An argument generally focuses on the keychain operations that create the sustainable supply chain and further outline the driving factors behind the particular movement to sustainability. For the purpose of sustainability and supply chains, there are three key arguments that indicate the reason why some are more persuasive than others. These arguments include sustainability exertions, business change process, the similarity in risk and management, cost reduction, and revenue increment. (Hample, 2012)
To begin with, the efforts made to nurture business change process receive much criticism for the operations managers. It's an argument that opens up a dialogue for sustainability in order to check the shape of the future business. Innovative employees are essential in building a platform, necessary for confronting issues related to sustainability. There is the need for the vision and skills in redesigning company products, models, and business processes. All this requires full comprehension of the business context. The most significant issue in this module is the employees’ need to tell the specific procedures in developing this journey to sustainability.
It is quite evident that the management, for instance, usually pays more attention to procedures required by the supply chains to stop and prevent carbon emissions and further conserve the natural resources. Most of the companies and organizations prefer to change and transform the business by improving the process and escalating sustainability. The companies build the global market by enhancing the affectivity of the organization. This is effective when the narrative correspondence has a full representation of the global market. (“Constructing a Persuasive Argument,” 2011) Operation managers need the art of future-mindedness to help raise the sustainability efforts (Schniederjans, 2018).
Secondly, risk management is an argument that trifles down anyone’s thought whenever they see the supply chain impact. It is one and the same looking at it in diversity. Sustainability has an effect on risk management alongside supporting supply chain impact on business opportunity and growth. Risk management is a first-factor mechanism that most organization considers to enhance their compliance with the standards of the environment. This further includes the department of information technology (IT). Accounting for sustainability risk such as social, economic, and environmental factors are to be treated as risk management process. Through this, most of the organizations can escalate their positions on management capabilities and strategies. (CAMPBELL, 2005)
Keenly observing the technicality in risk management versus sustainability risk, we realize the similarity is so minimal. Their impacts on management are usually to enhance and bring in transformational effect onto the company. The organizational compliance in regards to the IT department reflects on the management of the organization to push for business growth and open opportunities to help in expanding the organization (Thorlakson, 2018).
Thirdly, cost reduction and revenue increment is an environmental practice that has signed on the financial outcomes of the organization, this can be positive as compared to the other arguments. Incorporating more soundly practices on the organization brings in a positive impact on the company's fiscal growth. Considerate of this matter, most companies make changes to increase the practicality and sustainability. There are companies that push for higher environmental standards to remain relevant and consistent considering sustainable ingredients.
Most of the organizations consider maintaining consistency and relevance in the global market to ensure that the environmental standards are as high as possible. The higher the standards are, the higher the amount of profits levels. When logistics is accepted as cloud base oracle transportation management software from inspiring, most of the supply chains can be improved in most organizations through sustainability. This thereby supports the business changing process thus the transformation, there would, therefore, be better risk management and further increase revenue (Reinecke, 2018).
Part TWO
Describe how Primark Sources its Garments
Business outsourcing is an agreement between two or more companies to contract a business process such as claims, payroll processing, core and non-core functions such as call centre and manufacturing/facility management. The companies' major aim in sourcing of these raw materials is to keep high-level standards and maintain low prices. This is one of the ethical codes maintained by the industry.
Primark deals with products such as bags and purses, coats and jackets, dresses, formal wear, gloves, scarfs and hats, jeans, jewellery, knitwear, lingerie, pyjamas, shoes and boots, shorts, skirts, socks, beachwear, tops and many others. Primark sources its garments from a range of man-made and natural fibres. Primark utilizes mostly the cotton fibres to make its products. Primark does not buy the raw materials directly from the market, they instead approve factories and other suppliers to source the raw materials used in making the garments in the industry (Fang, 2018).
The company practices the sustainable action plan (SCAP). The main motif of the company is to work collectively towards targets. The supply chain has also been given lots of concern by reducing its environmental impacts such as reducing the wastes that land onto the landfill. This improves efficiency and productivity. A key factor that is practiced in this industry is the improvement of traceability of raw materials in the system. The supply chain considers the amount supplied and the amount used in making the company's products. The fabrics are also registered depending on the country of origin. (Cencini " Rossi, 2014) This signifies that the raw materials can be sourced to particular countries. The key objective of the company in the sourcing process is to enhance sustainability through the use of cotton amongst other fibres.
The company has put up a strategy to ensure that all the cotton used in the supply chain is sourced sustainably. The main mission is to get a better yield and protect the environment at the same time. This is to safeguard the farmer’s interest. Primark uses less chemical and water and still give better yields (Manui, 2008).
The farming communities are strengthened by growing their skills in business and further put the farmer's health as a priority. Cotton sourcing is usually super complex. Most of these raw materials come from India. In this place, farming is done in the rural areas on small scale. The cotton growing has lots of technicality within it. This includes the problems related to women. The women are technically the major cultivators of cotton in India. Most of them are rarely recognized and are always under-supported in the economy. Primark now sources its products from such farmers to make most of their products. (NEEF, 2013)
The growth of cotton needs to be sustainable and productive. The farmers' practices in various ways are explanation for the rise in success of the crop. Most of the farmers reduce their fertilizer consumption by up to 50% the normal rate and still increase the cotton yield. More yields mean more money thus improving the lifestyle of these farmers through points such as education. (Jung, 2008)
Primark operates in different regions of the country, including Oxford streets, Leeds Trinity, Manchester, Belfast, Cardiff, Aberdeen, Liverpool, new castle, and Truro. This forms part of the centres opened for the textile industry.
Problems Faced by Workers in Global Supply Chains
The interstate conflict has a negative impact on chain supply operations. It happens when two countries are not on good terms. In such an occasion there will be no free or rather any transaction taking place across their borders. Therefore there will be no free movement of materials, services, workforce, supplies and so forth. (Singh " Nijhar, 2018)
Harsh weather, such as heavy rains, will be of inconvenience to any form of operation. While planning for routes and other operational strategies especially in the logistics of goods and service one significant factor of key concern will be the weather status of the region incorporation with its recent trends in order to come up with a suitable formula for operation. In an event where a particular region has been hit by a climate disaster such as floods, it will cause a nuisance to the supply chain firms (Barry, 2014).
Water plays a significant role in all industries. In companies involved in manufacturing water is used in the process, nonetheless, water can also be used in the shipment of cargo as a mode of transportation. However many a time the whole manufacturing and other functions that needs water can come to a sudden due to lack of adequate water for those specific operations. Some countries are landlocked and to make matters worse they don't have rivers that can facilitate the transportation of cargo. This will only leave the firm management with limited options to consider for the transportation regardless of the cost that the firm will have to incur as operational cost. (Harrison, 2014)
Catastrophe is any large and disastrous event with a great impact. There are some naturally triggered catastrophe events such as a tsunami or an earthquake, which make it impossible for the normal operation to take place, as the goods will be prone to damage. Therefore, the firm management will have to come up with new mechanisms to appropriately tackle this. The firm will have to rebuild their new methods to see how to still gain from the business. This may take a lot of time and resources (Arntzen, 2015).
Political instability is incident where the government is undergoing many problems that are being experienced in the global level. This mostly happens when a country is either about to hold, is currently holding or has held an unsuccessful election. With individual vying for major governmental representative posts, there might occur chaos prior to elections or after the elections. This can be a result of incitement from the contestants. With such unrest in the country individuals, community or even a particular region with a similar political ideology may decide to demonstrate their frustrations on the roads. This will make not only the cargo but also the staff vulnerable to damage. (Kruger, 2002)
Many states African countries to be concise are highly affected by corruption. Supply chain management is a function which is involved in many procedures corruption may prove to be inevitable. There are many corruption loopholes during the process where one may consider giving out money or any other form of payment in order to pass through a process. This is one of the major challenges faced in supply chain management.
Data fraud and digital theft, each and every success has its own secret which offers the firm an upper hand against the other companies. These can include structural design, adaptability to new emerging trends and so forth. When this information is stolen it can cause a lot of harm to the firm as their recipe for success shall have been exposed (Meixell, 2005).
Labor Governance and its Practice
Research shows that 98% of the factories that produce Primark products are parallel factories that also work for other companies. There is, therefore, need for the company to lay out a set of rules that guide the company and the approved employees and factories.
Employment, as hinted earlier, is freely chosen. The company prohibits forced labor in any form such as trafficking, bonding, or prison labour. The employees are given the mandate or will to leave their employer with reasonable notice. The company further gives room for a collective bargain for the workers. The workers without any discrimination can join any trade union. The employer needs to have an open attitude towards the workers. This is to push for better organizational activities and to also give room for trade union activities to take place. There is also room for representation in the workplace. (Schlegelmilch " Obseder, 2007)
The working conditions need to be safe and hygienic to avoid any health hazard that might occur. The companies try to minimize inherent hazards in the working place. The workers are given procedural training on the same through specified training. There is access to clean toilet facilities and water. Other sanitary facilities are also kept in the open. Responsible health is quite essential in such environments.
The company does not tolerate child labour as a form of workers recruitment. The company gives any child faced with such condition with an opportunity to access better education till they are 18 years of age (Biggs, 2016).
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