Assignment Sample on Sustainable Supply Chains

1.1 Quantified analysis of CO2

The need to demonstrate the organizational commitment towards sustainability is rising pivotally with globalization. As per the views of Islam et al. (2017), the increase of business activities have influenced the hike in harmful emissions in the environment affecting the climate and the future of Earth adversely. Businesses have focused on investing hugely in their CSR activities to show a proper commitment towards the society as well as the environment. The triple bottom line is a theory which states that there are three important areas of focus while displaying sustainability. As per the views of Roman (2017) the three broad aspects that the triple bottom line focuses on are economy, environment and society. The emissions from the logistics and manufacturing units in Electronicx will be analysed below

Table 1: Quantified analysis of Carbon Emission of Electronix PLC

(Source: Manan et al. 2017)

Represented data outlined that factory storage areas such as warehousing facilities produces the maximum amount of emission. It can be observed that energy consumption is mostly through electricity and natural gas, and converted into CO2 equivalent (Manan et al. 2017). Outbound logistics and inbound logistics of the company do not differ by much amount.

1.2 Social Impact

Sustainability is an important factor for the development of societies, organizations have realized that the society and communities contribute largely towards the growth of the firm. Organizations have taken initiatives to provide proper health and safety to the workers and also focused on the impact of organizational operations on the communities. As per the views of Islam et al. (2017), workers are related to every stage of the product life cycle, providing them with proper working conditions and amenities is necessary for ensuring safety and health. From the case study it can be analysed that the social impact of the logistics is somewhat negative. Proper health and safety conditions are not met by the organization and this affects the production of the organization.

The poor communication between all the units has created the problem of organization. The need to travel halfway across the country for assembly of the products is not sustainable and thus affected the image of the organization. This also affected the society in terms of pollution and carbon emissions. As per the views of Wolfram and Wiedmann (2017), factories and their supply chain are the foremost reason for the increase of carbon footprint in the world. The health and safety of employees are affected by the lack of proper legislation and underproductive machines. The lower capacity of the production equipment raises a threat of overheating and other machine related hazards. Use of the ISO certified products can help the organization to improve the health and safety conditions of the organization.

The improvement of communication between the manufacturing units and other related departments can help the organization to better address the gaps in production and mitigate them in real time. Considering the delays caused by the pandemic the organization contracted their manufacturing to various organizations but their incapability and lack of resources caused the organization to divide the assembling procedure into three parts raising the carbon emissions as well as the chances of accidents.

1.3 Economic Impact

The company addresses its bottom line through a new approach that includes the concept of sustainability. Electronix PLC understands the impact of social and environmental breakdown can be critical in the economy that will have an indirect influence on the business. As per the view of Katiyar et al. (2018), excessive economic activity can seriously hurt the growth of business through sustainability issues within the supply chain network of any business. The vulnerable supply chain operations are prone to have more damaging effects on the environment and its surroundings. However, Electonix PLC has redesigned their value chain network and further indicated a change to include social and environmental aspects within the supply chain. This is expected to increase their sustainability performance also ISO 14001 will help them in pursuing changes in their system or distribution network to initiate a step towards a better environment.

Electronix PLC has intervened in the procurement process along with whole supply chain distribution to apply a better sustainable framework. In the viewpoint of Chen et al. (2017), through focusing on the cost savings, further efficient business practices, and increased profitability will help them to put themselves in a better position to look into these issues. The main concept is to have an economically feasible business model that will restrict the environmental hazards through effective approach in prevention of CO2 emissions. Technological upgradation requires a high level of expenditure on supply chain distribution components that helps in efficient business practices. However, having remarkable measures within industry creates an awareness among the consumers that enables them in capturing more market share.

2. Benchmarking

Tesla has been selected as another organization for compare and contrast. The compare and contrast of organizations are given below:

2.1 Procurement

Tesla has a smooth supply chain, with more than 100 suppliers across the globe the organization has become very efficient and sustainable in their procurement operations. The organization was placed in the Silicon Valley and this created a huge distance between the organization and traditional suppliers. As per the views of Jursova et al. (2019), operating with more technologically advanced suppliers will ensure better and greener products that provide benefits to the environment.

The use of plastic by Electronix PLC is one of the major disadvantages of the organization as the production and procurement of the plastic can increase the carbon footprint in the nation and adversely affect the environment. Ensuring a greener supply chain is required for the organization to make a position in the UK market. This can be achieved by collaborating with local manufacturing units to reduce the costs of procurement. However, recycling the plastic waste for creating a new product shows the commitment of the organization towards sustainability.

2.2 Production

Tesla continuously hires suppliers and builds plants nearby to their headquarters to better organize the production process. As per the views of Ghosh (2020), the cost effectiveness of the supply chain and production processes can help organizations to better display sustainability. The travelling cost for supplying materials for production goes down due to the easy procurement and faster delivery of raw materials. The differentiation strategy and a line of different products make the production somewhat of a challenge

Electronix on the other hand has faced huge challenges with its production as the assembly is divided into three parts and there is a lot of travel included. As per the views of Shaikh et al. (2017), sustainable production refers to cost effective operations and proper delivery of finished goods. The delays of the pandemic as well as the longer travels for assembly displays the lack of sustainability in the production processes. The drive from Banbury, England to Woodall Nicolson in the North-West for final assembly was not good for the image of the company. The travelling increased the threats of exposure to the virus and the increase of carbon emissions this affected the safety of employees along with image.

2.3 Warehousing

Tesla currently operates through four fully functional warehouses using the median inventory method the organization has significantly reduced the wastes. As per the views of Shuaib and Mativenga (2017), the use of proper inventory management can help in sustaining the supply chain of businesses. Tesla has used their exceptional management to provide steady availability of goods in the market. Tesla took into account the average price of inventory as well as the average price of goods sold in the market this allowed them to strategically implement the price of products to stabilize the cost of inventory with the median inventory method.

On the other hand, Electronix has various warehouses but the management lacks effectiveness, the case study sheds light on the fact that the incapability of the contracted production units and poor inventory management a lot of products are wasted yearly accounting for a huge amount of carbon. The poor communication between all the units has created the problem of organization. The need to travel halfway across the country for assembly of the products is not sustainable and thus affected the image of the organization. This also affected the society in terms of pollution and carbon emissions. This increases the carbon footprint of the nation affecting the brand image in front of customers. The collaboration with production partners such as MagnaSteyr in Austria has also increased the costs of production as well as lowered the USP of the organization. The products will no longer be made in the UK and this may hamper the customer behaviour.

2.4 Transportation and Logistics

Tesla introduced the Tesla semi and disrupted the whole transport and logistics operation in the organization as well as the industry. The use of these trucks allowed Tesla to cut down on the costs of transport. The cars can be easily loaded in the semi electric trucks and also account for low carbon emissions. The use of this trucks has also guaranteed the safety of drivers and provided a better driving experience for drivers. The cost of cargo transport significantly reduced with the implementation of the Tesla Semi.

Electronix has widely spread part manufacturing units across the nation and this has resulted in the increase of costs for transportation. The drive from Banbury, England to Woodall Nicolson in the North-West for final assembly was not good for the image of the company. The travelling increased the threats of exposure to the virus and the increase of carbon emissions this affected the safety of employees along with image. The use of trucks has also raised the risk of accidents and lowered the safety of drivers. The need to send the batteries to the UK headquarters for checking has also increased the costs of transportation and lowered the sustainability.

2.5 Packaging

Tesla uses materials that are low on carbon output to package their products, this allows them to display their commitment towards the customers and the community. As per the views of Qi et al. (2018), packaging is not only about packing a product but also about the shipment. Tesla properly monitors the shipping and packaging process to better address the risks related to packaging. A damaged package can lower customer satisfaction as well as damage the product. The organization makes sure that proper monitoring is conducted while the shipments are loaded.

Electronix has also focused on the packaging of their products and assured safety of products, the organization has various manufacturing units where the cars are assembled and this allows a continuous monitoring. As per the views of Mumtaz et al. (2018), proper monitoring, training and standards of practice can help in maintaining proper safety and health.

3. Application

3.1 Life cycle management

Life cycle management is regarded as a philosophical approach that integrates complex and comprehensive life cycle for organizations. Life cycle management directly concentrates on supply chain distribution that manages the value of the companies. As per the view of Zhang et al. (2017), life cycle management is an approach that presumes the issues within the life cycle of the products and helps in surpassing the challenges. On the other hand, life cycle management initiates with the procurement of the raw materials and ingredients from suppliers. Furthermore, it analyses every stage of the process and tries to identify problems that pose threats for the supply chain distribution. Life cycle management continues to the end of the distribution procedure until the product reaches the customer. The automobile company is implementing an economic and environmentally sustainable approach in the framework for lower reduction of CO2 with increasing profitability.

Carbon footprint along with water footprint is two specific applications that consist within the life cycle management. Through the approaches of life cycle management networking capacity within the value chain distribution of the company is increased. As per the view of Macchi et al. (2018), designing of life cycle management enables in sustainable development of supply chain networks that promote environmental growth of the economy as a whole. Through designing and processing the information life cycle management initiates the stages. The main concept of these phases understands the whole manufacturing and procurement process that provides them with an overview of the production line. The ingredients and raw materials obtained by the manufacturing firm are pushed to quality checks that help them secure better substances for the production. Electronix PLC is considering returning the containers to the suppliers as it is useless and lying unutilized to them. Providing back these containers to the suppliers will enhance reuse of those packages.

Product structure stages of the life cycle management concentrate on material bills that provide them an insight about the cost of materials. Through this approach the manufacturing company can significantly lower the cost of production through effective cost reduction. In the viewpoint of Tüzün et al. (2019), the main idea of this stage is to have better quality of products at a cheaper rate that raises its profitability. Issues within procurement phases of the supply chain are cleared in this process. However, excessive delays in supply of materials may cause vertical expansion of the manufacturing firm. Vertical expansion helps the firm in producing required ingredients making it less dependable on others. In this process the efficient product is produced through a quality check process that enhances the quality of the products.

Whole management of the life cycle management is controlled through a centralized panel that obtains data from a central data vault. The vault is responsible for all extensively gathered information on the overall supply chain network and it is considered to be an electronic file repository. Through document classification and metadata management the whole process is scrutinized (Maia de Souza et al. 2017). Life cycle management also includes a sustainable framework that focuses on the environmental and social approach of the value chain distribution. The company is considering reducing import of the materials due to political complications arising through Brexit. However, a recent corona virus pandemic has disrupted the supply chain of the company that stalled the production of electric vehicles.

3.2 Relevant Legislation to Adhere

Automotive sector of the UK is mostly unregulated as no laws and regulations are there. Lack of a sector specific regulatory body has resulted in local Collective Bargaining Agreements (CBA) applicable in required instances. Electronix PLC abides by the UK Business Act 2006, and follows iatf16949, iso9001, iso14001 which are developed by an international automotive task force (De Soete et al. 2017).

3.3 Risks

The risks of Electronix PLC are given below,

• Disruption in the supply chain through stopping the production procedure corona virus due to pandemic has resulted in delay in production.
• The delay in production has raised concern through the buyers who have already made their payments through pre-booking.
• Implication of Brexit has impacted the procurement procedure due to complication in customs clearances as the supply chain network of the company is expanded across the continents (Karmaker et al. 2021).
• The company has already pushed backward its tentative delivery date of the electric vehicle that has risked the reputation of the company.
• Unable to deliver the products to the pre-booked customers within the fixed date will decline the brand value of the company.
• Use of Plastica is uncommon in the automotive industry, and implications of using the substances are not properly identified resulting in vulnerability of the product.
• Using different types of ingredients that are vulnerable in low temperature can cause significant damage as multiple damages can occur to the vehicles.

3.4 Recommendations

The recommendation for Electronix PLC is discussed hereby,

• Electronix PLC may initiate strategic partnership with the other suppliers based in the UK so that the supply chain of the company does not get disrupted. On the other hand, they can start their own supply of raw materials to sort out the issues arising in the procurement process within the supply chain distribution.
• The company is required to implement a carbon footprint framework to reduce the emission of CO2 from various aspects. As per the view of De Soete et al. (2017), reducing carbon emission through warehouses facilities will lower the rate of emission in a significant manner as it is the biggest source of carbon emission.
• Sourcing the ingredients from domestic suppliers will be helpful in cutting the rate of emission of carbon as distance travelled for transportation purposes will be much lower as compared to earlier.
• Plastica panel is required to go through robust testing in the laboratory that will enhance its heat absorbing capacity and reduce its exposure in low temperature.

4. Conclusion

Warehouse facilities emit the maximum of amount of CO2 that is mainly generated through electricity and consumption of natural gas. The objective of the company is having an economically feasible business model that will restrict the environmental hazards through effective approach in prevention of CO2 emissions. Ensuring a greener supply chain is required for the organization to make a position in the UK market and that can be achieved by collaborating with local manufacturing units to reduce the costs of procurement. The delays of the pandemic as well as the longer travels for assembly display the lack of sustainability in the production processes. Incapability of the contracted production units and poor inventory management a lot of products are wasted yearly accounting for a huge amount of carbon. Electronix PLC may initiate strategic partnership with the other suppliers based in the UK so that the supply chain of the company does not get disrupted.

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