Outsourcing and Sustainability: Case Studies and Analysis Report

This report investigates the crucial role of outsourcing in supply chain environmental management, highlighting its significance for modern businesses. It explores the environmental responsibilities and business advantages associated with outsourcing practices. The report uses case studies of Apple, McDonald's, and KFC to illustrate how multinational companies approach environmental supply chain management. Apple focuses on risk diversification and recycling, McDonald's emphasizes creating value for business and society, and KFC concentrates on distribution strategy and reducing environmental destruction. The reflection section emphasizes the importance of considering environmental and social impacts in outsourcing decisions. The report underscores the need for ethical business practices, transparency, and corporate social responsibility. It concludes by providing a comprehensive understanding of the challenges and opportunities presented by outsourcing and sustainability in the current business landscape.

Outsourcing and Sustainability 1
OUTSOURCING ANG SUSTAINABILITY
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The role and importance of outsourcing in supply chain environmental management
In the world today, environmental responsibility in outsourcing is of crucial concern in
every company. Supply chain environmental management not only covers the management of
environmental impacts that arise from a company’s practices or supply chain but also some
business advantages (Handfield, Sroufe and Walton, 2005, p. 14). It is now more important than
ever for organizations to ensure responsible business practices through the process of
outsourcing. Multinational companies have different roles when outsourcing in supply chain
environmental management.
To begin with, we have Apple. Over the years, Apple has focused its outsourcing from
other countries due to the flexibility and extensive manufacturing capabilities. However, Apple’s
consideration of promoting Environmental supply chain management has been because of
different reasons. One, risk diversification. Since Apple aims to build a stable supply chain,
outsourcing from the right suppliers ensures Apple can react to disruption more easily hence
becoming more flexible (Doval, E., 2016, p. 161). Two, recycling. In 2010, Apple realized its
goal of recycling about 70% of its products. The company tries as much as possible to use
recyclable materials in their packaging and products. This has reduced its outsourcing costs and
also environmental degradation.
Secondly, we have McDonald's. This company faced a lot of criticism when the news
about its outsourcing of expired meat got out. Its sales plummeted since its Chinese suppliers did
not meet the FDA provisions. Therefore, McDonald's reinvented its outsourcing by promoting
supply chain environmental management. It has brought about different roles and advantages to
the company. One, creating value for business and society. McDonald's is on the forefront to
promote resource efficiency so as to create value among communities (Vitasek, and Manrodt,
2012, p. 9). Two, better protocols for the measuring and scaling of sustainable beef production.
This has ensured customers acquire great products that have value. Lastly, the company has been
able to work with suppliers in promoting innovation for its sustainable ingredients.
Lastly, we have KFC. This company also has issues with its outsourcing since the
outsourcing of its products was not effective. This led to the closure of some of its restaurants
due to poultry shortage and loss of revenue. To combat this, the company also reinvented its
outsourcing through encouraging environmental supply chain management through the

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following. One, the development of its distribution strategy. KFC has managed to grow its
restaurants efficiently hence being able to provide better services to its consumers. Two, reduced
environmental destruction. KFC created a program for purchasing recycled paper products thus
promoting sustainability and reducing environmental degradation (Evripiotis, 2016, p. 21)
Reflection
Outsourcing and sustainability go hand in hand. An organization that has no regard for
the impact of its practices on the environment, community and on itself is bound to fail. For
example, when McDonald's was under criticism due to providing expired meat to its clients, it
was found to lose its customers if it had not acted to formulate its outsourcing of the beef
products. In relation to what I have learnt, seeing how different organizations are promoting
sustainability in their operations is very encouraging. For example, promotion of ethics in
company decisions has promoted transparency to the community hence maintaining Corporate
Social Responsibility.

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References
Doval, E., 2016. Is outsourcing a strategic tool to enhance the competitive advantage. Review of
General Management, 23(1), pp.157-177.
Evripiotis, M., 2016. TOWARDS AN ASSESSMENT OF GLOBALIZATION AND
LOCALIZATION OF WESTERN EAST-FOOD CHAINS IN CHINA: THE CASE OF
KFC. European Journal of Business and Innovation Research, 4(3), pp.17-28.
Handfield, R., Sroufe, R. and Walton, S., 2005. Integrating environmental management and
supply chain strategies. Business strategy and the environment, 14(1), pp.1-19.
Vitasek, K. and Manrodt, K., 2012. Vested outsourcing: a flexible framework for collaborative
outsourcing. Strategic Outsourcing: An International Journal, 5(1), pp.4-14. Mylonakis, J. and