This is Organizational Performance Assignment requiring a proposal that shows the impact of sustainability in supply chain on organizational performance. This aims to find and improve the supply strategy within a organization.
Over the past years, sustainability has become an important consideration for all businesses, as the stakeholders, communities and social groups are getting intensely involved in the environmental debate and the rising consumer pressure. With the introduction of Kyoto Protocol in 1997, and its implementation in 2005, countries are being forced to control their greenhouse emissions that have a negative impact on the environment and human life (UN 1997). By 2008, 183 countries had acknowledged the Kyoto Protocol (UN, 2008), and with this, consumers started expecting industries and organizations to follow stricter sustainability guidelines (Hall 2000). This project will primarily focus on contributing to the already existing literature on sustainability in supply chain (Vachon 2007). Various industrial practices, strategies, and existing trends in sustainability policies of various firms will be studied with particular focus on the supply chain model of Walmart.
It has been observed that consumer behaviour and the dynamic market structure has considerable influence on the supply chain. For example, in an economic recession, consumers are less likely to spend money and are more inclined towards savings. This significantly affects their purchase and consumption patterns, and forces companies to cut costs in their supply chain so that they can retain customers. In these efforts and strategies of saving costs, other important parameters, such as sustainability and quality, are often compromised.
Packaging of products is one aspect where sustainability can play a major role, and produce much desired results. As estimated in a report published by the British Market Research Bureau (BMRB), there is much room for improvement in the packaging levels of food industry, and the percentage of packaging that can be recycled (BMRB 2009). While this report attracted much media attention, it was estimated that among major retail suppliers, Whiterose had the heaviest packaging; while the amount of recyclable packaging varied within a range of about 58% for Lidl to about 66% for Marks & Spencer. These figures arguably led the British Retail Consortium to conclude that the waste problem in Britain was not a result of packaging, but that of logistics and protection of goods. Owing to the increasing pressure from regulatory authorities and consumers, suppliers are becoming increasingly aware of the new requirements and challenges of sustainability, as the market is getting increasingly competitive.
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Aim & Objectives
The primary aim of this study will be to identify the impact of sustainable supply strategy on the performance of a firm. Major focus will be on analyzing the recent trends in supply chain management. Walmart’s sustainable value network will be used as a case study to examine the potential impact of sustainable supply strategy on a firm’s performance. To achieve this aim, the research will be divided into the following research objectives:
- To study the recent performance of Walmart’ sustainable supply strategy
- To study the relation between corporate supply chain strategy and firm’s performance
- To determine the effect of procurement competences and supplier competences on firm’s performance
BMRB, (2009), Public attempts to boost recycling will fail unless supermarkets do more, British Market Research Bureau.
Hall, J. (2000), Environmental Supply Chain dynamics, Journal of Cleaner Production, 8, pp. 17.
UN (1997), The Full text of the convention, The United Nations Framework Convention on Climate Change
UN (2008), Kyoto Protocol: Status of Ratification, United Nations Framework Convention on Climate Change.
Vachon, K. (2007), Green Supply Chain Practices and the Selection of Environmental Technologies, International Journal of Production Research, 45 (18), pp. 23.