...SPOTLIGHT RADICALLY REINVENT YOUR SUPPLY CHAIN Spotlight ARTWORK Michael Johansson, Self Contained, 2010 containers, caravan, tractor, Volvo, pallets, refrigerators, etc. 8.2 x 10.8 x 2.4 m HBR.ORG Hau L. Lee (haulee@ stanford.edu) is the Thoma Professor of Operations, Information, and Technology at Stanford Graduate School of Business and the director of the Stanford Global Supply Chain Management Forum. He is on the board at Esquel, one of the companies discussed in this article. Don’t Tweak Your Supply Chain— Rethink It End to End October 2010 Harvard Business Review 63 by Hau L. Lee H SPOTLIGHT RADICALLY REINVENT YOUR SUPPLY CHAIN Hong Kong–based Esquel, one of the world’s leading producers of premium cotton shirts, faced a quandary in the early 2000s. Apparel and retail customers such as Nike and Marks & Spencer had begun asking the company about its environmental and social performance. Its leaders anticipated scrutiny from other customers as well, since more of them were demanding that a greater portion of the cotton in their shirts be grown organically. But the crop required a lot of water and pesticides, especially in poor and rapidly developing countries, where Esquel’s cotton was grown and processed. Though Esquel’s executives wanted to strengthen the company’s already serious commitment to social and environmental sustainability, they realized they couldn’t simply demand that the farmers who supplied extra-long-staple cotton just reduce...
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...Don’t Let Your Supply Chain Control Your Business Manufacturers are delegating too much power to top-tier suppliers, undermining their own ability to innovate, cut costs, and manage risk. by Thomas Choi and Tom Linton 112 Harvard Business Review December 2011 1430 Dec11 Choi Layout [S];30.indd 112 10/26/11 10:54 AM hbr.org Illustration: brett Ryder I n the past 25 years, major originalequipment manufacturers around the world have shifted to the Japanese tiered approach to supply chains. They’ve radically reduced the number of suppliers that they directly manage and off-loaded responsibility for supervising the rest, along with the task of building major subsystems, to a handful of firsttier suppliers. The attractions for OEMs were faster new-product introductions, larger volume discounts, reductions in the capital and risks associated with developing and producing the subsystems, and the ability to spend less management time on overseeing the multitude of lower-tier suppliers and more on building core competencies. But we believe that the delegation has gone too far. Our conclusion is based on studies of the practices at some 20 leading multinational corporations that one of us (Thomas Choi) conducted and the longtime experience that the other (Tom Linton) has had as a purchasing executive at such companies as LG Electronics (LGE), Agere Systems, Free scale Semiconductor, and IBM. We discovered that a heavy reliance on first-tier...
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...Lee, H. 2010. Don’t Tweak Your Supply Chain – Rethink It End to Tend. Harvard Business Review. Vol. 88, Issue 10, 63-69 As a company, sustainability is important, and you have to undergo certain steps in order to achieve maximal sustainability. Main points: -Sustainability should be integrated in the core of the operations. -Work together with operations close to yourselves in order to gain sustainability. -Examine the all the links in your supply chain and decide whether or not they can be more sustainable -Work with other supply chains, even rival ones, to achieve high sustainability. Evaluation: The article itself was not bad. Sustainability being a noble subject made the article easy to agree with. The article clearly favored sustainability, contained personal opinions of the author and therefore lacked in objectivity a bit. For example: ‘Instead, companies--throughout the supply chain, not just at the end--should take a holistic approach to sustainability and pursue broader structural changes than they typically do.‘ From this sentence, one can see that the author is very pro-sustainability. He could have put some points against sustainability in the article, so that the reader can evaluate both sides of the topic and then make a decision whether or not sustainability is worth pursuing so intensely as the author wants. Questions: 1 What are the biggest downsides of sustainability? 2 In the article, you told that you have to work closely with your competition...
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...Module 1 Readings and Assignments Complete the following readings early in the module: Read the overview for Module 1 From the textbook, Operations management: Creating value along the supply chain (7th ed.), read the following chapters: Introduction to operations and supply chain management Project management From the Argosy University online library resources, read: Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. (ProQuest Document ID: 215258436) http://search.proquest.com.libproxy.edmc.edu/docview/215258436?accountid=34899 Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. Retrieved from http://jom.sagepub.com.libproxy.edmc.edu/content/27/6/643.full.pdf+html Gopalakrishnan, S., Kessler, E. H., & Scillitoe, J. L. (2010). Navigating the innovation landscape: Past research, present practice, and future trends. Organization Management Journal, 7(4), 262–277. doi:10.1057/omj.2010.36 (ProQuest Document ID: 820961459) Long, L.D., Ohsato, A. (2008). Fuzzy critical chain method for project sheduling under resource constraints and uncertainty. International Journal of Project Management, 26(6), 688–698. Retrieved from http://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=auo&turl=http://www.sciencedirect.com/science/article/pii/S0263786307001548 Assignment Summary: Module 1 Due...
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...sourcing Global manufacturing Global distribution . dealing with foreign . facility location . local content regulations suppliers . coordinating networks . managing global . managing international of plants distribution logistics . coordinating networks . managing risk . managing risk of R&D facilities . operations in other countries Page intentionally left blank. Class: 2a Type: Lecture Supply Chain Management & Service The goal in this part is to introduce the two main sections of the course, international manufacturing and international service. For manufacturing we start with the simple proposition that decisions about our company’s competitive strategy leads to a supply chain strategy which then leads to a supply chain structure. We provide a strategic framework that can be used to analyze design, planning, and operational decisions in a supply chain. This framework focuses on supply...
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...2009).The demand increased in fishing has exacerbating these issues. Worldwide per capita consumption of marine fishes has almost doubled since the 1960s as like world’s population (Jacquet et al., 2009). The consumption and value of trade of fish product is increased by aquaculture has surged over the last 20 years. Yet, aquaculture demands fishmeal threatens coastal environments to pressure rather than alleviating (UNEP, 2009).As like other products, seafood trade has been growing internationally over the years. The trade of fish has grown from US$51.5 billion in 1998 to US$102 billion in 2008 (FAO, 2010).The supply of seafood has lacks some transparency of ‘underlying facilitator’ of every aspects of the negative fishing sector (FAO, 2010, p.105).It is much difficult purchase fish products responsibly with lack of transparency. Challenges of Wal-Mart’s supply chain: Wal-Mart’s also faces some challenges like other large global companies. There is lot of problems faced by many firms. One main problem faced by global industries is mass production organization and the problem is serving a smaller amount of sea foods to more comparative markets (Kirschenmann, 2002). In the `Unique` markets, they have emerging inconsistent in mass production which they have started developing now. The consumer has an own signal markets...
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...Role of Sustainability in Marketing Public Relations at the retail level products that were environmentally safe, sustainable commitment to the process of promoting the practice is known as a permanent market. Alternatively, in other words it is a better business, better relationships, and most importantly it is a practice of making a better life. For example, Apple, as well as for the betterment of the world in all its goods uses recyclable products. Plays an important role in the marketing of the firm. It is like a bridge between corporate responsibility and profitability. For example, a company that produces beverages fewer pesticides, chemicals unnecessary packaging and flavor instead uses natural ingredients that can design a product. To complete the product, the firm has to invest significant money. They will love their new product to consumers based on its new features and buy the product that the company will make the investment. It is also known as the triple bottom line (the customer, the environment and the benefits of Corporate) - this way, business analysts have to keep in mind about Basics of Marketing Marketing is a central building. Marketing and its elements are what every trader should have a clear knowledge. Some people have a promotion or advertising of products marketed as misunderstood. " Marketing, making pricing, delivery , and facilitate relationships with customers satisfactory exchange of goods , services and ideas to promote the...
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...Table of Contents Introduction 3 1.1 Brief Company Overview 3 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain 3 1.4 Problem Definition 4 Literature Review 4 2.1 Current Situation of Starbucks and Older Supply Chain Method 4 2.2 Supply Chain Visibility 5 2.5 C.A.F.E (Coffee and Farmer Equity Practices) Practices 6 Findings 7 3.1 Starbucks’ Operations 7 3.1.1. Material Flow 7 3.1.2 Purchasing System 9 Discussion and Analysis 10 4.1 Starbucks’ 3PLs Strategy 10 4.2 Value Change Analysis 10 Conclusion 11 Appendix A 15 Appendix B 16 Appendix C 17 Appendix D 18 Appendix E 19 Appendix F 20 Appendix G 21 Appendix H 22 Appendix I 23 Introduction 1.1 Brief Company Overview Starbucks is the world’s #1 speciality coffee retailer with more than 20,000 stores n 65 countries (See Appendix G). It operates an estimate of 8,800 of its shops, while licensing and franchises operate the remainder of the stores. The company also owns Seattle’s Best Coffee, Torrefazione Italia coffee brands, Teavana, Tazo, Evolution Fresh, and La Boulange (SCC 2014). Starbucks offers consumers various products including: coffee, handcrafted beverages, merchandise, fresh food, and consumer products of coffee and tea and ready-to-drink (RTD) goods (SCC). 1.2 Speciality Coffee Industry and Starbucks Coffee Supply Chain The speciality coffee industry has seen drastic growth with increase in sales between the 1980s and 1990s. A great number of coffee specialists...
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...Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability MGT 551 Operations Analysis October 21, 2013 Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability Many organizations today claim they are environmentally friendly, their businesses are sustainable, or they work at minimizing their carbon footprint. While stating the claims may be easy, they take commitment of time and resources, a culture or homogeneity of vision, and a great deal of planning to implement. The complicated part is that the change cannot occur in just one facet of the organization, the change must carry across the organization and the entire supply chain. Drew Schramm finds himself in a difficult position at the Herman Miller organization. His supply chain background is in conflict with the organization’s environmental sustainability position. While he may see easy money to be picked from the savings tree, it has now become forbidden fruit. The Herman Miller organization is committed to their stance of environmental sustainability and Schramm must now take that into serious consideration when making supply chain decisions. Their new chair design, the Mirra Chair, has yet to have a decision made on the construction and materials of its arm pads. They can either use the common polyvinyl chloride (PVC) that violates their cradle to cradle (C2C) protocol standards, thermoplastic urethane (TPU) which meets the C2C standards but is more expensive...
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...Introduction Supply chain sustainability is recognized as a key factor for generating business value, it is a positive driver of competitive advantage that requires constant innovation and commitment in all levels of the organization, but how do parent companies influence their subsidiaries to adopt a sustainable supply chain approach?. Nowadays, contemporary thinking on the role of subsidiaries and its evolution in regards to multinational enterprises state that resources and capabilities of the enterprise do not reside only under the responsibility of the parent company level. Even if the subsidiaries and the parent company have different industry sectors and geographic origin, they share an important thing: they both recognize the risk dimension of the challenge presented by sustainability, and identify the competitive opportunities on the other hand. In the following case study we will research how does the model of Johnson et al. (2001) can be applied in the case of a parent company and its subsidiaries. Literature review Sustainability issues are becoming a powerful determinant of a company’s competitiveness and financial performance and therefore is sustainability rapidly becoming a new competitive advantage. The interest in the sustainability of supply chains has been a rising issue in recent years (Beske, 2012). This concept is defined by Seuring & Muller, 2008, p. 1700 as: “the management of material, information and capital flows as well as cooperation...
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...continue with its exceptional customer service and should leverage its brand value to fight the competition from the existing niche store and new entrants. Introducing SmartMart's biofuel and exclusive Organic 2.0 label will help SmartMart differentiate itself in the market and have an edge over other organic retail chains. Securing an Organic 2.0 label from the FDA and government agencies will further add to the credibility of organic products one gets at SmartMart. This will also get SmartMart support from not only its existing customers but also from community members like environmentalist. SmartMart is a successful retail grocery store which focuses primarily on organic, healthy and environment friendly line of products. Its major customers are high end affluent people who seek rich customer service and price is a secondary concern for them. One of its major strength is brand loyalty. Its mission is to create a sustainable future by providing value for all its stakeholders and customers while contributing towards a greener environment and having a strong financial return. With the changing market trends, SmartMart anticipates a need to reassess its existing business model to succeed and maintain its competitive edge in the coming years. In scenario one, I suggest SmartMart to move towards smaller, customer oriented store concept and become a niche player.To come to this decision, I first analyzed if at all SmartMart required to change its existing model. Porter’s evaluation of...
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...conclusion 7 introduction| Globalisation in the last decades has attracted much attention and these days the pace and scale associated with the rapid emergence of global value chains as production processes is without precedent. Today more than ever, companies have more options in regards to where and how they produce their products, which target markets and consumers they should approach and how they should communicate with both their suppliers and buyers. Trade liberalization and more open economic policies have facilitated international economic integration and combined with technical advances (mainly in communications and transport) they lower costs and foster globalization further. Companies find the advantages of using various sites and source inputs globally thus becoming increasingly fragmented geographically and that was made possible by information and communication technology which allows the value chain to be sliced in various locations and help reduce costs. As information and communication technology enables the production of various services independent of location, globalization now involves more foreign investment and trade with many service activities becoming internationalized. The need to globalise value chains stems from a number of factors. The desire to become more efficient is the main aim of companies as growing competition in international and domestic markets forces them to find ways to be more cost effective and...
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...continue with its exceptional customer service and should leverage its brand value to fight the competition from the existing niche store and new entrants. Introducing SmartMart's biofuel and exclusive Organic 2.0 label will help SmartMart differentiate itself in the market and have an edge over other organic retail chains. Securing an Organic 2.0 label from the FDA and government agencies will further add to the credibility of organic products one gets at SmartMart. This will also get SmartMart support from not only its existing customers but also from community members like environmentalist. SmartMart is a successful retail grocery store which focuses primarily on organic, healthy and environment friendly line of products. Its major customers are high end affluent people who seek rich customer service and price is a secondary concern for them. One of its major strength is brand loyalty. Its mission is to create a sustainable future by providing value for all its stakeholders and customers while contributing towards a greener environment and having a strong financial return. With the changing market trends, SmartMart anticipates a need to reassess its existing business model to succeed and maintain its competitive edge in the coming years. In scenario one, I suggest SmartMart to move towards smaller, customer oriented store concept and become a niche player.To come to this decision, I first analyzed if at all SmartMart required to change its existing model. Porter’s evaluation of...
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...blocks to industrial customers on a global scale, invest in making renewable and lower-carbon energy sources, competitive for large scale use. LITERATURE REVIEW Corporate Strategy of shell By being more upstream Shell aims to focus its investments on long term, high return projects to develop oil and gas resources, and grow the companies leading liquefied natural gas business. Downstream profits involves; generating more cash by reshaping integrated oil products and petrochemicals portfolio to enhance operations and focus on growth markets, particularly in Asia. Shell believes that this strategy will improve their business performance and increase their contribution to sustainable development. “Stronger emphasis on our upstream activities and fast growing markets will help us deliver the energy the world needs for economic growth and poverty reduction”. Shell aims to increase focus on producing cleaner burning natural gas, in so doing reducing dependency on coal. Shell is aware that the growing demand for oil and gas presents sustainable development challenges. Producing and using this extra energy is only sustainable, and socially acceptable, if ways are found to combat the risks to the climate and avoid health, safety and environmental incidents. “We recognize that we will not achieve our strategy and improve business...
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...Competitive Advantage and Corporate Social Responsibility by Michael E. Porter and Mark R. Kramer COPYRIGHT © 2006 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Governments, activists, and the media have become adept at holding companies to account for the social consequences of their activities. Myriad organizations rank companies on the performance of their corporate social responsibility (CSR), and, despite sometimes questionable methodologies, these rankings attract considerable publicity. As a result, CSR has emerged as an inescapable priority for business leaders in every country. Many companies have already done much to improve the social and environmental consequences of their activities, yet these efforts have not been nearly as productive as they could be—for two reasons. First, they pit business against society, when clearly the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to each firm’s strategy. The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed—it can be...
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