Establishment of responsible supply chain: processes standardization
The aim of the article. It is established the need to implement activities of the concept of sustainable development at Ukrainian industrial enterprises, due to their access to external markets, especially markets of the European Union. This process involves the use of extended responsibility princi...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Sumy State University
2016-06-01
|
| Series: | Marketing i Menedžment Innovacij |
| Subjects: | |
| Online Access: | http://mmi.fem.sumdu.edu.ua/sites/default/files/mmi2016_2_203_214.pdf |
| _version_ | 1797334638680604672 |
|---|---|
| author | V.A. Falovych |
| author_facet | V.A. Falovych |
| author_sort | V.A. Falovych |
| collection | DOAJ |
| description | The aim of the article. It is established the need to implement activities of the concept of sustainable development at Ukrainian industrial enterprises, due to their access to external markets, especially markets of the European Union. This process involves the use of extended responsibility principles in enterprise management, which is aimed at organic combination of economic objectives with good social environment. The increasing of manufacturing enterprise as the leading element of supply chain is interested in using of extended principles of accountability by all participants of supply chain, particularly suppliers, which has direct impact on the characteristics of final product and customer satisfaction.
The results of the analysis. It is actualized the problem of criteria developing for cooperation with suppliers, establishing requirements for economic, social and ecological direction in the form of relevant documents, codeсs and selection criteria. It is proved that standardization process of selecting suppliers, developing criteria for their evaluation will provide training of responsible supply chain, facilitate the introduction of monitoring their activities in the economic, social and environmental spheres.
It was established that the selection of suppliers, subcontractors or business partners is based on many criteria. More often they are specified in the policies and procedures of procurement. In the concluded agreements it is established a significant addition to the terms of cooperation, prices, timeliness and quality of supply. There are such implementing tools: survey of suppliers, development of special environmental and social policies, codes of conduct, contractual provisions and standards of ISO and SA8000, etc. Ensuring the implementation of the principles of responsibility in the enterprise activity requires certain costs, so the standardization process of vendor selecting will reduce the overall costs associated with formation of responsible supply chain.
The author with an aim to identify the actual degree of standardization of supplying processes and the adherence within its activity the principles of extended accountability has conducted the online survey of managers from various levels of manufacturing and logistics companies supplying process control.
It was established that companies that have come out or are planning to enter the European market is one third of all responded and are motivated to implement their activities in the European standards of environmental and social responsibility to be responsible members of the supply chain.
It was grounded the feasibility of using for the participants of the supply chain, including suppliers the average level of regulation of processes which corresponds with the level of its standardization and affects to the relationship between the components of rigidity and flexibility of their activities. Effective tool for providing them with useful ratio has been proposed the structuring of process to the subprocesses or operations and so on.
To assess the current state of rating the criteria of selecting the suppliers by industrial companies and identifying among them those that meet social and economic responsibility was carried out online surveys. This has allowed to determine:
а) subprocesses current state of standardization in the implementation of supply process:
- planning process of materials and components suppling (30% );
- formation of reserves for individual group of products (28%);
- process of selecting the suppliers on the criteria that are interested by manufacturer (27%);
б) subprocesses desired state of standardization in the implementation of supply process:
- introduction of a code of conduct for suppliers (33%);
- process of selecting the suppliers on the criteria that are interested by manufacturer (32%);
- consolidation of supply process (28%);
в) rating criteria in the process of suppliers evaluation with an aim of their selection: degree of cooperation with companies in other countries, price level that is relative to competitors, market stability, social responsibility, quality assurance proposals.
Conclusions and directions of further researches. According to the results of ABC analysis it is determined the need for unconditional consideration (standardization) of the following four criteria for supplier selecting: degree of cooperation with companies in other countries, price level comparatively to competitors, market stability, social responsibility.
However, the criterion of ecological products (services) received below average rating importance, which indicates a lack of environmental awareness in the business environment. According to the author, this criterion should be rated with a higher rating, but at the same time should have be presented in the standardization of suppliers identification subprocesses. |
| first_indexed | 2024-03-08T08:24:57Z |
| format | Article |
| id | doaj.art-ef70b614cd7f48b28b25a29d7ffd03f0 |
| institution | Directory Open Access Journal |
| issn | 2218-4511 |
| language | English |
| last_indexed | 2024-03-08T08:24:57Z |
| publishDate | 2016-06-01 |
| publisher | Sumy State University |
| record_format | Article |
| series | Marketing i Menedžment Innovacij |
| spelling | doaj.art-ef70b614cd7f48b28b25a29d7ffd03f02024-02-02T05:04:20ZengSumy State UniversityMarketing i Menedžment Innovacij2218-45112016-06-0172203214Establishment of responsible supply chain: processes standardizationV.A. FalovychThe aim of the article. It is established the need to implement activities of the concept of sustainable development at Ukrainian industrial enterprises, due to their access to external markets, especially markets of the European Union. This process involves the use of extended responsibility principles in enterprise management, which is aimed at organic combination of economic objectives with good social environment. The increasing of manufacturing enterprise as the leading element of supply chain is interested in using of extended principles of accountability by all participants of supply chain, particularly suppliers, which has direct impact on the characteristics of final product and customer satisfaction. The results of the analysis. It is actualized the problem of criteria developing for cooperation with suppliers, establishing requirements for economic, social and ecological direction in the form of relevant documents, codeсs and selection criteria. It is proved that standardization process of selecting suppliers, developing criteria for their evaluation will provide training of responsible supply chain, facilitate the introduction of monitoring their activities in the economic, social and environmental spheres. It was established that the selection of suppliers, subcontractors or business partners is based on many criteria. More often they are specified in the policies and procedures of procurement. In the concluded agreements it is established a significant addition to the terms of cooperation, prices, timeliness and quality of supply. There are such implementing tools: survey of suppliers, development of special environmental and social policies, codes of conduct, contractual provisions and standards of ISO and SA8000, etc. Ensuring the implementation of the principles of responsibility in the enterprise activity requires certain costs, so the standardization process of vendor selecting will reduce the overall costs associated with formation of responsible supply chain. The author with an aim to identify the actual degree of standardization of supplying processes and the adherence within its activity the principles of extended accountability has conducted the online survey of managers from various levels of manufacturing and logistics companies supplying process control. It was established that companies that have come out or are planning to enter the European market is one third of all responded and are motivated to implement their activities in the European standards of environmental and social responsibility to be responsible members of the supply chain. It was grounded the feasibility of using for the participants of the supply chain, including suppliers the average level of regulation of processes which corresponds with the level of its standardization and affects to the relationship between the components of rigidity and flexibility of their activities. Effective tool for providing them with useful ratio has been proposed the structuring of process to the subprocesses or operations and so on. To assess the current state of rating the criteria of selecting the suppliers by industrial companies and identifying among them those that meet social and economic responsibility was carried out online surveys. This has allowed to determine: а) subprocesses current state of standardization in the implementation of supply process: - planning process of materials and components suppling (30% ); - formation of reserves for individual group of products (28%); - process of selecting the suppliers on the criteria that are interested by manufacturer (27%); б) subprocesses desired state of standardization in the implementation of supply process: - introduction of a code of conduct for suppliers (33%); - process of selecting the suppliers on the criteria that are interested by manufacturer (32%); - consolidation of supply process (28%); в) rating criteria in the process of suppliers evaluation with an aim of their selection: degree of cooperation with companies in other countries, price level that is relative to competitors, market stability, social responsibility, quality assurance proposals. Conclusions and directions of further researches. According to the results of ABC analysis it is determined the need for unconditional consideration (standardization) of the following four criteria for supplier selecting: degree of cooperation with companies in other countries, price level comparatively to competitors, market stability, social responsibility. However, the criterion of ecological products (services) received below average rating importance, which indicates a lack of environmental awareness in the business environment. According to the author, this criterion should be rated with a higher rating, but at the same time should have be presented in the standardization of suppliers identification subprocesses.http://mmi.fem.sumdu.edu.ua/sites/default/files/mmi2016_2_203_214.pdfconcept of sustainable developmentexpanded responsibilityresponsible supply chain standardizationselection of supplierssurveysample surveygroup evaluationimportance (weight) criteriaABC analysis |
| spellingShingle | V.A. Falovych Establishment of responsible supply chain: processes standardization Marketing i Menedžment Innovacij concept of sustainable development expanded responsibility responsible supply chain standardization selection of suppliers survey sample survey group evaluation importance (weight) criteria ABC analysis |
| title | Establishment of responsible supply chain: processes standardization |
| title_full | Establishment of responsible supply chain: processes standardization |
| title_fullStr | Establishment of responsible supply chain: processes standardization |
| title_full_unstemmed | Establishment of responsible supply chain: processes standardization |
| title_short | Establishment of responsible supply chain: processes standardization |
| title_sort | establishment of responsible supply chain processes standardization |
| topic | concept of sustainable development expanded responsibility responsible supply chain standardization selection of suppliers survey sample survey group evaluation importance (weight) criteria ABC analysis |
| url | http://mmi.fem.sumdu.edu.ua/sites/default/files/mmi2016_2_203_214.pdf |
| work_keys_str_mv | AT vafalovych establishmentofresponsiblesupplychainprocessesstandardization |