Sustainable Supply Chain Management

STUDY OF SUSTAINABLE SUPPLY CHAIN

The theory of corporate sustainability is said to emerge around end of the twentieth century. Prior to that maximization of profits was the sole aim of most industrial houses. At present, with rapid change in information technology, increased awareness among the public, escalating media attention, pressure from governments, environmentalist and civil society have compelled industries and large corporations to disown destructive and unethical practices. Stricter legislations and compliance regimes and pressure from concerned stakeholders have driven corporations to conduct their business in a way that is both sustainable and inclusive.

The concept of sustainability becomes all more important in emerging economies

Reactive Strategies means reacting towards regulations by doing the minimum required as per law and customer on environmental issues.

For instance Chinese Firms have enhanced their environmental and ecological awareness due to regulatory, marketing and competitive pressures.

Indian Companies fail to understand that sustainable strategies can be differentiated into regulatory, compliance and proactive strategies. While compliance strategies involve following existing rules and standards whereas proactive strategies involve voluntary adoption of Sustainable Supply Chain Management practices.

The aforementioned discussion clearly amplifies that firms adopt sustainable supply chain management practices either without any external pressure or they are coerced to do so because of conditions to comply with regulations. Some also adopt sustainable supply chain practices under immense pressure form customers and competitors.

In this paper, study of three companies based in India is done in keeping the following objectives in mind:

1. To decipher, how imbibing sustainability in supply chain helps companies in optimizing

At the same time, they also began creating a sourcing base in Tamil Nadu to delink itself from risk posed by Kerala.

The incidents of reverse auction, which led to new price discovery, and easier feel of the product provoked agents. Due to this they broke and discredit the auction system. They started offering copra at lower costs than those acknowledged by Marico, after auction hours. Marico purchasers, on the other hand, declined to renege on the high costs contracted.

Due to this traders often complained to top administration that the Marico was at disadvantage position by buying copra at higher prices. However was Marico was of opinion that it will not go offline buying and they had set up a transparent system, which guaranteed the process is never abused.

Also an online framework was created. Marico set up its first copra accumulation centre in Perambra, Kerala. It was an alternate noteworthy venture in broad basing supplies which empowered Marico to restore small agents as centre heads paying them Rs 150 a ton as commission. Today, over 50% Marico’s requirement of copra comes from these type of centres while the rest comes from normal trade.