Importance of effective Supply Chain Management and Strategies

Cover Page
EXECUTIVE SUMMARY

This report is aimed to discuss the importance of effective supply chain management and
strategies to manage the effective distribution of the products in present challenging
environment. Globalization has affected every kind of business and an organization performing
the global level operation have to manage sustainable supply chain management activities in
international supply chain. This report will discuss examples of practical issues faced by the
three global level operating organizations naming Nestle, KPR Mill, and Pfizer Pharmaceutical.
Each of these organizations have effective global image and focused to manage the supply chain
meeting the stakeholders’ satisfaction.
Nestle acquire large segment of food and nutrition market, this report will evaluate the issues this
organization faced as child labour in Cocoa production that affected the ethical image of the
organization and will discuss the other issues raising the challenges as deforestation and negative
environment al impact and hoe the organization manage these in global world.
Another organization in this report discussed is KPR Mills, engaged in the clothing production
and manufacturing. This report will evaluate the attached issues of the unethical employee
behavior and other environmental issues affected the global supply chain operations.
Third organization in this context is Pfizer pharmaceutical one of the world largest
healthcare products making organization also had issues in its ethical supply
chain and global contracts management activities. Deeply this report will
discuss major issue unethical withdraw from agreement and its impact over
the organization.
At the end this report will present recommendations in different section for each economy and
impact of these over the international supply chain management.

Table of Contents
Executive Summary 1
Introduction 2
International Supply Chain 3
Chapter One 4
Nestle Supply Chain 1
1. Background of the company
1.2 Nestle Ethical Challenges 2
1.2.1 Child Labour In Cocoa Production 3
1.2.2 Unethical Marketing Strategies 3
1.2.3 Deforestation For Palm Oil Plantation 3
Chapter Two 4
Supply Chain at KPR Mill 4
2. Background of the company 5
2.1 Ethical Issues at KPR Supply Chain 6
2.1.1 Environmental issues 3
2.1.2 Unethical behaviour with workforce 3
2.1.3 unethical culture 3
Chapter Three
Supply Chain at Pfizer Pharmaceutical 1
3. Background of the comapny 2
3.1 Ethical issues at Pfizer Pharmaceutical Company 3
3.1.1 Clinical Trials Unethical Approval procedures 3
3.1.2 Unethical withdrawal from Patent Agreement 3
3.1.3 Over pricing Drugs 3
Chapter Four
Discussions of the Findings
4. Discussions 4
4.1 Recommendations 5
4.1.1 Nestle Recommendations 3
4.1.2 KPR Mills Recommendations 3
4.1.3 Pfizer Recommendations 3
4.2 Conclusions 6
References 4
Table of figures

Figure 1. Child labour
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Figure 2. Baby food advert
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INTRODUCTION

Globalization simply put is the interdependence and interconnectivity of human activities and
interactions (trade, services, goods, culture, technology etc) across borders. One may ask why
businesses decide to go across borders. The driving force that make businesses decide in favour
to establish abroad is among other reasons, business expansion at affordable cost. The effect of
globalization is that a company can afford to develop, source raw material, manufacture and sell
its products in different countries of the world. Today, with the increase in globalization, the big
players at the international arena would have to coordinate and integrate business operations, the
entire supply chain to function almost seamlessly. Globalization despites its advantages, is seen
to have contributed towards difficulties faced in international supply chain apparently due to
macro environmental factors.
INTERNATIONAL SUPPLY CHAIN
International supply chain has developed over the years due to globalization. The intricacies and
complexities associated with international supply chain have made possible for a unit having to
control a section of production in a particular location and so on. It often times has certain supply
chain activities located at different countries in attempt to ease the complex processes, achieve
cost effective and meet incessant demands. It is widely known that supply chain functions on the
coordinated activities of the suppliers, producers, transporters and finally the distributors who
delivers to the end users.
Existing literatures have shown this possess is a major challenge for the global players to
maintain a responsible and sustainable supply chain. To achieve this, each party in the entire
setup must understand the importance of its role, know how actions and inactions impact and
ultimately adhere to the set standards diligently.

Moreover, the pressure from consumers in recent times, demanding to know the activities
involve in the production of products they purchase on daily basis including, how raw materials
are sourced and the impact on the environment, has made it imperatives for companies to see the
need to act responsibly in their supply chain operations, in order to protect their reputation. The
challenge here is to put in place ethics of the profession to ensure valuable contribution towards
achieving sustainable supply chain. Yusuf et al. (2014) posit that, “Ethical responsibility and its
impact on supply chain performance has therefore become a prominent issue within business
studies and practice (Jonathan D. Rockoff, 2020)”.
In this group assignment, efforts have been made to identify and discuss ethical issues as they
related to international supply chain of three different companies in their various industries.