Sustainable Supply Chain Case Study

1246 Words 5 Pages
2.0 SUSTAINABLE SUPPLY CHAIN
Sustainable Supply Chain can be define as management of supply chain need to be consider of environmental issues, social, as well as economic impacts. ( Cody Sisco, Blythe Chorn and Peder Michael Pruzan-Jorgensen, 2010). Based on this authors also explained about the encouragement of good governance practices in term of goods and services in the sustainable supply chain. Sustainable supply chain is very crucial point need to be consider in the supply chain management in order to protect environmental, increase of lifestyle, and make the prediction for a long term issues as well. Hence, the sustainable of supply chain can be adapted in the business one of that is through the integrated of supplier. To be more efficient
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In this context, Ford’s has four stages to develop their sustainable of supply chain that is consist of communicate expectation, assess, build capabilities as well as collaborate. In the communicate expectation in the first stage means that Ford’s Company communicate their expectation towards their suppliers. In term of that, this stage have been look into supplier standard and supplier engagement. In the supplier standard, it depend on the global supplier terms and condition, social responsibility and Anti-Corruption web-guide as well as environmental web –guide and policy letter. All the supplier that engagement with Ford Company should be fulfil all requirement as mentioned. In this stage also, Ford looking into supplier engagement. In term of supplier engagement, Fords make a meeting with the top supplier, review the technical business, review of business unit, supplier council as well as World Excellent Award. In the second stages, Ford assess their supplier for environmental and social performance. In the environmental issue, Ford quantify supplier throughout environmental impact with using CDC Supply Chain, Freight Emissions and Substances of Concern Reporting. For the social performance, Ford conduct their supplier with third- party social responsibility audits and also collect supplier conflict mineral report. Third stages, Ford build their capability with environmental and social capability. In term of social, Ford conduct their supplier with training the Corporate Social Responsibility (CSR). In the environment field, Ford share their best practices for energy and water reduction. From that, the supplier can implement new freight reporting method. Other than that, Ford also share their best practices to their supplier with show how to optimize packaging and increase the use of recyclable, renewable, and use lightweight material

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