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Unit 13 - Business Environment of Nestle - Pearson BTEC Level 5 HND Diploma Health and Social Care - David Game College - HNC/D Assignment

Introduction

Sustainability development refers to the process of utilizing and allocating resources in a way so that ecological balance could be maintained. It is the responsibilities of corporations to devised precise strategies and plans so that sustainability can be increased in effective and efficient manner. In this context, the present assignment will focus on analysing the sustainability performance of Halito Snack Food organization. The organisation is renowned for producing French fires and other snack food products and headquartered in Idaho Falls, United States. The complexities of  balancing environment and social aspects with business and economic success for this organisation will be assessed in this assignment. Critique of best practices used by the organization in order to enhance sustainability will be made in this assignment. Eventually, recommendation of best tool which can enhance the sustainability of the organisation will be provided in this a

Main Body

Analysis of sustainability performance

Sustainability issues are increasing rapidly apparently with the increase of globalisation, emerging technologies and easy modes of transportations. To sustain in the global competitive environment, organisations have raised their business capabilities, production processes and supply chains. Hailto sources their potatoes from a range of sources, either directly from the farms or from rather large warehouses, depending on the time of year. In order to collect potatoes from farms, Halito utilised 24 heavy duty diesel trucks (Camilleri, 2015). At peak load from April to August, the organisation also used third party logistics (3PL). They produce enormous amount of carbon dioxide in the environment which impacts on the natural environment of locality. From the analysis of case study it was identified that management of Halito invested heavily in production line technology (Jollands, Akroyd and Sawabe, 2015). They have three production line working 8 hour shifts.  Each line is fully automatic with a capacity from 800kg/hour-2000kg/hour. In the production process of manufacturing French fires chips is divided into 14 stages. Each stage requires enormous amount of electricity. From storing potatoes to storing the end products in deep freezer, heavy amount of electricity has been consumed by production line. The organisation has been dealing with frequent sustainability issues in the past such as increase in carbon dioxide and inappropriate use of resources. It was identified in case study that enormous amount of electricity and water resources have been used by the management in order to complete the production process. In the case study it was shown that management was considerably using advance technologies in order to enhance their profitability and productivity.

Quantified analysis of CO2, other emission and waste

In the case study of Hailto Snack Food organisation, it was identified from the process of procurement to distribution, huge amount of carbon dioxide has been produced. The CO2 emission is described below in the table:

 

CO2 Emission

24 heavy duty diesel trucks

10.15 kg of CO2 per Gallon

Potato Harvesters

3.80 Kg of CO2 for every 1000 kg potato

Third Party Logistics (3PL)

10.15 kg of CO2 per Gallon

From the above table it can be understood that enormous amount of carbon dioxide has been emitted in the supply chain process and harvesting of potatoes. Carbon dioxide is one the greenhouse gas which affects the climate drastically and lead cause of global warming. From further analysis of case study, it was identified that enormous amount of electricity and water resources are used in the production phase (Siemieniuch and Sinclair, 2015). It was identified that waste of potatoes peel has been produced in production process.

Complexities of balancing the environment and social aspects with business and economic success

In order to preserve the natural environment and natural resources it is essential for business corporations to devise effective and efficient strategies so that sustainable goals and objectives can be accomplished. Hamilton's have developed effective strategies in order to minimize the emission of carbon dioxide and other harmful gasses that affects the environment. Though, management found few challenges in order to balance environment and social aspects with business and economic success. Excessive demand of products produced by Hailto affects its overall supply chain management process (Gürtürk and Hahn, 2016). The carbon dioxide emitted during supply chain management process greatly affects the society and people living nearby. Furthermore, the gases emitted from the production of french fries also affects the nearby population greatly.

Hailto's current approach to sustainability against other organisation

In order to tackle the sustainability issues, Hailto's greatly invested in upgraded and advance technologies which consumes lesser electricity and generates efficient outputs. The management devised strategies in order to improve the supply chain management process in order to make it sustainable supply chain management system (Siew, Balatbat and Carmichael, 2016). In the case study it was identified that in order to procure potatoes from farms, management would used railways. This eventually impact on emission of CO2 and management of Hailto's would be able to reduce it to appropriate level. As compared to its competitors, Hailto strategy is not much effective due to inadequate use of resources. Thus, it is important for the management to devise specific plan and implement it within the organisational business operations in order to enhance the sustainability within the organisation.

Critique of best practices used by Hailto's

Hailto's is one of the renowned food snack organisation in Idaho Falls. The organisations is know for producing French fires and potatoes chips and products. It was identified in the case study that organisation has been facing sustainable issues due to excessive consumption of non renewable source of energy (Gardetti and Torres, 2017). In order to accomplish the organisational aim and consumer expectations, the management needs to work ceaselessly. Though, in the case study, it was identified that management in order to eliminate the issues of sustainability have developed plans and implemented within the business framework. In order to sustain in the competitive global environment it is important and essential for the business organisations to implement precise strategies. In the case study it was identified that in order to reduce the electricity consumption, management decided to shut off some ovens which were not used at the time. Furthermore, it was identified in the case study that management delivers the by product of potatoes and rejected potatoes to local farms. It was identified that Hailto are selling approximately 25% of the possible animal feed and 30% of the starch, the remainder is disposed of using a commercial waste removal firm. In supply chain management process, management indicates to reduce the carbon footprints. The sustainable supply chain management system where management of Hailto's will be using efficient modes of transportations and best practices which eventually helps in reducing the overall amount of carbon emission emitted by the organisation. Moreover, the consumption of electricity reduces (Thijssens, Bollen and Hassink, 2016). Hailto's shut down or minimise the temperature of freezers to save electricity. Thus, these were some best practices implemented by the organisations in order to enhance the sustainability within the organisation.

Application of tolls, techniques or frameworks to the Hailto

From the analysis of case study, it was identified that major sustainable issue faced during supply  chain process (Hoque, 2018). Carbon dioxide gas emitted from the heavy duty trucks affects the local environment and impacts on natives living in vicinity. In order to eradicate the  issue, Closed Loop supply chain are supply chain networks that "include the returns processes and the manufacturer has the intent of capturing additional value and further integrating all supply chain activities". Supply Chain is a set of activities that includes purchasing, manufacturing, logistics, distribution, marketing, that perform the function of delivering value to end customer. Closed loop companies may develop economically and environmentally sustainable industrial systems. Thus, to make supply chain management process more sustainable it is being advised to the management of Hailto to implement closed loop supply chain management system. Closed loop supply chain management systems refers to complete business model (Schaltegger and Burritt, 2018). Elements such as low carbon and environmental protection is included in the entire supply chain and logistics to realise a complete green and low carbon supply chain system through the whole life cycle. It can further promotes green government procurements, corporate social responsibility and sustainable consumption education practices. In order to reduce the carbon footprints generate during supply chain management systems. The closed loop supply chain management system will be most precise and efficient tool which can be implemented by the management of Hailto in order to accomplish their sustainable aim and objectives. Closed loop supply chain management technique aid in reducing the number of errors during supply chain process which eventually impacts on minimising the pollution level and emission of carbon dioxide and sulphur nitrate. Closed loop supply chain management has been identified as an approach for improving performance of the process and products according to the requirements of the environmental regulations (Cebrián, Grace and Humphris, 2015). CLSCM is the summing up of Green Operations (Reverse Logistics), Green Design, Green Manufacturing, Waste Management, and Product Life Cycle Assessment.

Ways through which closed loop supply chain management improve Hailto's sustainability

In order to enhance the sustainability within the organisation, it is important for the management to implement closed loop supply chain management system. It is an approach through which management could reduce the carbon footprints from reverse logistics. In order to implement the closed loop supply chain management within the organisational supply chain management process, Hailto has to follow some steps. In beginning process, management needs to identify the strengths and weaknesses of the existing supply chain management system of the organisation. They have to evaluate it efficiently and devised precise plans in order to implement the closed loop supply chain management within the organisation. It was identified that in reverse logistics management have faced numerous issues especially in redelivery and collection process. Management of Hailto in next steps needs to propose plans through which they are going to use the closed loop supply in their supply chain management process. In order to accomplish the sustainable objectives it is essential for the business organisations to devise specific strategies and plans. Sustainability issues are now common issues which many of the organisations faced. Due to lack of awareness of latest technologies, models, systems and approaches, management tends to work on traditional methods. With progress in the field of science and technologies, new and latest technologies are available in the market and by using those equipment and machineries management will be able to tackle the issue of sustainability (Charter and Tischner, 2017). Closed supply chain management system can be beneficial for the management of Hailto as they were facing issues and difficulties in the process of supply chain. Hailto's is one of the renowned food snack organisation in Idaho Falls. The organisations is know for producing French fires and potatoes chips and products (Piercy and Rich, 2015). It was identified in the case study that organisation has been facing sustainable issues during the process of supply chain. Thus, by using closed loop supply chain management system within the organisational framework, the management will be able to enhance the sustainability.

Conclusion

Sustainability issues are increasing rapidly apparently with the increase of globalisation, emerging technologies and easy modes of transportations. To sustain in the global competitive environment, organisations have raised their business capabilities, production processes and supply chains. In this context, the above report the sustainability issues faced by Hailto has been discussed. Hailto's is one of the renowned food snack organisation in Idaho Falls. The organisations is know for producing French fires and potatoes chips and products. In order to tackle the sustainability issues, Hailto's greatly invested in upgraded and advance technologies which consumes lesser electricity and generates efficient outputs. The management devised strategies in order to improve the supply chain management process in order to make it sustainable supply chain management system. With the help of closed loop supply chain management system, management of Hailto will be able to reduce the carbon footprints.

References

  • Camilleri, M.A., 2015. Valuing stakeholder engagement and sustainability reporting. Corporate Reputation Review 18(3) pp.210-222.
  • Cebrián, G., Grace, M. and Humphris, D., 2015. Academic staff engagement in education for sustainable development. Journal of Cleaner Production 106 pp.79-86.
  • Charter, M. and Tischner, U., 2017. Introduction. In Sustainable Solutions (pp. 17-22). Routledge.
  • Gardetti, M.A. and Torres, A.L. eds., 2017. Sustainability in fashion and textiles: values, design, production and consumption. Routledge.
  • Gürtürk, A. and Hahn, R., 2016. An empirical assessment of assurance statements in sustainability reports: smoke screens or enlightening information?. Journal of cleaner production 136 pp.30-41.
  • Hoque, Z., 2018. Methodological issues in accounting research. Spiramus Press Ltd.
  • Jollands, S., Akroyd, C. and Sawabe, N., 2015. Core values as a management control in the construction of “sustainable development”. Qualitative Research in Accounting & Management 12(2) pp.127-152.
  • Piercy, N. and Rich, N., 2015. The relationship between lean operations and sustainable operations. International Journal of Operations & Production Management 35(2) pp.282-315.
  • Schaltegger, S. and Burritt, R., 2018. Business cases and corporate engagement with sustainability: Differentiating ethical motivations. Journal of Business Ethics 147(2) pp.241-259.
  • Siemieniuch, C.E. and Sinclair, M.A., 2015. Global drivers, sustainable manufacturing and systems ergonomics. Applied ergonomics 51 pp.104-119.
  • Siew, R.Y., Balatbat, M.C. and Carmichael, D.G., 2016. Measuring project sustainability maturity level-a fuzzy-based approach. International Journal of Sustainable Development 19(1) pp.76-100.

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