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Solution
Executive Summary
In this assessment, it evaluate global strategic approach adopted by an organisation to manage their supply chain. The reason for this is owing to the view that supply chain impact market change for supply chain and sustainable global souring approaches. Globalisation is impacted by strategic logistical implication and supply chain management in corporate performance. By focusing on Eco2Solar organisation in United Kingdom (UK), reviewing supply chain has been evaluated with most appropriate strategy implementation noted. Further, all challenges, risks and opportunities have been noted for the organisation leveraging on.
As evidenced in the Eco2Solar organisation operations, their supply chain is noted as holistic and comprised of various tiers. This classification guide the organisation in being in a position of attaining objectives and corporate strategy. In the analysis, various models have been adopted including Porter’s 5 Forces, SWOT and STEEPLED analysis among other tools in evaluating the impact of the supply chain strategies. Also, by use of Balanced scorecard, they evaluate both financial and non-financial aspects. This is while adopting Mendelow Stakeholders Analysis for Eco2Solar with the most appropriate strategy achieved in holistic practice.
As evidenced in the analysis of research, various recommendations developed are;
- Harnessing collaborative strategy, networking and innovation for ensuring they are embracing sustainable operations in supply chain
- To improve supply chain development through increasing the scope of opportunity for harnessing different L&D strategies
- Managing overall conflicts from supply chain relationship for ensuring different stakeholders are engaged and included in the process implementation and making decision amongst the different supply chain stakeholders
- Transitioning their current supply chain for establishing end-to-end supply chain for entire demands capturing different tiers for process inclusion. The importance of this is managing entire supply chain risks and performance level challenges
Table of Contents
1.1 Eco2Solar Organisation Background. 3
2.0 Market Changes Impact on Supply Chain. 5
2.1 Porter’s 5 Forces Analysis 5
3.0 Sustainable Global Sourcing Decisions. 8
3.1 Considered Factors in Sustainable Global Sourcing Decision. 9
3.2 Sustainable Global Sourcing Decision Making. 10
3.3 Global Supply Chain Risks Identified. 11
4.0 Strategic Logistical Implications of Globalisation. 13
4.1 Globalisation and Relevance; Supply Chain and Logistics Context 13
4.2 Strategic consideration associated with global nature of supply chain. 14
4.3 Strategic Logistical Risks and Opportunities in Globalisation. 15
5.0 Supply Chain Management on Corporate Performance. 16
5.1 Performance of Supply Chain Affecting organisational Objectives. 16
6.0 Conclusion and Recommendations. 18
Appendix 1: Eco2Solar Policy. 22
Figure 1:Eco2Solar Customers 4
Figure 2:Eco2Solar Procurement Supply Chain Map. 5
Figure 3:Porter’s 5 Forces Analysis for Eco2Solar Organisation. 7
Figure 4:Supply Chain Sustainable Procurement Strategies. 9
Figure 5: Triple Bottom Line in achieving Global Sourcing Sustainability. 10
Figure 6:Eco2Solar Mendelow Stakeholders Analysis 11
Figure 7:CIPS Risks Resilience Model Analysis. 13
Figure 8:Globalisation factors and impacting supply chain and logistics. 15
Figure 9:Red and Blue Ocean and Consideration Strategically. 16
Figure 10:Supply Chain Logistical Risks and Opportunities 17
Figure 11:Organisation goals and Supply Chain. 18
Table 1:STEEPLED Factors Analysis. 8
Table 2:Risk Register by Eco2Solar Organisation. 14
1.0 Introduction
1.1 Eco2Solar Organisation Background
The organisation of focus in this report is Eco2Solar which is the leading installer of solar PV and Green Technologies for the UK’s housebuilding sector. It has been in active operations since 2007 and has been intended to address the climate change issues. This is with CO2 emissions reduction and fuel shortage through a facilitation of the solar energy use. Eco2Solar has over the years been providing solar energy solutions for newly constructed homes and commercial installations. Their main customers are as illustrated in figure 1;
For the organisation success, their main target sectors include health centers (40%), operations in schools (50%), care homes (30%) and large apartment installation (20%). Owing to its commercial success, their profits range upto £10 million which has informed by its latest investment on Worcestershire County Council and the Sanctuary Housing occupying 50% of their spend category (Eco2Solar, 2022). Through their global commercial strategy, the organisation has been in a position of attaining their entire objectives. Based on this background information, it is important evaluating the most
1.2 Supply Chain Selected
For this report, the identified supply chain is sourcing of solar panels spend category in Eco2Solar organisation. This is since Eco2Solar organisation adopt various supply chains in their different spend category such as information technology, Health and Safety (HSE), vehicles, logistics and facilitates management. For the identified spend category, they follow tiered supply chain appropriately. As evidenced in Schorpp et al. (2018), tiered supply chain entail an approach followed to manage suppliers in various tiers impacted by the importance of the supply chain. Due to the relevance of their clients and necessity for being offered and quality solar panels, engagement of manufacturers (OEM) are relevant for identifying scope of performance. In line with Das et al. (2022) findings, the relevance of use of tiered supply chain is for ensuring leveraging on lowered commercial relations for management teams and prioritising on appropriate timeline to actualise the sourcing approach.
In Eco2Solar organisation adopted tiered supply chain, there prevail possibility of an organisation putting in place a long-term oriented supplier development approach. This promote performance and strategies of the entire procurement strategy. The transaction process is used with a purpose of making sure that the targeted OEM is as summarised in figure 2;
Figure 2:Eco2Solar Procurement Supply Chain Map
In regard to the supply chain, its relevance is informed by;
- Customers (End-users)- End-users are involved in developing entire technical demands inclusive of scope of noting the roles and to ensure specifications of solar panels are clear in order to meet the customers demands. Further, they make sure they are regulating service providers and stakeholders.
- Procurement and Supply Chain Department (PS&M)- This include various procurement and supply strategies put in place and include tendering process, making an agreement, support contract development strategy, coordinate and communicate the process.
- Authorisation of payments- This is a strategy adopted for authorising payments guided by call-off orders sent to providers of Eco2Solar accounts and finance team.
- Health, Safety and Environment (HSE) Factors– It is important for the solar panels sourced by Eco2Solar to adhere to set specification HSE specifically in modernised COVID-19 pandemic.
- Legal Standards- This aspect is relevant for establishing the extent of raising any claim or legal issues noted.
2.0 Market Changes Impact on Supply Chain
As evidenced in CIPS (2022), external factors directly influence supply chain sustainability. By conducting an analysis of the external factors, trends and strategies, opportunity and growth areas are noted. The potential tool for analysis entail the PESTLE analysis tool (Ugriumova & Skoglund, 2019) and Porters 5 Forces (Bienhaus & Haddud, 2018).
2.1 Porter’s 5 Forces Analysis
As evidenced in Kabeyi (2018), this is a tool applied to evaluate distinct factors impacting supply chain. Particularly, for solar panels category of spend, this model is appropriate in noting the ability to leverage on competitive advantage. The impact of Porter’s 5 Forces analysis to the solar panels spend category supply chain is shown in figure 3;
Figure 3:Porter’s 5 Forces Analysis for Eco2Solar Organisation
In figure 3, Porter’s 5 Forces Analysis evidence the competitiveness aspect which influence supply chain. For instance, supply chain tiers have a direct impact on the level of modernisation Eco2Solar organisation supply chain relationships, lowering switch costs and COVID-19 pandemic which have increased demand for energy. For success of the supply chain, Eco2Solar hence ought to adopt a clear strategy identifying sources of their supplies, boost productivity, ease of use (facilitating employees), share solar materials, specifications (solar panels) for suppliers.
In regard to power of suppliers, being in medium, Eco2Solar establish solar panels demanded quality. Based on this, raw materials and similarly OEMs influencing supply chain issues integrated. Considering the high threat of new entrants, benchmarking other entities supply chain adoption could impact on entity practice. A case example is the prevalence of COVID-19 which has prompted them in eliminating complexities in their integration.
2.2 STEEPLED Tool Analysis
Considering STEEPLED analysis (CIPS, 2022), it is used as a strategic plan methodology used in various business operations. This is to discover, evaluate, organise and track overall externally occurring risks. This is by evaluating Social, Technology, Economy, Environment, Politics, Legislation, Ethics and Demographic aspects (see table 1 summary);
Table 1:STEEPLED Factors Analysis
As evidenced in table 1, Eco2Solar supply chain ought to be prioritising on level of accommodating preferences of customers changes and embracing cultural diversity in their operations. Supply chain ought to successfully put into account the technologies and information systems. As illustrated in Leite et al. (2020), the COVID-19 pandemic has positively impacted on technology demand and organisations investments on their supply chain. Conversely, access to raw materials in supply chain and issues of focus directly influence supply chain and ethical principles impacting confidential nature of the process and need for embracing equality. Considering Eco2Solar supply chain, they prioritise on managing these ethical challenges by embracing online procurement strategy which ensure supply chain equality level.
3.0 Sustainable Global Sourcing Decisions
The relevance of sustainable global sourcing is to provide support…
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