Sustainability Logistics and Supply Management - Coursework Example

Sustainability Logistics and Supply Management Name: Tutor: Subject: Date: Introduction Supply chain logistics are the activities that integral efficient and effective movement and storage of goods between their place of origin and destination or back again. Supply chain logistics activities are integral to the effective and efficient movement and storage of goods along the place of origin and destination and back again. While logistics and supply are critical to a region’s economy, storage of the goods and the transportation affect communities and the environment, generate harmful gasses, water pollution and consumption of non-renewable resources. Many assume that activities of warehousing or transportation do not affect the environment, but the truth is adopting sustainable logistics could provide solutions that benefit our natural environment and social places without affecting the profits or development (Wisner, et al., 2015). According to Seuring, (2013), while environmental and social benefits can be direct benefits of sustainable logistics, these benefits can be improved, along the financial benefits by considering sustainability goals more explicitly within Supply chain logistics scope. It is, therefore, important to define sustainability, ifs social, economic impact and ways of ensuring people follow the best management practices. Sustainability means achieving economic prosperity without destroying the environment or damaging the society. The idea of social sustainability has been there for many decades and known to be using other terms such as corporate accountability, corporate responsibility, corporate citizenship, business ethics. The social responsibility of businesses received many definitions, theories and approaches often confusing and not having a consensus on the exact meaning. From the triple perspective, social responsibility is rooted from the fact that we are on a planet we that we cannot replace, and that we as people need to utilize the available resources to make sustainable profits without destroying the planet. The concept is deeply rooted in the triple bottom line which entails economic, social and environmental considerations. The most lingering question now is: Why then should businesses care about their social impact? Why are some companies like tobacco still manufacturing slow acting poison and still go free? Why are some still manufacturing substances that are half benefiting and a half destroying like the petroleum and oil companies? This leads to only one conclusion that some corporates social interests are not aligned, and it explains the conflict between corporations and society (Wisner, et al., 2015) . The sustainability involves various aspects which include social, environmental and economical. Without striking a balance between them, then slowly the whole system starts to fall off. It can also be noted that the social issues in supply chains management are not well developed. This is because of the continued boundary openings between countries that lead to increased outsourcing, vertical integration and offshoring to those countries. And in following this line of discussion, our main focus would be social sustainability, Sustainable product design and cleaner production, sustainable warehousing, and therefore manageable chain supplies that work in fabric to enhance sustainable developments and profits (Seuring, 2013). Unlike economic and environmental issues, many companies continue to struggle with how to define and analysis social issues. This is because they are subjective and very hard to quantify. Social issues can impact the financial outcomes for all supply chain members whether they are located in developed countries or, more importantly, in developing countries. Although developing countries may favor the economic dimension of social issues, they should alter their approaches to economic growth in today’s business by conducting more social initiatives. Countries with a high level of social stability can take advantage of economic integration into the global economy. In this way, companies located in developing countries may present themselves as the low-risk supply chain partners to those focal companies seeking for partners (e.g. suppliers) in developing countries to benefit from low-cost operations. The main reason is that brand companies are increasingly under pressure by media and other stakeholders to be more sustainable. This may encourage partners in developing countries. However, there are standards set basically to guide social responsibility requirements for supply chain members. For instance, SA 8000 explicitly examines nine areas including child labor; forced labor; remuneration; and related management systems. Likewise, codes of conduct help focal companies to dictate specific guidelines in their interaction with potential and current suppliers, which in turn can be used in worst cases to terminate contracts with those suppliers that violate social rights. This provides the basis of purchasing social responsibility which highlights the importance of the social performance of supply chain members (Ahi, and Searcy, 2013). In implementing the sustainable practices in chain supplies, media, non-governmental organization campaigns, regulatory frameworks, customer and consumer demand advocate for guidelines and tools in helping sustainable economic and social fabric practices. This is the initial stage in achieving the common goal. Whenever people are made aware, the light shines on them, and they consider not only the economic part but also the social issues. The next step would be embracing some consistent themes which could guide sustainable chain supplies. One such theme is the 2003 New Zealand theme: “catalyst for change toward sustainable development and to promote eco-efficiency, innovation, and responsible entrepreneurship”. It embraced a view where sustainable development must extend from an individual company to both upstream and downstream partners in the supply chain. The espoused framework stems from a process management approach and addresses three main areas concerning procurement. Particularly monitoring external suppliers and setting codes of conduct, internal operations, considering the impact of product transformation and forward and reverse logistics. Product development and stewardship which entail the effective collaboration with chain partners in the design, manufacture and distribution of products. Forming implementing or regulatory framework bodies would be the next step. Formulating guidelines and codes would be useless as long as most organizations are after profits. Organizations must be made to sign environmental, social and economic by-laws which are prosecutable in the relevant courts of law. Hefty fines should be imposed on those companies going against the set standards. Building this chain of custody requires a cogent approach, the framework also suggests complying with various systems such as ISO14001, SA8000, AA11000 and Enviro-Mark, which could be incorporated into existing HACCP, OHS or quality management systems. The United Nations Global Compact Management is a model, which is deemed a comprehensive approach for firms to embed sustainability in their supply chains. The model, which was introduced in 2010, prescribes ten principles that address human rights; fighting corruption, environmental management, and sustainability. Due to the widespread concerns about poor social and environmental conditions of supplier practices in developing economies, this model streamlines various regulations and engages firms to embrace such issues. The global compact model was suggested as a framework for continuous improvement and mainstreaming into strategies and operations for supply chains as a collective unit. It defines supply chain sustainability as the management of the environment, economic and social impacts, and the maintenance of good governance practices, throughout the life cycles of goods and services (BSR 2010, p.7). It prompts firms to evaluate a business case for action and understand all the steps involved in the entire supply chain operations. After that, firms can translate their sustainability expectations into a set of guidelines for suppliers such as abiding with relevant regulation and being proactive in minimizing environmental and social harm (BSR 2010) Having made ways to implement the sustainability program, we need to show and emphasize the importance of maintaining global sustainable practices. This is particularly important to the managers in various organizations so that as they plan and execute their strategic plans, then sustainability issues should always come first in their considerations. One of the advantages is that exploitation is minimized to a greater level. For instance, the use of wood has been reduced and consequently preservation of forests. Through the utilization of materials that can be recycled, and reducing toxic or polluting material, maximising the number of replaceable or recyclable components. Reduction in emissions and waste in production processes increases companies’ profits in long term and also shortly. In doing this sustainable practices, they are sure of maintaining customers and, therefore, a constant supply of profits and development (Winter, and Knemeyer, 2013). Measuring the benefits Many of the benefits of sustainable supply chain logistics are measurable at the organization level. Some especially broad environment conservation and social impact reduction are more difficult to quantify; these include Increased brand differentiation. Visible, proactive management of the environmental and social consequences of business operations can increase customer loyalty and brand goodwill, as well as mitigate the Risks and financial impacts of avoidable environmental incidents and increasingly strict environmental regulations. Strengthened customer relationships through the collaboration of Sustainability solution and therefore a global, sustained logistics and chain supply. Conclusion It is obvious the change in scale and intensity of activity levels within organizations over the years has been and will continue being a challenge to achieving sustainability. This challenge extends beyond the operational needs of managing energy and resources such as fuel, and in particular petroleum product that is non-renewable, water and land. Sustainability also needs to encompass wider economic, societal, ecological and environmental aspects. However, there appear to be many gains in encompassing a global sustainability program. Currently, it is unfortunate that there is a lack of consistency in approach and measures taken to achieve the goals of sustainability (as more emphasis is placed on transportation being the biggest concern in a supply chain). Nevertheless, there is some evidence that greater awareness is now entering the market, especially for new buildings, to reduce operational costs and emissions rather than just concentrating on short-term profits. However, the scale of the organization property footprint and the relatively long replacement cycle meaning it will take a long time to achieving the goal of sustainability within a global scope. References Ageron, B., Gunasekaran, A. and Spalanzani, A., 2012. Sustainable supply management: An empirical study. International Journal of Production Economics, 140(1), pp.168-182. Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52, pp.329-341. Miemczyk, J., Johnsen, T.E. and Macquet, M., 2012. Sustainable purchasing and supply management: a structured literature review of definitions and measures at the dyad, chain and network levels. Supply Chain Management: An International Journal, 17(5), pp.478-496. Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520. Winter, M. and Knemeyer, A.M., 2013. Exploring the integration of sustainability and supply chain management: Current state and opportunities for future inquiry. International Journal of Physical Distribution & Logistics Management, 43(1), pp.18-38. Wisner, J., Tan, K.C. and Leong, G., 2015. Principles of supply chain management: a balanced approach. Cengage Learning. Read More