MK 7041- Managing Sustainable Global Value Chains Assignment Sample 2024
1. Introduction
Supply chain management is considered as the process of managing the entire supply chain associated with the retail organizations quite adequately. The supply chain management of the retail industries seems to be quite different from the other modes of supply chain and needs to manage a huge volume of products. Despite that fast-moving nature of the product line needs to be maintained and it needs to be monitored continuously and made free from any kind of defects quote adequately.
This assessment aims to maintain sustainability in performing the supply chain activities properly. As argued by Silvestre et al. (2018), the challenges that seem to be arising for maintaining sustainability and reducing the level of pollution seem to provide benefits for environmental, economic as well as social activities.
The challenges for retail industries are increasing cost throughout the supply chain due to the rise of e-commerce. The rising cost of fuel has been creating a huge number of problems for delivering the products at the doorstep for every customer. As argued by Goworek et al. (2020), in the global supply chain in retail markets complexity has seemed to be increasing for the beginning of multiple channels.
Apart from that, an uncertainty has seemed to be arising with the fluctuation of prices while maintaining the supply chain operations and tools a keen insight for the availability of the resources. The customers were willing to grab their ordered retail products with an improved speed, services as well as by maintaining the quality. The major challenge is the lack of awareness among the employees as well as among their employees for maintaining supply chain management.
The UK is considered as the largest market for clothing as well as other retail shops and it adds up to 5% of the Gross Value added for the economy. On the other hand, it has been identified that the annual growth rate for online retail sales increases to 45% (Retail Economics.co.uk, 2020). Standing in this situation despite the application of Brexit the retail industry is increasing rapidly and the rate of pollution is also increasing with it. As argued by Ghadimi et al. (2019), in order to reduce pollution and maintain sustainability in the supply chain it’s been appropriate for choosing the country as well as the industry.
2. Academic literature review
Concept of supplier selection
Supply chain management is considered as an important part while maintaining the business operations quite adequately and enhances the satisfaction of their customers. The supplier selection process is also important as it helps retail firms identifying, evaluating and maintaining the contracts with their suppliers.
The main objectives that seem to be arising are to reduce the risk of purchasing, maximize the value of their purchaser and develop long term relationships between the buyers as well as the suppliers. As argued by Köksal et al. (2018), apart from that supplier selection also helps to reduce the risk that is currently arising in the retail business. Selecting an important supplier helps in determining success and failures is based on their hands and organizations also need to maintain these facts quite well.
Primark is one of the giant organizations in fashion retail and due to the application of Brexit and pandemic situation the supply chain management gets completely disrupted. The organization already seems to be facing £1bn losses and shows its ethics in maintaining a healthy relationship with its suppliers (BBC.com, 2021). The organization has cancelled most of their orders that are provided for their suppliers and buys the products that have been prepared by them for not to create trouble for them in these tough situations.
Apart from that, the organization is willing to use organic cotton for the preparation of their clothes as it does not need to grow with the use of toxic dyes, chemicals and pesticides. In this way, organizations can enhance their sustainability and build healthy relationship with their suppliers.
Sustainable supply chain management in maintaining global supply chain
The global supply chain is an operation that an organization performed while maintaining their business by maintaining sustainability quite adequately. As argued by Silvestre et al. (2018), most of the organization currently aims to reduce the pollution and carbon emission to zero in the coming years. Tesco is one of the largest retailers in the markets of UK has adopted several plans for reducing the wastes, emission of carbon and removing unwanted plastics from their supply chain activities.
However, it has been identified that Tesco has been delivering their products by using 30 electric vans that are controlled by charging and do not eliminate carbon emission (Tescoplc.com, 2021). The organization within 2045, is aiming to reduce the pollution level to zero and for this purpose, they were looking to maintain sustainability in their supply chain management.
Tesco is conducting their sustainability by using the Little Help plan that minimizes their supply chain issues as well as maintains their internal operations. As argued by Goworek et al. (2020), the present organization seems to be focusing on using soft plastics that do not create any kind of pollution and can be reusable. Apart from that, organizing fifty million plastics from the bottles of beers and making the environment free from plastics (Tescoplc.com, 2021).
Tesco is also looking to enhance their organic farming as most of the people have provided a keen interest in their health and the use of pesticides and fertilizers does not get used in this farming. In this way, the food that gets generated is fresh and healthy as well as does not create any kind of environmental problems.
Mitigating approaches to deal with the challenges
The increased amount of cost in the supply chain raises the prices of any kind of products and ultimately the bargaining power for the suppliers gets enhanced. As argued by Köksal et al. (2018), the main causes for rising prices are increasing fuel rate and delivering the products for their customers. In order to mitigate these steps and maintain sustainability most of the organization is looking for electric vehicles.
The manufacturing retail organizations such as Hyundai, BMW are looking at the facts of Tesla as their sales have grown to a huge extent and also planning to introduce their cars that run by charging. Initially, Norway has become the first country in which the sales of electric cars has increased the sales rate of other cars. However, it has also been identified that Hyundai is the only manufacturer of battery-electric, plug-in electric vehicles in Europe (Hyundai.com, 2021).
Despite that most of the organization is looking for these steps to minimize the rate of pollution rapidly in their supply chain management globally. As argued by Silvestre et al. (2018), innovative design and packaging of goods can emit a huge amount of carbon emission and it can be identified by watching the facts of Beyond Meat. The organization has replaced their traditional products which creates 99% less use of their products and minimizes 90% of the greenhouse’s emission of gases (Bcg.com, 2020).
On the other hand, in order to enhance the efficiency of their operational resources and maintain their sustainability, PepsiCo has developed various plants and seemed to have saved $80 million from 2011 to 2015 by maintaining water conservation (Bcg.com, 2020). However, these necessary steps need to be followed for maintaining the climatic change, environmental degradation and other associated factors linked with the supply chain.
Most retail organizations are looking to enhance the localization of their products for maintaining sustainability in the supply chain network. However, to maintain this situation, wheat that is used in Weetabix cereal seems to be harvested less than 50 miles from the manufacturing plant (Bcg.com, 2020). Another approach that seemed to arise is the adoption of circular economy models and identifiers that Kellogg’s and Seven Brothers Brewery have partnered to create a Beer.
The ingredients that seem to be used for its preparation are substantially by-products from Kellogg’s production houses (Bcg.com, 2020). In this way, the wastes that seem to be created for the manufacturing of the products turn into wastes and creates pollution for the environment. The innovative approach of using these materials and transforming them with various kinds of modifications for the preparation of beer is an innovative step.
The global supply chain strategies seem to be turning into new steps and all of the organizations are willing to reduce the level of pollution from their workplace. As argued by Ghadimi et al. (2019), due to these reasons, organizations start planting trees while each of the customers purchases any kind of products from them and it helps them to make greener and maintains their responsibility.
The e-commerce organizations create a huge amount of pollution than others as they need to deliver their products for their customers. Analysing this approach Amazon has decided to deliver their products by using Drones for minimizing the rate of pollution to a huge extent (Bcg.com, 2020).
3. Country case
| Political | Political environment of UK is considerable, as it has experienced a bad situation for Brexit. Covid has changed entire situation of retail industry and it is suffering from financial degradation. Government supports retail industries to expand the international market and UK imports clothes for almost 10 billion pounds (Phan, 2021). However, fiscal policies, trade tariffs, and taxation policy of government in reducing the efficiency of fashion retail industry. UK government prefers to get subsidiaries from retail industries to improve important export policies. |
| Economical | The economic condition of UK is excellent as it has largest retail sector, and the manufacturing sector of UK sells different types of products in international countries. Production cost in UK is very less and it is supporting global supply chain values through its giant e-retail services. Retail industry contributes almost 5% of GDP to UK economy and it follows fast-fashion supply chain services (Phan, 2021). The switching cost of the retail industry is very less in UK as manufacturers produce things after analysing requirements of customers. |
| Social | Social values sometimes affect the retail industry of the UK, as customers prefer to change their requirements to try products of new brands (Koberg and Longoni, 2019). However, UK fashion retail industries are using sustainable raw materials and technologies to produce organic products for customers. Different religious people are there with different choices, retail industries try to meet the requirements of all kinds of customers through their unique brand values. Retail industry helps local people to showcase their strongpresence; moreover, retail companies have chosen most demandable television channels to promote their products. |
| Technological | Technological implementation is everywhere and UK retail industry is improving its manufacturing system with the help of tech giants of UK. Electronics retail is an innovation of UK and local manufacturers sell their products through e-commerce sites. Digital marketing is increasing brand popularity in retail industries of UK. Supplier selection must be an effective approach to digital marketing, for instance, retailers have to choose those people who will maintain loyalty to customers. As critiqued by Kim and Chai (2017), Amazon and eBay are helping household retail companies to sell their products at a reasonable rate. UK must be a good choice for retail industry to start their new brands; however, competition in UK retail industry is increasing day by day. People are getting financial freedom through e-commerce sites and they can be paid without involvement of direct content. |
| Legal | Legal factors are also important for UK retail industry and companies to support Consumers Act to support regulations of local government (Esfahbodi et al. 2017). Rules and regulations of government are very good and UK government helps local people to save their money. |
| Environmental | UK retail industry maintains environmental protection laws to reduce the overall carbon footprint from country. UK government has implemented strict rules for the manufacturing sector to reduce usage of animal body parts in cloth production. As stated by Bessière et al. (2019), greenhouse gas emission has increased by 10% in his current year, which must be mitigated through using renewable resources. Fashion retail companies have to take responsibility to mitigate usage of such non-renewable resources in production houses. |
Table 1: PESTLE
(Source: Phan, 2021)
4. Industry case
Retail industry is increasing in popularity day by day and retail industry of UK is very popular in the global supply chain market. The retail industry is improving its internal economic outcomes to integrate global market opportunities through its circular economic system. Managing sustainability is somehow challenging for the global supply chain management system.
However, retail industry of UK is managing the economic environmental system and it is evaluating production development for each global market (Koberg and Longoni, 2019). Number of firms is increasing and the retail industry is bringing a competitive landscape in comparison to other industries. Base value of customers is changing and they prefer to purchase unique from retail companies at low cost.
Supplier selection is a common part of the retail industry as it depends on global market capitals. Current assessment has considered the retail industry as it deals with warehouse management, logistic management, customer requirements, manufacturing sector, and supply chain system. Retail industry is responding in a good manner to global supply chain system as it has implemented a cost-saving approach.
As argued by Busse et al. (2017), manufacturing department of retail industry is creating success through their opportunities approaches. Several opportunities are there for manufacturers such as innovative product design approach, sustainable supplier cost, effective operational resources, circular economic system, and optimized global retail chain network (Koberg and Longoni, 2019). All these opportunities are interlinked with retail industry of UK as retail industry follows post-consumer recycled tools for packaging products.
UK retail industry is making a huge profit by providing unique cost-effective products to suppliers or customers. As an instance, the popularity of Tesco, ASDA, and Sainsbury is increasing for its opportunistic manufacturing services. Internationalization, private brand expansion, boutiques, retail migration, mass merchandisers, and services are some trends of the UK retail industry.
As critiqued by Barbosa-Póvoa et al. (2018), manufacturing sector of the retail industry is reaching its mark through a franchise, chain acquisition model, joint venture system, and organic product planning. Retail industry is responding to global market dynamics through customer-centric approaches. Brands are expanding their network and capturing insights from customers before launching any products. Global supply chain management can help retail industry to drive an ethical selling system; moreover, the retail industry is selling its product after analysing lifestyle of a customer (Koberg and Longoni, 2019).
The research paper has provided a brief description of regarding global supply chain management system. Additionally, it has derived static and dynamic issues of supply chain; issues can occur in supplier selection, resilience approaches, and product development of a retail company (Gouda and Saranga, 2018).
A long step is there in supplier selection of retail industry; first stage is evaluating offers, second stage is an observation of operational capacity, third stage is a determination of technical capabilities, and fourth stage is financial analysis. Manufacturing department is capturing a market share of global market through this procedure and retail industry is discovering collaborative activities of local suppliers.
In order to get opportunities in global market, industries have to know the specifications of local suppliers. Tactical and operational are two types of key decisions that have been adopted by the retail industry to respond to the global supply market. Many pillars are there to meet requirements of global supply chain values such as environmental pillar, economic pillar, social pillar, and sustainability pillars (Thorlakson et al. 2018). An industrial application can help industry reach its potential values; all these are some reasons for choosing the manufacturing sector of retail industry.
5. Conclusion and recommendation
Based on the above discussion, it can be concluded that global supply chain management is improving its service policies. Current assessment has been considered retail industry to evaluate importance of sustainability in international market. Overall popularity of retail industry is very opportunistic and fashion retail brands are supplying a huge amount of money to customers. Manufacturing department of fashion retail brands e increasing environmental pollution, which can be reduced with help of sustainability.
Blockchain technology to maintain an end-to-end transaction system, digital supply twins, circular supply chain, green process, cloud-based services, and advancement of artificial intelligence are some core reminders of future global supply chain management systems. The research has analysed the supplier selection process of retail industry to respond to a global market and it has provided an authentic description grading retail industry of UK. Present assessment has fully analysed literature of different secondary articles, moreover, it has prepared some solutions regarding sustainability in the retail industry.
Recommendation
- Based on analysis, it can be recommended that managers can develop a strong trustworthy relationship with their supply chain managers to meet requirements of global supply market. Suppliers have to integrate innovative technologies at their manufacturing department to produce products within a short time frame (Esfahbodi et al.2017).
- Visibility or transparency of supply chain management system can be increased with the help of manufacturing managers. Loyalty of global retail industry has to be improved and members have to fulfil demand of customers (Alikhani et al. 2019). Automation is necessary for manufacturing sector and warehouse managers have to showcase measurable impact of sustainability.
- Sustainability can be done by engaging a skilled informational technology workforce, as they will use urination services to reduce environmental pollution. Retail manufacturing companies can use renewable resources such as biofuels, wind energy, and solar energy to produce products (Alikhani et al. 2019).
- In order to achieve a good rating in global supply chain management system, companies complement a strong project plan within manufacturing sector (Chen et al.2017). Suppliers of a retail company have to improve their distribution strategy and need to cover all the aspects of customers.
- Business managers of the retail industry have to prepare a proper lesson plan for improving decision-making approach of retailers. As argued by Kim and Chai (2017), quality of warehouse, logistic system, and retailing has to be improved by business managers of retail companies. It can be said that retail companies can implement cross-functional technologies at their workplace to attract potential investors.
- UK retail industries can arrange different types of sustainable programs to aware employees of environmental pollution. It is necessary for retail companies to arrange different types of training for practicing sustainability within an organization (Gardner et al.2019). Proper training can improve supply chain visibility and business-to-business marketing approaches.
Reference list
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