Supply Chain management has become a very powerful technique as it increases the responsiveness to the changing buisness conditions and enhaces the competetiveness of the oraganization .It is process of synchronizing the flow of physical goods and associated information from the production line of low-level component suppliers to the end consumers,resulting in the provision of early notice of demand fluctuations and synchronization of business process among all the cooperating organizations in the supply chain.
Today's consumers are more sophisticated and keenly aware of the global impact that their actions have on the environment and many consumers already take actions to reduce their "carbon footprint",that is the contribution to the environmental impact of human beings and their activites upon the planet.
For example,the more waste one leavesbehind in one's daily activites,the larger one;s carbon footprint.This idea has been capsulized in the term "going green" Consumers are not only modifying their own habits in order to minimize waste and thus reduce their carbon footprints,but they are also holding corporations accountable fot their impacts on the environment.This has put pressure on many corporations to go greeen by embracing more environmentally friendly processes in their operations management.
For example,cruise ships which are like floating cities that can generate huge gallons of sewage,kitchen bath and laundry wastewater and tons of garbage each day.Effectively managing the inputs that create this amount of waste begins with effective managemnet of the supply chain begins with effective operations management.
Socially and environmentally conscious organizations that develop a vision and a mission articulating a clear objective to take responsibility for ensuring the sustainability of all inputs that go into the products w8ill have a competetive advantage over those who don't.So a cruise line,for example that establishes a culture of effective supply chain management into its operational process can gain significant competetive advantage over its competitors.This is compunded by the fact that supply chain managemnet has proven to directly affect the two factors whichich control the bottom line ,the total costs of production and sales.
A company that effectively manages its supply chain will most likely stay atop the competition and hold the higher percentage of the market. the quality of its offering will also improve as it utilizes the sustainable goods producedby manufacturers.Since quality usually commands premium prices,this can help firms gain market share .Today,a more informed and enlightened public demand higher quality goods and thus supports organizations that deliver quality.
Additionaly, consumers are demanding more and more that corporations go greeen as much as possible. Building sustainability into the supply chain will improve quality and increase customer satisfaction. Organizations that do not buils sustainability into their operations willfind that not doing so will cost them more (in the loss of market share).By building sustainability into their practises early,both manufacturing and service organization can expect to gain and maintain a competitive environment.