The Supply Chain of the Next Decade – a Study on the Context of Global Supply Chain Essay Example

including shuttle services, home delivery options, assisted-living facilities, and home shopping. Businesses must also carefully select social media communities to engage with their target consumer groups. Additionally, leveraging opportunities requires effective utilization of online consumer data.

With the rise of consumer technologies, there will be an increase in consumer service demands. This will provide shoppers and consumers with more shopping choices and improved transparency when interacting with businesses. Moreover, the global population is expected to reach 8.3 billion by 2030, emphasizing the limited availability of natural resources like energy and water. As a result, there will be a higher demand for these resources than what is readily available, leading to increased production costs for the manufacturing industry.

There is a growing trend among companies to source raw materials, components, and semi-finished goods from a larger number of countries. Additionally, they are expanding their manufacturing sourcing regions. This global logistics management change is marked by the ongoing consolidation of the industry. Logistics service providers strive to reduce costs through economies of scale and offer a wider array of services to meet the demands of international clients.

In the next decade, regulatory pressure is projected to rise, specifically in areas concerning the environment and sustainability. The primary focus for regulatory action will likely be on safety issues. A growing number of companies are finding success by concentrating on their core competencies and outsourcing non-core activities to exceptional third-party service providers. In domains like logistics and transportation, industry consolidation and mergers will persist, resulting in larger and more influential logistics service providers.

Simultaneously, there is an increasing interest in outsourcing logistics functions to external service providers within manufacturing and shipping communities. This

trend is driving demand for comprehensive and integrated logistics service offerings. Additionally, sustainability has become a key focus among high-level executives and has replaced monetary cost, value, and speed as the dominant topic of discussion among purchasing and supply professionals. It is also known as "Green supply chain".

A Green Sustainable Supply Chain refers to the utilization of environmentally-friendly inputs and their transformation through change agents. The byproducts of this process can be recycled within the existing environment or used to enhance it. Ultimately, this approach generates outputs that can be reclaimed and reused, thus establishing a sustainable supply chain (Rogers, n.d.). The main goal of a sustainable supply chain is to minimize expenses while benefiting the environment. In today's "sustainable" society, it is important to consider the life cycle costs of every component, equipment, or process in the supply chain.

A profitable supply chain often indicates a sustainable supply chain. In 2008, The Future Laboratory created a system for ranking organizations based on their levels of sustainability. This system, known as the Three Tiers of Sustainability, includes three levels: "Getting the basics right," "Learning to think sustainably," and "The science of sustainability" (Rogers, n.d.). The first tier is the foundation level and is where most organizations currently reside. Many companies are implementing basic measures such as utilizing greener transportation and reducing their daily carbon footprint.

In the second tier, companies understand the significance of incorporating sustainability into their supply chain operations. The third tier entails utilizing auditing and benchmarks to create a structure for managing sustainable supply chain operations. Progressing towards this level necessitates advocating for emerging regulations and standards in both the industry and government. While

profitability is crucial for a company's survival, it should not be the only consideration when evaluating the achievements of a firm or its supply chain partners.

To achieve long-term success, companies must prioritize the environment, natural resources, and social responsibility. By embracing an eco-friendly mindset and finding ways to reduce resource usage, costs can be minimized in both the short and long term. Additionally, companies should consider their role in the community and how they nurture their employees as these factors greatly impact future success. Focusing solely on economic performance or environmental issues is insufficient; it is more beneficial to adopt a comprehensive approach that considers the interconnectedness of "people," "profit," and "planet," as suggested by Nike (Rogers, n.d.).

Companies do not generate profits by discussing profitability with customers because most customers are not concerned with that. Instead, they attract customers to participate in profitable activities by making them attractive. This principle also applies to sustainability. Our objective is not to create interest in sustainability itself, but rather to motivate people to adopt sustainable practices by making them visually pleasing, trendy, socially accepted, and fashionable. It is essential to excel in all aspects of a sustainable supply chain, known as "enablers," for success.

The text highlights the significance of various factors, including strategy, organizational culture, transparency, and risk management, in promoting sustainable development. It emphasizes the importance of implementing sustainable practices within one's own organization before extending them to suppliers and customers. Collaboration across industries and integration of economic, social, and environmental goals are crucial for long-term sustainability in supply chain management.

Established in 1977, Apple Inc. is a company that manufactures and distributes electronic products such as

personal computers, mobile phones, mp3 music players, and tablet computers. They also provide software and applications for these devices and operate stores that offer their products and customer service. Apple takes a comprehensive approach towards reporting their environmental impact by focusing on the design, manufacturing, and usage of their products by customers.

From the table below, it is evident that Apple has successfully maintained a green process in the electric industry with an impressive overall score of 54, surpassing the industry average of 48. While Apple has excelled in all three tiers of sustainability as mentioned earlier, it falls short in terms of community social responsibility ratings, which becomes a significant area for improvement.

Overall Community Employees Environment Governance
Apple Inc. 54 45 53 60 54
All company average 48 48 48 46 51

Table 1: Basic corporate social responsibility ratings [pic]

We will analyze Apple's achievements and identify the opportunities and threats it faces in achieving longevity and sustainability in the industry using the SWOT analysis.

Apple has been one of the market's success stories in recent years. The company promotes the benefits of its iPad2 with the slogan "Thinner, lighter, faster" without mentioning its high profitability. Apple understands that the average consumer is not concerned about its profits, so it chooses to highlight features that appeal to them instead. This strategy has proven to be effective, as Apple sold over a million iPad2s in just one weekend. The concept of sustainability is also comparable in this context.

There may be a divide between those who are professionally interested in sustainability and others. To convince the majority to choose sustainable options, we need to consider different approaches. Those

who work in sustainability are often early-adopters themselves, so we need to appeal to motivations that may not be our own. These motivations include being cool, saving money, having fun, staying busy, getting excellent design, and conforming to social norms.

Apple's customer base has expanded due to its provision of advanced electronics, advantageous software, and applications. This growth has allowed Apple to enhance its investments in long-term sustainability. Notably, Apple has actively focused on the development of its employees and the promotion of a sustainable culture. Since 2011, Apple has placed importance on the well-being of its workers by addressing concerns like overtime pay and imposing stricter regulations against employing underage individuals.

The 2011 Apple Supplier Responsibility Progress Report highlights Apple's belief that nurturing employee growth plays a significant role in achieving long-term success. The report emphasizes Apple's efforts to establish reliable age verification systems in factories and educate factory managers on effective practices when dealing with third-party recruiters. Additionally, the company has implemented "social responsibility" classes for both workers and management to familiarize them with the Supplier Code of Conduct, workers' rights, and efficient communication with factory management. [pic]Figure 1 visually represents this dedication to employee development.

In addition to starting the extra-curricular education program Apple SEED, the company encourages workers to use some of their paid time to continue their education, including learning English. Taking care of employees' welfare is crucial for improving performance and ensuring the company's longevity in the competitive market. Empowering workers and taking proactive measures to prevent violations are key factors in achieving sustainability.

Apple provides training programs to educate workers about their rights and available protections. Furthermore, Apple works together with suppliers,

government agencies, NGOs, and other companies to tackle industry-wide challenges. This showcases Apple's dedication to implementing sustainable supplier operations through audits and benchmarks. However, it is crucial to recognize that despite Apple's strengths in maintaining longevity, there are also weaknesses that impede its progress.

Planet: Apple has successfully implemented the first two tiers of sustainability. In 2010, it is estimated that Apple emitted 14.8 million metric tons of greenhouse gases. Over the past three years, Apple conducted a thorough life cycle analysis to identify sources of greenhouse gas emissions, including manufacturing, transportation, product use, product recycling, and facilities emissions.

However, challenges arise in ensuring longevity through audits and benchmarks. Despite Apple's efforts in 2010 to identify issues, develop corrective action plans, and follow up on results diligently mentioned in their own report. Their report also acknowledges that if problems are not resolved within 90 days after an audit takes place they will only continue working with suppliers for further improvement; this reliance on suppliers like Foxconn is common among many companies.

Although Apple is often portrayed by the media as being solely responsible for issues related to working conditions and salaries at Foxconn, it's important to note that Foxconn also works with other major computer and electronics companies like HP, Dell, Sony, Microsoft, Motorola, and Cisco. The working conditions and salaries in the large Foxconn factories may be a concern for Westerners but are actually similar to those found in factories within and outside of the electronics industry. The Shenzen complex, which includes 15 factories and around 450,000 people, can be compared to a self-sustaining city with its own downtown area featuring shops and restaurants.

In some cases, workers

willingly request overtime work themselves. To address concerns about forced overtime, the company has conducted additional audits. When considering life in China overall, wages and conditions are considered normal. However, Apple does fall short when it comes to promoting employee empowerment and social responsibility. According to findings from Table 1 on social responsibility within communities, Apple's performance is below average. It's worth noting that Fast Company recently recognized Apple as the most innovative company worldwide.

Despite being known for its innovation, Apple lacks corporate social responsibility. They do not have a sustainability report at the corporate level and lack transparency about their social actions. There is no information on their website or in The Chronicle of Philanthropy about any charitable contributions made by the company. Despite these deficiencies and their below-average CSR rating, millions of customers still buy their products.

While it is important for companies like Apple to prioritize financial success, they also have a responsibility to enhance their CSR performance and be more transparent about their progress in order to achieve sustainability and contribute positively to society. In comparison, Microsoft has better integration of employees and a stronger CSR policy. According to Dan Bross, the VP of Citizenship at Microsoft's competitor in Redmond, the company's annual employee survey encompasses various topics, including awareness and agreement with Microsoft's CSR initiatives. Remarkably, 93% of Microsoft employees are both aware of and supportive of the company's CSR work, making it the highest-rated question in the survey. In contrast, Apple lags behind Microsoft when it comes to attaining average CSR ratings. [pic] Table 2 illustrates the CSR ratings for Apple and Microsoft on CSRHUB. Bross defines CSR as a

series of corporate actions that enhance business value while addressing social issues. It is possible that Apple's internal stakeholders can have a similar impact in improving the company's sustainability performance.

When employees participate in driving CSR, they not only have an internal impact, but also affect customers through a virtuous circle. However, Apple still faces external threats in the environment that could harm their business, despite their efforts to implement green supply chain actions and empower and enlighten employees. According to Table 1, Apple still ranked low in the social responsibility rate ranking.

Apple is striving to establish a monopoly by focusing on software development, but this could hinder its ability to achieve sustainability within the community. A corporation is crucial in realizing a green supply chain for the entire industry. Singapore's Ta-Q-Bin and sustainability strength The Yamato Group actively engage in corporate social responsibility (CSR) activities that prioritize safety, environment, society, and economy based on their Corporate Philosophy.

The promotion of CSR management, along with the cultivation of corporate culture, is a central policy in the "Create Satisfaction Three-Year Plan," launched by the Yamato Group in April 2008. The Group believes that the ongoing development of a strong corporate culture positively impacts business activities and allows for sustained growth of the company as a whole, while adhering to legal and social norms. All employees are aligned with this Corporate Philosophy and take their own initiative to promote CSR.

Yamato's operations at the Anson Road branch are focused on reducing carbon emissions. They use vehicles, trolleys, and deliveries on foot to operate efficiently and minimize costs like Electronic Road Pricing and parking charges. This approach can result in

savings for consumers. Although Ta-Q-Bin has improved delivery efficiency, its day-to-day delivery service with parcel pick up tends to emit more greenhouse gases due to increased transportation, despite the aforementioned efforts.

According to the official website of Ta-Q-Bin, a discount of S$1.00 per package is offered for packages brought directly to a Ta-Q-Bin office or participating store. However, this discount does not provide significant incentive compared to the average spend of S$2.00 on public transportation for a round trip, without considering the cost of driving private cars. As a result, this policy proves ineffective in reducing transportation and greenhouse gas emissions.

Yamato Holdings has set a target of making 8 million deliveries by 2015. Their efficient, accurate, and high-quality services create opportunities for business growth in Singapore. Nevertheless, inadequate attention towards environmental and community issues may hinder long-term profitability and customer retention.

In conclusion, sustainable development refers to a growth pattern that aims to meet human needs while preserving the environment, ensuring that these needs can be met in the long term.

The analysis of Apple and Ta-Q-Bin's business cases demonstrates that satisfying the needs of "people", "profit", and "planet" is crucial for ensuring long-term sustainability. Failing to address these needs jeopardizes sustainability in the long run. In addition to environmental considerations, incorporating sustainability into supply chain operations and collaborating with the community and government are vital for achieving longevity.

We aim to advance regulations and standards in both the industrial and governmental sectors. These are vital for achieving sustainability across industries and society as a whole. According to the 2020 survey on Supply Chain Management (SCM), the primary disruptive factor identified by most respondents (22%) is increased globalization.

Manufacturers and

distributors must improve productivity, efficiency, and reduce costs to remain competitive in the global market. This involves integrating partners, suppliers, and customers into a system that allows for continuous innovation and growth (Figure 2). However, some respondents (26%) believe that financial initiatives could negatively impact supply chain management. Supply chain finance (SCF) involves buyers, suppliers, and financial institutions like banks (Figure 3). More detailed information about account receivable and payable cycles can be found in Figure 4. Despite being more cautious compared to previous years, confidence in the potential growth of SCF remains high. A survey conducted by Demica in October 2011 showed that 75% of Europe's top 40 banks still considered the growth prospects for SCF to be "strong" or "very strong" (Source: http://www.mainward.om/mw/consulting/scm.jsp). However, there has been a more cautious outlook compared to 2010 which has hindered growth potential. Last year's survey revealed a similar figure at 90 percent. Respondents expect annual SCF growth rates of 10-30 percent in established markets and 20-25 percent in emerging markets.There is a need for financing to manage the fast-paced growth of emerging markets. This growth will primarily come from developed economies such as the U.S. and Europe, as well as larger emerging economies like China and India.

What is vital for SCF Supply Chain Finance is undeniably one of the most dynamic growth areas within the entire Global Transaction Banking business of global banks. The success of a robust international Supply Chain Finance program depends primarily on having an appropriate framework. What is crucial is the synergy of a comprehensive network coverage spanning the target region, a state-of-the-art technological platform, and the availability of a central team

of professionals who cater to the demands of the most discerning international clients.

Four key aspects of product development contribute to shaping a successful Supply Chain Finance proposition: technology, legal documentation, delivery structure, and enhancement. The global financial and economic crisis has undeniably had a significant effect on trade finance and, consequently, on trade as a whole. Many regions have seen a shift back towards traditional trade financing instruments, such as documentary letters of credit, due to the changing risk environment. These instruments are now being valued even more for their ability to mitigate risks.

Both the product and technology associated with trade finance have experienced an unprecedented level of innovation in recent times. This is evident in the advancements made in processing and reporting related to transactions. However, there are still lingering uncertainties surrounding the impact of the crisis on this momentum of innovation. Additionally, developments in supply chain finance may have been hindered by the increasing demands for security in trade deals. The relationship between crisis and innovation in this field is a subject of debate.

As for specific initiatives, Carrefour Indonesia and Deutsche Bank have collaborated to launch a supply chain finance program for the retailer. This program aims to enhance cash flow visibility for suppliers and provide Carrefour's suppliers with on-demand access to working capital. Another noteworthy achievement is Standard Chartered Bank Citi's continued dominance in the Best Trade ; Supply Chain Finance category. Their substantial global investment in this aspect of the business is now yielding positive results.

Standard Chartered Bank had a strong performance and was highly commended. Deutsche Bank and UniCredit showed positive signs from Europe. HSBC received a significant amount of

votes. The financial markets crisis, followed by weak economic growth and concerns about the sovereign debt crisis in the Euro zone, have brought liquidity management to the forefront of financial management priorities. In particular, companies are focusing on supplier financing as part of their global programs.

Optimization and reduction of supply chain risk are the main drivers for improvement in Supply Chain Finance (SCF) in mature markets. The combination of downward cost pressures and rising global raw material, energy, and labor costs has made strategic sourcing based solely on total cost of ownership insufficient. In mature markets, where large corporations are increasingly relying on working capital rather than physical assets, it is crucial for companies to maximize the value they extract from their working capital.

According to a Hackett study, the largest US Companies were able to save $72B in 2005 by decreasing their working capital requirements through improvements in bill collection, inventory turnover, and longer payment times for their suppliers. In emerging markets, the main motivations for supply chain finance (SCF) are liquidity access and enabling suppliers to keep up with buyer growth. Bank financiers see opportunities for growth in SCF by addressing legal and jurisdictional issues and improving access to technology platforms.

According to a study conducted by IFC and Nordic business consultancy Capacent, suppliers in emerging markets express interest in supply chain financing solutions to help them access affordable financing. This interest aligns with the increasing desire of corporations and banks to expand into global programs, suggesting that supplier financing solutions will evolve to meet this demand. The current trend towards offshoring and outsourcing further emphasizes the growing importance of trade business in both mature

and emerging markets.

Recent years have seen a corporate credit squeeze caused by the financial crisis in mature markets, primarily Europe and the US. Demica CEO Phillip Kerle suggests that companies are now more cognizant of the importance of optimizing working capital and safeguarding smaller suppliers to prevent supply chain disruptions. In emerging markets, suppliers often face a lack of working capital and limited access to bank credit. Structured supply chain finance (SCF) programs offer suppliers adequate liquidity and help maintain their financial well-being, thereby securing supply chains.

The growth of supply chain finance (SCF) has increased in recent years across various industries and regions. This growth can be observed in sectors such as retail, consumer goods, manufacturing, and in places like Europe, the Americas, and Asia. Despite challenges such as the European sovereign debt crisis and the risk of a double-dip recession in the US, many companies, especially small and medium-sized enterprises (SMEs), still struggle to obtain bank financing. In an uncertain global market, SCF remains valuable for buyers and suppliers to optimize their working capital.

Part IV introduces Urban Corridors as an integral part of regionalized development and urbanization. These corridors consist of a few megacities that have significant influence over a narrow strip of areas and function as vibrant marketplaces with advanced transportation networks and excellent IT infrastructure.

Supply chain strategies must adapt to changing demand and capitalize on the traits mentioned. This concept is depicted in Figure 5 and Figure 6. The market for smart phones, tablets, and other emerging gadgets is rapidly growing. Initially, there were doubts about the necessity of smart phones. However, the introduction of revolutionary tablets like Apple's iPad and Amazon's

Kindle has driven further innovations. Nonetheless, demand for these new products often lags behind their release because they frequently undergo upgrades that offer additional features, prompting us to upgrade our devices.

The prevalence of "smarter" gadgets in our lives is so significant that we often overlook their importance and the transformative impact they have had on our perspective on communication. Consequently, the global supply chain network must adjust by incorporating new possibilities for transactions and shipments. Nevertheless, there are challenges that require attention. Although cloud computing technology is guiding us into a new era of sharing information, it is essential to thoughtfully contemplate the design of the protocol for transactions and communication to guarantee both reliability and security. Eventually, the role of the supply chain may evolve from primarily emphasizing cost management to satisfying consumer needs.

The increasing popularity of tablets will result in the emergence of new shopping and business trends. It is crucial for companies to anticipate or create new business models in response to the widespread adoption of the Internet. The distinction between businesses and customers is becoming less defined, and e-commerce has become a well-established concept in this fast-paced world. In developed areas such as the US, leading players in e-commerce have emerged as market frontrunners. Conversely, internet-based supply chain companies in other regions are undergoing mergers and acquisitions with the aim of achieving improved resource integration and more extensive network structures.

Furthermore, with the increasing number of customers choosing to make small orders online using their smart phones and other internet-enabled devices, logistic companies are encountering significant challenges in meeting all customer requirements amidst fierce competition in terms of cost and timeliness. Consequently,

companies have more opportunities to engage with customers but must also find ways to address increasingly complex shipping issues. Customers are increasingly seeking transparency and convenient ways to track their shipments. They require information not just about the starting and ending points, but also the entire process of shipment.

It is important to provide customers with more detailed information on the location, handling, storage, and transportation methods. The company should also explore innovative ways to present this information in a more engaging manner.

While Asia is making progress, the United States remains the leading nation. There are speculations that Asia will dominate the 21st Century after American capitalism dominated the previous century. However, there are no clear signs of decline in the US as it continues to be a hub of innovation, freedom, and power.

Developing countries still do not have the capability to assume leadership roles.

They are highly likely to strive for replicating the United States' accomplishments in all areas, including innovation.