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Sustainability in Supply Chain  代寫

Sustainability in Supply Chain 代寫

 Sustainability in Supply Chain
Content
1.0             Introduction. 2
2.0             Literature Analysis and Discussion. 3
2.1        Resilience and Sustainability in Supply Chain. 3
2.2        Reputation and Sustainability in Supply Chain. 4
2.2.1 Sustainability, a Useful Tool Gaining Reputation. 4
2.3        Corporation Social Responsibility and Sustainability in Supply Chain. 4
2.3.1 Environmental Protection Impact. 4
2.3.2 The Influence Driven by Major Companies. 5
2.4        Risks in Supply Chain. 5
2.4.1 Climate Change Risks. 5
2.4.1 Economic and Social Risks. 6
3.0             Conclusions. 7
3.1        Current status. 7
3.2        Future direction. 7
3.2.1 The Improvement on Purchase Strategy. 7
3.2.2 Communication Can Get a Better Decision. 7
4.0             Reference. 9
 
 

1.0        Introduction
 
In recent years, “sustainable development” has becoming a global consensus. And now it is also extended to using in the supply chain.
"Sustainability" is a process or state which can maintain long-term. In the supply chain, sustainability can be viewed as taking overall consideration to product development. From design of the products until to the end of its life, sustainable products will not harm the environment; at same time, it will not affect the profits of manufacturers.
Nowadays, almost all of the large companies over the world have chosen the sustainability in their development strategy which has been added for reducing greenhouse gas emissions content. In fact, as the increasing pressures from the regulatory authorities, consumers, and the company’s employees and shareholders, more and more enterprises begin to pay attentions on their contributions to cut carbon emission.
The main purpose of this report is to explain the effect of the collaborations relating to sustainability with resilience, reputation and corporation social responsibility in modern supply chain.
Most enterprises admit that protecting environment and giving the returns to our society is a very important social aspect to implying sustainability and which can  creating a positive image in front of climate change. At the same time, many enterprises are also keen to show itself in the community recycling programs and human rights and labor rights protection efforts. But the most important consideration by putting the sustainability into practice is that the surge of rising energy costs, various kinds of risks, even the basic natural resource shortages been emerged (such as water supply), enterprises need to adopt a comprehensive concept of sustainable development as much as possible.
Research shows that sustainability will be a major factor in the next three to five years to change the supply chain. Through the joint efforts with suppliers, enterprises are engaged in a cleaner and more social responsible business, and then measuring its revenue result with the systematic monitor. Sustainability in supply chain is becoming a powerful tool to leading enterprises over the world and also is a competitive advantage to the company.
This report comprises the investigation of the relationship between resilience and sustainability and also the research of the collaborations of sustainability with reputation and CSR in modern supply chain through identifying and analyzing its own opportunities and risks in current. And the advices about future direction will be present in the conclusion.    

2.0        Literature Analysis and Discussion
 Sustainability in Supply Chain  代寫
2.1        Resilience and Sustainability in Supply Chain
The supply chain is more vulnerable than we imagine. With the progress of economic globalization, the supply chain is expanding. Therefore, it was more easily damaged by natural disasters, civil conflict and many other common risks.
The floods in Thailand by the 2011, which made a heave shock in the supply chain. Thailand accounted for about 1/4 output of global personal computer hard disk, so in that time, the worldwide disk prices quickly rose 28%.
Nowadays, most companies are aware of that sustainability in the supply chain is no longer an option, it is a must for the proactive enterprises, and it is the key factor of success in the business world.
In the year of 2010, Accenture were investigated on sustainable business practices to more than 700 members of Global Pact in the United Nations. 96% chief executives considered that sustainability should be integrated into the enterprise strategy and operational aspects. Moreover, 88% respondents thought sustainability using in the supply chain should separately as a particularly important area.
The efficiency of sustainable development is making innovation in products or processes so that using resources more effectively.
Nescafe is the global food company headquartered in Switzerland. The company made a RISE project which shares the practices of sustainability with their suppliers. After in-depth analysis of the whole supply chain, the company has developed a set of procurement procedures, so as to deepen cooperation with suppliers, and help them solve problems which problems are range from the water resources management and nutrition design to the rural development and the use of sustainable procurement strategy. The supplier code system by Nescafe is covered all suppliers all over the world. Through the code, Nescafe promote its best practices in the procurement. It can help to secure the agricultural raw materials with reliable quality and compliance with regulatory standards, to ensure the needs of business development. In the field of dairy products, Nescafe working with the Swiss Agriculture College developed a method of "Response to Induction Sustainability Assessment" (RISE). It is used to integrally assess sustainability across multiple ecological, economic and social aspects, and cover the energy consumption. The evaluation is a comprehensive questionnaire, collecting the farm level data as basis. Nescafe will discuss the improvements with the farmers according to indicators generated by computer clearly show the sustainability of the potential advantages and disadvantages. In addition to help find the opportunity to reduce greenhouse gas emissions, the RISE method can also play an important role in many aspects. In the data collection process, Nescafe also promote other improvements such as the feedback by evaluation and analysis will send to the farmers. In fact, the cooperation with Nescafe has already begun to help farmers’ effective innovation, at the same time to improve their quality of life. While in China, the experts from Nescafe are training farmers using biogas digesters to safe handling and animal manure storage, or using the waste management solutions to collect the methane. These techniques can significantly reduce greenhouse gas emissions, but also can use methane for cooking, even for power generation in the agricultural community. And it is also promoted rapidly in other countries like Mexico. Because of the stimulation on education and outreach programs on Mexico, in some areas of Mexico has built 16 industrial biogas digesters. And Nescafe in Mexico purchasing milk, above 35% are from these regions. It is the key to success and the mutually beneficial result in the resilience and sustainability in the supply chain.
 Sustainability in Supply Chain  代寫
2.2        Reputation and Sustainability in Supply Chain
2.2.1 Sustainability, a Useful Tool Gaining Reputation
Nowadays consumers’ awareness of sustainability is rising. Their perceptions on sustainability will decide them do purchase. According to the Asian high-tech enterprises investigating, when a company making the decision about their supply chain, the main reason of considering the sustainability is to improve the company’s image, following that is the reason that the customers demand to do so. A sustainable strategy using in the supply chain can increasing improving the image and reputation of buyers and suppliers. At the same time, there has another investigation by Carbon Trust in the UK shows: up to 45 percent of consumers would stop buying the products which even is their favorite brands if that company refused to commit to take the sustainability into their supply chain—which figures are doubling over the past year. In addition, 56 percent of shoppers would be more loyal to a brand they knew that was working to implying sustainability and reducing its carbon footprint.
Starbucks, as the largest coffee chain stores, is also the advocator of sustainability. Initially, their stores were designing in the ways of eco-conscious, which using the water efficient equipment and all the lighting and heating systems are energy saving. Everyone likes to help protect the environment, and everyone likes to support the good cause of sustainability. So the sustainability using by Starbucks gain more reputations by the consumers. As companies spending billions on their brand reputation building, their considering on sustainability in the supply chain will be a more effective way.
 
2.3        Corporation Social Responsibility and Sustainability in Supply Chain
Nowadays, most companies have taken to releasing the reports about their corporate social responsibility (CSR), it is not only to inform about the nature of their sustainability initiatives but also to keep their customers happy.
2.3.1 Environmental Protection Impact
Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. According to the Corporate Register’s reporting, corporate social responsibility (CSR) has been significant growth in the past five years, nearly tripling from 2,000 in 2007 to almost 6,000 in 2011.
Wal-Mart Stores, Inc., it is the largest retailer in the world by its revenue. Meanwhile it is always at the leading position of sustainable development in the industry. This retailing giant believing that the sustainability in supply chain is the social responsibility to itself and its suppliers performing and implying the sustainability in supply chain also can bring the opportunities as well as changes into the rapid developing world.
The company planned that by the end of 2017, 70% Wal-Mart stores and Sam's club stores in the United States will selling the commodities which global suppliers must participate in the project of the sustainable development index. The suppliers should be based on sustainable development index to evaluate the product and to share it to the Wal-Mart. Moreover, Wal-Mart Foundation funded $2000000 in China to start an alliance for sustainable development which will join the experts who are from industry, universities and other departments over the world to promote the sustainable development in the industry of consumer goods and to provide resources and tools for globe suppliers to improve their sustainability and competitiveness of the business. These actions by Wal-Mart provided a strong support for the global sustainability in supply chain, and also promoted the development of science and technology research. As a result, there are more than 200 factories have enhanced the energy utilization up to 20% and more by the end of 2012. Sustainability in supply chain can reduce the consumption of energy and water and decrease the emission of wastewater and exhaust gas. And make the world cleaner and greener and which is the reflection on corporate social responsibility.
2.3.2 The Influence Driven by Major Companies
It also has vital influence on corporate social responsibility of leading companies putting the sustainability strategies into practice. As everyone knows, suppliers are often smaller businesses which have less motivation or capacity to improve their environmental impact. The major companies can select the sustainable suppliers and help those with poor environmental practices getting change to better. The leading companies use their purchasing power to set the standards of markets. Above mentioned, Wal-Mart as the large company issued the project of sustainability assessments to their suppliers who cannot help but notice and make changes and which are leading a chain reaction that affects companies around the world. This kind of situation of chain reaction in driving supply chain sustainability also can be considered as corporate social responsibility.
 Sustainability in Supply Chain  代寫
2.4        Risks in Supply Chain
In fact, many companies are facing the difficulty that how to make the growth in sales meanwhile reduce the pollution. The "sustainable" manufacturers have different views, but there are two problems facing to all enterprises, one is energy consumption. The second is the profitability. Sustainability must be hold a measurable value to shareholders, or at least will not damage the profit.
A sustainable supply chain is always impact by the factors such as environmental, economic and social aspects.  
2.4.1 Climate Change Risks
Climate change risk is one of risks in sustainable supply chain. The effecting caused by climate might have a disruptive shock. For example, there had a drought hit Pakistan in 2012 and thus heavily caused the cotton invested in this region. As the result, the cotton purchase by some European apparel companies forced the higher cost on it. There also have some examples about climate risks in supply chain. The flood in Thailand in 2011 caused the crisis about electronic components over the world.
2.4.1 Economic and Social Risks
Economic and social issues are the risks in the sustainable supply chain. Labor problems are an important factor. Firstly, the mobility of labor force is the common issues in this economical society.  And another problem is about using illegal labor. Nowadays, some enterprises shorten their cost and outsourced manufacturing. Sometimes, the outsourced companies have no assurance to their employees and even hired the illegal labor such as Nike was using child labor in its supply chain in 1990s.

Sustainability in Supply Chain  代寫
 
3.0        Conclusions
3.1        Current status
Many companies are associated with suppliers on a variety of information management. The purpose is to strengthen the cooperation, and promote the effective exchange of information related to sustainability. As a result, the stakeholders get the needed messages through information sharing. It is not only to eliminate the work duplicated, but also can reduce the cost and get better management of risk. The suppliers also can through such activities to create strategic advantages -- to become the preferred supplier is the one of the best results.
As the project on carbon emission using in supply chain for example which was launched in 2007, is part of a carbon project with independent and non-profit, and aims to collect relevant enterprises’ greenhouse gas emissions data. By helping 50 members in carbon emission measurement and management and to corporate with suppliers better, this program provides a global process along with the supply chain to disclose carbon emissions. One of the participants is the giant of Anglo-Dutch sales packaging products company – Reckitt, which completed target of a 20% reduction in carbon emissions in 2012, ahead of 8 years longer than originally planned.
At the same time, the business ethics data exchange system, called "Sedex”, provides a security platform for sustainable information exchange through an online database for more than 25000 suppliers and customers around the world. This online database can use for members to share storage, and publishing the sustainable development information, and also including self-evaluation and the third party social audit results.
In addition, thousands of global companies are evaluating its suppliers by using a simple, reliable supplier’s scorecards which recording its environmental and social performance through the EcoVadis company where headquarter is located in Paris.
There are special exchange platforms for some industry merging. For example, Fair Factory Information Exchange Center headquartered in New York providing technologies and sharing experiences for its members, to improve the workshops and factory working conditions in the global.
3.2        Future direction.
3.2.1 The Improvement on Purchase Strategy
Leading enterprises realize that the key point is the purchase strategy in the company which is making efforts to achieve sustainability in supply chain. About 39% members in the carbon emissions project and 28% suppliers indicate that putting the sustainable practices into the purchase is a good way to saving cost. And now, there has up to 63% members are training their purchases’ stuffs on supply chain management of carbon emissions -- more than two times that of 2009.
3.2.2 Communication Can Get a Better Decision
Most companies have been submerged in the relevant sustainable dates. But in fact, there are few companies able to dig out the deep insight, thus promoting its suppliers and make better decisions. In contrast, leading enterprises have realized that information management is the key to the successful implementation of sustainability in supply chain. For better information management and cooperation, all enterprises can learn by sharing information.
 
Sustainability is the driving force for enterprises to gain competitive advantage and higher performance. Toward this goal, enterprises need to establish a more collaborative supply chain. Through cooperation with suppliers, to explore new business models, enterprises will gain, even had a chance to create a joint brand. There is still a lot of work to be done before the sustainability in supply chain be wildly used across the industry and region. Through the cooperation with suppliers, to promote the development of mutual interests, leading enterprises toward the established goal step forward.

 
4.0        Reference
 
Fiksel J. 2006. Sustainability and resilience: toward a systems approach. Sustainability: Science, Practice, & Policy 2(2):14-21. , Sep 20, 2006.
 
Kaye Leon, Balancing Resilience and Growth within the Supply Chain, , May 8th, 2013
 
Murino Teresa, Romano Elpidio, Liberatina C. Santillo, Supply Chain Performance Sustainability through Resilience Function, , University of Naples “Federico II”
 
Blanchard Corporate Social Responsibility in the Supply Chain, IndustryWeek, May 14, 2012
 
Cushing Thomas, Supplying Sustainability: Real Leaders Must Look down the Chain
 
Staton Measuring Supply Chain Sustainability – A Growing Imperative, , January 19, 2012
 
Morris How Heineken and Maersk Line Are Reducing Their Environmental Impact Through Collaboration, Associate, Advisory Services Publication Dat2, January 18, 2013
 
Brooks Sarah, How Going "Green" Can Help Your Company’s Reputation, February 7, 2013
 
Bonawandt Christian, A Sustainable Supply Chain Requires Managing Risk, Automating Data, January 31st, 2013
 
Gosselin Thomas, Supply Chain: The New Frontier for Sustainability Risk,    , January 19, 2012
 
Staff  NAEM, , , April 2, 2013   
 
Copeland Ella, Supply Chain companies believe climate change adds risk to revenue
,1 Feb 2013
 
Baier Paul, Supply chain reporting on climate risks reaches new heights, , July 02, 2012
 
Alembakis Rachel, , , , , September 23, 2011
 

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