Unit 2

Supply Chain Management

Course: Business Sustainability, Governance &
Ethics

MISSION VISION CORE VALUES

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holistic development to make effective contribution to Love of Fellow Beings
the society in a dynamic environment Social Responsibility | Pursuit of Excellence
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Introduction

● Today’s consumers want more from a company than just their products.

● They want the peace of mind knowing that what they are buying hasn’t
harmed the environment, the people who’ve made it, or the communities
they were made in.

● A company that can’t give its customers that confidence could be putting
its brand and reputation at serious risk.

● Likewise, many governments demand certain standards for companies

that want entry to their markets, meaning many businesses must prove their
supply chain meets those standards or risk losing access to important
markets

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What is Supply Chain Management?

Supply chain management is the practice of

coordinating
sourcing, production, inventory management and
transportation among all the participants in a supply
chain
to maximize efficiency and customer satisfaction.
Many
businesses realize major time and cost savings by
evaluating and improving supply chain management.
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What efforts your company has taken to

ensure sustainability in supply chain?

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CRADLE TO CRADLE PROTOCOL

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How to Become Sustainable Companies

(Trends)

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Stakeholder Inclusive Corporate

Capitalism
- Industry Coalitions
eg:1 Telenor (Leading Norwegian Mobile operator) joining forces with Tameer
(microfinance bank) with support from Bill and Melinda Gates foundation, the
international finance corporation (IFC) and the consultative group to assist the
poor (CGAP) launched new service called Easy Paisa – mobile based financial
services

-eg.2 Global food and Biotech company – new personalized nutrition for health,
- Provided customers with digitally enabled diagnostics and Analytics and
product recommendations

- eg.3 Indigo Ag (US based agricultural technology startup) launched ‘Indigo

Carbon’ – Goal is to pay farmers and sell certifications

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------------- is often thought of as an

economic system in which private actors
own and control property in accord with
their interests, and demand and supply
freely set prices in markets in a way that
can serve the best interests of society. The
essential feature is the motive to make a
profit.

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Ajinomoto?

Seasoning
Sweetener
Pharmaceutical
Company

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What do these companies have in

common?

1. Build Innovative business model

2. Expanding beyond their core assets and

capabilities

3. Address significant environmental and

societal challenges in their local contests
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Expand the Business - Walk the

talk on sustainability, Listening to external
stake holders, Critical friend committee,

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Innovate for a resilient Business Model Deemed to be University

- Own the Origin

- Own the whole cycle – Cradle to Cradle

- Expand societal value

- Expand value chains – Algramo’s innovative bulk distribution system –Single

use plastic packaging from reusable containers

- Relocalization and regionalization – to guarantee manufacturers claims

- Energize the brand – 3M (Thinsulate insulation product) Worked with Askov

Finlayson to create the worlds first climate positive Parka

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world’s most
sustainable PC
producers?
• Changed the Production input to
generate societal an environmental
benefits
• Partnership
• Started local production facility
• Employment opportunities

HP Elite Dragonfly – The first PC manufactured with ocean bound

plastic

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Who owned sodastream? (the world’s

leading at home sparkling water maker)
Estimated a saving of 67 billion single use
plastic bottles by 2025
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Scale the Initiative

Correct and Improve

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What differentiate sustainable companies
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from traditional ones?

- Effective are engaging with external

stakeholders and employees

- Innovation and trust culture

- Track record of implementing large scale

change

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Moving the needle on sustainability

Some questions
1. Can u sustain by just getting the
Product right?
2. Whose behavior you think to be
changed now?
3. What is the role of the customer?
4. What is sustainability via purchase?
5. What is sustainability via participation?
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In order to keep your business running, it’s

important that you are accepted by your
customers, your peers, and the countries and
cultures you operate within.

By building in sustainability goals to every

element of your supply chain from producers to
end customers – you will be giving your business
the best chance to gain and maintain this
acceptance.
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