Creating and Developing a Sustainable Supply Chain

It is simple to think about the present without accounting the future. Customers desire more goods and services to properly improve their standard of livelihood. The predicament is they make selections about goods and services that have long-term repercussion for the environment. In today’s modern world, organizations need to show accountability. This factor means that they use available resources effectively and efficiently, do not spoil the environment and continuously consider how what they do affects the capability of future generations to meet their needs and wants.

The direction for every organization is provided by its vision. This vision acts as a mentor for everybody within and outside the organization about what they want to accomplish. Many organizations have vision to create and provide a better life for the many people and businesses. To meet this vision companies provides many product and services designed keeping in mind their customers. Every business wants their prices for their Products/Services low so that as many people as possible can afford to buy and use them. However, in establishing low prices many organizations are not willing to sacrifice its principles. To make a business to be sustainable, principles should be strictly followed. Pressure for low and low prices is consistent in any business and to fight with this push, companies need to work strategically to cut costs in terms of other means like Supply Chain Management, Research and development and not merely on reducing the quality and services. Research showed that a business can save up to 5% merely by building an efficient supply chain which can sustain in log-term. In spite of increasing raw material cost and inflation consistently, this 5% can help a business to sustain as long as up to 5 years by offering 1% each year as subsidy to selling price (which can be adjusted from a supply chain kitty) and thereby providing them sufficient time to work towards research and development to find ways for keeping their products and services at low prices by maintaining the same quality.