Strategies for Supplier Relationship Management

Strategies for Supplier Relationship Management Supplier Relationship Management (including analysis) is the management an ongoing business relationship to guarantee competitive advantage for an organisation. The focus is on overall relationships between the supplier and the buying organisation rather than a focus on a specific contract. Its aim is to support purchasing and business management to develop an orderly understanding of the nature of current relationships that exist within and between the organisation and the suppliers (OGC, 2009). Supplier relationship management is a comprehensive approach to managing an enterprises interactions with the organizations that supply the goods and services it uses. The goal of supplier relationship management (SRM) is to streamline and make more effective the processes between an enterprise and its suppliers just as customer relationship management (CRM) is intended to streamline and make more effective the processes between an enterprise and its customers (SAP 2008). Buying organisations have a need to manage not only their contracts but also their suppliers. A number of suppliers will have multiple contractual relationships with individual departments and it is therefore important for them to be proactively managed. The process will be supported by information generated from the performance management arrangements that will be in place for each of the contracts, but this process is much more about the overall relationship rather than on activity on a specific contract (SAP.com 2008). OBJECTIVES The objectives for SRM include: Reduction in costs Service improvement Solution development Flexibility and mutual benefit (Adapted from Procurement Leadership 2006) There will also be the opportunity for improvement in the overall relationship with the supplier progressing in the direction of increased partnering type arrangements. This will potentially include: Established communication channels at all levels, up to and including CEO, between the organisations Joint planning and forecasting at a strategic level Increased trust Enhanced collaborative approaches and perspective Improved value for both parties (Adapted from OGC 2009) Supplier Relationship Management (SRM) is aimed at streamlining the supply chain by improving the communication between an enterprise and its suppliers. (PROCUREMENT -LEADERS, 2006). It streamlines the processes between an enterprise and its suppliers in the same way Customer Relationship Management (CRM) makes the processes between an enterprise and its customers more effective. In actual fact SRM practices enable a common frame of reference to improve communication between enterprise and supplier who may be used to different practices and terminology. Eventually SRM software can lower production costs and result in a higher quality, lower priced end product (SAP 2008). Modern SRM solutions support the whole procurement process in the company, including procurement strategy, qualification of suitable suppliers, tenders and contract design, and monitoring supplier performance. 2.2 THE IMPORTANCE OF IMPLEMENTING SRM STRATEGY/PLAN SRM is becoming progressively more important for enterprises because, in the competitive global environment, purchasing-related savings are equally important as sales. In the past ten years, significant results have been generated through rationalising supply bases, introducing competition and moving to low cost countries. But recently results from these activities are diminishing, which is where SRM comes in (PROCUREMENT LEADERS 2006). When SRM is effective, companies improve on profitability, growth, market share and reputation. SRM is especially important when there is a limited supply base for a product and in this case, the peanut company has one supply and it is a major priority of the peanut company to maintain a good relationship with the supply. This is to say that the cooperative society has a full monopoly on the supply of nuts to Peanutty. A good relationship is necessary to avoid sudden increase in price, supply of quality products, and also the supply can decide not to supply to Peanutty. They therefore have a need to manage not only their contracts but also their suppliers. There will also be the opportunity for improvement in the overall relationship with the supplier progressing in the direction of increased partnering type arrangements.ÂÂ   This will potentially include: Established communication channels at all levels, up to and including CEO, between the organisations Joint planning and forecasting at a strategic level. Peanutty should encourage their suppliers to focus more on the strategic path to cooperative success and enhanced collaborative approaches and perspective Increased trust between the supplier and Peanutty, by finding compromise solutions to problems enhance both Peanutty Company and the cooperative supplier work towards achieving the long-term benefits Improved value for both parties, the demand of the product enhances the ability of both Peanutty and the cooperative supplier to have a clear vision towards its benefits. 3.0 QUESTION 2: What activities could be developed by Peanutty to reduce or manage the power of its customers to minimize risks and maximize profitability? Peanutty is a manufacturer of ingredients for the food industry and also a service provider of food items for large companies in the sector. Peanutty should use the strategies of customer relationship management (CRM). 3.1 CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management, or CRM, is an important part of modern business management. Customer Relationship Management concerns the relationship between the organization and its customers. Customers are the lifeblood of any organization be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers. Customer Relationship Management is the same in principle for these two examples it is the scope of CRM which can vary drastically. Customer Relationship Management focuses on the relationship Successful organizations use three steps to build customer relationships: determine mutually satisfying goals between organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers In the business world, the organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties these conditions include; organizations need to make a profit to survive and grow customers want good service, a quality product and an acceptable price CRM can have a major impact on an organization through: shifting the focus from product to customer, streamlining the offer to what the customer requires, not want the organization can make and also highlighting competencies required for an effective CRM process The ultimate purpose of CRM, like any organizational initiative, is to increase profit. In the case of CRM this is achieved mainly by providing a better service to your customers than your competitors. CRM not only improves the service to customers though; a good CRM capability will also reduce costs, wastage, and complaints (although you may see some increase initially, simply because you hear about things that without CRM would have stayed hidden). Effective CRM also reduces staff stress, because attrition a major cause of stress reduces as services and relationships improve. CRM enables instant market research as well: opening the lines of communications with your customers gives you direct constant market reaction to your products, services and performance, far better than any market survey. Good CRM also helps you grow your business: customers stay with you longer; customer churn rates reduce; referrals to new customers increase from increasing numbers of satisfied customers; demand reduces on fire-fighting and trouble-shooting staff, and overall the organizations service flows and teams work more efficiently and more happily. 3.2 Features of good CRM The old viewpoint in industry was: Heres what we can make who wants to buy our product? The new viewpoint in industry is: What exactly do our customers want and need? and What do we need to do to be able to produce and deliver it to our customers? This is a significant change of paradigm and a quantum leap in terms of how we look at our business activity. What do customers want? Most obviously, and this is the extent of many suppliers perceptions, customers want cost-effective products or services that deliver required benefits to them. (Benefits are what the products or services do for the customers.) Note that any single product or service can deliver different benefits to different customers. Its important to look at things from the customers perspective even at this level. More significantly however, customers want to have their needs satisfied. Customers needs are distinctly different to and far broader than a product or service, and the features and benefits encompassed. Customers needs generally extend to issues far beyond the suppliers proposition, and will often include the buying-selling process (prior to providing anything), the way that communications are handled, and the nature of the customer-supplier relationship. Modern CRM theory refers to the idea of integrating the customer. This new way of looking at the business involves integrating the customer (more precisely the customers relevant people and processes) into all aspects of the suppliers business, and vice versa. This implies a relationship that is deeper and wider than the traditional arms-length supplier-customer relationship. The traditional approach to customer relationships was based on a simple transaction or trade, and little more. Perhaps there would be only a single point of contact between one person on each side. All communication and dealings would be between these two people, even if the customers organization contained many staff, departments, and functional requirements (distribution, sales, quality, finance, etc). The modern approach to customer relationship management is based on satisfying all of the needs people, systems, processes, etc across the customers organization, such as might be affected and benefited by the particular supply.(business balls 2002). Designing and implementing a successful CRM programme: Step 1: Creating the CRM plan Activities : Understanding the objectives, fit with Peanuttys strategy, development of software, costing and training Step 2: Involve CRM users from Outset Peanutty should establish a project/management team from all affected organizational area. Step 3: Select the right application and provider Use of internal IT tools to analyse and compare available products and suppliers Step 4 :Integrate Existing CRM application Centralised database containing customer information for all CRM associated user to actively involved in each customer. Step 5 : Establish Performance measures Use of performance measurement to evaluate if strategies have been met or not Step 6 : Providing CRM training for all users During implementation, Peanutty should provide training to all employees actively associated with CRM about it benefits and objectives. (MARKETING TEACHER 2000) 4.0 QUESTION 3: evaluate the benefit of performance measurement systems to this company? 4.1 PERFORMANCE MANAGEMENT Performance refers to output results and their outcomes obtained from processes, products, and services that permit evaluation and comparison relative to goals, standards, past results, and other organisations. Performance can be expressed in non-financial and financial terms. Measurement refers to numerical information that quantifies input, output, and performance dimensions of processes, products, services, and the overall organisation (outcomes). Performance measures might be simple (derived from one measurement) or composite (BPIR 2007). Performance measurement system is an assessment system of measurement that represents a formal efficient approach to observe performance Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results. This will be needed most especially in the roasting and peanut preparation line, so that the target of 12 hour per day will be attained. 4.1.1 PM focuses on results, rather than behaviours and activities A common misconception among supervisors is that behaviours and activities are the same as results. As a result, an employee may appear extremely busy, but not be contributing anything toward the goals of the organization. An example is the employee who manually counts the number of peas processed. The supervisor may conclude the employee is very committed to the organization and works very hard, thus, deserving a very high performance rating, where by his output is poor. 4.1.2 Aligns organizational activities and processes to the goals of the organization PM identifies organizational goals, results needed to achieve those goals, measures of effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the goals. This chain of measurements is examined to ensure alignment with overall results of the organization. This is due to the fact that the employees complain about not knowing the direction and goals of peanut company. 4.1.3 Produces meaningful measurements These measurements have a wide variety of useful applications. They are useful in benchmarking, or setting standards for comparison with best practices in other organizations. They provide consistent basis for comparison during internal change efforts. They indicate results during improvement efforts, such as employee training, management development, quality programs, etc. They help ensure equitable and fair treatment to employees based on performance.mr Carmelo doesnt treat the employees like they are part of the organisation, probably because he is not aware of the effort these workers put into the company. therefore wit performance, he will be able to quantify the level of dedication and then will he will recognise their capability and potential, and thus give them Moore responsibility. Performance measurement will clarify expectations of roles and responsibilities of all the work stations in the peanut factory. It will also make it possible for the director, supervisor and the employees to discuss work related issues and develop solutions The will also be able to formally review performance and achievement of agreed goals and objectives Provide two-way face to face feedback and also link individual performance to broader strategic plans and key objectives. (Adapted from Supplychainer 2005) Overall, this will help Peanutty to set their long term strategy goals, work on their objectives, meet their target and measure the performance. 5.0 QUESTION 4. The supply chain process i would suggest is the lean manufacturing process. 5.1 Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale (ROCKFORD 1999). The characteristics of lean processes are: Single-piece production Repetitive order characteristics Just-In-Time materials/pull scheduling Short cycle times Quick changeover Continuous flow work cells Collocated machines, equipment, tools and people Compressed space Multi-skilled employees Flexible workforce Empowered employees High first-pass yields with major reductions in defects The term Lean is very apt because in Lean Manufacturing the emphasis is to cut out the fat or waste in the manufacturing process. Waste is defined as anything that does not add value to the customer. It could also be defined as anything the customer is unwilling to pay for. For example, if you order a shirt to be custom made, it may take 6 weeks. However the actual time the tailors or seamstresses are working on the shirt is only 5 hours. The rest of the time is taken up by such things as material ordering, waiting between processes and inefficient shipping practices. This extra time does not add value to you, the customer. As Lean Manufacturing principals are applied to the shirt-making process, one would see a reduction in delivery time from 6 to 5 to 4 weeks and even less. The ideal shirt-making operation would be streamlined to give you, the customer, what you want, when you want it at the lowest possible cost within the least amount of time (CONTINENTAL DESIGN ENGINEERING 2008). 5.2 Lean identifies seven types of waste: Over-Production Obviously a product that cannot be sold or has to be dumped at a reduced price is wasteful. Also producing product before the customer needs it requires the part to be stored and ties up money in inventory. Inventory Excess Inventory ties up a great deal of cash, which is wasteful. Stockpiling inventory between processes is wasteful. Conveyance Unnecessarily moving a part during the production process is wasteful. It can also cause damage to the part, which creates wasteful rework. Correction Having to re-work parts because of manufacturing errors is a large source of waste. Additionally, sorting and inspecting parts is wasteful and can be eliminated by error proofing (designing your processes so that the product can only be produced one way, which is the correct way, every time). Motion Unnecessary or awkward operator motions put undue stress on the body and cause waste. Improvement in this area should result in reduced injury and workmans compensation claims. Processing Unclear customer requirements cause the manufacturer to add unnecessary processes, which add cost to the product. Waiting The operator being idle between operations is wasteful. It is acceptable for the machine to wait on the operator, but it is unacceptable for the operator to wait on the machine. The 5S is a core method of lean manufacturing. Sort: The first stage of 5S is to organize the work area, leaving only the tools and materials necessary to perform daily activities. When sorting is well implemented, communication between workers is improved and product quality and productivity are increased. Sort is the act of throwing away the unwanted, unnecessary, and unrelated materials in the workplace. Straighten (Set in order): The second stage of 5S involves the orderly arrangement of needed items so they are easy to use and accessible for anyone to find. Orderliness eliminates waste in production and clerical activities. Shine: this means keeping everything clean and swept. This maintains a safer work area and problem areas are quickly identified. An important part of shining is Mess Prevention. In other words, dont allow litter, scrap, shavings, cuttings, etc., to land on the floor in the first place. Standardize: The fourth stage of 5S involves creating a consistent approach for carrying out tasks and procedures. Orderliness is the core of standardization and is maintained by Visual Controls. Sustain: This last stage of 5S is the discipline and commitment of all other stages. Without sustaining, your workplace can easily revert back to being dirty and chaotic. That is why it is so crucial for your team to be empowered to improve and maintain their workplace. When employees take pride in their work and workplace it can lead to greater job satisfaction and higher productivity. 6.0 SUGGESTION FOR PERFORMANCE MEASUREMENT 6.1 BENCHMARKING 6.1.1 Benchmarking is a continuous measure of products, services and practices against firms best competitors. It is the process of evaluating and understanding the current position of a business in relation to the best practice to identify areas that need improvement and the means of improving performance. Benchmarking involves looking outward (outside a particular business, organisation, industry, region or country) to examine how others achieve their performance levels and to understand the processes they use. In this way benchmarking helps explain the processes behind excellent performance. When the lessons learnt from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical functions within an organisation or in key areas of the business environment (Tutor2u). Application of benchmarking involves four key steps: Understand in detail existing business processes Analyse the business processes of others Compare own business performance with that of others analysed Implement the steps necessary to close the performance gap The goal of benchmarking is to identify the weaknesses within an organization and improve upon them, with the idea of becoming the best of the best. The benchmarking process helps managers to find gaps in performance and turn them into opportunities for improvement. Benchmarking enables companies to identify the most successful strategies used by other companies of comparable size, type, or regional location, and then adopt relevant measures to make their own programs more efficient. Most companies apply benchmarking as part of a broad strategic process. For example, companies use benchmarking in order to find breakthrough ideas for improving processes, to support quality improvement programs, to motivate staffs to improve performance, and to satisfy managements need for competitive assessments. I choose Benchmarking because it targets roles, processes, and critical success factors. Roles are what define the job or function that a person fulfils. Processes are what consume a companys resources. Critical success factors are issues that company must address for success over the long-term in order to gain a competitive advantage. Benchmarking focuses on these things in order to point out inefficiencies and potential areas for improvement (Reference for Business 2010). By using all types of benchmarking (Internal, external, functional Generic) Peanutty will be able to identify internal or external standard recognized leaders and compare the current process that was implemented for its process. Benchmarking performance measurement system will allow Peanutty to have clear vision towards its current process (internally) and its competitors (competitors) in order to have continuous improvement to achieve its goals on cost reduction and high quality products.

Intolerance: Minority Group and Society Essay

1. What are some of the ways groups of people are identified? There are many ways that a group of people can be identified but the four criteria for classifying minority groups are race, ethnicity, religion, and gender. Race is mainly determined by the color of someone’s skin, hair (in some instances eyes), height, and bone structure of the human body: big head, narrow eyes, tall short. Ethnicity is determined by where you were born and raised and what cultural patterns. Religion and is determined by what your beliefs and religious group you are a part of. Gender is determined easily enough but it does matters if you are male or female for the fact that each is treated differently. Males seem to have it easy most of the time and woman are always treated as though they are weaker. These four criteria’s are the main ones but there are so many more such as age, disability status, physical appearance, and sexual orientation they all are used to group people. There is always another factor that is sometimes over looked and that is our appearance; skinny, fat and even what we wear are we well dressed and clean all of the time or are we in regular day to day clothes or are we dressed in rags torn, ripped and dirty clothing. Also there is the money factor how much does one have or don’t have to many people the money factor matters most people like to know that they know people with money. Are these people wealthy with more money than they will every need or do they just have enough or do they struggle or worse yet do they not have anything leaving them going from home to home or street to street or going to government and privet programs for help. 2. Why do people label and group other people? I have thought about this question and it made me realize that not only do people label and group other people but we also label ourselves putting ourselves in categories that please us. Plus it gives us our sense of belonging to something that most people â€Å"need† to feel. Getting back to the question; I think it is something that we all do whether we realize it or not. Labeling and grouping help people to determine who we should or who we should not interact with. It helps people and sometimes it does just the opposite and destroys people it’s like having a power a power to have some control over other people. I can almost see it in another time a man running through the streets with a label machine placing labels on everyone’s forehead yelling â€Å"You are who I say you are! † Scary thought! We constantly label people in a negative light due to difference of opinion due to religion, political view, sexual preference, parenting method you name it we do it, even children do this and it is not done intentionally they were not taught this, too me it almost seems like it is a defense mechanism keeping themselves even ourselves safe from what we may consider to be harmful. In the end people are just that â€Å"people† we are nothing more and nothing less. People label others either to feel empowered or to praise someone but in the end we are Human Beings and that is it. We may think and act differently but we are what we are and if people could just except that then the future might not ever have to deal with the positive and mainly the negative effects that come with being labeled and tossed into a group that was thought up by others. Resources Schaefer, R. T. (2012). (Ch. 1 & 2) Racial and ethnic groups (13th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall.

The Industrial Revolution and Romanticism

The Industrial Revolution and the Romantic Spirit The Industrial Revolution refers to a series of significant shifts in traditional practices of agriculture, manufacturing, and transportation, as well as the development of new mechanical technologies that took place between the late 18th and 19th centuries in much of the Western world. During this time, the United Kingdom, as well as the rest of Europe and the United States soon after, underwent drastic socio-economic and cultural changes during this time.These changes in part gave rise to the English Romantic spirit, especially in the United Kingdom. During the late 18th century, the United Kingdom's economic system of manual and animal based labor shifted toward a system of machine manufacturing while more readily navigable roads, canals, and railroads for trade began to develop. Steam power underpinned the dramatic increase in production capacity, as did the rather sudden development of metal tools and complex machines for manufac turing purposes.The Industrial Revolution had a profound effect upon society in the United Kingdom. It gave rise to the working and middle classes and allowed them to overcome the long-standing economic oppression that they had endured for centuries beneath the gentry and nobility. However, while employment opportunities increased for common working people throughout the country and members of the middle class were able to become business owners more easily, the conditions workers often labored under were brutal.Further, many of them were barely able to live off of the wages they earned. During this time, the industrial factory was created (which, in turn, gave rise to the modern city). Conditions within these factories were often dirty and, by today's standards, unethical: children were frequently used and abused for labor purposes and long hours were required for work. A group of people in the United Kingdom now as the Ululated felt that industrialization was ultimately inhumane a nd took to protesting and sometimes sabotaging industrial machines and factories.While industrialization led to incredible technological developments throughout the Western world, many historians now argue that industrialization also caused severe reductions in living standards for workers both within the United Kingdom and throughout the rest of the industrialized Western world. However, the new middle and working classes that industrialism had established led to arbitration throughout industrial cultures, drastic population increases, and the introduction of relatively new economic system known as capitalism.The Romantic Movement developed in the United Kingdom in the wake of, and in some measure as a response to, the Industrial Revolution. Many English intellectuals and artists in the early 19th century considered industrialism inhumane and unnatural and revolted?sometimes quite violently?against what they felt to be the increasingly inhumane and unnatural mechanization of modern life. Poets such as Lord Byron (particular in his addresses to the House of Lords) and William Blake (most notably in his poem â€Å"The Chimney Sweeper†) spoke out?and wrote extensively bout?the psychological and social affects of the Sailor URL: http://www. Layer. Org/ courses/engaged/ The Sailor Foundation Sailor. Org Page 1 of 2 newly industrial world upon the individual and felt rampant industrialization to be entirely counter to the human spirit and intrinsic rights of men. Many English Romantic intellectuals and artists felt that the modern industrial world was harsh and deadening to the senses and spirit and called for a return, both in life and in spirit, to the emotional and natural, as well as the ideals of the pre-industrial past. Sailor URL: http://www. Sailor. Org/courses/engaged/ Page 2 of 2

George Orwell s Animal Farm - 1376 Words

George Orwell or Eric Blair, the author of â€Å"Animal Farm†, was a man who was best known for his journalism, writing, and political insights. He was able to bind all the corruption caused by the Russian Revolution, Stalinism, and Communism in an allegorical book, â€Å"Animal Farm.† In his book, he symbolized all the leaders and significant people involved in the Russian Revolution from Karl Marx to Tsar Nicholas II to Hitler, in the setting of a rebellion of animals towards humans. In Orwell’s allegory, there were many leaders who rose and fell, had their advantages and disadvantages, influenced positively and negatively, etc. However, two of the main characters that really stood out were Napoleon and Old Major (pigs). Napoleon and Old Major†¦show more content†¦At this there was a terrible baying sound outside, and nine enormous dogs wearing brass-studded collars came bounding into the barn. They dashed straight for Snowball, who only sprang from hi s place just in time to escape their snapping jaws.† (Orwell 52). Napoleon and Snowball are rivals against each other. In this scene, the animals were gathered together to listen to each, Napoleon and Snowball’s speeches and vote on whether the windmill is built or not. Napoleon shows in this quote that he is very selfish, controlling, and a cheater. Clearly, his mentality is based on dominating everyone without care for anyone but himself. Instead of being fair and just by letting the animals vote on whether they wanted to carry on with his idea or Snowball’s, he decided to expel Snowball (his rival) off the farm to achieve authority and power over the rest of the animals easily; â€Å"The three hens who had been the ringleaders in the attempted rebellion over the eggs now came forward and stated that Snowball had appeared to them in a dream and incited them to disobey Napoleon s orders. They, too, were slaughtered. Then a goose came forward and confessed to ha ving secreted six ears of corn during the last year s harvest and eaten them in the night. Then a sheep confessed to having

Characteristics And Characteristics Of The Mineral Lazurite

There are a myriad of minerals, gemstones, and rocks throughout the world with each having select features and characteristics that differentiate one another. When selecting a mineral to conduct a research report on, one could be drawn to Lazurite for a multitude of factors whether it be the aesthetically pleasing appearance or the various ways it has been incorporated throughout history. Therefore, one can define such a magnificent mineral by characteristics and historical application for which humans have tended to gravitate towards. First and foremost, the mineral Lazurite has many scientifically definable features. For example, in terms of hardness on the Mohs scale, Lazurite falls within the range of 5-5.5 which is about the halfway point between the weakest minerals and the strongest. As for another feature of Lazurite, the color usually falls in an array of blues from light to dark and sometimes green or even violet. When Lazurite is ground into a powder formally known as a st reak, it brings forth the true color of the mineral and blue seems to be the case. When referring to the luster, one can define three different characteristics such as a vitreous, greasy, and waxy appearance. The luster is an illumination of the reflected light upon the surface space of the mineral. Therefore in terms of luster, it would be classified as a nonmetallic due to vitreous (glassy) or greasy appearance. According to the article â€Å"Guide to Minerals, Rocks, and Fossils,† Lapis-Lazuli is

The Energy Industry Is Controlled And Dominated By The...

Currently, the energy industry is controlled and dominated by the consumption of fossil fuels. As energy companies are constantly burning these fossil fuels, this leaves the public questioning how much supply we have left after this period of usage. Despite this, the search for alternative energy sources to lower the cost of living for families around Australia has been going for years, where some have found what works for them and their price range while others have not. Australia is ranked 16th in the world for most energy consumed per capita totalling over 5590 kgoe/a (Kilograms of Oil Equivalent per annum) of crude oil. Over 73% of Australian families uses electricity that is derived from coal, 13% use electricity produced from natural†¦show more content†¦Yes, a community is able to live on renewable energy sources such as wind power and solar power. A majority of local systems should install power grids purely based upon renewable energy, depending on the source will depend on the area and the source that can generate the most on demand. For example, small communities further in land will be able to depend on the use of geothermal energy due to being in an isolated area where the mine can be installed and maintained without disturbing day to day activities whereas in a city this would be impossible. The primary question regarding the use of renewable/alternative energy sources is if they’re able to generate enough energy to cover the entire country? While the answer is currently unknown, we know variables which in the end can bring us as a country to the conclusion. In a 2009 report by the Australian Academy of Science, they state that â€Å"Today’s scientific and political consensus is that the level of global emissions of greenhouse gases needs [to stabilise at] atmospheric concentrations somewhere between 450 to 500 parts per million to avoid serious, if not catastrophic, effects on life and property. Achieving this goal poses some formidable challenges†. On top of this statement, there are multiple uncertainties such as climate change, cost, and limitations. Currently, Australians alone produce

Current Sustainability Practices of Bunning-Sample for Students

Question: Research the current state of Sustainability Reporting. detailing the current state of sustainability reporting including the issues, practices, etc using higher order analysis and explaining the implications for various stakeholders in relation to financial decision making. Answer: Introduction Sustainability reporting has always been considered as the first significant step in implementing a measure that can assist an organization to understand the influence on its stakeholders, and methods in which it may prevent a negative impact on the environment, society, and the economy. The number of organizations that have embedded sustainable reports into their affairs may be small, but there is a rebellion, which is taking place especially in relation to the incorporation of non-financial and financial reporting (Freeman Alexander, 2013). The expectation that an organization must have a sustainable measure comes from various places. The requirement for such reporting is driven by the widespread interests and needs of an enhancing number of stakeholders. Furthermore, sustainability reporting serve as a framework for most organizations to attain their intended performance in every segment of social, economic, ethics, governance, and environmental dimensions (Albuquerque et. al, 20 13). One such organization is Bunnings Warehouse that is the largest household hardware chain in Australia and is owned by Wesfarmers since 1994. Besides, this research intends to highlight the present state of sustainability practices implemented by the organization that assists its stakeholders in financial decision-making. Current sustainability practices of Bunnings Warehouse In relation to sustainability reporting practices, the same has been considered very relevant for the organization because not only the stakeholders desire it, but it is also the right thing to do. The organization believes that sustainability is very significant for financial decision-making on the part of its stakeholders. This is because every activity of an organization has a direct impact on the community or society as a whole. Therefore, Bunnings Warehouse intends to enhance the aggregate effectiveness of its affairs in such a way that stakeholders can attain maximum benefits. Moreover, the concept of sustainability reporting have not been implemented as a new practice by the organization, instead there are various actions conducted in order to minimize the usage of energy and water for effective outcomes. In addition to this, Bunnings Warehouse also prioritizes waste reduction, responsible sourcing, active education, and various awareness initiatives for efficient sustainabili ty reporting. On a whole, the main intention of the organization is to make minimal usage of water, energy, and create minimal wastage so that its key sustainability practice (Recycling) can be given due consideration. Further, from the long-term perspective, Bunnings Warehouse intends to discover innovative methods of minimizing its dependence on grid-sourced energy, so that additional reductions in carbon footprints can be obtained (Sustainability reporting, 2012). One of the key advantages of having a sustainability reporting is that it goes beyond the traditional reporting in terms of measurement of the corporate performance and is therefore highly suitable for the companies, as well as stakeholders. It is important for the organization to be involved in sustainability reporting because such activities are highly beneficial to the stakeholders. Sustainability reporting signifies the role played by the company in protecting the environment and preserving the resources (Thomas, 2016). It helps in creation of wealth. It is the main reason why the requirement for non-financial information has increased over the years. Recycling Bunnings Warehouse prioritizes recycling processes in relation to its current sustainability practice with the broadest variety of recycling items. In order to make the environment-friendly products, the organization follows three basic rules of R. These three Rs comprise of Recycle, Reuse, and Reduce. Moreover, Bunnings is also committed to minimizing waste and for such purpose, it endeavors to collectively trial recycling and sustainability initiatives both at the local and international levels with the community groups and local councils. In the current scenario, the organization is trailing CFL (Compact Fluorescent Lamp) Recycling measures in Australia because such fluorescent lamps consist of some amounts of mercury that must not be disposed of in the general public places. In addition to this, the organization is also engaging in the Battery back program in order to implement effective ways to dispose of the batteries. The reason behind such practice is because batteries contai n heavy metals and if these are not disposed of properly, such heavy metals may leak into the ground. Bunnings Warehouse intends to integrate sustainability throughout its operations that include deporting less waste to landfills. With the assistance of recycling processes, the organization decreased its landfill waste to 2.9 tons in the year 2016. Bunnings also conduct national programs in Australia so that plain timber pallets can be recycled and reused. Besides, the organization also engages with major suppliers prevalent in Queensland and South Wales so that pine pallets can be bought and reused. A cardboard recycling trial has also been conducted by the organization so that plastic strapping can be recycled. Further, in addition to the Battery back program, Bunnings is also committed to refurbishing various buildings as a significant part of its ongoing expansion measures. Nevertheless, the organization endeavors to seek further recycling initiatives in the upcoming future. It is one of the major initiatives of the organization and strives to ensure the protection of the resources. It is one of the major initiatives of the organization towards the safety of the environment. Energy efficiency Climate change is broadly identified as one of the most significant challenges faced by the society, and the prime cause of change in climate can be attributed to the emissions of greenhouse gas into the atmosphere (Walker Slat, 2012). Bunnings believe that through sustainability practices, it can play a positive part in encountering such change in climate by taking relevant steps in reducing emissions of greenhouse gases. Based on its survey, around 85% of its greenhouse gas emissions appear from the use of electricity in its stores. The remaining is largely from the waste that is generated through its affairs (Bunnings Australia, 2016). Therefore, the organization intends to lower its use of energy through various kinds of initiatives like energy efficient lighting systems. Further, the organization is committed to minimizing its carbon footprint and for such purpose, it has installed solar photovoltaic systems in most of its stores so that 10-20% of energy can be attained. During the year, Bunnings also trialed climate adaptive comfort heating and cooling systems in its stores, which is considered as a more effective system for conservation of energy. The reason behind this can be attributed to the fact that such system uses a natural air tempering technology that makes lesser utilization of energy (Pearce, 2012). This provides a clear cut demarcation that the company is intended to save the resources. Product safety and ethical sourcing During the year, Bunnings Warehouse continued to operate with its suppliers so that sourcing measures can be strengthened, with hundred percent of its directly sourced suppliers through Ethical Sourcing Programs (Bunnings Australia, 2016). The organization also attempts to engage with its suppliers in order to make sure that the safety standards of their products are adequately adhered to. In relation to this, it conducts consistent audits of its products so that conformance with the significant mandatory standards can be ensured. Further, it also undertakes independent safety examinations on some of the products to ensure compliance to expectations of customers. Another relevant area of concentration for the organization is timber, as they have a zero tolerance measure for illegally attained timber. It is the goal of the organization to ensure that all wood and timber products attained are originated from well-managed and legal forest activities (Thomas, 2016). In the current scenario, Bunnings have made an effective progress in this segment with more than 95% of its entire timber sourced from legally verified operations of forest and low-risk plantation strategies. Not only this, the organization is entirely confident that more than ninety percent of its timber products are sourced with illustrated progress towards attaining independent certification or sourced from independently certified forests. Nevertheless, Bunnings intends to strengthen its sourcing strategies with more suppliers becoming significant members of the SEDEX (Supplier Ethical Data Exchange) program that intends to enhance transparency in its supply chain so that sensitive areas can be looked after effectively. Besides, in the year 2017, the organization has started participating in EDRA programs that prioritize retailers to gather collectively in order to maximize labor and environmental conditions (Bunnings Australia, 2016). Community assistance Bunnings is also committed to assisting the communities wherein it operates by contributing to domestic, regional, and national charities, causes, and organizations throughout Australia. During the year, its stores assisted in raising more than $37 million through community strategies. The organization also aims to operate closely with primary nonprofit organizations like Lions Australia, Rotary, local charities, etc. In addition, the organization has also worked with emergency services to provide relevant assistance to the communities in case of contingencies or emergencies (Bunnings Australia, 2016). Hence, it is creating a environment where the organization can operate and provide immense benefits to the community at large. It intends to create a long lasting impact by dint of its activities. The organization is also in a unique position to assist various customers by making it simpler and affordable for them to get accustomed to sustainable practices in their homes or garden. In relation to this, it firstly offers the customers with a wide variety of products and solutions to address their sustainability requirements. Sustainability is the need of the hour and it has collectively joined hands with the government to provide fuller development to the organization together with the benefit of the surrounding (Perrini Tnecatti, 2006) It then backs up such offering of products through sound advice and expertise available online and in-store. It also operates with several government regulators to establish new and more suitable sustainability items and solutions, thereby playing a key role in implementing efficient government policy as a whole. Implications for stakeholders in financial decision-making Stakeholders often have a potential interest in or affect the company, its financial outcomes, and its operations. Such stakeholders also have the capability in influencing the failure or success of an organization at various levels (Wicks Colle, 2010). Moreover, when it comes to sustainability reporting, the accountability of organizations can improve, thereby playing a key role in maximizing trust, facilitating sharing of ideas or values in order to establish a more cohesive environment (Ballot et. al, 2006). Organizations like Bunnings utilize sustainability reporting practices in order to inform about their risk evaluation measures so that their businesses can be boosted. Shareholders, businesses, governments, etc all directly attain benefit from sustainability reporting. Stakeholders like customers, suppliers, shareholders, etc believe that sustainability reporting instills discipline and assists an organization think about and explain its long-term vision. With the assistance of sustainability reporting, major stakeholders can easily track the performance of Bunnings in order to make relevant financial decisions associated with the future (Kruger, 2015). The biggest implication for various stakeholders in financial decision-making is associated with the fact that sustainability reporting can assist in cutting costs on various aspects of their operations, especially in enhancing effectiveness. Furthermore, Bunnings can easily communicate with their investors regarding their KPIs and social impact in order to allow them in making relevant financial decisions (Douma Hein, 2013). Even though the company in its financial accounts already reports financial information, yet stakeholders desire for information wherein the contribution of the company to the sustainability of a higher economic system is present. For instance, the offering of relevant details associated with recycling, conservation of water can be utilized by investors to analyze the strength of Bunnings in order to make relevant financial decisions (Ruffing, 2007). In other words, analysts and investors can utilize such additional financial information provided by Bunnings in order to analyze its performance and ultimately make investment decisions. Sustainability reporting can also influence corporate reputation and consumer behavior (Caradonna, 2014). Besides, the consumers of Bunnings can attain its more positive image and will be more likely to rely upon it. Stakeholders like financial institutions also rely upon such sustainable reports in order to analyze whether loans must be given to the organization or not. The CSR report, thus, offers an organization like Bunnings warehouse with an opportunity to communicate its sustainability practices with the stakeholders that not only allows them in establishing an effective connection but also serves as an important tool in financial decision-making (Scott, 2009). Corporate sustainability not only helps in reducing the cost of the firm rather helps in differentiation in a positive way. This leads to an enhanced level of performance with a competitive leverage (Investor sustainability, 2014). The stakeholders are able to get a better knowledge of the company with the aid of such information. If the practice of the company ranks high then it will result in a effective performance. Recommendation In due consideration to above, organizations can recognize areas of relevant details that have not altered since the previous report. In simple words, organizations and accounting advisors may choose to update only the indicators and topics that have altered and to re-publish the unchanged disclosures. Moreover, in order to enhance the credibility of their sustainability reports, organizations can possess internal control systems as a relevant part of their procedures for reporting and managing the information. These internal control strategies are vital to the overall credibility and integrity of a report. Further, accounting advisors must make sure that stakeholder engagement is executed properly in the report so that trust between the organization and the stakeholders can be strengthened Conclusion In light of the above analysis, it can be concluded that sustainability reports provide an effective opportunity to an organization to communicate its CSR practices to the stakeholders. Such reporting has also become a transparency medium for the stakeholders, especially suppliers, employees, communities, etc. Moreover, in the present scenario, addressing the concerns of stakeholders has become very significant, and sustainability reports can prove to be of immense help here. Besides, in relation to Bunnings Warehouse, the concept of sustainability has been well maintained by the organization, as it has followed a reasonable and balanced measure of depicting its sustainable performance that includes both negative and positive contributions. On a whole, sustainability reporting must fit into a wider process for establishing organizational measures, implementing action strategies, and evaluating outcomes. Moreover inclusion of more than financial information helps to betterment of the image, as well as performance. References Albuquerque, R, Durnev, A Koskinen, Y 2013, Corporate social responsibility and firm risk: theory and empirical evidence, Boston University. Ballot, B., Heitger, D. L. Landes, C. E. 2006, The future of corporate sustainability reporting: A rapidly growing assurance opportunity, Journal of Accountancy, vol. 20, pp. 65-74 Bunnings Australia 2016, Bunnings warehouse sustainability 2016, viewed 22 August 2017 https://www.bunnings.co.nz/sustainability Caradonna, J. L 2014, Sustainability: A History, Oxford University Press Douma, S Hein, S 2013, Economic Approaches to Organizations. London Freeman, E Alexander, M 2013, Stakeholder management and CSR: questions and answers, Oxford Press Investor sustainability 2014, Do investors care about sustainability? Seven trends provide clues, viewed 22 August 2017 https://www.pwc.com./gx/en/issues/sustainability.jhtml. Kruger, P 2015, Corporate goodness and shareholder wealth, Journal of Financial economics, pp. 304-329 Pearce, J.M 2012, The Case for Open Source Appropriate Technology,Environment, Development and Sustainability, vol. 14, no. 3, pp. 425431. Perrini, F Tencati, A 2006, Sustainability and Stakeholder Management: the Need for New Corporate Performance Evaluation and Reporting Systems, Business Strategy and the Environment, vol. 15, pp. 296-308 Ruffing, K 2007, Indicators to Measure Decoupling of Environmental Pressure from Economic Growth, London: Island Press. Scott, C.M 2009, Green Economics. London: Earthscan, pp. 142150. Sustainability reporting 2012, Using sustainability to drive business innovation and growth 2012, viewed 22 August 2017 https://www.deloitte.com/view/en_IN/in/index.htm Thomas, S.A 2016, The Nature of Sustainability, Chapbook Press. Grand Rapids, Michigan Walker, B Salt,S 2012, Resilience Practice: Building Capacity to Absorb Disturbance and Maintain Function.Island Press. Wicks, H Colle, D 2010, Stakeholder Theory, State of the Art, Cambridge University Press