Assignment Sample on Sustainable Supply Chains
1. Introduction
Sustainable supply management can be defined as an integrated chain of suppliers addressing needs of organizations and customers sustainably. This impacts on organizational distribution process while improving productivity and operational cost efficiency. This study aims to provide an overview of supply chain management factors of Electronix Automotive Plc and their impact on environment, social and economic impact on organizational factors. This would also include benchmarking sustainable supply chain management of Electronix Automotive Plc with market competitors while application of theories such as “Waste Hierarchy”. This would help this start-up in managing its sourcing as well as production and other activities associated with manufacturing of Pegasus 4s.
2. Supply management analysis
2.1 Environmental impact
Production of electric vehicles requires mining of raw materials such as Lithium, Cobalt, and Nickel for batteries. As per the views of Özkaynak et al. (2021), unorganized mining practices have developed issues for disrupting normal life cycle of ecology, forests, and impacts on soil and air pollution. Electronix Automotive Plc planning on using “Plastica” that would help this organization in developing effective waste management and environmental-centric production processes. This company would be shifting its warehouse to improving its capacity by using available transportation channels such as lorry for final assembling process it would develop issues for emission of CO2 and other greenhouse gases in transportation processes.
Electronix Automotive Plc would be focusing on developing an effective self-distribution service. As suggested by Smits (2017), self-distribution services help in managing distribution practices by an organization itself. Hence, it would help in managing supply chain sustainability through self-distribution services as well as addressing needs for market and customer needs. A sustainable approach in using manufacturing and a replaceable battery feature would help this electric automobile for improving consumption of fuels and benefit its owners. However, there is no defined disposal process for these batteries that have been identified while recycling can be an efficient process of using these vehicles in the long term.
2.1.1 Summary Table of Environmental Impact
| Lifecycle Stage | Description | Assessment |
| Raw Materials and fabric production | Lithium, Cobalt, and Nickel for batteries | Disrupting normal life cycle of ecology, forests, and impacts on soil and air pollution |
| Warehousing | Woodall Nicollson in North-West
|
Air pollution |
| Manufacturing | Using Plastica material | Effective plastic waste management |
| Logistics and transportation | Lorries | Air Pollution |
| Retail and distribution | Self-distribution | Management over sustainable supply chain |
| Consumption and use | Buy-back facilities | Less waste production |
| Disposal | Not mentioned |
Table 1: Summary Table of Environmental Impact
(Source: Created by Author)
2.2 Social Impact
Mining can be one of the major issues in developing low pay and child labour issues. In a report by UNICEF, it has been estimated that around 152 million children have been facing issues of child labouring (UNICEF, 2021). Hence, Electronix Automotive Plc would be required to implement effective regulation in its supplier’s system for maintaining an effective and socially ethical distribution system. Application of a sustainable supply chain would help this startup in developing an integrated system for retailing, transporting, and warehousing. This would also help Electronix Automotive Plc in managing its reputation and operational cost efficiency.
In terms of managing its transportation and warehousing process, Electronix Automotive Plc would benefit from a better transportation system and an effective warehousing process. It has been identified that around 23% of energy has been consumed in transport process (Environmental-protection, 2021). Transportation has been identified as the major reason for developing air plotting factors. It can hence be stated that due to excessive transpiration, people have been facing traffic noise, climate change, and other factors. It would negatively impact organizational responsibility for addressing social responsibilities toward betterment of society and disrupt normal lives on the planet.
2.2.1 Summary Table of Social Impact
| Lifecycle Stage | Description | Assessment |
| Raw Materials and fabric production | Lithium, Cobalt, and Nickel for batteries | Developing low pay and child labour issues |
| Warehousing | Woodall Nicollson in North-West
|
Slow production. |
| Manufacturing | Using Plastica material | Toxic manufacturing environment. |
| Logistics and transportation | Lorries | Effective operational cost |
| Retail and distribution | Self-distribution | Management over sustainable supply chain |
| Consumption and use | Buy-back facilities | Cost-effective opportunities for customers |
| Disposal | Recycle | Waste management |
Table 2: Summary Table of Social Impact
(Source: Created by Author)
2.3 Economical Impact
Development of an effective and sustainable global supply chain would help Electronix Automotive Plc in addressing its economic factors efficiently. As mentioned by Strandhagen et al. (2017), sustainable operation processes do not provide opportunities for gaining a competitive advantage. In addition, inclusion of social and environmental impacts in operational process of an organization would increase operational cost. For instance, production of Plastica, a high value of lithium batteries, would negatively impact of increasing operational cost of Electronix Automotive Plc. On the other hand, development of an effective marketing strategy would help this organization in providing relevant information on sustainability concerns addressed by electric vehicles.
Increasing concern on changing climate conditions and environmental issues has been developing concern among living beings. As opined by Thushari and Senevirathna (2020), plastic pollution, air pollution, disruption biodiversity, water shortage can be identified as the issues faced by UK. Marketing os using Plastica as well as using sustainable supply chain attributes would help Electronix Automotive Plc in attracting more customers to its services and products. In addition, cost-effectiveness and buy-back battery feature would help this organization in development of effective economic factors mitigating economic factors of an organization. It would further help in improving financial capability for Electronix Automotive Plc to expand its business operations.
2.4 Summary of Electronix Automotive Plc impact on bottom line
Following environmental, social, and economic attributes, it has been identified that inclusion of sustainable approaches of transportation system would help UK in managing its sustainability issues. Electronix Automotive Plc has been providing an effective electric vehicle to the citizens of UK for managing those issues. This has been using Plastica as its material that would be recycled from plastic. Hence, this material for manufacturing vehicles would help in plastic waste management, landfill issues as well as transportation issues for increasing CO2 and other emission levels. In addition, focusing on easy replaceability of batteries would help in attracting more customers to its provided services. However, lack of effective management of production process and failing to meet customer expectations would negatively impact Electronix Automotive Plc. This would create issues in decreasing sales numbers and decreasing financial capability of this organization for managing its sustainable supply chain management.
3 Benchmarking
Comparison of the sustainable supply chain management of Electronix Automotive Plc with Market Competitors
| Section | Your company practice | Competitors best practices | Benchmarking |
| Suppliers management | Electronix Plc. involves a short chain of supply management for reducing costs as well as involved suppliers of environmentally effective products for environmental well beings. | Competitor companies like TESLA utilize a long chain of supply management for reducing supplier conflict and disruption. | 5 |
| Procurement | Electronix Plc. includes Governance and vendor rights policies for developing sustainable procurement | Competitors like BMW involve vendor rights and labour rights policies. | 4 |
| Warehousing | Electronix Plc. selects urban areas for warehouse locations for saving energy as well as reduced rate of water utilization within warehousing for improving sustainability. | Competitors like Toyota involve low amounts of energy consumption and power consumption within the warehouse. | 5 |
| Manufacturing | Electronix Plc. utilizes recyclable raw materials. | Competitors including Lucid utilize high-quality cost-effective raw materials. | 4 |
| Transport and logistic | Electronix Plc. Utilizes low fuel consumption and low level of Co2 emitting transports and sustainable logistics. | Rival companies such as Hunday include low levels of transportation cost and socially effective logistics. | 5 |
| Packaging | This company uses recyclable packaging elements like plastic. | Companies like BMW use waste recovery packaging. | 5 |
Table 3: Benchmarking
(Source: Created by Author)
3.1 SLA, checks and balances of suppliers
Service level agreement is the agreement that is established within a company and its suppliers for ensuring the quality of products as well as for financial assurance. As per the views of Reinhardt et al. (2019, p. 440), service level agreements are essential for making a deal within suppliers and companies as it helps in mitigating issues regarding disagreement of suppliers, delay in payments within suppliers. Within Electronix Plc, Service level agreements have been developed between this company and their suppliers for ensuring the supply of sustainable as well as cost-effective raw materials from suppliers and ensuring providing payments at the right time to suppliers. On the other hand, automotive suppliers are involved within Electronix plc.
Their automotive suppliers often supply this company lights, computer components, tires, “interior seat coverings” and “Driver Assistance system” from different countries. It has been referred to by Calabrese et al. (2018, p. 790), power of suppliers is essential to maintain within a company as it helps the company in conducting the manufacturing of their goods by utilizing suppliers’ raw materials without facing any disruption. It has been determined that there is observed maintenance of healthy relationships with suppliers and Electronix Plc. Consequently, it has been understood that increment of power balance among suppliers is not seen within this company. Thereby it has been clarified that this company is able to prevent the issues regarding an increment of cost of raw materials and conflicts between suppliers.
3.2 Proposed changes which can be made by supplier base
Supplier base is the network by which suppliers are involved within a strong supply chain for supplying raw materials without creating any complexity. It has been discussed by Kumar and Alok (2020, p.119911), supplier bases are needed to be modified by a company for reducing their cost of raw materials, gaining more qualified products, and decreasing power of suppliers within companies. It has been obtained that Electronix Plc. would be benefited by involving suppliers who would supply environmental as well as socially effective raw materials.
It has been understood that Electronix Plc. would be able to produce vehicles by reducing a high amount of CO2, waste, and other emissions. Apart from that, it has further been found that this company would modify their supplier base by involving suppliers who supply high-quality raw materials from inside the country. As an effect, they would be effective by reducing the cost of importing. It has been asserted that this modification within the supplier base allows them in producing cost effective products as well as in gaining financial benefits. It has been described by Atz et al. (2021, p. 350), a company often would be effective by redeveloping their supplier base by removing these suppliers who have the tendency of holding their power within the company in future. It has thereby been determined that Electronix Plc. would be advantageous by determining as well as removing these types of suppliers from their supplier base.
3.3 Process for improving buyback system
Electronix Plc. has offered a battery “buy-back” process. They have included a “large 100 KWh Lithium battery” within their vehicles. It has been observed by Kravchenko et al. (2019, p. 118318), the buy-back system is an action of a corporation by which a company buys its shares from involved stakeholders back at a price higher than the market for reutilizing it. It has been found from the case study that Electronix Plc. would pay £25,000 for their battery and redevelop it for further utilization. It has been understood that for improving their buy-back system, Electronix Plc. would upgrade their batteries for utilizing these within “grid power storage” as well as within households. On the other hand, it has been analyzed that Electronix would be effective by sending their batteries to headquarters after redevelopment so that their buy-back system would be improved by involving an effective supply chain for reverse manufacturing.
It has been depicted that this company would be effective by importing cost effective batteries for gaining financial benefits. It has been stated by Peng et al. (2020, p. 7000), a company would utilize buy-back systems for improving their sustainability by involving high quality of products during the time of first utilization. It has henceforth been determined that Electronix Plc. would improve sustainability by improving buy-back systems by importing high quality batteries within their vehicles.
3.4 Relevant legislation for Electronix
Electronix Plc. would be benefited by involving several types of legislation for improving their sustainability like “The Energy Savings Opportunity Scheme Regulations 2014, (c. 16)”, “Environmental Protection Act 1990, (c. 43)” and “Sustainable Communities Act 2007, (c. 23)”. As inferred from the study by Söderström (2020, p. 35), involvement of legislation is essential for a company for protecting the environment as well as social factors within this company. It has henceforth been determined that “The Energy Savings Opportunity Scheme Regulations 2014, (c. 16)” legislation would be utilized by Electronix Plc. for improving sustainability by saving energy of batteries for re-utilization. On the other hand, Electronix Plc. would be effective by utilizing “Environmental Protection Act 1990, (c. 43)” for protecting environments by reducing CO2, waste, and other emissions percentages effectively. As a result, this company would be advantageous by producing sustainable vehicles for reducing air pollution. Apart from that “Sustainable Communities Act 2007, (c. 23)” would help Electronix Plc. in developing a sustainable environment within their company by determining effective approaches.
3.5 Key sustainable concepts
Electronix Plc. has involved effective key concepts for improving their sustainability as they have implemented effective approaches within their procurement, warehousing, supply management, logistics and transportation, packaging as well as manufacturing. It has been noted by D’Eusanio et al. (2019, p. 180), sustainable procurement needs to involve human rights, local entrepreneurship, Governance, Woman empowerment, and vendor rights. It has been found that Electronix Plc. has included Governance and vendor rights policies for developing sustainable procurement. These policies help this company in selecting effective vendors as well as maintaining sustainable relationships with vendors. On the other hand, Electronix Plc. has selected urban areas for warehouse locations for saving energy as well as reduced rate of water utilization within warehousing for improving sustainability. Apart from that, they have utilized a short chain of supply management for reducing costs as well as involved suppliers of environmentally effective products for environmental well beings. They also have switched to low fuel consumption and low level of Co2 emitting transports for reducing cost and preventing air pollution. Packaging and manufacturing have been modified by involving sustainable as well as recyclable products within this company.
3.6 Strategies for product marketing of Electronix for reducing carbon footprint
Electronix Plc. would be benefited by improving their sustainability by reducing their carbon footprint in implementing effective strategies. It has been identified by Aschehoug and Schulte (2017, p. 360), reduction of carbon footprints is essential for vehicle companies at the time of vehicle production. It helps the environment in reducing the amount of CO2 as it is harmful to human beings. It has been determined that Electronix Plc. would be effective by utilizing recycled products for their manufacturing as it consists of a low amount of CO2. On the other hand, it has been obtained that Electronix would be benefited by launching e-mobility vehicles as it excludes smoke which generates CO2. It has been depicted by Richter and Medunic (2020, p. 305), a company would be able to reduce carbon footprints by utilizing renewable energies. It has henceforth been understood that Electronix Plc. would use renewable energies like gas and wind instead of oil for reducing their carbon footprint. It has thereby been asserted that a high amount of CO2 emission is offered by oil. Consequently, it has been determined that product marketing of Electronix Plc. would be benefited by reducing their carbon footprint by adopting these strategies.
4. Application
4.1 Waste Hierarchy
“Waste Hierarchy” is a waste management tool that helps in evaluating different processes in managing as well as protecting resources in an environmentally friendly manner. As per the study by Pires and Martinho (2019), application of waste management hierarchy factors helps in evaluating energy consumption alongside adapting to a favorable set of actions in waste management. Seven steps included in waste management hierarchy are “reduce, reuse, repair, recycle, recover and disposal”. Following the case study on Electronix Automotive Plc, it has been identified that this company would be focusing on developing effective management of waste while developing a raw material named “Plastica” for manufacturing process.
In addition, application of different strategies through effective repair, reuse, and recovering stages, Electronix Automotive Plc would be providing sustainable purchasing options for customers. As noted by Richa et al. (2017), adding value to customers through providing sustainable and cost-effective purchasing options helps in satisfying them. This would help in developing a better relationship and generate a loyal customer base. It can hence be asserted that Electronix Automotive Plc has effectively included buy-back and other sustainable approaches that would help environmental-concerned customers to be attracted to ist provided products. This would also assist in addressing environmental needs as well as managing energy uses in a practical manner.
On a contrary, inclusion of an effective disposal process is an essential part of this waste management hierarchy. As created by Richa et al. (2017), disposal actions impact cleanliness and pollution issues faced in waste management process. An effective disposal factor would help in mitigating risks associated with social impact of developing illness and diseases. However, in the case study, no specific method of disposal has been introduced by Electronix Automotive Plc. It can hence be stated that inclusion of effective disposal activity, as well as recycling process of batteries, would help in managing operational process of Electronix Automotive Plc.
4.2 Impact on Triple Bottom Line
People
People in triple bottom line can be identified as the individuals associated with operational process of Electronix Automotive Plc. As viewed by Hammer and Pivo (2017), people in an organization increase human capabilities for achieving financial and non-financial needs in future. Development of a positive environment in Electronix Automotive Plc would help in motivating employees that would increase productivity. This would further help in providing better services to customers and increase sales numbers. Furthermore, increased sales would help in addressing financial needs and fulfilling shareholder expectation for Electronix Automotive Plc.
Planet
Electronix Automotive Plc would be focusing on developing an electric vehicle that has been focusing on zero waste management without consuming traditional energy resources. According to Laosirihongthong et al. (2020), electric vehicles have no greenhouse emission that helps in controlling air pollution factors. Hence, the development of a suitable vehicle through sustainable approaches in supply chain management would help this organisation in addressing social and environmental needs for operation with increasing economic opportunities.
Prosperity
Addressing economic profitability in an organisation helps in survival of the same in industry. As mentioned by Hammer and Pivo (2017), economic profitability helps in providing financial support to organisational activities. Focusing on developing a profitable option process would help Electronix Automotive Plc to address shareholders expectations. By involving renewable energies it has been understood that Electronix Plc. has been benefited by decrement in cost as well as maintenance cost. On the other hand, it has been determined that inclusion of recyclable raw materials helps in reducing operational cost. Apart from that, by launching environmental effective products this company would be able to attract their customers effectively and thereby they are able to gain a high amount of financial benefits.
Conclusion
From the analysis, this study has been concluded that Electronix Plc. are able to manufacture environmental as well as social factor effective vehicles by reducing CO2, waste and other emissions and decreasing traffic noise. It has also been concluded by this report that Electronix Plc. has gained economical benefits by improving sustainability by utilising recyclable raw materials. It has further been understood that this company needs to modify their supply base by including suppliers who supply sustainable as well as recyclable raw materials. From the evaluation of their buy-back system it has been determined that Electronix Plc. would upgrade their batteries for utilising these within “grid power storage” as well as within households. From the analysis of relevant legislation, it has been obtained that “The Energy Savings Opportunity Scheme Regulations 2014, (c. 16)”, “Environmental Protection Act 1990, (c. 43)” and “Sustainable Communities Act 2007, (c. 23)” would help in improving sustainability within this company.
Reference List
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