Strategic Sourcing: Strategic Management Business - Case Study - Management Assignment

Internal Code: TV560

Case Study Assignment

Sustainability has become an important topic in light of all environmental changes and social problems the world witnessed and is still witnessing.To achieve sustainability, we have to look at the cause of the issue, and to become sustainable, we have to trace back our supply chains to determine and identify the best practices that help in achieving sustainability. Melnyk et al., (2010) Identify two types of supply chain: old one “price driven” and new one “value driven”. “When properly designed and operated, the traditional supply chain has offered customers three primary benefits –– reduced cost, faster delivery and improved quality” (Melnyk et al., 2010, p. 33). These are the primary outcomes in the traditional supply chain. They are necessary but “not always sufficient in the modern business world” (Melnyk et al., 2010, p. 33).......

Social and Environmental Issues:

1. Whose fault is it? At many occasions, the big companies and giant retailers would blame their suppliers and/or subcontractors in their supply chain for any negative issues arising from the manufacturing of their products, be it related to environmental damage or human slavery. Their excuse would be that they had no idea their suppliers' practices were damaging the environment or that child labour or bad working conditions took place in the supply chain of their product. 2. Who chose these suppliers and/or subcontractors? The answer to this question shows why the organization selling the product under its brand name is responsible for any issues related to the manufacturing, moving, using, and/or disposing of that product. This is because it is the organization's responsibility to choose suppliers that adhere to its quality standards and environmental and social sustainability commitments and policies. It is the organization's responsibility as well to keep monitoring its supply base to ensure that suppliers are still meeting its standards where if the case is otherwise, the organization must take action in this regards. What is sustainable procurement? The Commonwealth Department of Sustainability, Environment, Water,Population  and Communities (2013) defines sustainable procurement as, Sustainable procurement aims to reduce the adverse environmental, social and economic impacts of purchased products and services throughout their life" (p. 6). This definition shows that the effect of procurement goes far beyond the organization?s boundaries; it considers reducing the negative unwanted and undesired consequences of products and services through the whole life of the product or service, which is the supply chain of this product or service. Principles, as set in the government report, include:

• "adopting strategies to avoid unnecessary consumption and manage demand"; (The Commonwealth Department of sustainability, Environment, Water, Population and Communities 2013, p. 8);
• considering the impact products and services have on the environment and choosing the ones that have the least impacts through the whole supply chain from production to disposal process;
• fostering innovation in sustainable products and services through the design and implementation of procurements" (The Commonwealth Department of Sustainability, Environment, Water, Population and Communities 2013, p. 8)

Strategic Sourcing – Assignment 1

• applying ethical practices in sourcing and ensuring that suppliers are socially responsible in their practices.