Assignment Sample on Sustainable Supplychain Management
Introduction
Supply chain sustainability is accounted as a business issue that is identified to impact the supply chain as well as logistics network in terms of environmental, waste and risk cost. It has been observed that a sustainable supply chain aids in seizing up the opportunities of the value chain and simultaneously offer a potential competitive advantage for process innovators. A sustainable supply chain helps in the improvement of productivity by saving money and time. Usage of sustainable resources along with techniques helps to increase the efficiency of vehicles and machinery. The purpose of this consultancy report is to analyse sustainability performance with respect to the case study of “Sustainable Supply Chains – Creating a more sustainable life cycle for products from Electronix Automotive PLC”.
Case study Overview
As per the case study, it can be observed that Electronix Plc is a start-up for electric vehicles which is based in the West Midland area of United Kingdom. The organisation was formed in the year 2015 by entrepreneur Simon Jones. The owner aims to seek success for organisations such as Tesla which is accounted as a potential market for high-end luxury vehicles. From the case study, it can be further observed that Electronix Automatic Plc contemplates involvement in a wide variety of designs, manufacturing, development as well as the marketing of automobiles. The firm is ready to launch its Electronix Pegasus 4S as its first product and is set to launch in Q2 2022 which has been delayed due to the outbreak of the Covid-19 pandemic. Productions of the vehicles have been contracted in terms of secured lines of assembled vehicles within production lines and thereby addressing difficulties of manufacturing.
Analysis of sustainability performance
Quantified analysis of CO2
The automotive industry is accounted as one of the key influential industries which involve design, development, marketing of automobiles and their spare parts accordingly. The industry is accounted as the major contributor to the economy of UK and also contributes to the well being of the individuals residing. It can be observed that Electronix Plc is a start-up for electric vehicles which is based in the West Midland area of UK. The Electronix Pegasus 4S is accounted as the first product. The car has been built with a philosophy of sustainability along with environmental consciousness. The body panel of the vehicle is produced from the innovative material known as Plastica which contributes to around 95% of the post-consumer plastic waste. ‘Vegan, Alcantara and Ultraleather’ ensures the provision of environmental commitment. From the case study, it can be identified that for determining an increase in sustainability, Electronix Plc has ensured the establishment of an industrial roadmap. This has been formulated with the help of strong links to the national energy policies and reduction of carbon footprint. All these factors starting from manufacturers, suppliers, companies and customers play individual roles in determining the structural change in the supply chain. The structural changes in the supply chain influence the occurrence of and pattern of quantified analysis of CO2. Quantified analysis of CO2 helps in addressing misalignment in the functioning as actions and reactions continue to rise and fall along the supply chain.
Evaluation of Social Impacts
In terms of social impact, it has been identified that climate change along with CO2 reduction has garnered enormous quantities. Moreover, Electronix Plc is identified to ensure environmental sustainability. In order to avoid stock out situations of inventory during high consumer demands, this strategy is being used to forecast specific demands and procure raw materials from suppliers accordingly. Kot (2018) noted that manufactured within the process of development of an automatic industry which can be traded among manufacturers. In terms of social impact, it seeks to ensure an environmentally conscious image of the organisation in a continuous manner. Furthermore, it also aids to provide cost-effective production and supply solutions thereby reducing consumer carbon footprint. Panigrahi et al. (2019), firms are observed to optimise their value chains with regards to offshoring as well as consolidating bases of a manufacturing base in terms of low-cost economies. This would also ensure stimulation of the demand with respect to biofuels. Reduction of CO2 also ensures in offering support to R&D for seeking promotion of biofuels and fulfils the right number of orders or has unnecessary stock in hand for management. Reduction of Carbon footprint helps managers to predict end-user demand and develop planning for procurement of raw materials, thereby initiating quick and smooth decision making. Organisations can fulfil orders where working with forecasted demands becomes easier for a business. Reduction of unnecessary energy inefficiency is accounted for as an integral step that would aid in the minimisation of carbon footprints. These practices of sustainable industrial along with supply chain helps in reversing the adverse impact of the industry. The usage of “environmentally, friendly and socially” advantageous techniques might help in the improvement of businesses profitability. Utilizing the principles of sustainability, the company would be able to forecast the purchase demand at the consumer’s end and increased their logistic functions to support the growing automotive sector.
Complexities of balancing the environment and social aspects
Sustainable R&D ensures involvement of designing products in terms of reducing environmental impact and optimising the same with respect to usage of natural resources thereby ensuring recyclability. Saberi et al. (2019) affirmed that a balanced environment has certain limitations when being applied in the practical management of supply chains and inventory. Due to the fluctuations in demand which ripples the supply chain, business organisations may face serious consequences by social aspects. Due to the rapid fluctuations of consumer demand in the automobile market, organisations may often result in predicting incorrect outcomes, thereby resulting in mismanagement. Organisations such as Electronix Plc ensure management of inventory can often miscalculate into forecasting wrong consumer demands. This can lead to suffering from unfulfilled orders. Owing to these concerns, Electronics Plc adapts sustainable manufacturing which involves the implementation of maintenance and production processes. This in turn can lead to a reduction of waste products and improvement of recyclability by reusing materials. Here, it has been observed that improper design, operation and evaluation of manufacturing systems within the limitations of renewable source generation is accumulated as the predominant complexities. These concerns further contribute to seeking improvement of the significance of controlling product services by using the methodology of life cycle assessment. It provides visibility to the organisations where companies would be able to calculate the fluctuations occurring in each element of the chain. This would help organisations to determine consumer demands in the market easily and manage their supply chain with accurate procurement of raw materials and assembled parts. Gold and Schleper (2017) noted that organisations adopting this strategy would be able to identify the current technologies and platforms required for the promotion of their activities. Supply chain sustainability would help them connect directly with consumers and suppliers by using popular social media platforms and manage their activities according to their feedback. Sustainable power procurement would also ensure the inclusion of activities such as establishing as well as leasing renewable energy assets which would maximise usage of restorative and regenerative resources.
Benchmark Evaluation of sustainability and its comparison
Current approach to sustainability
As per the case study, it can be recognised that Electronix Plc has adopted contract manufacturing as its current approach to sustainability. Moktadir et al. (2021) stated that contract manufacturing primarily occurs when a small business contemplates hiring another firm in order to seek smooth production of its products. This further enables start-up organisations such as Electronix Plc to corroborate sell of products without obtaining large amounts of capital. This in turn has paved the way for firms that aid to transform the logistics industry thereby creating digital supply chains through the help of automated workflows and the introduction of next-generation technologies. This provides benefits to a business as it enables exploration in business fields and accordingly meat market demands. On the other hand, standardisation refers to a modification of working quality in terms of meeting market approaches. The supply chain of Electronic Miz is identified to seek the entire process concerning product warehousing as well as inventory management, pricing and delivery. Moreover, in the case of Electronix Plc, it has been observed that the production activities are being outsourced with respect to contract manufacturers. Electronix Plc is identified to put up their label along with the packaging of products manufactured by the contract producers. It is considered beneficial as it assists in the minimisation of cost and simultaneously focuses upon the functional areas.
As per the case study, it can be observed that contract manufacturing with Prodrive cannot be continued. This contemplates high cost and would require shipping to the plant of production. On this note, it can be stated that it would require a clear plan for the process of launching highly sustainable products in terms of high-end market reliability. This would ensure the development of innovative materials in UK thereby enhancing the aspects of environmental commitment. Bastas and Liyanage (2018) stated that evaluation of product and services in terms of contract manufacturing determines the growth facilities of organisations in competitive niche markets. Involvement of strategic pricing techniques associated with the development of commercial activities, so that organisations can gain the attention of a targeted audience. Electronix Plc helps suppliers to decide when to send additional goods to the business, while the company monitors the transport and logistics of the goods. This helps in shifting and controlling the activities of suppliers in the business. Application of this strategy in supply chain management makes organisations keep more quantities of stock on hand thereby increasing the costs of holding inventory.
Compare, contrast and critique of case study
The automotive industry is accounted as one of the key influential industries which involve design, development, marketing of automobiles and their spare parts accordingly. The industry is accounted as the major contributor to the economy of UK and also contributes to the well being of the individuals residing. From the case study, it can be observed that the prototype vehicles have been recognised to deal with significant difficulties in terms of their manufacturing. Keeping aside speed and range, the body panel of the vehicle has been produced mostly through the help of innovative materials. Other than this, it has been 95% post-consumer plastic waste coated within the special gel coat. Prodrive Limited in England is identified to be not big enough to seek the establishment of finished vehicles. It also aids to provide cost-effective production and supply solutions thereby reducing consumer carbon footprint.
Firms are observed to optimise their value chains with regards to offshoring as well as consolidating bases of a manufacturing base in terms of low-cost economies. This would also ensure stimulation of the demand with respect to biofuels. Reefke and Sundaram (2018) further explain that waste reduction and sustainability aids to determine the fluctuations in prices of commodities in a market. Organisations applying this technique would be able to determine stable price ranges for their products thereby creating a predictable demand. Lack of sustainable practices may misguide organisations with incorrect demand forecasts where business units would either fail to fulfil the right number of orders or have unnecessary stock in hand for management. Simultaneously, due to the rapid fluctuations of consumer demand in the automotive market, organisations may often result in predicting incorrect outcomes, thereby resulting in mismanagement.
Application of Waste hierarchy and its role in organisation’s sustainability
Application of Waste Hierarchy
The waste hierarchy is accounted as a tool that is used for the assessment of practices that helps in protecting the environment alongside energy as well as resource consumption. Electronix Plc is identified to condition consumers in getting goods as quickly as possible which in turn has impacted the global supply chain industry which includes management of inventories as well as logistics. As per the views of Mathivathanan et al. (2018), waste hierarchy application is identified to provide an allowance to the procurement for operating outside the traditional systems which in turn has led to forcing managers’ terms of rethinking strategies. Furthermore, leveraging the planning of advanced technologies would help Electronix Plc to ensure the application of supplemental exception buys instead of the automated purchases of replenishments. This would also initiate management of augment safety stocks and would also address long term tactical responses.
Waste Hierarchy application creates a connection between orders sent to manufacturers and suppliers and creates a greater level of variations in sales to the end customer. Organisations applying this strategy would have variations in ordering thereby interrupting the supply chain process at every level. According to Manavalan and Jayakrishna (2019), the increase in the levels of the supply chain would create fluctuations in demand for a product in the market. On the other hand, the absence of communication between each supply chain affects the functioning of the entire process and causes fluctuations in the wave pattern of waste hierarchy application. This strategy creates variation in demand in rush at one point which is followed by a period of no demand on the other hand. Organisations applying this strategy would be able to determine regular payment patterns by offering discounts to buyers within a short time period. Individual companies such as Electronix Plc rely on using high-quality survey information in managing supplier management and customer satisfaction at the same time. Reduction of Carbon footprint helps managers to predict end-user demand and develop planning for procurement of raw materials, thereby initiating quick and smooth decision making. Organisations can fulfil orders where working with forecasted demands becomes easier for a business.
Evaluating the end-user demand forecasts, managers would be able to plan the delivery timelines and manage their transportation facilities accordingly. Companies managing their supply chain during the pandemic would need to forecast the aftershocks such as downsizing, recession, low profitability and dissolving of organisations. Simultaneously, it can be stated that the application of waste hierarchy would help in minimizing the aftershocks by making the manufacturers aware of the increase in demand and initiating an increase in the supply of a particular product. This has been formulated with the help of strong links to the national energy policies and reduction of carbon footprint. Koberg and Longoni (2019) stated that all these factors starting from manufacturers, suppliers, companies and customers play individual roles in determining the structural change in the supply chain. The structural changes in the supply chain influence the occurrence of and pattern of quantified analysis of CO2. The company strategically shifted towards maintaining a sustainable supply chain thereby curbing down costs of inventory and supplier management.
Role of Waste Hierarchy in organisation’s sustainability
Waste Hierarchy enables businesses to forecast the current consumer demand in the market and in order to ensure maximum customer satisfaction they channelize their suppliers and distributors. Castillo et al. (2018) stated that the waste hierarchy helps in the prevention of emissions of greenhouses gas, reduction of pollutants, creates jobs and seeks stimulation of development of green technologies. This in turn would help in the utilisation of resources in an effective as well as sustainable manner. Waste minimisation further seeks the involvement of redesigning products along with processes that ensure the change in the societal patterns of consumption along with production. Firms are observed to optimise their value chains with regards to offshoring as well as consolidating bases of a manufacturing base in terms of low-cost economies. Most business firms are identified to be under the impression that their strategies for management of supply chain is regarded to be proactive and would suffer least in disaster like circumstances. This in turn has paved the way for firms that aid to transform the logistics industry thereby creating digital supply chains through the help of automated workflows and the introduction of next-generation technologies. Moreover, it would also require strong collaboration within the automotive organisation and its utilities with the business firms.
Mentioned accessibility provides scope to this organisation in getting high return value from customers by offering them effective services. Linking with a similar context, this organisation would get an opportunity to sustain its market position in UK through delivering security to the investment of purchasers. According to Mardani et al. (2020), gaining higher returning value than in which state capital on the new market provides scope to enhance its profit and utilise that profit in innovations. However, the growth of infrastructure capacity for better retailing in the international market supports customers and employees. Moreover, it has been also identified that the primary objective of the waste hierarchy is to seek reduction of the amounts of natural resources that have been consumed. This in turn would contribute significantly to the sustainability of a business organisation and at the same time contemplate reduction of carbon footprints. Reduction of unnecessary energy inefficiency is accounted for as an integral step that would aid in the minimisation of carbon footprints. These practices of sustainable industrial along with supply chain helps in reversing the adverse impact of the industry hampering smooth operations of their supply chain management.
Conclusion
Sustainable supply chains aids in seizing up the opportunities of the value chain and simultaneously offer a potential competitive advantage for process innovators. From the following study, it can be presumed that Electronix Plc is a start-up for electric vehicles which is based in the West Midland area of United Kingdom. It can be further concluded that Electronix Automatic Plc contemplates involvement in a wide variety of designs, manufacturing, development as well as the marketing of automobiles. From the case study, it can be identified that for determining an increase in sustainability, Electronix Plc has ensured the establishment of an industrial roadmap. This has been formulated with the help of strong links to the national energy policies and reduction of carbon footprint. It can be concluded that Electronix Plc is identified to ensure environmental sustainability. In order to avoid stock out situations of inventory during high consumer demands, this strategy is being used to forecast specific demands and procure raw materials from suppliers accordingly. Owing to these concerns, Electronics Plc adapts sustainable manufacturing which involves the implementation of maintenance and production processes. This in turn can lead to a reduction of waste products and improvement of recyclability by reusing materials. Waste Hierarchy application creates a connection between orders sent to manufacturers and suppliers and creates a greater level of variations in sales to the end customer. Organisations applying this strategy would have variations in ordering thereby interrupting the supply chain process at every level.
Reference List
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