The focus for most companies today is the development of a sustainable supply chain – one that is robust enough to support itself and actually improve the environment. SCM consists of core business processes such as procurement, operations management, logistics and reverse logistics. Sustainable SCM to organisations means that to improve their environmental performance and mitigate risks that could arise from a supplier’s use of toxic materials in their end product, the poor working conditions in a low- cost country or similar challenges. These processes may negatively impact on the environment, and range from diminishing natural resources, air emissions, waste disposal, increases in natural disasters. The increasing pressures from various stakeholders to improve businesses’ environmental sustainability, in turn, businesses recognise that environmental management is a key strategic issue with the potential for achieving sustainable organisational performance. Consequently, the deterioration of the environment and the pressure from stakeholders has led businesses to look towards their supply chain department to assist in creating a sustainable method of operating. Unilever, Pick n Pay, Woolworths, Volkswagen, Standard Bank, Pikitup and Imperial logistics are some of the businesses within the South African private sector that have taken the initiative to implement green and sustainable SCM in order to improve sustainability. In reference to some of these statements: (a) Discuss and characterised the concept of Circular Economy and use the industry based practical example for a regenerative system of sustainability.
Sustainable Supply Chain Scenario and Theory
The focus for most companies today is the development of a sustainable supply chain – one that is robust enough to support itself and actually improve the environment. SCM consists of core business processes such as procurement, operations management, logistics and reverse logistics. Sustainable SCM to organisations means that to improve their environmental performance and mitigate risks that could arise from a supplier’s use of toxic materials in their end product, the poor working conditions in a low- cost country or similar challenges. These processes may negatively impact on the environment, and range from diminishing natural resources, air emissions, waste disposal, increases in natural disasters. The increasing pressures from various stakeholders to improve businesses’ environmental sustainability, in turn, businesses recognise that environmental management is a key strategic issue with the potential for achieving sustainable organisational performance. Consequently, the deterioration of the environment and the pressure from stakeholders has led businesses to look towards their supply chain department to assist in creating a sustainable method of operating. Unilever, Pick n Pay, Woolworths, Volkswagen, Standard Bank, Pikitup and Imperial logistics are some of the businesses within the South African private sector that have taken the initiative to implement green and sustainable SCM in order to improve sustainability. In reference to some of these statements:
(a) Discuss and characterised the concept of Circular Economy and use the industry based practical example for a regenerative system of sustainability.
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