Sustainable Supply Chain Management Case Study
Supply Chain Management basically pertains to the inter-connection of the companies to serve the end-consumer. Moreover, these participating companies add-value to the products and pass them along the supply chain. Thereby, on an operational level they are trying to maximize the value-addition and on a strategic level the management is concerned with the minimization of total cost.
One of the question that arises in supply chain management is “how should the structure of SCM be organized so that it inculcates maximized value-addition and minimized total costs?”. Thereby, the “how” question is answered by Supply Chain configuration. It is basically the design and plan of the supply chain of the organization. Hence, its architecture …show more content…
Thus in order to abstain from the adverse effects of this phenomenon, the companies are trying to redesign their Supply Chain into Sustainable Supply Chain Management. This strategy will help the companies to balance out the interest of consumers, suppliers, shareholders, government and the manufacturers. Sustainable supply chain management also entails that the company takes care of human rights and environmental degradation under the international rules and regulations.
Hence, with the sustainable supply chain strategy, the company, scrutinizes its supply chain operations both up and down the line. This helps the company to move from inefficient practices to the efficient ones. Thus helping in the reduction of cost for the company and achieving higher profitability. But this is not always the case. As stated by the article, CSR is usually viewed as a risk that companies have to surpass so that their brand-image is not compromised. (Mushanyuri, …show more content…
Organizations need to adopt a more responsible behavior with respect to environmental, economic and societal impact of their actions. As a result, from a sustainable outlook companies need to re-design the operating logistics network and re-work the analysis behind. Moreover, in the same scenario they are also taking environment considerations for their re-worked supply chain.
However, in the past the company’s supply chain designs were static rather than dynamic in nature. Moreover, in the past the companies could forecast their demand in the market but in the later situation the company’s operation are just too volatile to forecast in the future. Therefore, with these issues in mind, risk management and supply chain management are complementing each other in the strategic decision making of the business.
Goudenzi (2015) cites that Carter (2011) stated that 'Sustainable supply chain Management (SSCM)' framework has been derived from the study of transaction-cost economics, conservation resource and population census. (Martin Christopher,