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This research aimed to determine the sustainability of supply chain management in Cocoa-Processing company in Southeast Sulawesi, Indonesia. Southeast Sulawesi is one of the biggest produces in Indonesia, and this newly established company planned to utilise this valuable resources, cocoa plantation. The company produces intermediate products of cocoa: liquor, butter, cake, and powder. Even the company is in the early stages of business, it is trying to apply sustainability to the supply chain. The company see this necessary as a competitive advantage in the industry. To evaluate the applied sustainable supply chain, a performance measurement is being done to see how well sustainable supply chain run is. A Sustainability Balanced Scorecard (SBSC) is used to measure. Key Performance Indicators (KPI) are designed from brainstorming with the company and elaboration from company's vision and mission. The structure of SBSC for SSCM was the modification of initial balanced scorecard by adding Suppliers perspective and Non-market perspective. All KPIs is then pair-compared to get the prioritised weighted score using Analytical Hierarchy Process (AHP). KPI scores are calculated by using “Target/ Actual” scoring system. The results showed that the company's SSCM is not well performed. Over half of the KPIs are under performance. Continues improvement is needed to increase company's SSCM performance and keep the sustainability of cocoa production.
Seminar paper from the year 2011 in the subject Business economics - Supply, Production, Logistics, grade: 1,0, Leipzig Graduate School of Management, course: Logistik, language: English, abstract: Sustainability has become a significant issue in many companies as it affects their reputation among customers. At the same time, outsourcing and globalization have resulted in the spreading out of supply chains across continents. Therefore, the focus of implementing sustainability has shifted from the single organization to the entire supply chain. This is of particular importance for chocolate manufacturers with their multinational supply chains as they are held responsible by the public for any irregularities which happen in their supply chain. Chocolate brand owners have been confronted with increasing criticism and pressure from politics and public due to the lack of sustainability in their supply chain. A current example is the TV documentary "Schmutzige Schokolade", a film about child labor on cocoa farms in Ivory Coast, for which the Danish filmmaker Miki Mistrati blames the chocolate manufacturers. The film, which was broadcasted on ARD on October, 6th, 2010, at 11:30p.m., has been sold altogether to 18 countries and was consequently watched by several million television viewers. This paper focuses on Sustainable Supply Chain Management in the chocolate industry. The following chapter contains a short theoretical introduction to the topic. It then focuses on giving an overview of the European, and there specifically on the German chocolate industry. Furthermore, it puts focus on the raw material cocoa from Ivory Coast, as cocoa butter and cocoa powder are among the main ingredients of chocolate and Ivory Coast is the world's largest cocoa producer country. The last two chapters include the description of the importance, weak points, challenges and possible concepts of Sustainable Supply Chain Management for cocoa. The paper finishes with a summary and an outl
This book highlights a number of social sustainability issues at different stages of the supply chain, and demonstrates how these issues can be addressed by adopting social sustainability practices in the manufacturing supply chain. In the wake of emerging social issues in developing countries, research on social sustainability has gained importance for academics and practitioners alike. The three distinguishable social sustainability dimensions in manufacturing that emerge as a result of this research provide insights for supply chain managers and practitioners who might otherwise be unaware of what constitutes social sustainability. A better understanding allows supply chain managers to address these issues more appropriately to increase their supply chain competitiveness in the market. The book presents a social sustainability scale that can be used by practitioners to measure supply chain social sustainability to benchmark their supply chains globally. The research also helps academicians to gain an understanding of the social issues related to the manufacturing supply chain, while the social measures developed serve as reference material for policy-makers and sustainability experts in emerging economies.
This new volume provides detailed insight into supply chain management (SCM) and supply chain performance measurement (SCPM) in the textile industry. The book provides a comprehensive set of performance sub-criteria for the evaluation of SCPM, offering the information needed to understand, implement, and evaluate the supply chain performance of the textile industry and its cyclic processes. Using the Delphi method (a process used to arrive at a group opinion or decision by surveying a panel of experts), the authors studied several companies of diverse sizes and applied an analytical hierarchy process to establish crucial performance measurement criteria and sub-criteria. Around 80 textile industry personnel were contacted, including general managers, factory managers, managers, assistant managers, executives, and supervisors involved in various functions related to textile supply chains to discuss procurement, production, and distribution alternatives. The authors employed the multi-criteria decision-making technique, i.e. analytical hierarchy process, for executing pair-wise comparison and establishing priority weights of criteria, sub-criteria, and for estimating the contribution of supply chain cyclic processes to overall supply chain performance.
The environmental and social impacts of resource extraction and processing, subsequent production processes, and logistics activities are becoming increasingly important for sustainable economies. Moreover, sustainability-related issues and related risks are addressed by supply chain-internal and -external stakeholders. Against this background, companies are driven to consider the sustainability of their business as well as their supply chains by sustainable supply chain management (SSCM). This dissertation aims at furthering theory development at the nexus of stakeholder and risk management in SSCM by taking a systems thinking perspective on sustainable supply chains with a methodological focus on system dynamics (SD) modeling. To this end, conceptual frameworks and a formal model are developed. In addition, several guidelines for future research are proposed based on the identified trends and gaps in extant related scientific literature. Finally, the presented SD model illustrates the interplay between dynamic capabilities and SSCM practices that result in overall SSCM performance, while multiple stakeholder influences are considered.
This book focuses on environmental and social factors in international supply chains and industry networks. It explores whether socially-responsible and environmentally-conscious operations are complementary or conflictive to economic targets. The book elaborates on innovative approaches to manage the economic, ecological and social performance in supply networks from different perspectives. In addition, it links sustainability to operational processes and illustrates specific application contexts. Moreover, it covers the social dimension of sustainability. The rise of sustainability in management forces enterprises to revisit the concept of profitability that drives their operations. Social standards and ecological targets represent critical factors that challenge industry networks. The interplay of these goals requires new insights from scientific research and managerial practice. New approaches and systems are needed to minimize environmental and social harms and to promote sustainability.
In a competitive business environment, sustainable supply chain management (SSCM) has received a growing interest in both academic and corporate interest. Increasingly, companies are identifying sustainability as an opportunity to overcome environmental issue while simultaneously responding to economic, operational and social factors to achieve SSCM performance. This research aims to analyze the importance of SSCM in the coal industry in Indonesia. The purpose of this study is to investigate key factors that are most influencing Indonesian coal companies to conduct SSCM in their business activities. A questionnaire was carried out among coal industry supply chain companies in Indonesia based on three dimensions including (1) factors of SSCM adoption, (2) implementation of green supply chain, and (3) SSCM performance measurement and their 12 criteria. A novel multi-criterion decision making method, DEMATEL-based analytic network process (DANP), is applied to handle the importance analysis of sophisticated interdependences among multiple criteria. Both practitioners in companies and academia might find this paper useful as it provides major insights for business investors who consider implementing SSCM in Southeast Asian country like Indonesia.
A supply chain comprises different actors existing in different countries, including suppliers, producers, and customers. Clothes are supplied from Asia to all other regions; most coffee beans are supplied from South America; and cocoa is produced in Africa. Protecting the rights of people who produce goods in different countries is essential. In fact, according to this evolutionary law, companies need to identify, analyze, and prioritize the risks in their supply chains, and new policies must be established based on these results. New measures are taken to prevent or minimize violations of human rights and damage to the environment. Companies also need to set up grievance channels for people in the supply chains for regular reporting on supply chain practices. The German Supply Chain Act gives consumers the security that companies are managed based on fair production, and many similar legislations are likely to follow in other nations. Businesses around the world must prepare for these types of policies to impact their own supply chain management strategy before they are enforced if they wish to avoid revenue-impacting delays. Government Impact on Sustainable and Responsible Supply Chain Management is edited by Atour Taghipour, with about a decade of experience as a director in Automobile and High-Tech Industries, provides new and innovative ways to integrate social and environmental analysis into global value chains and adapt the law that regulates corporate responsibility for the observance of sustainability and human rights in the supply chain. This book is ideal for professionals and researchers working in governmental and private organizations in supply chain management, operations management, logistics, and operations research. Moreover, the book provides insights and support for executives in managing expertise, knowledge, information, and organizational development in different work communities and environments.
Businesses today operate in a world that does not stand still. Although people are considered creatures of habit, and businesses find it far easier to repeat the same processes than to try something different, firms today must adapt to their changing environments for simple survival. They must be agile and willing to exploit opportunities, which might even include creating change themselves through strategic or technological innovation. In a world with increasing awareness of depleting natural resources and a growing importance and recognition of good health and overall human well-being, the expectation from stakeholders for firms to act responsibly is also rising. To cope with these changing demands and to improve the impact on the natural environment and society, many firms are actively implementing sustainable supply chain management (SSCM) strategies. In doing so, the need for developing and exploiting dynamic capabilities (DCs) becomes evident. This dissertation includes an analysis of existing literature and multi-case studies in the Brazilian and German food industries to identify drivers for sustainability initiative implementation and the particular role of knowledge and supplier management in improving sustainability performance.
Taking a theory elaboration approach, this dissertation is composed of four research papers that aim to drive multi-tier sustainable supply chain management (SSCM) theory forward. The papers encompass first a literature review on the current status of knowledge on SSCM and sustainability in mineral supply chains. Second, a Delphi study on sustainability issues in multi-tier mineral supply chains as well as their management. Third, a document review of sustainability standards for mineral resources showcasing the potential synergies of sustainability standards and sustainable supply chains and finally a generic conceptual study on the selection of multi-tier SSCM approaches considering institutional differences of focal firm and supplier context. In effect, the dissertation offers a number of mainly conceptual and literature based propositions for an alteration of the current multi-tier SSCM theory as well as the approaches to enhance the sustainability in mineral supply chains. Future research can build on these propositions and provide empirical validation in order to further enhance the propositions’ relevance for theory and praxis.