This archive report was first published on 16 September 2019.
September 16, 2019 ¶
Businesses that prioritize the well-being of their customers and employees understand the importance of ethics and supply chain management. A well-managed supply chain is essential for the success of any organization, and it's crucial to consider the ethical implications of every transaction.
At its core, ethics refers to the accepted code of conduct in any transaction between two or more people. Supply chain management, on the other hand, involves the distribution of products or services from the manufacturer to the end customer. When these two concepts are combined, they form a powerful tool for businesses to ensure maximum utility and customer satisfaction.
Types of Ethical Issues in Supply Chain Management ¶
There are several types of ethical issues that businesses must consider when managing their supply chains. These include:
- High standards of professionalism: Each member of the supply chain should conduct themselves in a manner worthy of their role, with respect and fairness towards others.
- Transparency and accountability: Fairness and responsibility should be at the forefront of every transaction, with adherence to business policies.
- Personal integrity: Personal integrity should be a driving force for every individual to ensure that the entire supply chain follows the correct policies.
- Compliance and constant improvement: Progressive improvement should act as a guide to offer the best supply chain process.
Unethical Practices in Supply Chain Management ¶
On the other hand, there are several unethical practices that businesses must avoid when managing their supply chains. These include:
- Cutthroat business competitions: Unhealthy competitions can curtail the proper flow of products from the producers.
- Poor management: Lacking proper management is the main reason behind the manufacture and distribution of counterfeit goods.
- The desire for huge profits: As much as it may benefit all the parties in the supply chain, it still disadvantages the consumer who has to use a low-quality product at the expense of low price.
- Lack of transparency between parties: It hinders adherence to the codes guiding supply of a product from one end to another.
- Illegal practices: One or all of the parties in the distribution chain might opt to use cheap and unlawful labour force.
- Unreliable business environment: Conducting business in a manner that endangers the wellbeing of others through illegal pollution or using supply chain practices that do not adhere to the healthy approaches can affect a business.
- Poor labour standards: Use of cheap unqualified staff that can be easily manipulated to alter the accepted tendering processes for the good of the other parties.
Emerging Issues in Supply Chain Management ¶
The field of supply-chain management has continuously been evolving. These changes are attributable to novel technologies, new consumer demands, pressure from e-commerce that has taken the whole business world in a storm, and education. Some of the emerging issues in supply chain management include:
- Technological advancements: The shift and improvements in technology have become rapid hence the need for corporations to adopt new ways of integrating changes in their systems effectively.
- The need to make costs dynamic: Companies should be able to establish costs dynamic based on real-time visibility.
- Evolution in data collection and management: With a massive amount of information on the internet, companies have been able to gain more visibility of ethics in supply chain management in real-time.
- Changes in customer channels: Due to e-commerce, most transactions are majorly customer-producer.
