustainability concept emerging as a vital issue for the current business scenario. As addressed by Carter & Easton (2014), after the imposition of the new concept of corporate social responsibility, it has become mandatory for all the participants to maintain sustainability in work force. Carter & Easton (2014) further elaborate that the use of alternative resources has simultaneously emerged as a significant factor for modern business entities today describing that the stakeholders of the company are forcing the organisation to take environmental and social factors into consideration when conducting operational activities. In subsequence, the supply chain managers are now enjoying an advantageous position in terms of social and environmental performances (Carter & Easton, 2014). Emphasising the similar notion, Carter & Easton (2014) further suggest that sustainable supply chain management is very important for the growth of the society overall, wherein perfect training to the people of the supply chain management is very much necessary for the efficient usage of the energy and natural resources that works as the key to sustainable supply chain management (Carter & Easton, 2014). Walker, H. & et. al., 2008. Drivers and Barriers to Environmental Supply Chain Management Practices: Lessons from the Public and Private Sectors. Journal of Purchasing & Supply Management, pp. 69-85. Walker & et. al., (2008) primarily concentrated on the benefits of sustainable supply chain management for modern companies. The study accordingly describes about factors creating barriers in the development of the sustainable supply chain management in a company. As per the study conducted by Walker & et. al. (2008), it could be understood that there are several factors, which are influencing the company to implement strategies in respect to sustainable supply chain management in its performance measures, which are again observed to cause challenges for the same simultaneously. As Walker & et. al. (2008) describes, fallacies in striking a balance between the external and the internal activities of the company causes main hindrances in the imposition of sustainable supply chain management strategies, while if otherwise, the same indicates a virtuous strength for the company (Walker & et. al., 2008). Walker & et. al. (2008) further stated that there are several barriers, which impose strong influences on the company to promote its suitability. The study further revealed that there are several internal and external factors responsible for promoting or influencing a company to adopt green approaches through the adoption of sustainable measures. One of the internal factors that promote supply chain management among companies have been the adoption of green approaches by big brands throughout their supply chain that in turn influences the suppliers, often making it mandatory to adopt and follow a similar approach (Walker & et. al., 2008). The study also describes about the presence of suitability in the strategies taken by companies in terms of both ethical and commercial aspects, which further influences its stake holders to promote the ecological factor (Walker & et. al., 2008). Muduli, K. & Barve, A., 2011. Role of Green Issues of Mining Supply Chain on Sustainable Development. International Journal of Innovation, Management and Technology, Vol. 2, No. 6, pp. 484-489. According to Muduli & Barve (2011), the importance of supply chain management has increased in manifold over the past few years. It has been also described by Muduli & Barve (2011) that traditionally, supply chain management used to only focus on the transportation system of the produced goods concentrating on controlling pollution and effective use of resources when transferring the goods from the firms to the distributors. However, with the development of technology and legislation in the business, challenges have also increased for businesses to assure proper adherence to the principles of effective supply chain management (Muduli & Barve 2011). As per the report of Muduli & Barve (2011), the new age supply chain management has changed its focus from transportation to ensure sustainability to a much wider paradigm of overall distribution channel. It is in this context that the modern day supply chain management has become increasingly conscious regarding green issues affecting not only the environment but also the society at large. Muduli & Barve (2011) further elaborated that after the imposition of sustainable measures in the supply chain management strategies, companies have also become more cost conscious and efficient (Muduli & Barve, 2011). Hasan, M., 2012. Sustainable Supply Chain Management Practices and Operational Performance. American Journal of Industrial and Business Management, Vol. 3, pp. 42-48. Hasan (2012) stated that sustainable supply chain management is working as a key factor for almost every company to obtain competitive advantages. It is also owing to this particular reason that assuring adequate significance to sustainability issues has gained much importance in the current decade. In addition, as the approach aims to develop the environment and also provides business entities with the reputation of a responsible corporate citizen, it has been in focus on many large brands recently (Hasan, 2012). According to the report of Hasan (2012), there are several kinds of environmental management practices that tend to address the greening issue as a vital element to bridge the commercial and ethical interests of companies, enhancing their performances as well as rewarding them with competitive advantages. The study also describes that a sustainable approach in the supply chain management refers to a novel tools for the company (Hasan, 2012). Element #2: Marketing Channels and Logistics Introduction Michelin is an auto spare parts manufacturing company, which was founded in the year of 1889. The headquarter of the Michelin is located in France. To be mentioned in this context, Michelin is considered as counted among the largest tire manufacturing companies in the global context. Michelin operates through a network of several subsidiaries in all over the globe. Apart from tire, there are several products of the Michelin which are the famous all over the world. Notably, the other products of the Michelin are auto mobiles, heavy equipment, air craft, bicycles, motor cycles and space shuttles among others (Michelin, 2014). Correspondingly, the objective of this paper is to describe the supply chain management practices adopted by the company. The discussion further will also describe the interrelation between sustainable supply chain management and the efficiency of operational processes adopted by the company to generate cost efficiency as well as other advantages. Effect of the Sustainable Supply Chain on the Product In the contemporary scenario observed currently, the concept of sustainability management has become much important for the success of any business entity. It not only increases the potentials of the company to obtain greater competitive advantages but also ensures it long-term sustainability with the cooperation of the stakeholders associated with the entity. Studies have likewise revealed that sustainable logistics management is quite efficient in creating a positive impact on the quality of the product, which in turn contributes to the profitability of the company in the short-term, as well as to the long-term advantages of stability. Michelin, one of the world’s famous tire manufacturing companies, which also focuses on the sustainability issue has paid great attention towards developing an ethically responsible supply chain management. Correspondingly, the company has been focused on creating good quality products to support and reduce wastes from the production process. The approach is considered to help the company in maintaining the inventory very effectively, which in turn signifies proper utilisation of resources by the company, ensuring long-term efficacy. Reviewing the strategies of Michelin, it can be observed as mainly focused on the implementation of advanced supply chain management, which aims to improve the response abilities of the company towards the requirement of raw materials or the smooth flow of operational activities. Stating precisely, the advance supply chain management has been an integrated part of the logistics system in Michelin. This also encourages the suppliers to supply good quality products, which again enhances the quality of products manufactured by the company (Michelin, 2014; Greater Vancouver Regional District, 2009). To be noted in this regard, Michelin is more cautious regarding its products, wherein the company has taken several measures for enhancing its product quality. Stating precisely, the company has decided to prepare a design for logistics, which includes the packing, designing of the product. Michelin has also designed its lifecycle cost analysis for reducing the total costs involved in its logistics operations and disposal cost of the company (Michelin, 2014; Greater Vancouver Regional District, 2009). Effect of the Sustainable Supply Chain on the Cost The sustainable supply chain management approach has not only helped the company to reduce rate of carbon footprints but has also helped it to reduce costs from the production process and thereby attain financial balance. To be noted in this regard, Michelin has built its warehouses in the nearby location of its factories providing it with logistics advantages in both cost and time efficient manner. Michelin has also adopted the sustainable production process that attempts to reduce the cost of production and that involved throughout its distribution channel by developing an integrated sales and operational framework. Michelin has further adopted highly advanced technological measures in its overall marketing process. A direct contribution of this particular measure can be observed in respect to the revenue obtained by the company. For instance, Michelin has been using the supply chain optimization software for maintaining a balance between its sales, production and distribution costs sufficing its responsible intentions along with profitability motives. DB Schenker’s online emission calculator is a new software tool which has been implemented by Michelin in its recent operations as this software considers the importance of controlling fuel and energy consumption to minimise the emission of the carbon foot prints from the Supply Chain Logistics (SCL) (Michelin, 2014; Greater Vancouver Regional District, 2009). From a critical perspective, it can be argued that the use of supply chain software is a significant factor for the company to reduce the costs of transposition. The software tools attempt to support the company to decide the number sites, transportation modes and the number distribution channels. Besides the stated measures, in order to improve its performance in the supply chain management, Michelin has decided to adopt the 3PL strategy in its supply chain logistics. Michelin has also appointed the third party logistics in its distribution process for making the process more effective and cost efficient (Michelin, 2014; Greater Vancouver Regional District, 2009). Sustainable Operation of the Company The performance of Michelin is very symbolic when emphasising sustainable development with the assistance of advanced technology adoption. Michelin has remained committed to enhance its responsibility of mobility through the group leverage for meeting its challenges of mobility in the worldwide context. The company has taken several measures towards inventing the green issue in its sustainable supply chain management. From a theoretical understanding, it can further be affirmed that sustainable use of raw materials can help companies to lower the carbon footprint from the production process. As evident, Michelin has taken several measures to maintain sustainability in its supply chain process throughout. The supply chain optimizing tools and the product life cycle design in its supply chain management can be illustrated as few of its measures (Michelin, 2014; Hasan, 2012). When maintaining sustainability in the operational process, Michelin has been focused on mobility in its logistics related operational activities, which is significant for the development of its human resources and thereby assuring overall efficiency in its organisational procedures. Michelin also provides much attention towards aligning the needs and demands of its stakeholders with the profitability interests of the company, which in turn gives it a boost to balance both its commercial and ethical concerns. It is in this context that to serve the customers in a time efficient manner along with obtaining pricing advantages, Michelin has introduced the third party logistics services, which mainly targets to manage its work flow by reducing the cost of the production, increase the quality of the services and manage the inventory level in the most efficient manner (Michelin, 2014). Conclusion With reference to the findings obtained through the discussion conducted above, it can be concluded that Michelin has been much aware and concerned with sufficing its responsibilities as one of the world’s famous tire production companies. In subsequence, the sustainability concept and the green issue has been one of the key factors responsible for its success in the current phenomenon. As revealed in the above discussion, the company decided to take certain measures leading towards its greater sustainability in the long-term. It can also be concluded that the sustainable factor has proven one of the most important factors for reducing the costs of the products served by Michelin. From a futuristic perspective, it becomes much apparent that sustainable development in the supply chain management will also develop the company’s efficiency in the long term. Adoption and consistent development of technology will increase the productivity rate of the company further, increasing its competencies to suffice growing demands for its products in the global platform. Nevertheless, it is worth mentioning that sustainable supply chain management brings with it major challenges that can inhibit future progress of Michelin. For instance, with increased focus on sustainability management throughout the supply chain and logistics processes, Michelin is quite likely to become dependent on the fluctuations of the external factors. In addition, Michelin is quite likely to witness increased pressure to maintain transparency, which may again augment costs in the logistics of the company when concerning its quality concerns. References Carter, C. R. & Easton, P. L., 2014. Sustainable Supply Chain Management: Evolution and Future Directions. Centre for Logistics Management, Vol. 41 No. 1, pp. 46-62. Greater Vancouver Regional District, 2009. Sustainable Supply Chain Logistics Guide. Smart Steps, pp. 1-40. Hitchcock, T., 2012. Low Carbon and Green Supply Chains: The Legal Drivers and Commercial Pressures. Supply Chain Management: An International Journal, Vol. 17, Iss.1, pp. 98 – 101. Hasan, M., 2012. Sustainable Supply Chain Management Practices and Operational Performance. American Journal of Industrial and Business Management, Vol. 3, pp. 42-48. Muduli, K. & Barve, A., 2011. Role of Green Issues of Mining Supply Chain on Sustainable Development. International Journal of Innovation, Management and Technology, Vol. 2, No. 6, pp. 484-489. Michelin, 2014. Offering Everyone A Better Way Forward. Profile. [Online] Available at: http://www.michelin.com/eng/michelin-group/profile/our-purpose [Accessed December 4, 2014]. Michelin, 2014. Respect for the Environment. A Responsible Company. [Online] Available at: http://www.michelincareers.com/us/eng/The-Michelin-Group/A-Responsible-company [Accessed December 4, 2014]. Walker, H. & et. al., 2008. Drivers and Barriers to Environmental Supply Chain Management Practices: Lessons from the Public and Private Sectors. Journal of Purchasing & Supply Management, pp. 69-85. Read More