CSR in international supply chains

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The social responsibility of retailers and small and medium suppliers in international supply chains

The social responsibility of retailers and small and medium suppliers in international supply chains

– opportunities to pursue a relationship development model in which all involved subjects can benefit, including smaller par- tners inside the supply chains; among such partners there are, at the international level, farmers from developing countries. As a consequence, all of these points support a virtuous circle that can be a stimulus for the strengthening of less unbalanced and more sustainable international supply chains, mostly where SME manufacturers are involved. The larger retailers’ role in sustaining CSR principles (in all the related fields) along the sup- ply chain is fundamental. A wide awareness of CSR among SME manufacturers was observed. All CSR related activities were more frequently adopted by smaller manufacturers, wherein larger retailers placed a significant weight in their sales and when the retailer acted as a channel leader. In this case, retailers’ re- quirements for the adoption of CSR were a primary stimulus for structuring CSR activities and adopting specific standards.
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Retailers and SME suppliers social responsibility in international supply chains

Retailers and SME suppliers social responsibility in international supply chains

Consumer perceptions allow retailers to assume a central role as a guarantee for control over the safety, equality and ethical- ly correct practices along the supply chain. The more consumers are aware of ethical and sustainability issues, the more retailers can play a coordinating role to ensure a transparent supply chain in which the value produced is equally distributed among all participating subjects. International retailers are quickly re- sponding to this change, promoting initiatives as a result of in- creasing public demand for more sustainability in economic ac- tivities and trade. Small Italian manufacturers in the food sec- tor have responded to such changes by adapting to the require- ments of retailers. As the study emphasized, those more in- volved in relationships with large retailers have reached a high- er level of consciousness in CSR relevance and, above all, are more capable of managing CSR activities by adopting standards and certification systems. Those with a lighter weight of large retailers in sales (they are also smaller) revealed a delay in adopting more advanced criteria for CSR management.
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The social responsibility of retailers and small and medium suppliers in international supply chains

The social responsibility of retailers and small and medium suppliers in international supply chains

– more individually and socially respectful principles in all acti- vities, including supply chain relationships, communication, logistics and service management; – opportunities to pursue a relationship development model in which all involved subjects can benefit, including smaller par- tners inside the supply chains; among such partners there are, at the international level, farmers from developing countries. As a consequence, all of these points support a virtuous circle that can be a stimulus for the strengthening of less unbalanced and more sustainable international supply chains, mostly where SME manufacturers are involved. The larger retailers’ role in sustaining CSR principles (in all the related fields) along the sup- ply chain is fundamental. A wide awareness of CSR among SME manufacturers was observed. All CSR related activities were more frequently adopted by smaller manufacturers, wherein larger retailers placed a significant weight in their sales and when the retailer acted as a channel leader. In this case, retailers’ re- quirements for the adoption of CSR were a primary stimulus for structuring CSR activities and adopting specific standards.
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Balancing Control and Trust to Manage CSR Compliance in Supply Chains

Balancing Control and Trust to Manage CSR Compliance in Supply Chains

A Buyers’ Forum was initiated in 2006 by Alpha, along with a number of international buyers. A World Bank organization also collaborates with the Forum, which functions as a meeting place for around 20 brands to discuss topics such as workers’ rights issues and local labor laws, to find consensus among their viewpoints. Alpha is involved in many CSR projects with local and foreign actors to develop better working conditions for apparel workers. In 2011, Alpha’s managing director met the prime minister of Bangladesh to discuss the wages of apparel workers and directly worked with the BGMEA to improve the overall SC situation. The government and the association put pressure on Alpha to make direct contributions to improving security and other standards of the factories, rather than only continuing with control measures. The interacting parties understand that employees must be educated to follow CSR effectively, but there are no concrete programs arranged to do this. The buyer considers it a responsibility of the suppliers. The chamber of commerce offers training programs on CSR practices, but so far neither the buyer nor its suppliers have utilized them.
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GREENING GLOBAL SUPPLY CHAINS

GREENING GLOBAL SUPPLY CHAINS

of water stress on California agriculture” and the benefits of “forging connections with a diverse group of people and organizations interested in agriculture.” In October of 2015, TSC hosted a field tour of the plastics supply chain in the Houston and Freeport, TX areas. With the help of our sponsors—the American Chemistry Council, Dow Chemical, and Chevron Phillips Chemical—TSC guided a group of some 20 participants from the retail, packaged food, chemical, and textiles industries through facilities involved in the manufacture and recovery of plastics, with an emphasis on plastic packaging. The key objective of the program was to provide a learning and networking opportunity for sustainability professionals with an interest in plastics. It provided a bird’s eye view of a large part of the supply chain, and demonstrated some of the challenges and opportunities present in converting plastic resins to products, and products back to plastic resins. Participants left with a better appreciation of these challenges and opportunities and will hopefully continue to collaborate to find more sustainable approaches to using and recovering plastics.
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The Shrinking Supply Chains of Information

The Shrinking Supply Chains of Information

The usage of Internet as a medium of information transfer have definite advantages. The major one being the elimination of limitation in geographical reach of conventional medium. In addition, the ability to transfer interactive 3D information, add value to the supply chain. Thus, Internet or other standards of communication protocols like STEP, ISO-10203-1, enhanced the value of the hyperchain while drastically shrinking the same. Another advantage of this innovative technological advancement is the ease and cost-effective nature of its operation. It has virtually eliminated the space and finance limitations that used to plague the libraries for ages. The development of Internet tools over the last few years have brought radical changes in the computer based information transfer. The capability of Virtual Reality modelling Language (VRML) in transferring the information in a "book like form" has made it popular among the traditional users of the library. Similarly the new protocols like IGES, and XML are also adding value to the information transfer through the Internet.
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Competitive Bidding in Supply Chains

Competitive Bidding in Supply Chains

In this chapter we consider the optimal behaviour for suppliers who know their costs (both for reservation and execution) and want to determine their prices in a competitive market. In Section 3.2 we first set up the model and describe the sequence of decisions more precisely. Then we discuss the buyer’s problem of choosing an optimal set of suppliers, and show that it is straightforward to find an optimal solution in the case where all the suppliers offer blocks of the same size. In Section 3.3 we turn to the problem faced by a supplier knowing the bids of the other players. We show that suppliers offer at their execution costs, making profits only on the reservation component in their bids. This result fails when suppliers own more than one block, or the buyer can reserve just part of a block. In Section 3.4 we characterize the equilibrium for the suppliers and show that, provided all the blocks have the same size, at a Nash equilibrium the buyer selects exactly those suppliers necessary to give an efficient outcome for the supply chain as a whole. For this equilibrium result we require the buyer’s optimal profit to be submodular as a function of the set of supplier bids available. This submodulatity result requires a complex proof and this is relegated to the Appendix 1 . Moreover, we provide a procedure to construct an equilibrium for the case with unequal size blocks. Finally we conclude in Section 3.5.
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FROM SUSTAINABLE SUPPLY CHAINS

FROM SUSTAINABLE SUPPLY CHAINS

Once companies are members of one of the multi-stakeholder initiatives, they are supposed to comply with criteria in voluntary standards, in addition to the legal criteria. In countries with weak or absent enforcement of land use legislation, there are cases where supply chain parties set an example by seeking compliance with voluntary standards. In countries with better developed land use legislation, such as Brazil, compliance with the legal standards is already a challenge. Here legal compliance is the main driver for companies to implement land use policies. In other words, there should be clear added value to setting aside more land as prescribed in e.g. the RTRS standard. This added value is supposed to be in proper compensation for the extra areas of set-aside lands and better prices paid on premium markets. A WWF (2012) review of the functioning of voluntary standards developed in multi-stakeholder initiatives pointed out the very small relative market share of most initiatives. Some of them have just started, with the very first patches of certified product just on the market. The review stressed the importance of market demands, notably in emerging economies such as China, India, Indonesia, and Brazil. It will be difficult to implement landscape issues through voluntary standards if there is insufficient demand for more sustainable products. At the same time, the supply chain programmes themselves influence demand for certified commodities by educating market players on the risks of relying on unsustainable supply chains.
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Towards collaborative supply chains

Towards collaborative supply chains

On the other hand, (Watson, 2001) identified that the power structure may challenge the search for a totally integrated supply chains. Cox (2004 A) pointed out that although collaborative, equity based approaches can be made to work. He highlighted that it only works when business partners have a clear interdependence on each other. He added that when one party dominates the relation, the dominated party will have to pass value to the dominant party while making only low returns (Cox, 2004 A and Skjoett, 2006). Collaboration does not follow an equity-based approach nor is it characterized by high levels of trust, but it is about naked power (Cox, 2004 A, B). In general, Cox (2004 A) emphasized that the appropriate sourcing strategy for a buyer depends on the power and leverage circumstances that they find themselves in.
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The role of accounting in supply chains

The role of accounting in supply chains

Several studies of inter-firm accounting have shown how accounting and controls are implicated in the management of supply chains. This consideration is relevant because the supply chain network consists of firms whose activities transcend legal boundaries, and accounting and controls may therefore help to manage the complexities of supply chain processes. Much remains to be known about the operation of accounting and controls and the consequences to supply chains. This thesis reports on a field study of the uses of accounting and controls and their relationship to management of supply chains in a multinational food manufacturer and its network of customers (retailers and dealers). It aims to understand the ways in which, for instance, open book accounting and performance measurement systems were implicated in a network of supply chains. More specifically, it examines the uses of accounting and controls in the everyday operations of managing supply chains. To this end, the study draws on ethnographic materials collected through interviews, observations and review of documents involving managerial and operational employees from both the manufacturer as well as its customers. This thesis draws on multiple theoretical perspectives to understand the dynamics and complexities of supply chain management. These include theories of enabling and coercive bureaucracies and control system and multiple cultural perspectives - integration, differentiation and fragmentation - to supply chain identities. The thesis sheds light on this area of study by providing three main findings. First, in contrast to the notion of dichotomous enabling/coercive supply chain accounting, it has been found that an enabling and coercive framework is useful in understanding the co- existence
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FINANCING SME SUPPLY CHAINS

FINANCING SME SUPPLY CHAINS

Despite all the efforts, SMEs continue to face several hurdles to sustaining their operations. We find that one of the most predominant is related to access of finance both on the supply and demand side. On the supply side, the financial institutions face constraints due to a number of factors starting from information asymmetry. There is a lack of accurate and detailed information about the borrower. Few countries maintain a central database regarding the borrowers within the organized financial sector. But maintaining a database of the overall SMEs is not feasible for the banks due to the large number of borrowers. For any start up innovative enterprise such as an ICT firm, this information asymmetry becomes more crucial. A major issue is the lack of a policy framework for risk analysis of the borrowers. This results in the lending organizations charging very high interest rates for a good loan and a low interest rate for a bad one.
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The future of retail supply chains

The future of retail supply chains

Today’s “ship and forget” fulfillment will fade, replaced by a more sophisticated, dynamic model that continuously reallocates products across channels based on channel-specific sell-through rates, even shaping demand to maximize profit in the channels that are most financially attractive. Greater flexibility in inventory management will allow retailers to test demand for a product in, for example, the online channel before allocating it to traditional stores in a second wave of sales. To allow for more refined trade-offs between cost and speed, multiple supply chain paths will emerge, ranging from slower-moving bulk commodity goods to “fast fashion”-- like models that rely on increased air freighting or selective local sourcing for high-margin categories.
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CSR in the supply chain and in business partnership

CSR in the supply chain and in business partnership

ISS Global, based in Copenhagen, has established a set of good prac- tices for cleaning services. The aim of the Green Cleaning concept is to maximise the efficiency of machinery, chemicals and human resources while minimizing the impact on the natural environment. ISS belongs to the International Facilities Management Association (IFMA). One of the projects carries out jointly by them consists in the provision of more environmentally-friendly cleaning services. The company has also published “Global Green Cleaning”, which involved cooperation with other partners from the industry, such as DCS Enterprise LP and ISSA. Their involvement will allow to promote Green Cleaning among clients and, consequently, bring a number of financial en environmental benefits.
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Social Enterprises in Supply Chains

Social Enterprises in Supply Chains

Page 183 The significance of a longitudinal study will be particularly relevant when it comes to educating children. With youth, specific fire prevention programs count on children transferring their newly acquired knowledge about fire prevention to their domestic environments. Another assumption for these children is to follow fire prevention principles for adults. Preventive efforts may have differential success according to social class, educational background, age, and sex (Fielding 1978), which is one more reason why we see longitudinal research to be important. Similarly, Moynihan and Flesher (1998) suggested the use of longitudinal research to analyze the juvenile fire setting. According to Moynihan and Flesher (1998), future firesetting risks cannot be measured without a 5-10 year longitudinal study. d. Supply chains analyzed in this research are all traditional pipe-line style supply chains. The question arises: How would results change if the analyzed cases were platform-based supply chains. In cases of platform supply chains, there is a node called a differentiation point where common components are assembled with differentiating components (Yadav et al. 2009). Regarding the definition of a platform, Lindquist et al. (2008) said that there is not one unified way of describing what a platform is because researchers often have their definitions. Simpson et al. (Simpson et al. 2014) defined a product platform to be a set of parameters, features, and components that remain constant from product to product within a given product family. Meyer, et al. (1997) defined a platform as a basic architecture composed of sub-systems or modules and the interfaces between them. Lindquist et al.'s (2008) description of platforms addresses the need for interfaces between interacting systems. Interfaces do not necessarily refer to physical interfaces; they can also refer to data exchange; heat transfer or various other factors influencing surrounding systems.
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Intellectual Property Supply Chains

Intellectual Property Supply Chains

registration. Digital Convergence offers opportunities for music, video and information resources to benefit from this same possibility. This grand view requires extraordinary consistency across traditional competitive lines. Without proper infrastructure, promising efforts such as Movie Link go nowhere. The anti-piracy impact of IP Supply Chain Management is to leverage better results from standards setting and technology development efforts in various digital and physical intellectual property segments, to create convergent inter and intra-company information systems that transcend competitive conflicts. While next steps in hardware configuration and embedded restrictions seem elusive and fragile, supply chains offer potential far greater consistency in digital rights management and use authentication. Just as is constantly happening among industrial giants (current news: Boeing and Airbus on RFID),
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Forecasting in airforce supply chains

Forecasting in airforce supply chains

Syntetos, 2007; Tysseland, 2009), research that actually focuses on spare part demand forecasting for rotary winged military aircraft (helicopters), remains limited. Research has shown that efforts to manage the supply chain are likely to be unsuccessful if demand forecast is inaccurate (see Sayed et al., 2009). It, however, remains difficult to conduct such forecasts accurately because of limited data not only in non-zero but spare component demand (Huang, 2009), especially of those in the military arena (Michaels, 1999; Johnsen et al., 2009; Tysseland, 2009). Put into perspective, in the past few years alone, well-known demand models (Ghobbar and Friend, 2003; Willemain et al., 2004; Dolgui and Pashkevich, 2008; Syntetos et al., 2009a; Teunter and Sani, 2009) have attracted numerous citations, leading to a conclusion that demand modelling remains at the centre of forecasting scholarship. This study is driven by recognition that many of the more advanced forecasting techniques, such as higher order autoregressive integrated moving average (ARIMA) models appear unable to process the slow moving nature of the demand (Syntetos et al., 2009b; Wallstrom, 2009). For this reason, they end up creating large errors in forecast projections (Pack, 1990). On the other hand, simple averaging methods do not capture the true essence of any pattern showing a need for unique dedicated forecasting techniques based on the type of demand (De Gooijer and Hyndman, 2006).
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Supply chains and power regimes:

Supply chains and power regimes:

Only by understanding the properties of power in extended dyadic exchange scenarios can a properly analytical and prescriptive approach to supplier and supply chain management be achieved. This is because a cursory reading of the power regimes perspective ought to sensitize the reader to the fact that buyers and suppliers cannot always create effective integrated supply chain management approaches. In certain power regimes, the buyer and/or supplier is in a position to block the passing of value from the upstream to the downstream end of the chain. In such circumstances, it is unlikely that proactive attempts to develop suppliers and pass value to end customers will be successful. Conversely, it suggests that attempts at integrated supply chain management may only be possible in circumstances in which either buyers and suppliers are interdependent, or because a buyer is the focal organization in the chain (close to the end customer and undertaking final assembly) and it can impose buyer dominance throughout the chain. In the absence of these power regimes, it is difficult to see how integrated supply chain management can be made to work effectively.
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GLOBAL SUPPLY CHAINS: WHY THEY

GLOBAL SUPPLY CHAINS: WHY THEY

Rapid improvement in coordination/communication technology – such as important advances in telepresence technology, workflow organisation and communications software – favours supply chain unbundling functionally and geographically (Section 3). The resulting finer division of labour will allow firms to sort stages geographically according to the cost of the relevant productivity factors (labour, capital, technology, etc.). Other things equal, this will result in more, and longer-distance, trade in parts and components. Thus rapid advances in coordination/communication technology will lead to more complex supply chains. This is illustrated in the top of the leftmost panel of Figure 20. Box 1 discusses a number of radical technological breakthroughs that might have important implications for the future of global supply chains.
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A research into global supply chains

A research into global supply chains

Executive agenda and supply chain strategies Having noticed the differences between cost- efficient companies and flexible-response companies, we analyzed the 30 best-in -class companies to identify links between the executive agenda and supply chain strategies. Of course, this is not the only research to focus on the link between the two. In ‘Operations Rules: Delivering Customer Value through Flexible Operations’ (MIT Press, September 2010), Prof. Simchi-Levi developed a framework to allow firms to link their operations strategy with customer value proposition. He illustrates this frame work with a few examples. For instance, the business strategy of giant retailer Wal-Mart is every- day-low pricing and as a result its operations strategy emphasizes cost effi ciency. By contrast, the business strategy of online retailer Amazon is selection and availability and therefore its operations strategy is focused on efficient and reliable order fulfillment strategy.
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Development of suppliers and supply chains

Development of suppliers and supply chains

Jönköping International Business School 50 In the mentioned district the – also mentioned – IUC is in itself such an example. The firms in the district own it jointly. Apart from IUC, this type of co-operation in similar settings is still in the planning phase in the specific district. There is among many of the firms a great interest to further this kind of co-operation and to establish specific arrangements either as an addition to IUC or as totally new actors. The request in that case is a narrowly defined venture in line with limited scope of cooperation. One example that has been discussed is to create a joint “face” in marketing. The study of the district indicated resources for marketing, not least internationally, as one of the scarce resources for many of the firms. Such a new firm should market the entire district by being able to present it as a joint collection of resources and broaden the market scope of the firms. This should become an additional market channel to the existing ones. But its operations need not be limited to marketing only. It could also take initiatives to find other aspects of joint efforts. Some firms in the district have e.g. solved their logistics in new and very efficient ways. Others have problems with their logistics. If the ones with a strong system would open up their systems and allow others to “hitchhike”, they would be much better off. There are a number of such possible improvements identified in the investigation. But they have to be materialised by someone. The role of this new firm should be similar to the one of Benetton in the previous discussion but in a different format and – probably – with a different ownership structure. It seems possible to create a jointly owned firm among a big enough number of firms. By having other firms inside the district as owners the commitment to the new firm is likely to be stronger. There is a positive attitude to such a new actor as it would provide value and allow the firms to (continue to) focus on their core competencies. As the actors need not invest that much and still can benefit from its activities, there are obvious enablers to make this happen. But at the same time as it is easy to join because of low barriers of entry, there is a probable risk that very little might come out of it. Furthermore, there is a danger that the members of such a “club” do not take that much responsibility as they have committed such limited amounts of resources.
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