Sustainable Supply Chain Management Strategies

The provided text is a comprehensive collection of resources on sustainable supply chain management. It includes a list of references to academic articles, books, and online sources that discuss various aspects of the topic, such as green logistics, supply chain resilience, and big data analytics in logistics. Real-world examples from companies like BMW and Volkswagen Group Logistics are also analyzed to illustrate best practices in sustainable supply chain management.

Global Logistics and Supply
Chain Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Relevant information on the case company.................................................................................4
LITERATURE REVIEW............................................................................................................5
Evaluating key challenges faced by BMW in the context of logistics and strategies adopted by
it in against to the competitors.....................................................................................................6
Challenges faced by BMW in their adopted supply chain management and logistic strategies. 9
CONCLUSION AND RECOMMENDATIONS..........................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global logistics and supply chain management has significant role international logistics
and has changed the directions of manufacturing organization operates and do business. The
purpose of this paper is to demonstrate the global logistics that affects the operations of the
manufacturing companies (Mangan, Lalwani and Lalwani, 2016). In particular, the factors
contributing to the rise of inter-modal transport will be discussed and also challenges faced by
the BMW which is manufacturing company in auto mobile sector and dealer of luxurious
vehicles. The report makes and exploitative research study on the BMW's supply chain and
highlights its core supply chain strategies that provides an overview of various trends taking
place in the supply chain planning and design practices of the company global supply network
(Rushton, Croucher and Baker, 2014). Further, literatures with provides review on the aspects of
the auto mobile supply chain and how the organisation and how they distinct from the other
chains in terms of the process involved in the planning and design. Further, Analysis of BMW
supply chain an important part of supply chain have includes the supplier's selection and
sourcing mechanism, design and production, distribution and reverse logistics network. For the
purpose of our research, researcher was mainly concentrated on the BMW groups website where
all their activities are associated with the supply chain are adequately described.
BMW's has the ability to keep the promise alive is monumental task, it is not merely the
responsibilities of BMW brand and the marketing team, it extends to all the employees with the
company (Fernie and Sparks, 2014). Supply management team at the BMW has the
responsibility to ensure that all the components to the ultimate driving machines meet strict
standards of quality and sustainability. Moreover, report will discuss about the challenges which
are faced by the supply chain management team in providing services to their dealers and
manufacturers. While the logistics teams ensure a continuous supply of parts to the
manufacturing team (Jacobs, Chase and Lummus, 2014). Analysis of various important
literatures have provides major understanding about the literature and studies that reflects the
ways through which company will be able to reflect those changes in the market segments.
Critical evaluation of the market performance of the enterprise have been taken in to
consideration for evaluation of effectiveness of business operations.

Relevant information on the case company
As per the above given case study, As one of the largest luxury brand and auto mobile
manufacturer, BMW is the ability to keep that promise alive is the monument task . It is not
considered as major task of the company and its marketing team to increase employees within
the organisation (Monczka, Handfield and Patterson, 2015). In this context, supply chain
management team at BMW has been tasked with the ensuring that the components of its new
products named ultimate driving machine that meet the strict the standards of ultimate quality
and sustainability. While the logistics have considered as teams in order ensure the continuous
supply of the important parts towards the manufacturing team (Dyckhoff, Lackes and Reese,
2013). Moreover, case study has determined various important challenges faced by BMW in
their supply chain management. From the supply chain, it has been defined that company has
vast suppliers base, company in auto mobile sector will contend with the high risks all along with
the supply chain. Challenges faced by the organisation in the supply chain involves the
geopolitical issues as well as natural issues along with the man made disasters, all of which are
not in the control on the enterprise. These major challenges have the power to influence the
production nd distribution, inflate the costs and overextends the overall budgets of the enterprise.
It also tends the to raise the disappointment of workers from the company for not providing
quality of services in order to build (Tayur, Ganeshan and Magazine, 2012). There are various
functions of organisation have been analysed which are performed by them to raise their supply
of vehicles in other countries. Moreover, BMW has the global suppliers network therefore it
represents a major sources for creation of values, quality and innovation for their group but also
raise the risk if left unaddressed (Van Weele, 2010). Further, it is also it was also analysed that
as part of their strategy company has integrated CDP in to its annual suppliers performance
reviews for its 100 suppliers assessing them against the key indicators such as emission targets,
reduction in initiatives along with the amendments in the absolute emissions. It has further
allows the organisation to track their year on year performance, creates its competitive
benchmarks and provides information to the BMW group future suppliers' strategy of
engagement. Moreover, company will also engage the suppliers who have not directly
participated in annual performance reviews on the bilateral basis through its commodity of its
strategy on the relevant supply chain.

LITERATURE REVIEW
As per the view of Jüttner and Maklan, (2011), organisation is to be focus on some new
location for expansion in market. To be use some models and supply chain management is one of
the most important part to increase the market level. It is help to increase new area with the help
of supply chain management. Global logistic is one of the most important part that is focus on
new location to introduce new product in market. According to (Gereffi and Lee, (2012), some
models is to be used by organisation are as:
 Single period model:- In this model is to be focus on the organisation is to be focus on
single period or one time item is to be introduce in market. To be new location and new
distribution of market is one of the most important part in working environment. New
machine is to be installation in factory and make some change in market. The location is
to be set to nearby city area, which is beneficial for company. As per the view of
(Mollenkopf, Stolze and Ueltschy, (2010), is focus on reduce the level of variable cost
and increase the profit in market. If the cost of variable is reduced, which is beneficial for
organisation. These techniques are help to improve the level of carrying into action in
market. As per the view of (Wisner, Tan and Leong, (2014), cost of supply, production
and distinction is one of the most important part to improve the growth rate of
organisation. The focus on improve new market with the help of reduce the growth rate in
market. Timely investment is one of the most important factor, which is useful for any
objective based on cash flow. According to (Wu and Pagell, (2011), Inventory carried
from period to period, however, as is usual in operational planning models, has no
importance for strategic planning with yearly periods.
 Flexibility :- As per the view of Wang and Cheng, (2010), is most important party that is
help to organisation is easy to convey any message or product on place to other and
improve the productivity in factory. It is depended of the expected demand and
availability of capacity in work place. According to Ross, (2013), flexibility of a supply
chain with multiple production sites essentially depends on how the firm allocates
products to the sites. It is one of the most important part to improve the growth rate in
market and make some effort in internal and external working environment.

 New product :- Organisation is to be focus top introduce a new product in market is one
of the most important part work place. As per the view of ( Wang and et.al., (2016),
production and distribution activity is one of the most important and firm is to be focus
on demand of the new product in market. According toEstampe, Lamour and Brahim-
Djelloul, (2013), demand is one of the most important part to introduce new product in
market. To make that conclusion, the model must allocate the economic process over the
life cycle to the old age. There is one of the most important part to increase the market
share and make some improvement in growth rate.
Some other challenges is to be faceted by the organisation is caused by geopolitical issues and
natural and man-made disasters, all of which are beyond the control of the company. There some
other most important part is supply chain management. As per the view of-(), supply chain
management is one of the most important part and focus on three different factors are as
follows :-
 Impact of planning in supply chain is one of the most important part in market and supply
chain form supplier to the customer.
 To be focus on some model to be used in to remove such kind of problems.
 To implementation the model with the help of software.
According to-(Pettit, Fiksel and Croxton, (2010), some all such factor is one of the most
important factor for organisation and supply chain management is help to identify new point,
which is help to differ for other organisation. This organisation differ form other because they
are focus on market segmentation and company must be change management system or use new
strategies to increase the market share. To be focus on new way of supply chain management and
improve the growth rate in market.
Evaluating key challenges faced by BMW in the context of logistics and strategies adopted by it
in against to the competitors
As per the view of Ahi and Searcy, (2013), Company operating at international level
needs to adopt an effective supply chain to provide its products effectively and efficiently in
different parts of the world. From the market analysis, it has been considered that company has
achieved high financial position and has become major manufacture and retailer luxuries' cars

and other vehicles etc. Moreover, the corporate philosophy which is followed in the company
was made by the employees themselves, which is considered as customer oriented action. With
the application innovation and new technology in their vehicles, company has differentiated its
products in market as compared to rival brands like Jaguar, Audi, Volkswagen etc. Company's
vision to achieve the sustainability as well as getting competitive advantage over its rivals will
revolve around the procedure which depends upon the process of supply chain. Moreover, the
company has developed a major requirement of business to develop various important business
measures that will provide major growth and development in market. BMW's has the ability to
keep the promise alive is monumental task, it is not merely the responsibilities of BMW brand
and the marketing team, it extends to all the employees with the company. Supply management
team at the BMW has the responsibility to ensure that all the components to the ultimate driving
machines meet strict standards of quality and sustainability.
Moreover, there are various issues have been faced by the company which are determined
such as differentiation which implies to the distinction of marketing mix from and better than the
rival (Seuring, 2013).Product differentiation is core for the company to achieve healthy market
share. But an abundance of the option for the vehicles buyers which are present with the vehicle
models with the almost similar functional characteristics. Moe rover, BMW is presently more
focused and forced towards manufacturing the different and unique products for a particular
segments or region at a point of time which is strategy to cope up with the customers preferences
and fickle the requirements of customers. This major differentiation will provide influence on
their budgets highly since the financial problems of missing a market are considered as
disastrous (Tayur, Ganeshan and Magazine, 2012). These are various political issues have been
faced by the company in supply chain management such as increase in tax burden, increase in
cost of labour and rise in export and import risk etc.
These political implications will provide major impact on the brand and prices of the
products in the markets. Moreover, these major issues will tend to raise the competition in the
market which has been considered as major problem on the sale of Vehicles. Other competitors
in the market will increase the supply of their products to raise the business process (Mollenkopf,
Stolze and Ueltschy, 2010). Change in the customers preferences have been considered as major
factor which has raised the competition in the auto mobile sector. Commitment to innovation

supply of variety of products to different parts has brought up major challenge for the company
and complexity of the functions have been offered in the BMW's premium luxurious cars.
Products development is the major financially taxing for the company and cost of developing
new models and their parts is identified enormous, time consuming and carries major risks. Other
than this, competition from the major vehicles manufactures will determine the effectiveness of
companies strategies with the 69% of the market which have been controlled by the organization
(Ross, 2013). It is more difficult for the organisation to maintain its buyers without having an
influence of competitors. Moreover, it is essential for the BMW to accelerate its risk
management approach to manage the risk within the supply chain (Ahi and Searcy, 2013). It has
harnessed the major data available the channels of social media to create upon the minute profile
of global political and economic activity, customers sentiment and the uncontrollable events
which impact affects its supply chain.
BMW being a renowned firm is known to handle approx. 30 million parts of vehicles to
produce a minimum of 9000 vehicles each day. For this purpose, the logistics function has been
specified to be the heart of BMW company, among all its operations. This is on together
considering a strong vision of BMW in their logistics segment where they are striving to position
themselves on the convergence of advanced technology and digitalization. Also, a there existed a
considerable growth in the past few years with a rising increase in their yearly sales. After which,
BMW is attempting to scale up their logistics operation to meet up their objectives of
international expansion. Although, the above determined vision of BMW represents 5 main
aspects in their adopted logistics strategy where all of them tends to complement one another to a
great extent. It with a specific concern of shaping a self-starring supply chain management where
these aspects are transparent supply chain, autonomous robots and vehicles, logistics
collaborative robots, augmented reality and mobile devices and sustainability. On considering all
of these aspects of BMW’s logistics strategy, it is currently known to possess a competent
framework of reverse logistics. It is with a prime consideration of utilizing the reusability,
recyclability and remanufacturing of several automobile components.

Challenges faced by BMW in their adopted supply chain management and logistic strategies
There together exists certain number of challengers that are being faced by BMW that are
stated in accordance to their undertaken characteristics of their logistics system. This is for
instance on referring to its transparent supply chain procedure where transparency is meant for
efficacy and safety. However, a majority of parts as well as vehicles of BMW is shipped through
sea that often leads to untimely and imprecise apprises of its status. Also, it leads to create a
defect awareness with an increase in the workload of supply chain management. BMW has
therefore undertaken 4 essential steps to alleviate any such straining aspect. These are the
attainment and recording of their implicit data related to the orders, examine and control any
hindering facet, evaluate and improve by lastly, computerize and forecast the same. This will be
done with the help of sensors installed in the containers loading its parts and vehicles to be
delivered with an ease of responding to any delayed order.
Apart from this, there together exists various other challenges that are being faced by
BMW for an efficient management of their logistics operations and supply chain management.
Whereas, there exists another concerning matter of fulfilling the changing requirements of the
customers, supported by a faultless procedure that leads to a quick response at the rime of any
uncertainty. Despite of being flexible to the fulfilment of customer’s changing demands and
being agile towards it, its adopted traditional approach of mass production is somewhere lacking
in an effective management of supply chain and its other logistics related operations. However, it
is with a prime focus on reducing the cost of production, a rising trend of globalization has made
some noticeable shifts of worldwide economic meltdown from their undertaken measures.
From assessment, it has found that BMW is handling 30 million parts and manufacturing
9000 vehicles in a day. Senior executives of BMW entailed in the conference that futures of
logistics highly rely or centre on the convergence of digitalization and advanced technological
aspects. Along with this, it has identified that global supplier network makes significant
contribution in the value creation, quality as well as innovation and thereby leads BMW’s
success. BMW has built and maintained huge supplier network such as 12000 in approximately
70 countries. Considerable growth has experienced by BMW over the past decade. In the past
years, BMW faced issue in relation to matching with its logistic operations with the global

expansion plan. Thus, for the effective management of logistics and supply chain several
strategies were framed as well as undertaken by BMW. This in turn includes transparent supply
chain, logistics collaborative robots, augmented reality & mobile devices. Head of BMW’s
logistic department presented that it lies at the heart of production system. For the purpose of
prominent logistic management following strategies have been undertaken such as:
Transparent supply chain: Traffic congestion, accidents and infrastructure failures are
the main aspects that highly associated with road freight as well as out of the organizational
control. Thus, for alleviating such strains emphasis has placed by BMW on creating transparent
supply chain (BMW Accelerates its Supply Chain Management Approach, 2018). Hence, process
such as obtain and record data, analysis, control & improvement, g automation as well as
forecast has followed by BMW.
Autonomous robots and vehicles: In the present era, driverless vehicles play a crucial
and equally transformational role within the logistics department. Considering the importance of
such aspect management team of BMW has focused on automation.
Augmented reality & mobile devices: Now, BMW is placing emphasis on using in-house
developed data goggles. It provides high level of assistance or support to the logistic staff of
BMW. This in turn helps them in selecting right place, sorting and positioning (BMW Group’s
strategic supplier engagement, 2018).
Sustainability: Environment sustainability is the main concern for BMW. Company is
continuously making efforts in relation to reducing the level of CO2 emission either directly or
indirectly. Thus, for making contribution in the sustainability aspects transparent as well as
connected supply chain has used by BMW (Logistics: the beating heart of BMW Group, 2018).
Hence, for the distribution of critical parts emphasis has been placed on rail or sea mode over air
sources. Considering the level of air freight and CO2 emissions emphasis has placed by BMW
on railway sources. \
Logistics collaborative robots: Automotive sector is filled up with the high level of
automation or innovative practices. BMW team believes that logistic centre of the firm will make
focus on employing human workers. Hence, for meeting such requirement and facilitating

effective logistic management focus has made on using cobots. Such advanced collaborative
robots are highly able to work safely alongside human operators.
Hence, by taking into account all the above depicted aspects it can be presented that
strategic actions or initiatives have undertaken by BMW for logistics and supply chain
management.
Competitor’s analysis:
By doing evaluation, it has assessed that BMW is facing stiff competition from several
companies operating in automobile sector such as Audi, Volkswagen, Mercedes Benz etc. Thus,
for presenting the fair view of BMW’s logistic and supply chain management evaluation with the
competitors has done.
Basis of
difference
BMW Audi Volkswagen
Logistics and
supply chain
management
Following strategies have
employed by BMW for
logistics and supply chain
management such as:
 Transparent
supply chain
 Autonomous
robots and
vehicles
 Augmented
reality &
mobile devices
 Sustainability
 Logistics
collaborative
robots
 Digitalizing
inbound delivery
 Establishment of
plants like
Neckarsulm and
Ingolstad for IT
as well as
logistics stability
(Audi’s logistics
part 1: Prepared
for a new reality,
2018)
 Nurturing digital
innovation
 Collaboration
between
Volkswagen’s
logistics
management and
its truck-
manufacturing
arm (Volkswagen
Group Logistics:
Come together,
right now, 2018)

CONCLUSION AND RECOMMENDATIONS
From the above report, it has been concluded that current performance and position of
BMW is good. Besides this, it can be inferred that strategic measures or actions have taken by
BMW for making improvement in the logistics and supply chain management. It has been
articulated that pilot projects initiated or undertaken in 2016 for the purpose of emission
reduction. It can be summarized from the evaluation that BMW is accelerating supply chain
management approaches with the motive to get the desired level of outcome or success. It can be
depicted from evaluation that lack of awareness creates a greater workload in terms of supply
chain management. Along with this, it also has been concluded that logistics and supply chain
management strategies that have employed by BMW considered as highly good. It is
recommended to BMW to lay focus on undertaking innovative practices and approaches through
R&D activities that directly contributes in the effective logistics management as well as success.

REFERENCES
Books and Journals
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of cleaner production, 52, pp.329-341.
Dyckhoff, H., Lackes, R. and Reese, J. eds., 2013. Supply chain management and reverse
logistics. Springer Science & Business Media.
Estampe, D., Lamouri, S. and Brahim-Djelloul, S., 2013. A framework for analysing supply
chain performance evaluation models. International Journal of Production
Economics, 142(2), pp.247-258.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Jüttner, U. and Maklan, S., 2011. Supply chain resilience in the global financial crisis: an
empirical study. Supply Chain Management: An International Journal, 16(4), pp.246-259.
Gereffi, G. and Lee, J., 2012. Why the world suddenly cares about global supply
chains. Journal of supply chain management, 48(3), pp.24-32.
Mangan, J., Lalwani, C. and Lalwani, C. L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Mollenkopf, D., Stolze, H. and Ueltschy, M., 2010. Green, lean, and global supply
chains. International Journal of Physical Distribution & Logistics Management, 40(1/2),
pp.14-41.
Monczka, R. M., Handfield, R. B. and Patterson, J.L., 2015. Purchasing and supply chain
management. Cengage Learning.

Pettit, T. J., Fiksel, J. and Croxton, K. L., 2010. Ensuring supply chain resilience: development
of a conceptual framework. Journal of business logistics, 31(1), pp.1-21.
Ross, D. F., 2013. Competing through supply chain management: creating market-winning
strategies through supply chain partnerships. Springer Science & Business Media.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Van Weele, A. J., 2010. Purchasing and supply chain management: Analysis, strategy, planning
and practice. Cengage Learning EMEA.
Wang, G., Gunasekaran, A., Ngai, E. W. and Papadopoulos, T., 2016. Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics, 176, pp.98-110.
Wang, J. J. and Cheng, M. C., 2010. From a hub port city to a global supply chain management
center: a case study of Hong Kong. Journal of Transport Geography, 18(1), pp.104-115.
Wisner, J. D., Tan, K. C. and Leong, G. K., 2014. Principles of supply chain management: A
balanced approach. Cengage Learning.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply chain
management. Journal of Operations Management, 29(6), pp.577-590.
Online
Audi’s logistics part 1: Prepared for a new reality. 2018. [Online]. Available through: <>.

BMW Accelerates its Supply Chain Management Approach. 2018. [Online]. Available through:
<http://smbp.uwaterloo.ca/2015/10/bmw-accelerates-its-supply-chain-management-
approach/>.
BMW Group’s strategic supplier engagement. 2018. [Online]. Available through:
<https://www.cdp.net/en/articles/governments/case-study-bmw-groups-strategic-supplier-
engagement>.
Logistics: the beating heart of BMW Group. 2018. [Online]. Available through:
<https://www.themanufacturer.com/articles/logistics-the-beating-heart-of-bmw-group/>.
Volkswagen Group Logistics: Come together, right now. 2018. [Online]. Available through:
<https://automotivelogistics.media/intelligence/volkswagen-group-logistics-come-together-
right-now>.