1. ….
2. …
3. How does a company's supply chain relate to determining the sustainability of an
organisation's operations? Explain your answer, supporting your view with examples
from the article
Since the mid-1990s, supply chains have increased their strategic importance in
organizations, mainly due to how much they handle (Emiliani, 2010). It is defined as "a
series of companies, including suppliers, customers, and logistics providers that work
together to deliver a package of value goods and services to the end customer" [Maloni
and Brown, (2006). Supply Chain Management has become the dominant approach in
today's era of globalization and technological development. Supply Chain Management is
used by large corporate companies to manage and optimize the flow of goods and
services from suppliers to violations. In this context, dynamic companies tend to adopt
several strategies, including integrating SCM with their overall business strategy. One of
the key aspects of this integration is the operational sustainability of the organization.
Organizational operational sustainability is key in ensuring that a company can operate in
an environmentally responsible manner while ensuring long-term business sustainability.
This concept includes efficiency in the use of assets, competitive position in the market,
and profitability. In the context of SCM, operational sustainability can be achieved by
improving performance to be better than before, this can be by improving customer
service, reducing waste, and ensuring negative impacts on the environment (Such as
reducing toxic waste in rivers or e-waste waste that can no longer be treated), ensuring
minimal negative impacts on the environment (This can have an impact on the
environment of communities that may be affected, such as using supply companies that
employ workers inhumanely or employ minors to reduce production costs), and by
providing competitive advantage.
To optimally implement this concept, the company requires significant restructuring. This
includes reclassifying employee duties and responsibilities to focus on change goals,
reducing process complexity, and developing new capabilities.
Although SCM has been proven to improve organizational performance, determining
how operational sustainability contributes to organizational performance is still a
challenge. This formulation requires examining various internal and external aspects, as
the success of SCM depends on the successful integration of various SCM partners.
Industry operational activities involve a variety of activities, such as purchasing, selling,
sharing, and exchanging information with SCM partners and stakeholders. Thus, the
company's supply chain through SCM, serves as a new framework for managing the flow
of goods and services.
Supply chain behavior can have a significant influence on a company's performance. In
simple terms, supply chains can involve a series of organizations ranging from supplier
suppliers to customer customers, and various works have focused on all these aspects
(Ellram and Cooper, 1993; Novack and Simco, 1991; Jones and Riley, 1985). Therefore,
this supply chain is a very influential factor in the operations of an organization and one
way to ensure the organization runs continuously, a supply chain that contains ethical
values is needed. Ethics in supply chains has become a prominent issue in business
studies and can affect business competitiveness. Ethical responsibility in the supply chain
includes fair and consistent practices, as well as the need to act responsibly in all
activities from product sourcing to end consumers. Although purchasing and logistics
managers have significant influence, research on ethics in supply chains is still limited
and needs to be further expanded to understand what drives companies to adopt ethical
attitudes.
One example of a supply chain as explained in the article, is how the source of a product
can influence society today. Society has begun to realize that the supply chain in a
company, especially large companies, is an important thing to pay attention to. So as
explained in the previous paragraph companies need to pay attention to various aspects
involved in the product, ranging from suppliers, whether the company that is a supplier
has implemented a good and correct ethical supply chain, to the people involved in its
promotion. Whether the person hired to promote the product has never committed any
ethical violation is a matter worth noting.
Recommendation
In general, big companies these days use Supply Chain Management (SCM) as their practice for
managing and optimizing flows of goods from the supplier such as raw materials (like Nestle
needs a chocolate supplier for making their products, and also some other companies that might
need a supplier from another organization). But, to ensure long-term sustainability dan fulfill the
society needs to become more aware of sustainability and ethics, companies must turn to
Sustainable Supply Chain Management (SSCM).
The focus on SSCM is not only focused on operational efficiency and cost reduction, but also
incorporates sustainability principles (economic, social, and environmental) into SCM practice.
One of the key aspects of SSCM is the operational sustainability of the organization, which
includes efficiency in asset use, competitive position in the market, and profitability. To achieve
this operational sustainability, companies need to undertake significant restructuring, including
reclassification of employee duties and responsibilities, reduction of process complexity, and
development of new capabilities.
The implementation of SSCM makes it possible for a company to increase their performance
more sustainably, like increasing in service for the customer, decreasing waste, and minimizing
negative impact to the environmental. This includes reducing hazardous waste, ensuring fair and
ethical work practices throughout the supply chain, and providing competitive advantage through
sustainable differentiation.
In addition, ethics in supply chains has become an increasingly important issue in business
studies. Companies need to ensure ethical practices throughout their supply chains, from
selecting suppliers that adhere to ethical and sustainability standards, to ensuring that their sales
and marketing forces never violate ethical principles.
By implementing SSCM, companies will not only improve their operational performance but
also build a good reputation in the eyes of customers and other stakeholders. This will help the
company in achieving long-term sustainability and maintain (Aizhan Tursunbayeva, 2020)
competitiveness in today's global market.
References
Aizhan Tursunbayeva, C. P. (2020). The ethics of people analytics: risk, opportunities and
recommendations. 9.
Qinghua Fu, A. A. (2022). Sustainable Supply Chain and Business Performance: The Impact of Strategy
Network Design, Information system, and Organizational Structure. journal of sustainabilty, 2.
Sebastian Emanuel Stan, T. G.-T. (2023). SUPPLY CHAIN MANAGEMENT CONTRIBUTION TO
ORGANISATIONAL. Management of Sustainable Development, Journal, volume 13 no 1, 48-49.
Yahaya Yusuf, A. H. (2014). Ethical supply chains: analysis, practices and performance measures. Int. J.
Logistics Systems and Management, Vol. 17, No. 4, 2014, 4.
