Theories In Sustainable Supply Management -Myassignmenthelp.Com

Question: Discuss About The Theories In Sustainable Supply Management? Answer: Introducation The activity of, services, products and goods flowing through different stages of production, starting from procurement of raw materials- storage of the raw materials, inventory processes- processing and development of finished goods- storage of the finished or processed goods- transportation of goods or mediums of service to the consumption point, this whole process is known as the supply chain management (Heckmann, Comes Nickel, 2015). The objectives of the process include increasing the efficiency of production, faster dispersal of goods or service, production of quality products or service, and increased productivity for the company. The objective of this research is to understand the process of supply chain management in details with the help of a case study and then comparison with appropriate literature and articles on the subject. The organisation that has been chosen for the case study is Food Panda. Food Panda is a supply chain based company that has an online portal through which customers can book food online from the restaurant of their choice (Foodpanda.com, 2018). The process includes ordering in the Food Panda portal and the delivery executive will pick up the order and deliver duly within time. Importance Of Supply Chain Management And The Reasons Customers Will Choose Food Panda As stated by Shyam (2015), Supply Chain Management as per its name is the management of the supply in the chain of stages that take part in the completion of service or delivery of product. The author has stated that there are primarily three stages of supply chain, procurement, production, and distribution. In the case of Food Panda the procurement of order takes place from the websites part, and the procurement of the raw materials to prepare the ordered food takes place from the restaurants side. The food is produced. In this case, there is another stage of procurement when the prepared food is procured by the delivery executive. In the next step, the delivery executive produces a service where he transports the food to the customer. In the case of Food Panda the service and the distribution happens consecutively, as distribution is their main service. Supply and distribution along with logistics are not new concepts in human civilisation, as these have been happening from the ver y beginning (Christopher, 2016). It depends on the business how innovatively the concepts are utilised in a new way that can give an edge to the business over its competitors. The undeniable importance of the supply chain management in businesses have been duly recognised not very long ago (Christopher, 2016). Food Panda has utilised the innovation in supply chain management and used it in favour of its business. According to the authors of the article The role of management in the evolution of the company's supply chain supply chain managers has to ensure a high degree of co-ordination and synchronisation to keep the system running (Sorbi et al., 2017). This is especially true in the case of Food Panda where the team receiving the order has to co-ordinate the same with the delivery boy, and the restaurant who will start preparing the order. The delivery boy then picks up the order co-ordinating with the restaurant and then connects with the customer to complete delivery, this needs high precision, and synchronisation to complete. Theories And Models Of Supply Chain Management Supply chain management is a dynamic process and there are no fixed and bound rules or theories to be followed in this regard. There is a resource based view theory which gives importance to the resources which may take forward a firms ability of competition according to the article Supply chain management: An overview. InSupply chain management and advanced planning the author has pointed out (Stadtler, 2015). The theory states not all the resources are of equal importance and must be judged wisely. Touboulic Walker, (2015) have pointed out that there are not enoughnumber of theories about the Supply Chain Management process and the ones existing have gaps in their structure. The article also defines the sustainable theory of Supply Chain management. Monczka et al, (2015) have discussed about the channel coordination in the SCM process, which has an objective of aligning and synchronising the strategies of individual enterprises. There might be a number of multiple decision making horizons and information which is asymmetric and unstructured. There are multiple decision making situations in the case of Food Panda as well, when priorities in orders have to be understood when there is less number of delivery executives but more orders flow in. In the article The role of marketing channels in supply chain management the authors have pointed out that the lack of centralisation in decision making often leads to a situation of dilemma and doubt in various quarters and the overall performance may be affected (Kozlenkova et al., 2015). In the article Competition and Coordination in a Two?Channel Supply Chain. Competition and Coordination in a Two?Channel Supply Chain the authors have pointed out the duality in coordination and competitio n in cases where the supplier is same but the retailers may compete in order to gain profit. In the case of Food Panda various restaurants and Fast food shops may compete to get the first priority in the category of the same food. In supply chain management process the theory of constraints is also applied and researched in many articles. In the article Applying Goldratts Theory of Constraints to reduce the Bullwhip Effect through agent-based modelling the bullwhip affect is identified as one major reason for ineffectiveness in supply chain management. Bullwhip affect is the increased movement in the inventories of businesses in response to the demands of the market which may be increasing or decreasing. In the case of Food Panda the bull whip affect is a major probkem because even if there is less number of orders they have to maintain the same number of delivery executives and work force. In the article Quantitative models for sustainable supply chain management: Developments and directions the authors have pointed out to the quantitative models of Supply Chain Management process and how can they be used in sustainable supply and distribution. The triple bottom line (TBL) or the integration of social aspects with other variables like the environmental aspects taking consideration of economic situation. SCM has evolved with time into not just a physical flow of gods but into complexities of decision making. In the case of Food Panda this is very evident because even the delivery executives have to take part in certain decision making. Value Supply Chain Process And How The Company May Deliver Value Proposition The best value chain concept in supply chain management is enforced by the speed, quality, cost, and flexibility. All these aspects are important for the theoretical perspectives. The organization always wants to deliver proper value to their customers. The value may be in terms of product, quality, cost, availability, and choice. The market extension can create competitions and prominent theoretical aspects of strategies models enhance better business chances for the organization. The behavioral change, in theory, can also mould the product dimension and supply chain management has taken this responsibility to open up the business market for contingency categories. As mentioned by Muysinaliyev Aktamov (2014), There are different theoretical perspectives allocated for the business. The transaction cost economic theory is one of the best values in supply chain process and ensures customers to buy their products. Agency theory is another aspect of cultural enhancement that aligned wit h the business opportunism so the market enhancement can sustain. As narrated by Martnez-Jurado Moyano-Fuentes (2014), Resource dependency and competitive alignment is the key aspect of the strategic development of the organization. The social capacity theory is another aspect shared the goals, value, and experiences of improved product performance. If products can create a better place in the market and socially acclaimed by the people then it would be easier for the company to promote that product in the market. The basic blend of performance and strategic values are important for strategic changes in the organization. In case of improved values, better goal and circumstances are the key factor in this process and that creates a good chance for business opportunities. Optimization Method Of Supply Chain Management There are some traditional methods and techniques for supply chain management process. These traditional methods are basically focused on the financial measures and return on investment. The rate of return and net present value has been declared in that optimization method and that evaluation method suited for the newer generation. Flexibility is service system is important for business operation perspective and will likely enhance the customer expectations for innovative products and service (Jain et al., 2010). Customers always want a better quality of the product so better financial support is also needed for the perspective. Innovative technology is also needed for that process and strategic planning is the main thing that better supply organization. As commented by Stadtler (2015), Information must be readily accessible to all companies in the supply chain process and the business procedures should be organized in a mode to make full use of this information. However, as these ar e problematic to amount or practice as a guideline to monitor development, more effective dimension methods, and indexes were advanced (Belin Forc, 2012). On a more operative level, the key presentation indicators are total costs, excellence and central times in the supply chain. Survey of presentation measures presented that cost and customer receptiveness to rule as the most frequent declared measures. The outline and practice of supply change framework help companies to improve presentation across the whole supply chain process in an efficient method and so that key performance indicators develop the fields in a positive way. Supplier Relationship Issues With Global Customers Customer satisfaction is an entire presentation for staying well-informed in a modest environment that can be attained only by rapidly answering to customer requirements. Effectual consumer response (ECR) is a supply chain management approach that endeavors to discourse the inadequacies in the supply chain are important for this occasion. Customer relation is the most effective issue for supply base management practice and produces some competitive edge for better customer drove driving policy (Ashby, Leat Hudson-Smith, 2012). For the long-term relationship, companies performance matters and effective performance productivity is the key aspect of that designing method. There are some issues in logistic like planned routes, environment policies, iterative approach for distribution and making a good relation with supply chain management is important for the development of the relationship with global customers (Touboulic Walker, 2015). Global customers are important for the company t o stretch their business market externally. Trading issue and market competencies can be judged by the organization if strategic benefits are aligned with outsourcing decision. As discussed by Fayezi, O'Loughlin Zutshi (2012), Sometimes franchises are taking this responsibility to channelize their market and company is also flexible to make them control over then business partially. They can take the brand name of the company and deliver only those products that manufactured by the company and also promise to maintain the brand image of the company and this is going to be the biggest outsourcing for the organization to make a good profit from different sections of business and this would be happened only because of effective supply chain. Sustainable Supply Chain Management In the article Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications there has been a detailed discussion about the importance and necessity of sustainability in supply chain management (Genovese et al., 2017). Environmental concern is another issue for sustainable development in Supply Chain Management (Dubey et al., 2017). Food Panda has reduced the need of paperwork in billing of food and hence given a better environmental and eco friendly option for supply chain management. However certain concerns like pollution caused by the bikes of the delivery executives still persist. Formentini Taticchi (2016) in their article Corporate sustainability approaches and governance mechanisms in sustainable supply chain management shows by evidence how sustainable leaders can induce the practice of sustainability in their followers. This can be adopted by the organisation in case study, Food Panda to induce sustainability all over the organisation structure. Issues With Supply Chain Management And Gaps In the article Logistics and retail management: emerging issues and new challenges in the retail supply chain the authors have noted how there have been emerging issues in terms of logistics in food procurement and distribution. The author has taken example of Tesco which has transformed from a small store to a full fledged retail chain selling grocery and home requirements (Fernie Sparks, 2014). Although there is a certain difference in the type of business that Food Panda does, but the similarity is both of the companies have grown from small to big. The main issue has been the increasing complexity that comes with growth. In countries, which are dominated by Islamic faith, there is a issue of serving Halal food. In the article Halal supply chain management training: issues and challenges the author has discussed about the challenges with receiving Halal certification and and maintaining the standards (Hashim Shariff, 2016). Food Panda operating in a number of Islamic countries has to keep strict vigilance on the Halal standards. According to Wang et al, (2016), the supply chain management has to deal with big data processing systems. Big data can be useful and complicated both at the same time. There has been separate departments and whole consultants dealing with big data. In the case of Food Panda the company has to constantly deal with orders coming in from various platforms, and then distributing the orders to the concerned delivery executives in the right time. Zhong et al, (2016) have also pointed out in their article Big Data for supply chain management in the service and manufacturing sectors: Challenges, opportunities, and future perspectives, that how information from service sectors as well as manufacturing sectors have been becoming huge in volume and complicated by the day. In the article, it was found that many managers in the upper level of the organisations are often oblivious about big data analysis and its outcomes, there is also need for better optimisation at different levels like operati onal, analytical and strategic. In the article A hybrid framework for the modelling and optimisation of decision problems in sustainable supply chain management, the authors have stated the altering and optimising the decision making system of the companies that deal with supply chain management that can lead to better decision making. In the article the author have proposed a combination of mathematical programming and constraint programming (Sitek Wikarek, 2015). Food Panda may well consider the proposed solutions to optimize the business it deals with. In the article A new fuzzy DEA model for evaluation of efficiency and effectiveness of suppliers in sustainable supply chain management context the issues with developing a sustainable supply chain management process has been detailed (Azadi et al., 2015). In order to develop a sustainable model of supply process the Data Envelopment Process (DEA) is proposed to be utilised. Purchasing and distribution process becomes more complicated with the pressures from various agents of the environment and a sustainable process helps in avoiding these. Big data is an emerging field of further research and it is undeniably necessary for companies like Food Panda (Schoenherr Speier?Pero, 2015) Suggestions For Supply Chain Improvement The market conceptual map and the practical tools help to identify the policy issues of supply chain management. This is a process that enhancing the quality standard and deliver proper market information to maintain that chain in an effective way. There can be calamities that disrupt supply chain and improvement has to be done to tackle such situations (Snyder et al., 2016). There are four different areas of supply chain management and all these are creating extraneous factors to influence the business enhancement. Process upgradation is the first factor in the supply chain management and organization has to maintain their process in an evaluative way so that better results can be extracted from that. Product upgrading is another way the organization concerns about this and they can change the old product to a new one so that customers also get attached to the innovative product. Functional upgrading is a mix of operational activities that conducted by the organization and enhance t he external market of the company. As asserted by Shukla, Garg Agarwal (2011), the functional operation includes all the logistic facilities, resource management, and finance and distribution issues to cover up. Hence, all the operational sections are co-ordinated by this segment. The last section influences the entire chain or channel upgradation and this enhances to switch the production from one end to another. The process also calculates the new market entries and tries to channelize a new product in the business market. As commented by Colicchia Strozzi (2012), Improvement in food quality and meeting customer expectation is a major aspect of the company. The management network is interconnected with the provision of product and service packages from the organization. Conclusion Food Panda has been very successful in transforming the system of food delivery on earth. The company has redefined how the practice of supply chain management can be utilised at an optimised level to give maximum productive value to the society and the business. However from the above literature reviews that has been done certain issues have been found major of which are the persisting unsustainable mode of transportation of food, managing the delivery executives at a finer level, dealing with big data analytics, and making decisions that are balanced and logical and not just periodical. These gaps and limitations have to be fulfilled by the company by better strategic decision making and more fluid and effective supply chain methods. The literature review discusses about various models and theories of supply chain management and their implementation. 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