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It is a noticeable fact that the supply chain management is considered to be one of the most highly acclaimed researchable topics due to the fact that it is effectively implied and implemented in almost all field of business. In this manner, it is considered that the supply chain management process is highly significant and therefore it is considered important to study different paradigm of supply chain management process in the organizational concept. It has been defined that the overall analysis of the process of supply chain management is based on the combination of “supply production” and “logistic function” with an intention to cover the complicated task. It has been appraised that the sustainable supply chain management is apparently based on “resource-based view” along with the “triple bottom line theory” which is considered to be highly effective for integrating sustainability to represent the compelling opportunities and agendas as well.
From the business perspective, supply chain management process is also known as the administration of the stream of merchandise and services which includes the development and capacity of crude materials, of work-in-process stock, and of completed products from the purpose of beginning to the purpose of utilization. Interconnected or interlinked systems, channels and hub organizations consolidate in the arrangement of items and administrations required by end clients in a supply chain management process (Kersten, 2011). In addition to this, the supply-chain management process has been characterized as the "structure, arranging, execution, control, and checking of store network exercises with the target of making net esteem, fabricating an aggressive foundation, utilizing overall coordination, synchronizing supply with interest and estimating execution globally." Supply chain management process mainly practice draws intensely from the territories of the mechanical designing, frameworks building, activities the board, coordination, obtainment, data innovation, and showcasing and therefore takes a stab at an incorporated approach. Marketing channels tend to assume a critical job in the supply chain management process. Current research in supply chain management process is focusing on themes identified with manageability and hazard management among others.
It has been noticed that supply chain management has advanced from manual, coordination and motorization centred improvement to current, computerized, and robotized incorporation and coordination of all store network components (Bruce & Daly, 2010). It assumes an essential job in tending to the developing multifaceted nature of the present worldwide supply chains. Essentially, it encourages and streamlines the stream of items, data, and accounts, enabling organizations to make better relationship esteem and enhance by and large business proficiency.
In any case, to completely understand the potential advantages of supply chain management, organizations should grasp information-driven methodology, since information is the key component in each production network. Information-driven supply chain management takes into account further upper hands, for example, consistent coordination of business components, construction on-read way to deal with store network information the board, and ongoing information straightforwardness (Sehgal, 2012). In this manner, it becomes apparent that the benefit of the supply chain management process is highly extensive and therefore it tends to have a constructive impact on the business. However, it is also a known fact that the entire process of the supply chain management process is evolving. As a result, it is considered essential to conduct additional research on the following topic of supply chain management process to articulate its importance and prominence along with the implication of other latest technological tools which are influencing the overall process of the supply chain management process.
The following research study is determined to emphasize the overall concept of the supply chain management process. A study conducted by Hugos (2012) characterized the supply chain management process as "an incorporating theory to deal with the aggregate stream of a dissemination channel from provider to the extreme client." A later definition derived from the study of Bruce and Daly (2010) states that "supply chain management process is the oversight of materials, data, and funds as they travel through the store network from provider to maker, distributer, retailer, and client." In addition to this, the supply chain management process is also considered as a process through which a product is reached to the production unit and inventory. Later on, the product through an effective supply chain management process is distributed to the retailer for the seller. In recent times, many new elements within the supply chain management process have emerged. Hence, the following research study will explore all of these elements of the supply chain management process with an intention to articulate how effective supply chain management process can benefit the organization.
Before the 1960s, the supply chain management process, "mechanization, logistics enhancement, and warehouse space maximization" were the focal point of store network assistance. Data the board was profoundly manual, while cargo transportation was multi-purpose (Kersten, 2011). Yet, by the 1960s, trucks, in the long run, turned into the fundamental holder, especially for time-subordinate products. This pattern brought about the conceptualization of "Physical Distribution" to encourage a compelling intersection of cargo transportation, warehousing, and materials taking care of. However, by the 1970s, the computerization of information started within the supply chain management process. After 10 years, supply chain management approached PCs, which enabled the process to empower further coordination, enhancement, and advancement (Sehgal, 2012).
Later on, during the 1990s, the ascent of the Internet and other mechanical progressions prompted an ocean change in the administration of the supply chain management process. Organizations wound up intrigued by "supply chain management process (SCM)" and began putting resources into store network the executives' arrangements, for example, "Enterprise Resource Planning (ERP)" with an intention to break data storehouses, guarantee "information precision and accessibility," and coordinate all inventory network capacities (Shah, 2012).
In recent times, organizations are modernizing and digitizing their supply chain management process to intensely work at the edge (Bruce & Daly, 2010). This supply chain management process requires a sweeping cluster of procedures past insignificant coordination improvement and automation with the goal that organizations will have the capacity to beat the problems that are needed to be addressed in the present supply chains.
Supply chain management process difficulties have turned out to be additionally exhausting because of the variable, erratic requests of the present clients. Take for instance the production network difficulties in social insurance (Hugos, 2012). Almost all (90%) of inventory network pioneers state that their best test is client interest for quicker reaction times, trailed by contracting and holding a talented workforce, client interest for lower conveyed costs/valuing, expanding focused power, and rising client benefit desires. In this concern, the following research study will, therefore, address all the main concerns associated with the supply chain management process. In addition to this, recommendations will also be made to highlight how supply chain management process can be further improvised to benefit the organizational setup and management process which could influence the overall supply chain management process.
It has been defined earlier that there are certain issues and challenges which are associated with the supply chain management process. For example, the supply chain management process is getting constantly evolved with the passage of time and therefore new technologies and tools are replacing the old customary method of supply chain management process. In such condition, it has been appraised that it is vital to determine all the critical issues which are typically arising due to the evolvement of the supply chain management process (Kersten, 2011). In addition to this, it is also a known fact that many organization face issues in tracking the entire process of the supply chain management process. In this regard, it has been appraised that the supply chain management process is under great threat and thus it is required to develop a strategic plan to cater all these issues and implement a strategy that could be used to further upgrade and enhance the overall supply chain management process.
The primary aim of the following research study is based on understanding the main concept and paradigm of the supply chain management process. In order to fulfil this aim, several objectives have also been crafted. These crafted objectives are listed below.
The following paper tends to address the research questions which are listed below
The main reason which has motivated or convinced to conduct research on the supply chain management process is that the respective management process is highly effectual for business, mainly those businesses which are working in the area of the manufacturing field. In this concern, this following research is determined to appraise all the paradigm of supply chain management process with an intention to highlight how the respective process of the supply chain management process can be enhanced in order to benefit the manufacturing industry. Furthermore, the main reason behind conducting this research is based on the fact that it will assist other companies in understanding the significance of applying supply chain management process in their business dealing and retailing process as well.
The purpose of this chapter is to provide a critical analysis of sustainable supply chain management in business. This is supported by the basic concept of sustainable supply chain management in the business. In addition to this, the focus of this chapter is on analysis of relevant theory that includes three pillars of environmental sustainability. This includes evaluation of research objectives based on the implication of the literature in the research. The literature review is supported by sustainable supply chain management and evaluate the theoretical aspect of the sustainable supply chain. The analysis of sustainable supply chain management is supported with the real-life example of a business that is making an investment in sustainable supply chain management and earning a higher return from its operations that support to gain a competitive advantage in the market.
It is verified as evolution of the studies in supply chain Management, based on the vehicle pertinent to the area: Production and Operations Management, a focus of concern with efficiency and quality in the movements with emphasis on Total Quality Management (TQM), and following the direction of the studies lies in real - time operations - just in time (JIT). With an emphasis on the creation of chain value, outsourcing and innovation throughout the supply chain. During this period, greater emphasis was placed on aligning strategic issues with operational issues. With the new economic dynamics of market globalization, managers came to understand that profitability was no longer the only element of success for the long run. Wider concerns with people and the environment have come to represent relevant variables in the operational process (Barrientos and de la Mota, 2016). The elements of supply chain management are presented in the following:
Figure 1: Component of Supply chain management
In order to understand the process of a sustainable supply chain approach, it is necessary to understand definitions and concepts that have been worked over the last decades in what concerns the productive chain and its management. There are different views of Supply Chain Management (SCM), an expression that translates into supply chain management, which could be logistics, which effectively include an integrated approach to the various functions of the business supply chain: production, procurement, procurement, logistics and supplier and customer relationships (Genovese et al., 2017). In addition to this, Christopher, (2016) indicated that SCM would be a combination of supply, production, and logistics functions, covering more complex tasks. The definition of SCM as an integrated business vision seems to be the orientation that better contemplates processes and information management in order to add value to clients and other stakeholders.
Despite the growing interest, there is a certain diversity of classifications and frameworks of work and research and in the corporate world where the issues dealt with between the supply chain and environmental and social issues may appear in the supply chain sustainability, environmental management, triple bottom line, green companies, green supply and corporate social responsibility (Touboulic and Walker, 2015). In addition, topics such as green purchasing strategies, environmental purchasing, green marketing, products with environmental differentiation, reverse logistics, sustainable labelling, product lifecycle, product return, recycling, material replacement, material reuse, final disposal, reconditioning and remanufacturing are examples of the wide range of possibilities for sustainability operations approaches. The application of sustainable supply chain management is based on the following elements:
Figure 2: Sustainable development
The theoretical aspect of the sustainable supply chain is based on the resource-based view and triple bottom line theory. The three pillars of sustainability are defined as economic growth (profitability); Environmental protection (planet) and equality (people). Specifically, the economic aspect is commonly known, which is the key element to ensure the survival of the company; short-term profitability (Elkington, 2013). About this, it has been identified that value that a company generates for society, in the long run, is doing the right thing, should also be taken into account in business practices. An approach that considers the natural and social environment in which a company operates and the impact it has on it fulfils its full contribution to society. There are already companies that operate like this, such as Ford, included this in their values by calling the relationship with customers, employees and the license to operate community (Fredendall, and Hill, 2016). This has to incorporate sustainability that represents compelling agendas and opportunities.
Figure 3: Triple Bottom line
In this aspect, the resource-based view presented the global challenges of the scarcity of natural resources will inevitably be limiting economic activity. The company's ability to deal with such restrictions leads to a model that ranges from pollution prevention to sustainable development, through the particular knowledge process of the entire product chain, product stewardship (Hitt, Carnes and Xu, 2016). The initial arguments for sustainable development are green is gold that is gradually replaced by resource-based arguments and the company's ability to exploit these challenges. Several empirical studies follow the RBV as a way of evaluating the environmental strategy. But the study of the formation of strategies in the interaction with stakeholders seems the most promising. The treatment given to the demands and the configuration of the answers elaborated in the interaction with primary or secondary stakeholders demonstrate the insurgency of advanced socio-environmental attitudes (Formentini and Taticchi, 2016). This movement is certainly part of the evolution, both in its perspective and in focus, of the business strategy debate. Theories generated by the industrial organization explored the differences between industries and economies of scale; the theory of distinctive resources explores organization and economies of scale and scope. The increasing complexity of the environment imposes the need for the development of dynamic capacities through the relationship portfolio
Environmental practices could be generating competitive advantage using low-cost strategies or differentiation according to the competitiveness dimensions. The management of natural resources efficiently and the reduction of losses in the productive process are sources of cost reduction (Dubey et al., 2017). These practices could also lead companies to achieve differentiation in the international context, where environmental restrictions were increasing. Additionally, regulatory pressure would also be a stimulus to innovation in companies, overcoming inertia and encouraging creativity in organizations.
On the other hand, the cost advantage is further endorsed in the applied process of supply chain including initiatives such as eco-centric management and design for disassembly. The proposed eco-centric management contrasts with the traditional model in order to align the business management with the environmental impact management, one of the consequences of the reduction in the use of inputs (Khalid et al., 2015). The result is the development of proprietary processes and products. The construction path of these processes and products can make them valuable assets for the company. The proprietary process concept is aligned with the Resource-Based View (RBV), which focuses on the distinctive features of the firm as a source of competitive advantage. However, the discussion of environmental strategies is a little far from the arguments of cost leadership, eco-efficiency or specific products. Even acknowledging these strategies as forms of competitiveness the evidence for the advantage is not so clear or obvious (Meixell and Luoma, 2015). Within the concept of best practices, several environmental strategies can be imitated and would only bring competitive parity to companies.
The concept of sustainability emerged from the United Nations report in which sustainable development was defined as Development that knows the needs of the present without compromising the ability of future generations to meet their own needs (Touboulic and Walker, 2015). The sustainable supply chain assumes particular relevance when recognizing that processes by which business find those responsible for directing the use of materials, energy and water, as well as important generators of pollution emissions. It is not without foundation that business find in the literature and the collective understanding of society, statements such as the most commonly perceived enemies of environmental protection are manufacturing and production operations (Mota et al., 2015)
The supply chain aims to provide the best service at the lowest possible cost. In this regard sustainable means minimizing the environmental impact to ensure a positive social impact. In addition to a company's contribution to the solution, a sustainable supply chain is also a very good business that reduces business cost and increases its benefits as it implies that consume resources efficiently, optimizes production and available active logistics (such as warehouses, transportation, factories, inventory).
Additionally, this supports the business to consider their products throughout its lifecycle and its overall impact on the environment. Moreover, it establishes commitments with your trading partners that have common goals, reduces waste and costs, as well as improve service and quality (Hugos, 2018). These points positively impact the profitability of the business, transforming the supply chain into a value generator, as well as being a very powerful message for customers and society in general.
Sustainable supply chain plays an essential role for companies that want to intensify their ecologically sound processes and social responsibility while increasing their economic success. For example, a South Korean company has shipped its products to Hong Kong from the air to the sea mode, resulting in a 27% reduction in costs and a 28% reduction in emissions, with average transit time only increasing by 6% (Luthra, Garg, and Haleem, 2016). In addition, studies by the Harvard College of Economics show that better practices in route design, truck loading, driver training and the use of advanced technologies can improve fuel efficiency by about 87 per cent, 15 thousand tons of carbon dioxide emissions and savings of about $ 11 million. Furthermore, Deutsche Post DHL Group has a corporate GoGreen program, which supports sustainable business practices (Silvestre, 2015).
In addition to a sustainable supply chain, it has the obvious contribution to the environment, has real benefits with a financial impact. These come primarily from the key concept of sustainability to reduce inefficiencies and waste (Barrientos, and de la Mota, 2016). These practices applied to all production and logistics processes along a more efficient distribution of the product, which is one of the major sources of benefits, and decrease the consumption of materials and costs of the production unit. The initial step in achieving carbon neutrality is to inventory the greenhouse gases generated in the chain. This implies clarity from these gases, the activities to generate them and sources should be included in the accounts. Silvestre, (2015) indicated that many large companies have begun to strive to achieve this goal, including Dell, Google, and HSBC. In order to obtain a carbon-neutral chain, business needs to incorporate, in business management, indicators that help determine the level of emissions from business operations.
The time to create this awareness has passed. If the business is not aware today, then it is not a global leader in the business world. Now, once business practices are completed, it's just the moment the project starts. Some of the biggest references of recent years have been companies that encourage other corporations to adopt best practices and to innovate its supply chain. Wal-Mart, for example, opened up more shelf space for sustainably grown products and cut 20 million metric tons of greenhouse gas emissions from its supply chain. Pepsi, in turn, demanded a better accounting of greenhouse gas emissions from its orange producers. GE recently announced the largest purchase of electric vehicles in history. There were 25 thousand cars. Companies that push other companies toward sustainable practices generate real results (Fredendall, and Hill, 2016). It has been found that innovation creates new opportunities and inevitably leads to an environmentally sound future.
There is ample evidence to suggest an understanding by the business community of the gravity of the environmental situation. Decisions to minimize impact and create sustainable business are made in meeting rooms and go far beyond simple, quasi-virtual measures (Hugos, 2018) It has been identified that commercial interest in sustainability is genuine, even if it is for own business benefit. Companies must continue their mission of eradicating poverty and giving everyone access to basic services, recognizing that they respect the limits of the world. The consumer begins to notice changes in posture.
From the analysis of the literature, it has been identified that there is extensive research on supply chain management and sustainability in it. However, discussion about the companies that applied sustainable supply chain management is limited. Moreover, research about sustainable supply chain management as the source of competitive advantages is not yet analyzed in detail. In this aspect, the research has contributed to evaluating sustainable supply chain management as the source of competitive advantage and its impact on the environment.
The analysis of the literature revealed that supply chain management is a combination of supply, production, and logistics functions, covering more complex tasks. It has been found that a sustainable supply chain is based on resource-based view and triple bottom line theory that has to incorporate sustainability for representing compelling agendas and opportunities. The empirical evidence shows that resource-based view as a way of evaluating the environmental strategy. Additionally, the relevant theory explores organization and economies of scale and scope for developing sustainable business practices. It has been found that sustainable practices could be generating competitive advantage using low-cost strategies or differentiation according to the competitiveness dimensions.
Mota, B., Gomes, M.I., Carvalho, A. and Barbosa-Povoa, A.P., 2015. Towards supply chain sustainability: economic, environmental and social design and planning. Journal of Cleaner Production, 105, pp.14-27.
What review question am I asking of this text?
Research Question: How supply chain sustainability is influenced by economic, social design, environmental factors and planning?
The main reason behind the selection of this text is that is focused on the wider aspect of the supply chain management process and therefore gives an idea that how different factors can further enhance the overall value of the supply chain management process?
What type of literature is this?
The literature is based on the theoretical research in which additional research has been conducted to assess the factors which are contributing towards the supply chain sustainability.
What sort of intellectual project for the study is being undertaken?
a) How clear is it which project the authors are undertaking?
The authors are undertaking “knowledge-for-action to help companies in understanding the factors which are contributing towards the supply chain sustainability.
b) How does the sort of project being undertaken affect the place of theory?
The project being undertaken to influence the place of theory by developing a "social science theory" along with investigative informed theory to articulate the factors which are contributing towards the supply chain sustainability.
c) How does the authors’ target audience affect the reporting of research?
The authors in the following article recommend an action plan which could be implemented by different companies to improve the supply chain management process.
What is being claimed?
What are the main kinds of knowledge claim that the authors are making?
The authors are presenting theoretical knowledge along with practical knowledge related to supply chain management.
b) How clear are the authors’ claims and overall argument?
The abstract, introduction, along with argumentative literature and conclusion were clearly inscribed by the author.
c) With what degree of certainty do the authors make their claims?
The authors acknowledge other’s counter-evidence to validate their claims.
d) How generalized are the authors’ claims – to what range of phenomena are they claimed to apply?
The author’s claims are wholly generalized and therefore they can be implemented universally by all the companies to improve the supply chain management process.
To what extent is there backing for claims?
a) What, if any, range of sources is used to back the claims?
The literature review of practical knowledge has been used as sources to support the claim.
b) If claims are at least partly based on the authors’ own research, how robust is the evidence?
The sources are highly adequate but there are certain flaws in the methodological part as there is no specified primary research. However, the use of triangulation of accounts along with effectual data analysis using ReCiPe and the social indicator has increased the value of the research. The summary of the report also outlines all the major aspect of the research study.
To what extent are claimed consistently with my experience?
The claims are extensively consistent with my experience.
What is my summary evaluation of the text in relation to my review question or issue?
a) How convincing are the authors’ claims, and why?
The main factor which makes the author's claims convincing is that it entails all the significant information and sources along with techniques which convince individuals to believe on the importance of supply chain management planning.
b) How, if at all, could the authors have provided stronger backing for their claims?
The author could have provided stronger backing for the claims by using a primary source to collect data from professional supply chain managers.
Barrientos, A.H. and de la Mota, I.F., 2016. Modelling Sustainable Supply Chain Management as a Complex Adaptive System: The Emergence of Cooperation. In Sustainable Supply Chain Management. InTech.
Bruce, M., & Daly, L. (2010). Lean or agile: A solution for supply chain management in the textiles and clothing industry? International Journal of Operations & Production Management, 24(2), 151-170.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S.J., Shibin, K.T. and Wamba, S.F., 2017. Sustainable supply chain management: framework and further research directions. Journal of Cleaner Production, 142, pp.1119-1130.
Elkington, J., 2013. Enter the triple bottom line. The triple bottom line (pp. 23-38). Routledge.
Formentini, M. and Taticchi, P., 2016. Corporate sustainability approaches and governance mechanisms in sustainable supply chain management. Journal of Cleaner Production, 112, pp.1920-1933.
Fredendall, L.D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Genovese, A., Acquaye, A.A., Figueroa, A. and Koh, S.L., 2017. Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega, 66, pp.344-357.
Hitt, M.A., Carnes, C.M. and Xu, K., 2016. A current view of resource based theory in operations management: A response to Bromiley and Rau. Journal of Operations Management, 41(10), pp.107-109.
Hugos, M. H. (2012). Essentials of supply chain management (2nd ed.). New York: John Wiley & Sons.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kersten, W. (2011). International supply chain management and collaboration practices. New York: Books on Demand Press.
Khalid, R.U., Seuring, S., Beske, P., Land, A., Yawar, S.A. and Wagner, R., 2015. Putting sustainable supply chain management into the base of the pyramid research. Supply Chain Management: An International Journal, 20(6), pp.681-696.
Luthra, S., Garg, D. and Haleem, A., 2016. The impacts of critical success factors for implementing green supply chain management towards sustainability: an empirical investigation of Indian automobile industry. Journal of Cleaner Production, 121, pp.142-158.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley & Sons.
Meixell, M.J. and Luoma, P., 2015. Stakeholder pressure in sustainable supply chain management: a systematic review. International Journal of Physical Distribution & Logistics Management, 45(1/2), pp.69-89.
Mota, B., Gomes, M.I., Carvalho, A. and Barbosa-Povoa, A.P., 2015. Towards supply chain sustainability: economic, environmental and social design and planning. Journal of Cleaner Production, 105, pp.14-27.
Sehgal, V. (2012). Enterprise Supply Chain Management (3rd ed.). John Wiley & Sons.
Shah, J. (2012). Supply Chain Management (2nd ed.). New Delhi: Pearson Education India.
Silvestre, B.S., 2015. Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories. International Journal of Production Economics, 167, pp.156-169.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a structured literature review. International Journal of Physical Distribution & Logistics Management, 45(1/2), pp.16-42.