Managing Sustainable Global Value Chains: Supplier Selection and Sustainability in London's Retail Industry

This report discusses the importance of supplier selection and sustainability in managing global value chains. It includes an academic literature review, country case study on London, UK, and industry case study on the retail industry. The report highlights the challenges faced by organisations in selecting sustainable suppliers and managing supply chain practices. It also provides insights on how to overcome these challenges and enhance overall performance of business.

Managing sustainable global value chains

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Academic literature review..........................................................................................................1
Country case................................................................................................................................5
Industry case................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Global supply chain can be describe as the worldwide system which is consider by
organisation to produce products and services Supply chain is one of the most important part of
business as it will lead to provide accurate resources and raw material which is needed to carry
out business practices in significant and effective manner. It is essential for organisation to
manage supply chain in significant and accurate manner with the motive of meeting business
needs to develop accurate products and services (Hofstetter and et.al., 2021). Suppliers selection
can be consider as one of the major challenge that is faced by company in order to gain
sustainability opportunities in the global supply chain. This chosen challenge can be consider as
significant for busies as it will provide accurate guidance to organisation for considering
sustainability elements while selecting suppliers to purchase products and services. There are
different elements which are associated with the selection of accurate supply chain as well as
enhancing overall performance of business. Selection of supplier is a significant undertaking for
companies to achieve the objectives of inbound and outbound inventory network system. This
selection process might be complex due to the consideration of diverse subjective and objective
variables. It has been determined that sustainability is very important for business in order to
perform supplier selection practices. This will assist in conducting required set of practices and
task in more appropriate manner. There are different changes in international supply chain in
order to meet with the demand of future. Sustainability opportunities in global supply chain will
lead to have significant impact over business as well as assist in enhancing overall performance.
Chosen country for this report is London, U.K. This country includes number of business which
is conducting its practices by considering international supply chain activates. Retail industry is
selected for this report in order to determine significant of sustainability in supply chain as well
as selection of suppliers.
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MAIN BODY
Academic literature review
Suppliers selections
As per the article of Chartered Institute of procurement and supply, (2021) it has been
analysed that selection process is very important for business in order to increase overall
performance and capabilities of company to attain desired goals (Supplier Selection, 2021).
Suppliers selection can be describe as the process which is consider by business in order to
identify, evaluate as well as contract with suppliers. This is consider as one of the crucial process
of business as it will assist in choosing correct and accurate suppliers for gathering raw material
as well as other resources of business. The main motive of suppliers selection process is to
reduce the risk of purchasing raw material as well as developing closeness or long term
relationships between buyers and suppliers (Analyzing the Process of Supplier Selection Criteria
and Methods, 2021). There are various benefits and advantages that could be attain by
organisation by considering effective suppliers selection practices. Keeping a decent and
enduring connection with suppliers is an essential issue in each affiliation. Provider selection is
considered basic to supervising and fostering an effective and productive store network since an
associations' intensity uncommonly relies upon its suppliers expanding the essential job they
perform in the store network. This is significant for maximizing overall values of the purchaser.
It has been analysed that supplier selection is the initial phase of business as it includes how
suppliers can assist in speeding up the process of business as well as performing organisational
practices in effective and efficient manner (Why supplier selection deserves to be one of
company top priorities, 2021). It is essential for organisation to select correct and accurate
suppliers in order to enhance overall performance and productivity of business.
Sustainability supply chain
It is essential for organisation to maintain sustainability in business practices in order to
manage supply chain in significant and effective manner. It has been determined that sustainable
supply chain management includes consideration of environmental as well as financial factors
while conducting supply chain practices in accurate manner (Choosing suppliers for company
business, 2021). There are number of benefits that could be gained by organisation with the
support of sustainability in supply network. Sustainable supply chain the executives includes
incorporating earth and fiscally reasonable practices into the total stock organization lifecycle,
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from thing plan and improvement, to material selection which includes counting basic material
extraction or farming or agriculture production, producing, bundling, transportation,
warehousing, conveyance, utilization, return and removal. The business enterprises are
increasingly zeroing in on purchasing and providing of items and services in a manner to reduce
the adverse effects on the environment, society, and economy. The world economy acquired new
attributes and with the progression of globalization, additional opportunities have been raised
and covered the fundamental cycles of monetary improvement of the world, assisting with
speeding up the financial turn of events and modernization (Supplier Selection in a Sustainable
Supply Chain, 2021). It is important for companies dealing at international level to consider
sustainability in its practices while performing global supply chain activities. This will lead to
have positive impact over environment as well as business operations.
Criteria for selection a supply
It has been analysed that there are different criteria for selecting suppliers. It is essential for
organisation to consider these factors with the motive of influence selection of suppliers in more
significant manner (Supplier selection process, 2021). It has been determined that suppliers play
very critical role with in organisation so it is important for select correct and accurate suppliers
which is helpful for succeeding company practices. Different criteria for selection of suppliers
are mention below in detail –
 Value for money – It has been determined that business are a beginning up, a key
consideration in picking a supplier might be moderateness. However, cheap suppliers
don't generally represent the best value for money. On the off chance that need reliability
and quality from company suppliers, business will have to decide the amount business
willing to pay for company supplies. Strike a balance between cost, reliability, quality
and service. It is crucial that selected suppliers is able to provide the value of money
invested by company in purchasing raw materials from the suppliers.
 Reliability and quality – It is important for organisation to consider quality as well as
reliability in order to select accurate suppliers (The Importance of Supplier Selection for
Your Business, 2021). The nature of company supplies needs to be consistent - company
customers associate low quality with business, not company suppliers. Equally, if
company supplier lets business down with a late delivery or broken supplies, business
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may let company customer down. This can be consider as significant element for
selecting accurate suppliers for business.
 Flexibility – It is crucial that suppliers is being able to place frequent, little orders lets
business keep away from tying up a lot working capital in stock. Flexible suppliers help
business respond rapidly to changing customer demands and sudden emergencies. On the
off chance that business need to chop down the time it takes business to serve company
customers, suppliers that offer business a fast delivery service will rate higher than those
that compete on other elements such as on price and so on. Selecting suppliers through
considering its flexibility will lead to have positive impact on overall performance of
business.
 Clear communication – It is crucial that suppliers and company have clear
communication in order to enhance overall functioning of business. Communication is
huge in guaranteeing a good working relationship with organization provider. From the
basic instructions, through relentless input and routine gatherings, organization provider
should impart transparently and consistently. Business need organization suppliers to
follow through on schedule, or honestly and give business a lot of caution in the event
that they can't
Analysis of sustainability factors for supplier selection
The evaluation or analysis of sustainable elements accepts an essential part in the provider
selection measure in light of the fact that the recognized segments will straightforwardly decide
the assessed worth of provider proficiency (Why Developing Supplier Evaluation Methods is a
Critical Business Competency?, 2021). Henceforth, sustainable provider selection includes
blending the monetary, natural, and social improvement components of acceptability that are
applicable to a firm during choosing the most ideal provider from a pool of suppliers. These are
factors that are centered around working spot and representative' advances with strong exercises.
 Social factor – Local or social people group impact is a key social factor of legitimacy
that is applicable to the retail area. A positive close by neighborhood can be developed by
giving qualifications and advantages of partners by the retail business inside its outer
climate to build proficiency and advantage. The advantages of representatives incorporate
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wages and other business advantage bundles which can help in expanding employees
fulfilment.
 Environmental factors – Certain elements that are identified with the climate of the retail
business were distinguished as waste administration framework, pollution control, and
ecological abilities. Squander the board frameworks concern the means and procedures
for gathering and organizing squanders including reuse and reusing exercises to
guarantee sustainable results (Determining the Importance of the Supplier Selection
Process in Manufacturing, 2021). Contamination control encompasses measures to keep
away from and minimize the effect of contamination occurrences.
 Economic factors – Cost, advanced technology, on-time delivery, reliability, quality, and
item accessibility are the elements that are distinguished as identifying with the monetary
issues of the business. The expense can be characterized as the cost of industry's thing
which incorporates the essential expenses to expand advantage and stay aware of
intensity. Quality envelops expanding usefulness and effectiveness at limited deformities
in conformance with standard details to further develop client worthiness.
Country case
Chosen country for analysing supplier selecting challenges in order to gain sustainability in
supply chain is London, United Kingdom. The main reason for selecting this country is that it
includes various organisation that is conducting business practices in significant and effective
manner. There are different companies which are providing its products and services to
international market area. This is significant for determining various issues and problems that is
faced by London companies to successfully manage supply chain activities. In the European
retail industry, there is presently an exceptional conspicuousness of private marks. As shown by
our industry specialists, the deals and piece of the pie of private mark brands have move to an
unequalled high in countries including Belgium, Netherlands, Austria, Denmark, Poland,
Sweden, and Norway. It has been analysed that the vital drivers behind the achievement of
private marks are the development of retailing all through the planet, the rise of online business,
the accomplishment of discounters, and changing millennial shopping propensities. It has been
analysed that supply chain management is crucial business decision as it includes number of
elements and practices that affect functioning and performance of business. Furthermore, Private
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labels permit companies in the retail industry to offer something unmistakable to their customers.
London, U.K. has different rules and regulation that is set by government in order to perform
organisation practices in effective and efficient manner. This will influence overall performance
of business as well as assist in considering environmental and social factors while performing
supply chain practices. In London market area , customers are well aware about the importance
of sustainability in business practices as well as its influence on overall functioning of business.
Social sustainability has progressively been acquiring energy in the midst of solid voices being
raised for social issues that hold the independent organization mindful, yet in addition different
accomplices in the framework. One such significant partner is the supplier; suppliers are turning
into a basic piece of a greater value chain network. Numerous a time, dishonest activities of
suppliers sway the corporate picture and business fundamentally. There are various issues and
challenges faced by organisation due to lack of sustainability in supply chain practices as well as
by selecting inappropriate supplier for business. It is crucial for organisation performing its
activities in London country to consider sustainability in supply chain. This is significant by
selecting correct suppliers for business. Suppliers are responsible for providing different types of
resources and raw materials to company and it will directly include functioning of business. By
considering sustainability in supplier selection process, organisation will be able to develop
better and effective relationship with suppliers as well as able to manage supply chain practices
in sustainable manner.
Industry case
Retail is a very vast industry that includes different type of business which is providing high
quality products and services. It is essential that retail industry is considering sustainable
selecting of suppliers in order to enhance overall performance of business. The retail business
fills in as the crossing point among creation and usage of items and is dependent upon explicit
consideration among scholarly and partner crowds (Pananond, Gereffi and Pedersen, 2020). To
increment upper hand, retail firms should exertion to change their business systems, exercises,
and tasks along their stock chains. Purchasers and retailers have been presented to immense
changes in the retail business as of late. It has been analysed that companies dealing in retail
sector is providing its products and services to different part of the world. So supply chain
management practices needs to be performed in significant and effective manner. Specialists
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estimate further change in the coming years, and these progressions are relied upon to reshape
the business. Being in a client driven industry, retailers imagine that it's important to comprehend
their clients' requirements, inclinations, and changing standards of conduct. Retail industry is
focusing on developing products and services which is accurate according to the needs and wants
of customers. This is beneficial for attracting more and more customers (Arora and Hartley,
2020). By selecting correct suppliers retail industry companies will be able to create high quality
product which is according to the need and want of customers. Keeping abreast of customers
demands and unmet needs helps companies develop personalized marketing approaches and
customized offerings. The inventory network has to do with the selection of best possible
supplier ensuring an effective network of item interaction (Ponte, 2020). Currently,
advancements in the retail industry have achieved a change in the shopping patterns of the
customers with most of the shopping activities happening through online channels. With the
prominent retail stores moving toward an Omni channel strategy, businesses have started
streamlining their efforts to increase store movement, improve retailer benefit, and lift online
sales. Other than the typical difficulties of expanded client prerequisites, the globalization of
acquisition showcases, the requests and chances of e-acquirement, abbreviated thing life cycles,
and the development of at the last possible second conditions, purchasing firms are faced with
expanding market and legitimate pressing factors identified with acceptability. Because of an
expanded mindfulness and basic ecological pressing factors from various partners, organizations
have started to understand the meaning of merging green practices into their step by step
exercises. Surely, provider selection is one of the approaches to arrive at acceptability
destinations for the focal firm just as for the whole stock chain. This is on the grounds that
suppliers as the major segments of the creation network expect a basic part in making a
sustainable production network.
CONCLUSION
As per the above mention report it can be concluded that suppliers play significant role in
organisation and it will lead to have major impact for functioning of business. It is important for
organisation to consider correct and appropriate suppliers for business in order to gather right
raw materials and other resources Sustainable procurement or supplier selection includes
integrating the financial, ecological, and social advancement components of acceptability that are
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applicable to a firm during choosing the most ideal provider from a pool of suppliers. Choosing a
supplier is a basic interaction inside a business. It's anything but various factors like
dependability, notoriety, cost, administration and value for cash. Be that as it may, thinking
deliberately truly helps in picking a right supplier for your business. Most appropriate suppliers
are the ones that supply items or any help as per your business needs and requests. Thusly, prior
to picking a supplier unmistakably recognize your business needs and what you really need to
purchase. It has been determined that sustainable supply chain management includes
consideration of environmental as well as financial factors while conducting supply chain
practices in accurate manner. Supplier selection is strategically significant as it can determine the
industry's success in achieving objectives of receiving green practices. There are different
elements which are associated with the selection of accurate supply chain as well as enhancing
overall performance of business. The point of supplier selection is to learn the great supplier who
proposes the best value for cash of item or administration. Proper supplier selection eventually
brings about high benefit and quality. In this essential association, the supplier is considered as a
characteristic piece of the association. Supplier selection is normal to every one of the buyers and
a basic component in the obtainment cycle. The buying supervisors need to go through complex
phases of the selection interaction and set an uncommon selection standard for choosing
appropriate suppliers. More or less, the supplier selection is extremely beneficial for your
business. On the off chance that a supplier is offering excellent it will eventually develops your
standing before your clients and the one with bad quality items will let you down. Along these
lines, admirably select the right supplier for your business. Through this it has been determined
that there are a different element which needs to be considering by organisation in order to
provide accurate services and raw material from the suppliers. It is essential to consider
sustainability while selecting suppliers. This is significant process of business which will lead to
have major impact on business as well as influence over organisational performance.
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REFERENCES
Books and Journals
Hofstetter, J.S and et.al., 2021. From Sustainable Global Value Chains to Circular Economy—
Different Silos, Different Perspectives, but Many Opportunities to Build Bridges. Circular
Economy and Sustainability, pp.1-27.
Pananond, P., Gereffi, G. and Pedersen, T., 2020. An integrative typology of global strategy and
global value chains: the management and organization of cross‐border activities. Global Strategy
Journal, 10(3), pp.421-443.
Ponte, S., 2020. The hidden costs of environmental upgrading in global value chains. Review of
International Political Economy, pp.1-26.
Arora, A.S. and Hartley, N., 2020. Emerging research themes in global value
chains. International Journal of Emerging Markets.
Online
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Analyzing the Process of Supplier Selection Criteria and Methods. 2021. [Online]. Available
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Sustainable supplier selection in the retail industry. 2021. [Online]. Available through: <
https://www.researchgate.net/publication/338770907_Sustainable_supplier_selection_in_the
_retail_industry_A_TOPSIS-_and_ANFIS-based_evaluating_methodology >.
Supplier Selection in a Sustainable Supply Chain. 2021. [Online]. Available through: <
http://www.joams.com/uploadfile/2013/1023/20131023054900723.pdf >.
Supplier selection process. 2021. [Online]. Available through: <
https://www.infoentrepreneurs.org/en/guides/supplier-selection-process/ >.
The Importance of Supplier Selection for Your Business. 2021. [Online]. Available
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Why Developing Supplier Evaluation Methods is a Critical Business Competency?. 2021.
[Online]. Available through :<https://www.spendedge.com/blogs/benefits-supplier-
evaluation>.
Determining the Importance of the Supplier Selection Process in Manufacturing. 2021. [Online].
Available through :
<https://www.researchgate.net/publication/235273418_Determining_the_Importance_of_the
_Supplier_Selection_Process_in_Manufacturing_A_Case_Study>.
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