Assignment Sample on Sustainable Supply Chains
Introduction
Sustainability has become an essential part of the business organization’s strategy (Giannakis and Papadopoulos, 2016). This concept aids in developing a healthy community and increased environmental quality. This phenomenon facilitates overall business growth and success. Human rights, income inequality, and pollution are critical global issues that sustainable strategies can address. A balanced and sound business strategy concentrates on producing a positive impact on the economy, society, and environment. Further, these sustainable business practices can benefit the organization by creating a long term value and competitive advantage.
The current report is concerned with generating a sustainable supply chain process for an automotive company named Electronix plc in the UK. This is a vehicle manufacturing company established in 2015, and the company is about to launch a Pegasus 4s. The motive of this company is to manufacture high-end luxurious vehicles after considering the concept of sustainability. In order to measure the social and environmental approach, the company successful adopted the triple bottom line approach. The three main P’s of this approach are planet, people, and profit. This approach is taken into account by Electronix plc to accelerate the development and success. Considering the features of the new launch of the Pegasus 4s, it is a fully automated car with a panel made up of a material “Plastica”, which is made up of post-consumer plastic waste.
The assessment focuses on examining the supply chain of Electronix plc and how it affects the social, environment, and economy. Later, the emphasis is on the comparison based on the supply chain practices of Electronix and Toyota. A part of the writing is based on evaluating the hierarchy of waste management.
Analysis of the supply chain management
A supply chain lifecycle comprises social, financial, and environmental practices and develops a supply chain management (Rajeev et. al. 2017). The analysis of supply chain procedures starts directly with designing product, transportation, carbon emission reduction, and environmental stewardship. Social responsibility and financial viability are also vital aspects.
In these years, sustainability is the central concerning point for automobile manufacturers. They are trying their best to develop cost and environment efficient products and processes to offer to the buyers. Most manufacturers adopt this concept in the nation to enhance brand awareness and value. Electric cars have become the key attraction for consumers aiming to reduce carbon emissions. Considering the case study, Electronix emphasises producing electric vehicles to prevent the environment and be socially responsible. Further, in the manufacturing process of the cars, various automobile parts are used, and these are considered after evaluating the impact on the environment.
Environmental impact: CO2 emissions, other emissions, and waste products
Automobiles have a big footprint, including production, fuel, infrastructure, and air quality (Kusi-Sarpong et. al. 2019). It is well known that the automotive industry leaves a significant impact as it uses materials like paints, plastics, rubbers, steel, and many more.
It has been identified that the car manufacturing numbers are increasing, and at the same time, companies are innovating various techniques to reduce their impact on the environment. The environmental effect begins from manufacturing to driving the car by millions of people. Thus, the company’s engineers and design managers consistently concentrate on innovation so that the harmful effects on the environment can be reduced. Fuel consumption is the main contributor to the environmental pollution spread by driving.
Research study identifies that water use in car manufacturing has also reduced. This has become possible with the help of recirculation technologies which reuses the water during production. Analyzing the environmental impact, the automobile sector is still innovating various techniques and processes to reduce the effect.
| Lifecycle stage | Description | Assessment |
| Raw Materials and fabric
production |
Automobile supplies and other various related parts | Co2 emission and gases |
| Warehousing | They are designed with appropriate planning to reduce carbon gases. | Co2 emission and gases |
| Manufacturing | Approx. 6 units | No fixed input and output |
| Logistics and transportation | Railway as logistics and transportation | A considerable amount of carbon emission can be reduced with railway |
| Retail and distribution | Not decided | Not decided yet |
| Consumption and use | Automated that will increase the environmental sustainability | Details are explained in-car template book |
| Disposal | Reuse or recycling | No recycling alternatives. |
Social Impact of Electronix CO2 emission and waste
| Lifecycle stage | Description | Assessment |
| Raw Materials and fabric
production |
Automobile supplies and other various related parts | Co2 emission and gases |
| Warehousing | They are designed with appropriate planning to reduce carbon gases. | Co2 emission and gases |
| Manufacturing | Approx. 6 units | No fixed input and output |
| Logistics and transportation | Railway as logistics and transportation | A tremendous amount of carbon emission can be reduced with railway |
| Retail and distribution | Not decided | Not decided yet |
| Consumption and use | Automated that will increase the environmental sustainability | Details are explained in-car template book |
| Disposal | Reuse or recycling | No recycling alternatives. |
The social impactmust be considered whileassessing the profits and human capital invested in the cited industry. This impacts the community and group of people due to the business practices. Assessment of societal impact is crucial in understanding the social value created by the services and products of the business (Chen et. al. 2017). It has been identified that if the community and people of society are satisfied with the company’s products and services, it can be said that the company provides social value to the buyers and creates a positive impact.
Various factors can be considered to identify the social value of the company. For instance, to develop a positive impact, the cited company, Electronix, must provide adequate job opportunities to the community and deliver quality products that people want. Furthermore, the selected company is responsible for adhering to the regulations of the society and bound to provide satisfactory services to them. In this way, reducing pollution and harmful gases is also part of the company’s social responsibility. These pollutants can damage the well-being and health of the people living the society.
Economic Impact
Auto parts are the significant components of the sales of the nation. The design, manufacturing, and sales of the automotive company accelerate economic development and growth worldwide. The companies operating in this industry depict the nation’s freedom and financial growth (Bag et. al. 2018). The automobile industry is also the engine of economic development globally. In the past decade, the cited sector registered a 30% growth in the industry. This sector is a creator of employment opportunities and contributes to boosting the economy. This can be illustrated that the building of 60 million vehicles requires the employment of approximately 9 million people.
In this regard, Electronix plc is also playing a significant role in the growth and development of the country. Further, the cited company is paying an excellent scale to its employees and adds value to the economy. The products used in the manufacturing of Pegasus 4s are of good quality, and the used supplies are economically sound and beneficial. This can be stated that the practices of Electronix are fair and financially transparent (Mani et. al. 2016). The company has appropriate taxation policies, and the significant components of the nation’s growth are infrastructure, natural resources, and technology.
Summary of Electronix impact on the triple bottom line
The above-mentioned figure depicts the production of passenger vehicles in various countries. It can be identified from the figure that in the year 2020, China and Japan have the most production. Further, in order to develop cost-effective solutions, several strategies can be adopted by automotive companies. These can reduce the costs of materials, examination of the production processes, and optimization of the work efficiency.
Benchmarking Electronix with Toyota
| Section | Electronix company practice | Tesla’s best practices | Benchmarking |
| Suppliers management | Electronix organizes and manages its supplier base by developing policies. | More than300 suppliers in Tesla globally | Developing a chain of suppliers |
| Procurement | Concentrates on procurement of various materials, including Plastica, Alcantara and vegan ultra-leather | Tesla is dedicated to procuring supplies with efficient quality | Quality is procured from numerous parts of the world. |
| Warehousing | Designing to reduce harmful gases and Co2 | Demand and supply basis | Decrease in gases and structured |
| Manufacturing | Sustainable and quality manufacturing | Robotics and innovation factor | Development of suppliers |
| Transport and logistic | Not definite | Enclosed auto transport | Cost-effective and fast transportation |
| Packaging | Environment effective packaging process | recyclable packaging | Cost-efficient and recyclable |
Supplier’s management
Supplier management comprises the activities of a company that deals with the lifecycle supplies. Further, the selected company concentrates on managing suppliers that provide quality and works within time (Fritz et. al. 2017). The motive of Electronix is to develop an efficient supply chain and maintaining a healthy relationship with them. On the other side, considering Tesla is a leading automotive company that continuously focuses on supply chain innovations. Suppliers are essential for Tesla. Several strategies are formulated to organize and manage them.
Procurement
This is the process of attaining the required products or materials needed for the purpose of business. Electronix does the procurement of less damaging and harmful effects and materials.
On the counter side, Tesla aims to procure materials by establishing a smooth supply chain based on volume, quality, and trust (Govindan et. al. 2020). Now, the company is recruiting various suppliers and increases its production.
Warehousing
This is an activity of storing inventory or goods by the companies. Electronix aims to develop a sustainable warehouse, and the practices include eliminating waste and automation of data.
Tesla’s warehousing activities are very organized and structural. Further, it has been identified that the company proficiently manages its inventory and does not overstock it.
Manufacturing
The automotive sector has started adopting sustainable practices in the manufacturing units, and so does Electronix. The cited business organization facilitates production practices using electric engines, artificial intelligence, and generative designs.
Tesla uses a forward and innovative approach in its production (Xu et. al. 2019). The company uses model “S” to generate a designed, versatile, and innovative vehicle.
Transport and logistic
Efficient transportation facilities are essential in a business organization. The digitization and automation of the production and process provide a clear frame of the logistics. On the second side, strategic automotive logistics solutions are used by Tesla to plan and organize its transport and logistics operation.
Packaging
This is the crucial activity that can reduce the impact on the environment. Tesla and Electronix both the companies that are required to focus on this aspect. In this process, the materials should be used that are environmentally friendly and cost-effective.
What SLAs and checks and balances will be put on suppliers?
Electronix plc is a company that has a 5-6 supplier base, and also there is an urgent need to maintain effectiveness among them. Suppliers are a vital part of the supply chain process (Yadav et. al. 2020). As the chosen automotive company is a start-up supplier base are required to develop. On the other hand, Tesla is a well-established and renowned company and has over 300 suppliers worldwide.
Should changes be made to the supplier base?
The changes in the supplier base are required as it is a new venture in the automotive industry, and healthy relationships are needed to develop. These are critical stakeholders for Electronix, and maintaining an effective bond with the suppliers will prove beneficial for the company.
Concerning Tesla, it has a well-built supply chain and suppliers that available quality supplies to Tesla. Further, companies can conduct supplier audits and determine selection criteria to create a proficient supplier base.
How could the ‘buy-back’ system best be facilitated?
A buyback system is vital for the company to trade and deal with various automobile products globally. Electronix can develop a proper buyback system to give quality assurance to the buyers. The main buyback policies can be guarantee and return policy. Moreover, the company should plan several ways to handle technical issues.
What should relevant legislation be adhered to?
Legislations and laws are the fundamental legalities that every company must adhere to. In this way, automobile industry and company too has to follow some legal laws (Mani et. al. 2018). Electronix plc has to take the responsibilities of its auto parts and the vehicles and to ensure the same testing and validation is the practice. In this, the testing of electric components of the car is done. Besides, some of the other legislations are warranty issues and warranty risk management.
What could key sustainable concepts be introduced/leveraged to ensure Electronix is world-leading?
Long term success is possible with the help of continuous development and innovation. Sustainability is a vast phenomenon, and hence the automotive companies have the opportunity to apply this in various areas of business. These can be in the fields of operations, manufacturing, sales, research, and engineering (Li et. al. 2018). Further, product sustainability can be attained by adopting biodegradable components and electric vehicles. In order to become a global leader, several sustainable practices can be executed by Electronix plc. Research and development is the area that can involve the sustainability aspect by designing the product in a way so that it can be socially helpful and reduce the adverse impact on the environment. Usage of natural resources can be taken into account by the chosen company to ensure recyclability.
A sustainable supply chain process can be facilitated by restructuring the areas of warehousing, procuring, and manufacturing. Manufacturing or production is the most crucial area in which sustainability can be assured by reducing waste materials, recycling, reusing, and maintaining quality.
How can the company market the product to reduce the consumer carbon footprint?
The automotive industry is the emerging sector and the essential part of economic development (Vanalle et. al. 2017). In this sector, sustainability and reduction of carbon emissions are the growing trends. Every business organization is trying its best to execute these concepts and attain a competitive advantage. Apart from this, adopting sustainability into practice has numerous benefits for the company. For instance, it enhances the brand image and awareness, engage stakeholders, and increases productivity by reducing overall costs.
Carbon footprints have become a global issue and companies plan strategies to reduce the same. In the context of Electronix, this can be decreased by material substitution, remanufacturing plans, and eco-design engineering.
It has been analysed that the design engineers of Electronix can emphasize the energy and materials used in the manufacturing process (Koberg and Longoni, 2019). A proper analysis can develop some alternate strategy or procedures to reduce the impact on society and the environment and in this manner, carbon emission can be reduced.
Application of sustainable methods and procedures and recommendations
Electronix is a company highly focused on sustainable considering practice and applying it into the company’s operations. In this context, waste management hierarchy or strategy is a tool that can boost the objective of developing sustainability in the business.
Waste management hierarchy
Waste in a manufacturing industry is the primary source of pollution and harming the environment (Mosteanu et. al.2020). Thus, waste management is the essential practice that can be taken into consideration by Electronix plc to protect the environment, and reducing hazardous waste. In addition to this, it will also address the challenge of higher costs and increase sustainability.
| Prevention | Electronix needs to protect and reduce the waste created from the various practices such as production and manufacturing of the vehicles. It is the role of engineers and operations manager to look into this matter and plan strategies. Further senior management can also involve in this to make it more effective. |
| Reuse | In order to give the product a second life, before it becomes a waste material or non-usable, reuse must be done by Electronix. |
| Recycle | Recycling is the modern element of this hierarchy (Wilhelm et. al.2016). In this, the product has been given a new look and object before it becomes a waste. |
| Recovery | This is a process in which the waste can be used for some other purpose rather than it is. For instance, the waste oils from a vehicle can be used to burn for energy recovery. |
| Disposal | This is the method of disposing waste and can be done by land filling and composting by Electronix. |
In regard with the benefits of these dimensions of the hierarchy, it can be said that the prevention process requires alertness and planning and can enhance the quality of the environment (BR et. al. 2016). On the other side, recycling is considered as the best process, and this is the most beneficial way to build a sustainable business organization.
Further, it can be said that reduction of waste is an ongoing process, and with effective planning and changes, this can be implemented in the organization. Major techniques to lower the waste in the company are possible by tracking it and using renewable energy sources. In order to reduce the carbon emissions, less use of fuel and petrol can be made. Moreover, wooden pallets can be replaced with metal shipping. Closed-ended loop recycling is a strategy that allows the product to recycle again by itself. Electronix can effectively execute it to the manufacturing cycle.
The company’s practices mainly generated solid and liquid waste, and separate streamlines can be made to further reuse or recycle it as per the category and requirement. Another recycling tactic can be using a vacuum system and drip pans to collate fluids and waste oils.
Impact on the three bottom line
In order to identify and assess the profits and advantages that are associated with the implementation of sustainable practices, the triple bottom line approach is used by Electronix. The bottom line approach consists of three main areas that are social, economic, and environmental (Gružauskas et. al.2018). Implementation of the waste hierarchy in the business in a proper manner will create an impact on the bottom line approaches.
The pros of waste hierarchy in the Electronix can be reduction of the costs, better environment, and satisfied community. In the economic terms, it will reduce the unnecessary spending and lessens the disposal cost. Process can be improved with this strategy and thus reduce the costs of raw materials, and buying of metals. Community involvement and engagement can be ensured when society will be satisfied with such practices. Also, it will increase goodwill and thus consumer loyalty. The environment will benefit when there are fewer wastages and pollution.
Conclusion
Thus, from the overall study, it can be said that the automotive industry has both positive and negative impact on the environment. Sustainability is a practice to reduce the impact on climate, community and economy. This is a broad phenomenon, and every business enterprise is adopting it to develop brand awareness and attaining an advantage within the industry. In terms of environmental effect, carbon emission and footprints are the key issues every company is dealing with. Hence, every business organization needs to adopt this concept into the business strategy to take effective measures.
References
Books and Journal
BR, R.K., Agarwal, A. and Sharma, M.K., (2016). Lean management–a step towards sustainable green supply chain. Competitiveness Review.
Chen, L., Zhao, X., Tang, O., Price, L., Zhang, S. and Zhu, W., (2017). Supply chain collaboration for sustainability: A literature review and future research agenda. International Journal of Production Economics, 194, pp.73-87.
Fritz, M.M., Schöggl, J.P. and Baumgartner, R.J., (2017). Selected sustainability aspects for supply chain data exchange: Towards a supply chain-wide sustainability assessment. Journal of Cleaner Production, 141, pp.587-607.
Giannakis, M. and Papadopoulos, T., (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, pp.455-470.
Govindan, K., Rajeev, A., Padhi, S.S. and Pati, R.K., (2020). Supply chain sustainability and performance of firms: A meta-analysis of the literature. Transportation Research Part E: Logistics and Transportation Review, 137, p.101923.
Gružauskas, V., Baskutis, S. and Navickas, V., (2018). Minimizing the trade-off between sustainability and cost-effective performance by using autonomous vehicles. Journal of Cleaner Production, 184, pp.709-717.
Koberg, E. and Longoni, A., (2019). A systematic review of sustainable supply chain management in global supply chains. Journal of cleaner production, 207, pp.1084-1098.
Kusi-Sarpong, S., Gupta, H. and Sarkis, J., (2019). A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57(7), pp.1990-2008.
Li, L., Dababneh, F. and Zhao, J., (2018). Cost-effective supply chain for electric vehicle battery remanufacturing. Applied Energy, 226, pp.277-286.
Mani, V., Agarwal, R., Gunasekaran, A., Papadopoulos, T., Dubey, R. and Childe, S.J., (2016). Social sustainability in the supply chain: Construct development and measurement validation. Ecological Indicators, 71, pp.270-279.
Mani, V., Gunasekaran, A. and Delgado, C., (2018). Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective. International Journal of Production Economics, 195, pp.259-272.
Mosteanu, N.R., Faccia, A., Ansari, A., Shamout, M.D. and Capitanio, F., (2020). Sustainability Integration in Supply Chain Management through Systematic Literature Review. Calitatea, 21(176), pp.117-123.
Rajeev, A., Pati, R.K., Padhi, S.S. and Govindan, K., (2017). Evolution of sustainability in supply chain management: A literature review. Journal of Cleaner Production, 162, pp.299-314.
Vanalle, R.M., Ganga, G.M.D., Godinho Filho, M. and Lucato, W.C., (2017). Green supply chain management: An investigation of pressures, practices, and performance within the Brazilian automotive supply chain. Journal of cleaner production, 151, pp.250-259.
Wilhelm, M., Blome, C., Wieck, E. and Xiao,
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