HOS603 SUSTAINABLE PROCUREMENT | My Assignment Tutor

RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedHOS603SUSTAINABLE PROCUREMENT FORHOSPITALITY & TOURISMWEEK 2 – Supply ChainsRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedANY QUESTIONS TODAYwww.slido.com #9053How is everyone feeling this morning?ⓘ Start presenting to display the poll results on this slide.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedWEEK TWO – LECTURE▪ Supply Chain Overview▪ Values through the supply chain▪ Forces on the supply chainRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedPROCUREMENT – DEFINEDOrderly, systematic exchange between a buyer and a sellerProcess of obtaining goods and servicesIncludes ALL the activities associated with determining the types of productsneeded, making the purchases, receiving and storage, administrationRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTHE PROCUREMENT FUNCTION▪ No matter how large or small theoperation is, all need to performthe same procurementactivities.▪ The difference is how muchattention the activities receiveand the thoroughness with whichthey are accomplished▪ Some activities are formal, someare informalVectorjuice/freepik, Worldwide shipping service, international distribution. Collaborative logistics, supply chain partners, freight cost optimisation concept. Pinkish bluevector isolated illustration Free Vector. Communicated under Creative Commons CCO (Cartoon vector created by vectorjuice – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedMINIMUM OBJECTIVES OF PURCHASINGAt a basic level, the objectives of purchasing are to acquire;The rightquality ofmaterialAt the righttimeAt the rightquantityAt the rightsourceAt the rightpriceAt the rightplaceWith the rightimpactRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedAN INTERNATIONAL STANDARDAS ISO 20400“Sustainable procurement is the process of making purchasingdecisions that meet an organization’s needs for goods andservices in a way that benefits not only the organization butsociety as a whole, while minimizing its impact on theenvironment.This is achieved by ensuring that the working conditions of itssuppliers’ employees are decent, the products or services purchasedare sustainable, where possible, and that socio-economic issues,such as inequality and poverty, are addressed”.8Source: (International Organisation for Standardization [ISO], 2017)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedWHAT IS A SUPPLY CHAIN?RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedFIRST A VERY SIMPLE OVERVIEW▪ https://www.youtube.com/watch?v=AwemFfdD6VI▪ What is a supply chainRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSIMPLISTIC VIEW▪ Organizations like humans aremore likely to prosper when theyare part of a community.Organizations, regardless of theirsize cannot exist in isolation.They must connect with a rangeof stakeholders.▪ Supply chains are the links thatconnect businesses from aproducts origin (or source) to theend customer. This can bereferred to as end to end supplychain.Vectorjuice/freepik, Global distribution, international cargo freight company. supply chain management, logistics operations control, streamline your logistics concept. pinkish coral bluevector isolated illustration. Communicated under Creative Commons CCO(Cartoon vector created by vectorjuice – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedAUTHORS AND ‘SUPPLY CHAIN’ DEFINITIONS▪ Cooper et al. (1997)▪ Jones and Riley (1985)▪ Houlihan (1988)▪ Stevens (1989)▪ La Londe and Masters (1994)▪ Monczka, Trent, and Handfield (1998)▪ Mentzer et al (2001)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSchedulinginformationOrder and cashflowMarket researchand data Design dataFarm Hops/grainsBrewerCan manufacturingBottle manufacturing S3 S2S2S1S3S2S3S1Tier 3suppliersTier 2suppliersTier 1suppliersDistributor – $3.36Sam’s Grocer – $4.62Customer – $6.99 – 6 pack of beers$1.18Credit flow Ideas and design tosatisfy customers Material flowAdapted from Mentzer et al (2001)Hops,grain$0.34RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAIN DEFINED“a supply chain is defined as a set of three or moreentities (organizations or individuals) directly involvedin the upstream and downstream flows of products,services, finances, and/or information from a source to acustomer”(Mentzer et al (2001) p.4)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTHE SUPPLY CHAIN TERMS▪ Terms used▪ Supply chain▪ Value Stream▪ Lean manufacturing/pipeline management▪ Networks▪ Value Chain(Bailey et al 2005)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAINS ARE NETWORKS“A network of connected andinterdependent organisationsmutually and cooperatively workingtogether to control, manage andimprove the flow of materials andinformation from suppliers to endusers” (Lysons & Farrington 2016 p.86)Stories/freepik, Online world concept illustration free vector. Communicated under Creative Commons CCO (Social media vector created by stories – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTHE SUPPLY CHAIN CONCEPTRegardless of the term used…“They are all concerned with the idea that procurement is no longer justabout purchasing/ordering/buying. It has a strategic role and isconcerned with the flow of materials from raw state to use anddisposal”.Baily, et al. (2015). P.31RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedWHY USE A SUPPLY CHAIN?Why use a supply chain?ⓘ Start presenting to display the poll results on this slide.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAINS HELP TO CREATE VALUEOrganizations use supply chains to outsource non-competitiveprocesses and activities.Relationships built between the organization and the supplier, isnow more important than ever.It can be an effective way to move materials (and service insome cases) in an efficient and effective manner.(Sarkis, 2014)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedCREATING VALUE VALUETimeEconomics of being able to buy something whenyou need itFormEconomics of being able to buy something in theform that you want itPlaceEconomics of being able to have somethingdelivered to your businessInformationEconomics of having a product supplied with addedinformationSupplier ServicesEconomics of having a product supplied with addedor ongoing services RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTIME VALUE▪ You need it at a certain time (P&O cruises)▪ https://www.youtube.com/watch?v=GOXKwXxq6WoRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedFORM VALUEEconomics of being able to buy something in the form that youwant it– A side of beef is much cheaper than steaks– Portioned items often have the cost of packaging– Cost / benefit when deciding on the product specification– Issues– Reduction in packaging can restrict the form of products availableRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedPLACE VALUEECONOMICS OF BEING ABLE TO HAVESOMETHING DELIVERED TO YOUR VENUE– The distribution adds to thecost– All year round produce– Cost / benefit when decidingon the product specification– Lower food miles meanschanges to availabilityPchvector/freepik, Express courier on scooter shipping order Free Vector. Communicated under Creative Commons CCO (Logo vector created by pch.vector – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedDELIVERY OF PRODUCTS▪ How do the supplier services create value for the customer?▪ Delivery of milk▪ https://www.youtube.com/watch?v=zegg9U-W5OkRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedINFORMATION VALUEEconomics of having a product supplied with added information– Training or instruction– Cost / benefit when deciding on supplierRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedDIFFERENT TYPES OF SUPPLY CHAINSRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAIN TYPESDIRECT. EXTENDED. ULTIMATE SUPPLYCHAINRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedDIRECT SUPPLY CHAINSupplier Organisation Customer“A direct supply chain consists of a company, a supplier, and acustomer involved in the upstream and/or downstream flowsof products, services, finances, and/or information”(Mentzer, 2001 p.4)Lysons & Farrington (2016)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedDIRECT SUPPLY CHAIN EXAMPLEhttps://www.restaurantnavi.com.au/imagerySUPPLIER – FARM INMORNINGTONORGANISATION – NAVI, ARESTAURANT IN SEDDONCUSTOMERME!RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedEXTENDED SUPPLY CHAINSuppliers’Supplier Supplier Organisation Customer Customers’ Customer“An extended supply chain includes suppliers of the immediatesupplier and customers of the immediate customer, all involvedin the upstream and/or downstream flows of products, services,finances, and/or information” (Mentzer, 2001 p.4)Lysons & Farrington (2016)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedEXTENDED SUPPLY CHAIN EXAMPLEGrapegrowerWineproducer Wholesaler Retailer Customers’ CustomerLysons & Farrington (2016)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedULTIMATE SUPPLY CHAINUltimatesupplier Supplier Organisation Customer Customer UltimateFinancial Provider Market research firmThird party logisticssupplierLysons & Farrington (2016)An ultimate supply chain includes all the organizationsinvolved in all the upstream and downstream flows ofproducts, services, finances, and information from theultimate supplier to the ultimate customer. (Mentzer, 2001p.4)RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedA COMPLEX (ULTIMATE) SUPPLY CHAIN –EXAMPLE GLOBAL SOY BEANS FROM BRAZILTO CHINASource: Sjauw-Koen_Fa, A. (2010). Sustainability and security of the global food supplychain, OctoberRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedAN EXAMPLE OF AN ULTIMATE SUPPLY CHAIN▪ Watch from the beginning to the 4.42 mark.▪ https://www.youtube.com/watch?v=Mi1QBxVjZAwRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTERMINOLOGYUPSTREAM – DOWNSTREAMDownstreamBusinessCustomersSuppliersUpstreamRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedGeneralized diagram of supply chain elements, flows and relationshipsSource Sarkis, 2014, p3RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAIN EXAMPLERTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedMANAGEMENT OF THE SUPPLY CHAINRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAIN MANAGEMENT▪ Competitive advantage▪ Integration of suppliers andcustomers▪ This requires practices includingmanaging:▪ Sharing information▪ Sharing risk & reward▪ Co-operation▪ Similar goals▪ Process integration▪ Partnerships – long termVectorjuice/freepik, Social interaction skills abstract concept vector illustration. communication skills, building social network, interaction disability, autism diagnostics, activities for adults abstract metaphor.Communicated under Creative Commons CCO (Building vector created by vectorjuice – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTODAY▪ “Purchasing and supply is becoming strategically involved aspurchasing is seen as giving the organisation a strategic advantage.▪ Closely involved with suppliers and other activities concerned morewith true ownership cost than price”.Baily et al (2015) p. 32RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSCM IS CONCERNED WITH“with improving both efficiency (i.e., costreduction) and effectiveness (i.e., customer service)in a strategic context (i.e., creating customer valueand satisfaction through integrated supply chainmanagement) to obtain competitive advantagethat ultimately brings profitability”(Mentzer, 2001 p.15).RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedThis means to be effective and efficient inprocurement you can’t have one without theother.Freepik, Business handshake background flat style,Copied and communicated under CC0 Retrieved July12, 2019 from Background vector created byfreepik – www.freepik.comRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedUNIQUE FEATURES OF THE HOSPITALITY ANDTOURISM SUPPLY CHAINRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTOURISM AND HOSPITALITY SUPPLY CHAINS –UNIQUE FEATURESPerishability (food and services)Customer demand is crucial (customer participation requires excellent reputation to increase demand)Complex products / many different suppliersPackages of services / many services in one (cooperation)Guest travel to the products and service (simultaneity & logistics)Uncertain demand (the dynamic nature of theindustry)-Competition-External MICRO and MACRO conditionsRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedISSUES IN THE SUPPLY CHAIN© Copyright William Angliss Institute all text and images unless otherwise stated.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTRANSPARENCY▪ It is no longer enough to just think about cost. You need to considerthe bigger picture.▪ For example… where does the product come from? Is it safe? Whomade the product? Did they get paid correctly? Is the business sellingthe product paying their employees correctly?▪ Having access to information in the supply chain is calledtransparency.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTRANSPARENT SUPPLY CHAIN EXAMPLE▪ Lenovo transparent supply chain▪ https://www.youtube.com/watch?v=ilOYCNtdilwWhy do we need transparency? Why aren’t supply chainstransparent?ⓘ Start presenting to display the poll results on this slide.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTHE TRIPLE BOTTOM LINE▪ The triple bottom line (TBL) isa economic framework thatconsiders:▪ Planet or environmental issues▪ Profit and economic issues▪ People/social and ethical issues▪ Concentrates on best practice▪ Looks at the bigger, long-termpictureRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedTRIPLE BOTTOM LINE – RESOURCE▪ Basic Triple Bottom Line Explanation▪ https://www.youtube.com/watch?v=GsTPbnV8nE0▪ As we go through this semester we will be talking A LOT more aboutthese concepts.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedCONFLICT WITHIN THE MODELTHE PROBLEM?▪ How do we decide whichaspect is most important whenthere are conflicts?RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedCONFLICT BETWEEN THE MODEL▪ Globalisation Issues▪ Supply chains cross boarders and transparency is difficult▪ Working condition and societal concerns▪ RANA Plaza Bangladesh – April 24,2013▪ 1,138 workers were killed, 2,000 were injured▪ Made clothing… but until this incident it was unclear/virtually non-existent whothey suppliedRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedCASE STUDY MCDONALD’SWHAT CAN HAPPEN WITHOUT TRANSPARENCY▪ 1997-1999 McLibel trial – Helen steel and Dave Morris tookMcDonald’s to court claiming that they were cruel to animals, exploitedchildren through their adverts and paid people poorly.▪ http://www.mcspotlight.org/case/▪ Films – Super size me and Fast food nation put a spotlight on this:▪ https://youtu.be/Q5hA3PN0uic?t=1RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedMCDONALD’S RESPONSE▪ Serious efforts have been made in regards to changing thetransparency in the supply chain.▪ McCafe has been introduced▪ Increased the supply chain automisation▪ Brought in new supplier relationship management tools▪ Included more stakeholders in the process▪ Launched a virtual reality campaign▪ Installed digital self-serve kiosksRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedMCDONALD’S RESPONSE CONT ..▪ Planted 5,500 trees for free range chickens in the UK▪ Trains it suppliers on modern slavery▪ Regular unannounced audits including inspections▪ 2017 – Signed an agreement with Alliance for Beverage Cartons andthe Environment to help with the recycling of PE-line paper cups▪ Commitments to buy local where possible (look at a chip packet)▪ Global commitments to recycle packagingRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedMY QUESTION TO YOU▪ Now what do you think about when I say the word Mc Donald’s? Doyou immediately think of quality?Who decides – should decide when there is conflict? Who isresponsible?ⓘ Start presenting to display the poll results on this slide.RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedLEVELS OF RESPONSIBILITY?▪ Personal / consumer▪ F&B Outlet (small – medium Independents)▪ Large Independents / multi – sites Org▪ Supermarket Chain / Global Organisation▪ Government / Lobby Groups / NGO’sBARRIERS TO SUSTAINABILITY▪ Internal –Financial obligations, lack of reliable suppliers, lack ofleadership or organisational drive,▪ External –Cost, industry specific, regulation, non transparentpracticesDRIVERS TO SUSTAINABILITY▪ InternalMoral / ethical leadership, customer demands,improvement of reputation, product differentiation▪ ExternalPolitical pressures, support of local identity and culturalvalues, competitiveness, public pressureRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedKatemangostar/freepik, Three hangers on clothes rail Free Vector.Communicated under Creative Commons CCO (Background vector createdby katemangostar – www.freepik.com), date accessed 07.01.2021A ONE SIZEFITS ALLAPPROACHDOES NOTWORKRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedWEEK TWO TUTORIAL▪ Supply Chain Mapping – yesits needed for your assignmentin Week 12Pikisuperstar/freepik, Online class illustration Free Vector. Communicated under Creative Commons CCO (School vector created by pikisuperstar – www.freepik.com), date accessed 07.01.2021RTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedREFERENCES▪ Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chainmanagement. Journal of Business logistics, 22(2), 1-25.▪ Sarkis, J (2014). Green Supply Chain Management, Momentum Press, New YorkRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedSUPPLY CHAIN MANAGEMENT – RESOURCE▪ Module 1: What is Supply Chain Management? (ASU-WPC-SCM) –ASU’s W. P. Carey School▪ https://www.youtube.com/watch?v=Mi1QBxVjZAw▪ Module 2: Buy It: Managing Supply (ASU-WPC-SCM) – ASU’s W. P.Carey School▪ https://www.youtube.com/watch?v=zYbtZ0x9_SA▪ Sustainable Procurement Education – Training – NSW LocalGovernment▪ https://www.youtube.com/watch?v=t1P3lXP7iXYRTO No: 3045 CRICOS Provider No: 01505M HEP 9534 | Copyright all text and images William Angliss Institute unlessotherwise statedEND OF WEEK TWO LECTUREThanks for listening!

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