Managing Inward Value Chain - Indian sugar industry

Running head: MANAGING INWARD VALUE CHAIN
Managing Inward Value Chain
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1MANAGING INWARD VALUE CHAIN
Table of Contents
1. Introduction............................................................................................................................2
2. Academic Literature Review..................................................................................................3
3. Country Case..........................................................................................................................6
4. Industry Case..........................................................................................................................8
5. Discussion and Conclusion..................................................................................................10
References................................................................................................................................12

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1. Introduction
In the recent years, the presence of major increase in concerns can be seen related to
the environmental effects triggered by industrial operations all over the world (Yao and
Minner2017). In addition, there has been also increased pressure in the social and economic
fields for the adoption of principles and practices which assure persistent improvement in
business performance. The definition of sustainability can be provided as the integration of
environmental, social and economic responsibilities and this is now considered as a part of
the daily business operations for the companies all over the world (Yao and Minner2017). A
global supply chain can be considered as a dynamic worldwide network when good or
services are purchased by a company from overseas. The introduction and use of
sustainability in global supply chain needs to be regarded as a contemporary and future
magnifying change which demonstrates the significance of sustainability in international
supply chain context. It is highly possible to achieve improvement in performance and
sustainability within the organizations through sustainable supply chain that involves
different business processes such as sourcing, procurement of materials, gathering,
production, storage, distribution and others (Jain and Hazra2017). For this reason, the
challenge is to employ sustainability in sourcing strategy which is a part of supply chain.
Considering the growing importance of sustainability, sustainable sourcing strategy in supply
chain is of great significance. For the demonstration and discussion of the above-mentioned
challenge, Indian sugar industry has been selected. The sugar industry in India is among a
few industries contributing towards the rural economy. Out of almost 600 sugar mills in
India, 527 sugar mills are operational; and India is regarded as the largest consumer of sugar
in the world. Due to the presence of such huge operations in Indian sugar industry along with
the large consumption of sugar, there is a need for improving the supply chain in the

3MANAGING INWARD VALUE CHAIN
companies under Indian sugar industry through the introduction of sustainability in sourcing
strategy of these companies.
2. Academic Literature Review
There has been major involvement in supply chain from cost minimization and profit
maximization to a more inclusive method to deal with functions, operations and
managements of the companies (Stadtler2015). Additionally, supply chain management has
turn out to be a major procedure for improving business performance and concepts like
maximization of value across the value chain, association, information sharing, overall
strategy and others (Chin, Tat and Sulaiman2015). More specifically, the definition of supply
chain management can be provided as a global network that the companies use in order to
deliver products and services from raw materials to finished products through a plotted flow
of information, physical distribution and cash. Supply chain management is the process of
planning and managing all activities involved insourcing and procurement, change and all the
activities related to logistics (Chin, Tat and Sulaiman2015). It is noteworthy to mention the
fact that supply chain management includes partnership and harmonization with all the
channel partners such as suppliers, third party service providers, intermediaries and
customers. Therefore, supply chain management involves in integrating supply and demand
management across and within the business organizations. For this reason, moving and
storing raw materials, components, work in progress, finished products from the original
point to consumer points are includes in supply chain management. Moreover, interconnected
networks, channels and business organizations involved in the provision of services and
products needed by the customers are includes in supply chain (Chin, Tat and Sulaiman
2015).
Sustainability that is also known as sustainable development has become massively
popular worldwide due to the increase in environmental and sustainability issues. The