Sustainable supply chain management assignmenton managing environmental issues in business
Task: Explain two risks that can be addressed through sustainable supply chain management. Based on Dave Colquhoun’s Guest Lecture, discuss some of the ways in which Auckland Transport (AT) has used sustainable procurement to deliver broader (non-financial) benefits. Drawing on the Polman and Bhattacharya reading, clearly and fully explain three key ways companies can engage employees in sustainability initiatives. In her Guest Lecture, Debbie Wilson spoke about the importance of engaging different groups of employees within her organization. Clearly explain in your sustainable supply chain management assignmentsome of the contrasting techniques she has used to effectively engage with these different groups.
Question two of the sustainable supply chain management assignment
a. 2 risks addressed through supply chain management
The first risk that is addressed in the sustainable supply chain management assignment through management of supply chain is the integral risks that are faced by the company, which includes labor risk or human resource. Sustainable supply chain management helps in sustainable procurement, which has been an important part with respect to managing the value chain of a business and has the most influence as well as control on the social factors. Sustainability in the procurement process may minimize the risk along with saving costs. As per the sustainable supply chain management assignment sustainable procurement includes standards and practices with respect to labor resources and regulatory compliance. A sustainable procurement policy and strategy of a company is consistent.It is considered to be a holistic approach for managing the value chain. This is developed on an existing strategy of procurement along with setting out the process of the management of an organization. It also benefitted in engaging with their selected suppliers with respect to sustainability issues (Sbcvaluechain., 2021).
The second kind of risk which is addressed in the sustainable supply chain management assignmentthrough the use of sustainable supply chain management is the environmental risk. Sustainability in the supply chain management helps in managing as well as improving the environmental performance all over the supply chain. The company often ensures in having an impact on the environment and it may be negative with regard to the resources that includes air, water, minerals and more. The company, through the use of sustainability measures, optimizes the processes, conserves resources, saves costs, promotes the values of the organization, uncovers product innovations along with increasing productivity (Fekpe,Delaporte&Fiagbey, 2015). The companies as per the sustainable supply chain management assignmenthave been increasingly taking active development of sustainability in supply chain management.Moreover, it also aimed at making enhanced progress in setting the expectations of the suppliers. Sustainable supply chain management includes mapping the supply chain where a majority of the organization is required to have a comprehensive understanding with respect to sustainability impacts in the supply chain. Aiming at achieving sustainability in the supply chain can also be achieved by communicating the corporate values as well as culture to the suppliers and the consumers. Establishing along with communicating the expectations through the code of conduct of the suppliers as per the sustainable supply chain management assignmenthas been a critical step that involves the suppliers within the sustainability efforts. In achieving sustainability, various resources and tools, have been developed to assist organizations in the development of respect to the code of conduct of the suppliers (Wollmuth& Ivanova, 2014).
b. Auckland Transport has used sustainable procurement
Auckland Transport’s sustainable procurement approach focused on direct and indirect categories. The direct approach in the sustainable supply chain management assignmentincludes procuring directly from the businesses that aims to deliver outcomes sustainably, which include social enterprises, local suppliers and a diverse group of suppliers. On the other hand, the indirect approach includes the procurement process, which includes clauses within the contracts, incentives on performances and partnering with the head contractors to achieve sustainable outcomes. The procurement process of Auckland Transport as per the sustainable supply chain management assignmentincludes professionals, buyers and project managers and should take into consideration sustainable outcomes in all the stages with respect to the procurement lifecycle of the company. It has also been important that the suppliers are required to understand the new changes with respect to the procurement process as well as the place where they can get support for the delivery of the outcome. This process mentioned in the sustainable supply chain management assignmentincludes updating the procurement templates, documents and contracts which shall reflect sustainable practices in the procurement. It shall also focus on developing guidance with respect to the buyers for implementing sustainable procurement at all stages (at.govt.nz., 2021).
Auckland Transport has also taken a strategic approach in providing training and development to improve the potentiality to procure sustainably. The discussion in the sustainable supply chain management assignment shows that Auckland Transport has up-skilled the needs with respect to the supply chain. This training and development approach of the organization includes the development of training programs for sustainable procurement of human resources. The organization has been also delivering training to its strategic suppliers with respect to proving responses to procuring sustainably along with delivering sustainable outcomes. The organization has also focused on supporting social enterprises and on locally owned businesses to increase their ability to deliver the service requirements of Auckland Transport (at.govt.nz., 2021).
Auckland Transport as per the sustainable supply chain management assignmenthas also developed communications and engagement strategy, which have been important as it makes the organization accountable and transparent to its stakeholders. The organization has been releasing communications along with facilitating updates with respect to sustainable procurement through various channels of communication which may be internally as well as externally. This also includes sustainability which is considered to be a core component with respect to the development of supplier relationships and increases the recognition with regard to the suppliers, which helps the organization in delivering positive outcomes. Auckland Transport has also adopted the approach to measure and report for driving positive outcomes (at.govt.nz., 2021).
Question three of the sustainable supply chain management assignment
a. 3 ways companies can engage employees in sustainability initiatives
According to Polman and Bhattacharya(2016), it has been stated in the sustainable supply chain management assignmentthat the key means for creating a vibrant and sustainable company has been to find a way to get the employees engaged in the daily corporate activities and sustainability efforts. Therefore, the ways that shall help in engaging employees in the sustainability initiatives are as follows:
? Defining the long-term purpose of the company in the sustainable supply chain management assignment: the first way to reduce the conflict that the employees can feel in relation to the work responsibility and their values, has been to emphasize the long-term objectives with respect to the company. This has been aligned in the sustainable supply chain management assignmentwith respect to the good for society and the planet. The companies or organizations should have a clear purpose, which shall provide long-term planning of the company and must be aligned with the business strategy. This planning shall be brought by the organization through its brands as well as products. The purpose of the company must also take into consideration the business model and the value chain (Polman& Bhattacharya, 2016).
? Economic benefits arising from sustainability: The organization considered in the sustainable supply chain management assignmentshould help the employees to find the economic benefits arising from the sustainable operation. It has not been easy for the organization to promote its economic benefits from sustainable operations, but it has been crucial. The organization should use a process for engaging the business units as well as employees in addressing environmental issues. The process as per the sustainable supply chain management assignmentshall begin with the development of an in-depth analysis with respect to the employees in such a waywhich cansupport in understanding how the organizational activities intersect with the environment (Polman& Bhattacharya, 2016).
? Creating competence as well as sustainable knowledge: Sustainability should cut across various aspects with regard to the business, which includes energy consumption, procurement and other requirements. Therefore, the organization considered in the sustainable supply chain management assignmentis required to promote a ‘can-do attitude’ as well as a belief among the employees. There isanimportance of educating the employees regarding sustainability along with creating systems and processes which canbenefit the employees to integrate sustainability within the business decisions easily. There have been various sustainability initiatives that require specialized knowledge and expertise in communicating with suppliers regarding sustainable sourcing and using eco-friendly tools for evaluating new products (Polman& Bhattacharya, 2016).
b. Contrasting techniques to effectively engage with different groups
Some of the contrasting technique discussed in this sustainable supply chain management assignmentwhich has been used by the Guest Lecture Debbie Wilson in effectively engaging different groups has been categorized into two groups that are engagement methods used at the management level and engagement method used at the clinical level.
? Internal as well as external communications: Communication has been a central part of shaping the understanding regarding the natural world and the role played by individuals within it. It acknowledges in understanding how individual acts, reject and often support certain policies. Communication as per the sustainable supply chain management assignmenthas been considered a source thatbenefits in understanding various viewpoints. Therefore, the organization is required to have a clear, meaningful, as well as authentic, and sustainable strategy for communicating, which can help stakeholders to understand the sustainability initiatives of the organization (Hoffstaedter, 2020).
? Using the quadruple bottom line approach in business cases: The quadruple bottom line approach focuses on the people, planet, profit and progress. The organization mentioned in the sustainable supply chain management assignmentis required to provide the people with a quality of life along withoffering equity that is equal status to the people. In considering the planet, the organization is required to build and develop a sustainable ecosystem. In considering the profit with respect to the sustainability initiatives of the organization, the organization should focus on the economic prosperity of the company, which the company can achieve by enhancing its reputation in the market. Moreover, This can also help the company considered in the sustainable supply chain management assignmentin creating demand for the products along with achieving competitive advantage in the market. In considering the progress, the organization is required to take into account innovative design and cultural vitality. This can help to engage employees and other groups of stakeholders within the organization (Simons et al., 2017).
? Forming green teams: Forming green teams within the organizations not only helps in engaging the employees but also retaining staff which has been critical for every business. As per the sustainable supply chain management assignment engagedand loyal work has been critical for achieving the long-term objectives of an organization. Forming green teams also helps in attracting top talents, which helps in achieving efficiency and effectiveness within the activities of the organization, enhancing organizational effectiveness along with achieving sustainability outcomes (Raog., 2022).
at.govt.nz. (2021). Auckland Transport Sustainable Procurement Action Plan. Retrieved 8 October 2022, from https://at.govt.nz/media/1986415/at-sustainable-procurement-action-plan-2021-2024.pdf at.govt.nz. (2021). Sustainable Procumbent. Retrieved 8 October 2022, from https://at.govt.nz/about-us/procurement/sustainable-procurement/
Fekpe, E. S., Delaporte, Y. Y. A., &Fiagbey, E. M. (2015, August). Integrating sustainability into supply chains of small and medium scale manufacturing firms in Ghana. In Proceedings of the Academy of Business and Emerging Markets (ABEM) Conference, Windhoek (pp. 67-76). https://www.abem.ca/wp-content/uploads/2018/09/abem-2015-conference-proceedings.pdf#page=75
Hoffstaedter, F. (2020). Internal and external communication for sustainable development: Case study on the municipality of Gnosjö. https://www.diva-portal.org/smash/get/diva2:1443316/FULLTEXT01.pdf
Polman, P., & Bhattacharya, C. B. (2016). Engaging employees to create a sustainable business. Stanford Social Innovation Review, 14(4), 34-39. https://www.researchgate.net/profile/Cb-Bhattacharya/publication/315587237_Engaging_Employees_to_Create_a_Sustainable_Business/links/ 599aa350a6fdcc261587fb48/Engaging-Employees-to-Create-a-Sustainable-Business.pdf
Raog. (2022). Engaging Your Employees In Sustainability - Why Is It Important? Retrieved on 8 October 2022, from https://raog.ca/engaging-teams-in-sustainability/ Sbcvaluechain. (2021). SBC Value Chain Guide. Retrieved 8 October 2022, from http://www.sbcvaluechain.org.nz/upstream-value-chain/procurement
Simons, R. A., Robinson, S., Lee, E., & Bragg, A. (2017). The quadruple bottom line: tenant views of corporate responsibility in green office buildings. Journal of Sustainable Real Estate, 9(1), 153-171. https://www.tandfonline.com/doi/pdf/10.1080/10835547.2017.12091896#:~:text=In%20the%20context% 20of%20corporate,landlord's%20profit%20(profit%20L).
Wollmuth, J. & Ivanova, J. (2014). 6 steps for a more sustainable supply chain. Retrieved 8 October 2022, from https://www.greenbiz.com/article/6-steps-more-sustainable-supply-chain