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The ethical supply chain
- 2. Hello! Aye Yin Yin Tun ID -6029649 2
- 3. About Our Research Based in United States 62 %, Asia 11 %, Europe 8 %, Cabada 6 %, Africa, South America, The Middle East and Central America 13 % Peerless Research Group,Supply Chain Management Review magazine and APICS (American Production & Inventory Control Society ) Base on 710 respondents 63 % were from manufacturing organizations, more than 12 vertical industries Consulting firms, wholesale and retail organizations, third party logistics providers and e-commerce 7 % none represented 3
- 4. ◈ Supply chain’s emerging role ◈ The ethical priority ◈ Supply chain owns ethics ◈ What matters ◈ Monitoring supply ◈ Moving forward 4
- 5. Past ◈ Drive cost ◈ Efficiency Supply chain’s emerging role Now ◈ Evaluating customer demands ◈ Production times ◈ Speed of customer delivery ◈ Front facing 5
- 6. Three dimensions 6 Environment Three dimensions are part of a SCOR-E framework . 3 Economic 2 Ethics 1
- 8. Supply chain owns ethics 8
- 10. Monitoring supply ◈ Suppliers play one of the biggest roles ◈ 70% of the products are form suppliers ◈ Social Media 10
- 11. “ Moving Forward ◈ Not only focus on price and products ◈ Sources 11
- 12. Related to topic SCOR Model Based on planned-source-make- deliver-and-return Relationship Management Power & Trust Trust requires open information sharing and transparency Four Decision Area for Strategy Environmental Consideration Legal Political 12 Sourcing Process Identification Evaluation Approval Monitoring Functional Organization R &D,Purchasing, Production, Logistics, Marketing Fulfillment Customer satisfaction Meet expectation
- 13. Agree with author Customers are more concerned about ethics and environmental responsibility 13
Editor's Notes
- Not backroom anymore 1) supply chain rely on produced / slave or child lobor/ 2) consumer are now demanding to know the product are made by socially ethically and environmentally / socially and environmentally responsible practices and to tell consumers how they are doing so. “Building ethical supply chains isn’t just a requirement, it’s an opportunity,” says Eshkenazi. the supply chain best practices of transparency and visibility
- These three dimensions are part of a SCOR-E framework that contains key considerations within specified areas of supply chain processes, based on the SCOR model: plan, source, make, deliver and return.
- 24% indicated that the topic is discussed one or more times a month, 26% said it comes up every few months; and 11% indicated that discussions take place once every 6 months.21% indicated that conversations take place one or more times a year. More importantly, only 6% said that supply chain ethics discussions never occur within their companies.respondents, 62% are monitoring their supply chains for ethical practices and 38% are not.
- No one doubts that supply chain has a significant impact on a company’s bottom line; when procurement, manufacturing, logistics and distribution are hitting on all cylinders, margins and customer service improve. respondents identi ed seven areas as most responsible for ethical supply chain compliancy within their organizations, three of those areas, representing 62%, were supply chain functions: supply chain (31%), procurement (20%) and operations (11%). Corporate, legal and nance accounted for the remainderhead of supply chain (21%), head of procurement (12%), head of operations (7%); directors of plants, production, logistics, and materials (4%); and quality control (2%).
- the three-legged stool representing a company’s practices when it comes to the environment, economics and ethics, Asked what area is important to their organization at the present time and will be important two years in the future /1)safeguarding against corruption is highly important now/2) abor practices are highly 3) environmental sustainability is highly 4)defending human rights - Respondents are also now following more than a dozen practices and principles associated with ethical supply chains, The top five categories organizations are following now include: • 69% are eliminating discrimination in the workplace;
- Suppliers play a bigger role than ever in today’s supply chains. That is true for manufacturers, who often procure 70% or more of the materials, parts and components / responsible for what happens across their supply chain, including their supply base /social media post about poor labor or environmental practices can devastate a company’s market share and market price.
- supply chain managers will not only need to consider the price and quality of the trading partners with whom they work, but also how they and their suppliers operate when it comes to the three-legged stool of responsible and ethical supply chains.
- The research points to a variety of methods companies use to monitor the ethics throughout their supply chains, but no standard across industries.supply chain owns ethics