Globalization of Logistics and Supply Chain: Selection Of Global Supplier Over Local Impacts On Sustainability of Supply Chain| Key words : Sustainable Supply Chain, Multi- modal/Intra-modal Transport, Transport modes, Logistics, Operations, Sustainability, Triple bottom line| |
This paper is conceptualizing on combination of transport modes organisation use to maintain sustainability in their supply chain by keeping the carbon foot print to minimum, this paper utilizes desk research to evaluate the impact of this approach on the organisations who prefer global suppliers over local evaluating the trade-offs these organisations need to make in order to maintain an equilibrium of sustainability in their supply chain concluding on the fact that dependent on an organisational willingness to be environmentally sustainable future most practices don’t need a choice of cost over environment but some need sacrifice of at least one to maintain sustainability.| Introduction
This research paper is aimed to critically evaluate and answer the research question of: how selection of global over local suppliers affects organisation’s sustainable supply chain strategy while considering the impact of ‘‘multi-modal’/‘intramodal’ choice’ and what trade-offs does these organisations need do in order to achieve this? To answer this research question it is essential to address two wide areas in business literature, gaining an understand of what these areas actually mean to an organisational operational strategy: first being identification of different intramodal/multimodal transport choice used in local and global supply chains; whereas the second to critically evaluate why priority is given by different organisations to select global suppliers over local, while achieving reasoning from prospective of different Industries and organisations within those industries for the trades-off they are willing to do in order to implement selected means in to practice, while maintaining the sustainability of their supply chain. This paper divided into four interlinked parts will use desk search to grasp understanding on wide topics of present transportation modes, multi-modal/intramodal transportation system, and sustainability of supply chain (focusing on logistics and operation function) and Impacts of selecting global supply chain; dividing each part by sub-research questions asked to the reader at end of each part; While concluding the paper on the notion that selection of the mode depends on trade-offs an organisations is willing to make between being ecological sustainable to cost and service. Transportation modes at present
In the past decades the transportation system has been regarded as a separate function and an additional cost to the organisations supply chain (Huge-Brodin, 2013); which has also often been likened with the objective of cost minimisation rather than a value adding factor (Cunningham, 1982). However, this long-established concept has been critiqued to be a value added activity in the supply chain from literature of twenty first century (E.Bø and Hammervoll, 2010; Freight best practice, 2013; Huge-Brodin, 2013) based on the emerging demand for advanced logistics services and the globalization trends, demand in cutting of lead period, short product life cycles, and increased technology use and outsourcing trends (Anthony D. Ross, 2012). This notion has lead organisations consider flexible and effective freight flow which can match and fulfil organisation needs dependent on their market and environment (Cunningham, 1982; Murphy and Farris, 1993; Huge-Brodin, 2013).In order to understand how to use the right transportation mode freight movement it is eminent to know different transportation methods used by organisations at present and critically evaluate the advantages and disadvantages of each of them (see Appendix A & B). (Appendix A&B)...