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Building sustainable
             global supply chains
                                         Dr. Stephen Brammer
                          Professor of Strategy and Associate Dean for
                                  Research, Warwick Business School
Warwick Business School
Setting the scene
 Globalisation as undoubtedly brought vastly
  increasing standards of living to us in the west
 Major companies have truly global reach, and
  increasingly source from around the world
 While this is efficient, it exposes companies to
  competing cultural, moral, and legal norms
 These variations have led in a significant number
  of cases to substantial reputational harm

Warwick Business School
Core questions
1. What are the main issues, drivers and
   motivators identified in the research?
2. What does the data suggest most firms are
   doing to manage these issues? What risks does
   such an approach entail?
3. What practices characterize cutting-edge
   approaches to sustainable global supply chains?
4. What conditions contribute to the attainment
   to sustainable global supply chains?
Warwick Business School
Data analysed in the study




Warwick Business School
Prominent issues




Warwick Business School
Motivations




Warwick Business School
Prominent practices




Warwick Business School
Problems with the dominant
paradigm
 Un-negotiated expectations lack legitimacy with local
  stakeholders
 Codes of conduct are relatively static and
  unresponsive to new issues or changes in stakeholder
  expectations
 Third-party certification (e.g. SA8000 or ISO14001)
  imposes substantial costs on suppliers
 Monitoring and auditing undermine trust and
  commitment in buyer-supplier relationships;
  unethical practices can be promoted
Warwick Business School
Revised model of best practice




Warwick Business School
Conditions under which best
practice thrives
                          Inter- and Extra- Organisational Environment




                                   Organisational Environment
                                             Purpose




Warwick Business School
Conclusions
 Managing a global supply chain sustainably is a
  complex and multifaceted task
 The most common practices identified in our
  research provide a useful first step, but suffer
  from some inherent limitations
 More ambitious “best practices” address these
  limitations but require more integrated
  consideration of the relationship between a
  firm’s strategy, operations, and partnerships
Warwick Business School

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Global Supply Chain Management -Professor Stephen Brammer - 5 November 2011

  • 1. Building sustainable global supply chains Dr. Stephen Brammer Professor of Strategy and Associate Dean for Research, Warwick Business School Warwick Business School
  • 2. Setting the scene  Globalisation as undoubtedly brought vastly increasing standards of living to us in the west  Major companies have truly global reach, and increasingly source from around the world  While this is efficient, it exposes companies to competing cultural, moral, and legal norms  These variations have led in a significant number of cases to substantial reputational harm Warwick Business School
  • 3. Core questions 1. What are the main issues, drivers and motivators identified in the research? 2. What does the data suggest most firms are doing to manage these issues? What risks does such an approach entail? 3. What practices characterize cutting-edge approaches to sustainable global supply chains? 4. What conditions contribute to the attainment to sustainable global supply chains? Warwick Business School
  • 4. Data analysed in the study Warwick Business School
  • 8. Problems with the dominant paradigm  Un-negotiated expectations lack legitimacy with local stakeholders  Codes of conduct are relatively static and unresponsive to new issues or changes in stakeholder expectations  Third-party certification (e.g. SA8000 or ISO14001) imposes substantial costs on suppliers  Monitoring and auditing undermine trust and commitment in buyer-supplier relationships; unethical practices can be promoted Warwick Business School
  • 9. Revised model of best practice Warwick Business School
  • 10. Conditions under which best practice thrives Inter- and Extra- Organisational Environment Organisational Environment Purpose Warwick Business School
  • 11. Conclusions  Managing a global supply chain sustainably is a complex and multifaceted task  The most common practices identified in our research provide a useful first step, but suffer from some inherent limitations  More ambitious “best practices” address these limitations but require more integrated consideration of the relationship between a firm’s strategy, operations, and partnerships Warwick Business School