This report discusses the three most critical environmental sustainability issues in supply chain management and how they are being addressed, using Marks and Spencer as a case study. The issues include insufficient response to technology trends, natural or environmental occurrences, and inaccurate planning and forecasting.
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Sustainable Supply Chain Management
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Contents Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Identify the three most critical environmental sustainability of supply chain issues..................1 How Supply Chain Management issues being addressed............................................................4 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Supply chain Sustainability refers to the efforts of an organization that is considered the environmental and human activities which create an impact on their products, through the supply chain, from raw materials to production stage and storage, delivery with their transportation. Supply chain management focuses on speed, cost and operation reliability, and sustainable supply chain management which adds goals of their upholding the environmental and societal values of an enterprise(Hussain and Malik, 2020). In sustainable supply chain is having three main responsibilities that management need to focus are social, environmental, and financial in their enterprise. This report is based on Marks and Spencer which is established and founded in Leeds, the UK in the year 1884. It is a British retailer which focuses on and provides quality food, items of clothing, and homeware, it serves millions of customers in the world. This report includes the three most critical sustainability supply chain issues and further, and it also covers how these issues are being addressed. MAIN BODY Identify the three most critical environmental sustainability of supply chain issues Environmental Sustainability of supply chain which practices collaboration of their manufacturers and resources, this helps an organization to reduce waste, environmental risk, and cost. It is a typical consumer company whose supply chain creates social and environmental costs from its operations. This helps management to minimize environmental risk from factors like energy consumption, water consumption, and waste production which have a positive impact on people and communities and around their operations(Rebs, Brandenburg and Seuring, 2019). This indirectly impacts enterprise goals and it will be accomplished effectively and efficiently if all consumption and production are used properly by management in the company. It also considers the coordinating of sourcing, production, inventory management and transportation amongtheirparticipantsinthesupplychaintomaximizeefficiencyandsatisfactionof customers. Many businesses realize the major time and cost savings that improve and evaluate supply chain management. Marks and Spencer are utilizing their raw material in a very effective way so that it can beat its competitors by the pricing of its products in the market. Marks and Spencer is having good supply chain management in a market where they have good storage and transportation but they faced a few problems when they doing sustainability supply chain 1
management(Jia, Gong and Brown, 2019). The most three critical environmental sustainability of supply chain issues which are explained below: Insufficient response to technology trends: In an organization, management faced problems while running the latest technology for the production of their business. The employees are not having good knowledge and expertise skills for operating the latest technology and this will indirectly impact on objectives of their business and management do not have the potential to accomplish their objectives in a given time frame. This direct impact on the supply chain management of an enterprise which is production, storage and delivery and transportation(Luthra and Mangla, 2018). This sustainable supply chain helps to improve their productivity and helps to save money and time for the organization. A sustainable technique and resources indirectly impact on increasing efficiency of their buildings, vehicles and machinery with very significant cost savings. In Marks and Spencer, managementsustainstheirsupplychainmanagementthentheyfacedproblemsinan organization when they run their business process. In business, management will not able to sustain and do not utilize their raw material effectively in the organization for the production of their products. This also affects the price of products, if the raw material is not properly utilized then a product of price will be increased(Vargas, Mantilla and de Sousa Jabbour, 2018). This will create a problem for an enterprise that they don't have the potential to sustain their raw material and it also impacts Marks and Spencer objectives that they do not achieve their goals in a given time frame. In Marks and Spencer, their employees are also facing problems related to technology operation activity that they don't able to operate activities effectively which relates to technology. When technology is upgraded then they faced problems to adopt new technology in their enterprise. Natural or Environment occurrences: Thenaturalorenvironmentaloccurrencesarethemostimportantconcernforan organization because of an organization is used raw materials for the production of their product that is not eco-friendly then it will directly impact the environment, so the environmental condition is a very negative impact on the environment(Sauer and Seuring, 2018). This is a very big issue that is faced by people due to environmental factors so, enterprise management needs to take essential steps which help an organization improve their raw materials for their production. This help to improve their environmental condition. The UK government also have to take strict 2
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action and make a law that the management of every enterprise has to follow in the production of their products. If this law is broken by any organization then government take strict action towards their business. Now, enterprises only used eco-friendly raw materials for manufacturing their products. This is a very reduced problem people are facing due to environmental factors. In Marks and Spencer, management doesn't use eco-friendly raw material for manufacturing their products which directly impact the environment and creates various problem for the environment (Das, 2018). This also affects human health and people face many problems which will impact their business of Marks and Spencer, then now management of Marks and Spencer has to make changes in their raw materials that they purchased eco-friendly products in their company for their production. This helped management to sustain their raw material for the long term and they used this for the manufacture of their production. If Marks and Spencer don't follow the law which is implemented by the government and they continue the same process of their production and which directly impacts the environment(Panigrahi, Bahinipati and Jain, 2018). Then Marks and Spencer can't sustain their organization for the long term in the market. It is very necessary for management that they have to follow all policies regarding environmental factors then only it is possible for Mark and Spencer to sustain their organization for the long term. Inaccurate planning and forecasting: If the management of an organization is doing wrong forecasting and planning for their enterprise then it will indirectly impact on business process. Management of business will not be able to meet the demand and supply in the market due to wrong judgment and make a plan. If management will plan wrong then it will directly impact an organization that has to face many problems in an organization(Ahmed and Sarkar,2018). In the market, sometimes companies have to face undersupply and oversupply in their business process. This also impacts the cost of the products of their products. The decision-making is based on the planning of management. If planning is done wrong then it will directly impact decision-making, then decide which is taken is not right for their business and it will directly impact their profit. This also impacts company objectives which they aren't able to accomplish effectively. Marks and Spencer have to face many problems when they planned inaccurately and do wrong forecasting for their organization. This creates a lot of problems for Marks and Spencer which isn't able to forecast accurately according to their business. If the forecasting of demand is not done accurately then they have to face many problems related to the supply and demand of the market. If management judges less 3
demand and does production accordingly then they face many problems if the demand for their product is high they aren't able to meet the demand of the market. This is a very crucial stage in which management has to perform it sincerely but they lacked down due to the difference between forecast and actual demand(Azevedo, Scavarda and Caiado, 2019). This is happen because it has lots of calculations done when they do the forecast of their business process. So if the wrong calculation is done then it will directly impact an enterprise production level. This will lose to gain the competitive advantages of their organization and they have faced many problems in sustaining their business for the long-term in the market. How Supply Chain Management issues being addressed Supply chain management issues must be addressed then only it is possible for management that they able to sustain their organization for the long term in the market.This is very crucial for management that they have a proper solution for their organization's sustainability which impact the business process and production level of an enterprise. This is essential for management that they used their raw material effectively for their products which enhances the productivity level of their organization and they're able to sustain their management for the long-term in the market. Marks and Spencer have to focus on that how they going to solve the problem of supply chain management in their organization which enables the productivity level of their enterprise. This helps the management of Marks and Spencer they can generate profits and expand their business in the market(Gardas, Raut and Narkhede, 2019). These issues help management in to improvethe productionlevelof theirorganizationand thisisa very effectiveway for management because it helps to know about what are the important factors that impact their businessoperationandtheyneedtosolvethatproblem.Sothattheycansustaintheir organization by competing with their competitors in the market. There are a few things which MarksandSpencerofsupplychainmanagementissueswhichbeingaddressedintheir organization are explained below: Insufficient response to technology trends: The technology is upgrading in the market but in the organization, employees lack down while they operating the latest technology in their organization. This is a very important issue because technology is changing very rapidly and it must require skills and knowledge for operating so, so they need to focus that how they going to solve these issues. This is very important for an organization that they need to train their employees effectively so that their 4
employees developed skills and knowledge which help them to operate the latest technology effectively so, that they can improve their production level organization. Marks and Spencer faced a problem when technology is upgrading and they aren't able to adopt the latest technology in their organization. This will directly impact on organization's production level in the market and they faced problems in generating profits for their enterprise. Marks and Spencer give proper training to their employees so, they effectively operate their latest technology and adopt it in their company(Sauer and Seuring, 2019). This will enhance the productivity level of their enterprise and they able to run their business smoothly in the market. Marks and Spencer have to gain competitive advantages in the market. Marks and Spencer don't provide training to their employees then they aren't able to improve their performance level because they faced a problem when they have to operate the latest technology in the enterprise and it will directly impact on production level and they don't properly utilize their raw material effectively in their business process and they aren't able to beat their competitors in the market. If t management can easily adopt the latest technology in their organization then they can easily compete with their competitors in the market. This is very good for a business operation that if new technology is adopted then they able to reduce wastage and manage the price of their products. This enables an enterprise that they can sustain their organization for the long term in the market and they generate profits which they used for the organization's expansion and growth in the marketplace (Wang and Dai, 2018). Technology has become an essential factor for an enterprise because they help management to meet the expectation level of customer and the demand of the market. Natural or Environment occurrences: Theenvironmentornaturaloccurrencesarethemostessentialthingwhichany organization needs to focus on that their raw material which they use for manufacturing their products must be eco-friendly so that it not impact the natural environment. If their raw material affects the environment while manufacturing their products then it creates a big problem for their environment which is not good for people's health also. If any natural resources are used by the firm to manufacture their products then management has a responsibility that they have to replant that natural resources so that they sustain for a long term in the market(Gardas, Raut and Narkhede, 2019). This also helps management that they can run their business for their organization in the long-term market. If management does not use natural raw materials effectively then it directly impacts a business process that they are not able to run their business 5
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smoothly in the market and sustain their business for a long term in the market. This becomes a very important concern that they can manage their resource most appropriate so that they can sustain their raw material for the long term in their company for manufacturing their products. This is also ensured by Marks and Spencer that their management has to perform various activities in their organization that needs to plan and use their raw material very effectively so that it does not impact the natural environment. The natural environment is directly impacted by their enterprise while they manufacture their products because when management does the productionoftheirproductthenitincludesrawmaterialswhichdirectlyimpacttheir environment. This is why it become important for Marks and Spencer that they properly examine their raw material which harms nature and reduce all those raw material and management try to avoid that raw material. So that they can improve the condition of their environment and they used eco-friendly raw materials which help the environment to improve the condition of their company(Roy,Schoenherr and Charan, 2020). This Marks and Spencer prepared to make an effective strategy for improvement of their business process so that they properly utilize their raw material in this way that their product must be eco-friendly in market. Marks and Spencer need to prepare very important planning that they can set criteria of their working in which if they used any natural raw material for their manufacturing their products then it is the responsibility of management Marks and Spencer that they need to replant their natural resources so that it able to sustain their raw material for a long term in an organization. Inaccurate planning and forecasting: In an organization, if management prepares accurate planning and forecasting then only they can manage their product demand. This is very important for their organization that they can make an accurate plan because if the plan goes wrong then it directly impact on organization's performance level and they don't have the potential to manage and meet the demand of the market. This forecasting depends upon the demand and supply of products if it is not done accurately then it will directly impact their business performance level(Абдуллоев, Таирова and Аминова, 2020). In anything, planning is a very important task that which management of an organization needs to perform in a very proper and effective way. There are the things on which the whole business process depends if planning fails then the business process fails and if planning is done right then they can run their business operation successfully. This becomes the most priority thing which management has to make effective and accurate planning which help 6
organization to grow and develop in the marketplace. In Marks and Spencer organization, their management needs to properly examine all important factors which are very necessary for management when they are preparing a plan for their organization(Shahi, Shiva and Dia, 2020). If management needs to be properly concerned that which factors can affect and are important for their business process and then management plans accordingly for their organization. So that they can manage their business process successfully and Marks and Spencer do the proper calculation when they are prepared to plan for forecasting so that they can know about the number which they need to prepare products. This enables management to fulfill the market demand and the expectation level of customers in the market. This is very important for management that they able to manage all effective strategies and manage the business process in this way that they planned the business process in a very effective way. If Marks and Spencer fail in planning then they have to suffer from a very big problem in financial condition is low and they aren't able to manage the demand of the market and have no potential to meet the expectation level of customer(Reinerth, Busse and Wagner,2019). This is why it becomes important for Marks and Spencer that they can prepare an effective strategy for their organization so that they can manage all activities very effectively in the marketplace. 7
CONCLUSION From this above report, it has been stated that for an organization it is very important that their sustainability for supply chain management of an enterprise because it helps management to improve their production level and properly utilize their raw material for the production of their products. It is a very important concern for a company that they must sustain their product effectively then only it is possible for a sustainable long term in the market. The issues which are raised when management does sustainability for their supply chain management and this will impact an organization in their productivity level and they aren't able to manage production level of their organization. This is very important for management to provide proper solutions for the problem which is raised in an organization so that they effectively sustain their productivity level. 8
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