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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

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Introduction

Sustainability development refers to the process of utilizing and allocating resources in a way so that ecological balance can be maintained. It is the responsibility of corporations to devise precise strategies and plans so that sustainability can be increased in an 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 fries and other snack food products and is headquartered in Idaho Falls, United States. The complexities of balancing environmental 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 the best tool which can enhance the sustainability of the organisation will be provided in this assignment.

Main Body

Analysis of sustainability performance

Sustainability issues are increasing rapidly apparently with the increase of globalisation, emerging technologies and easy modes of transportation. To sustain in the global competitive environment, organisations have raised their business capabilities, production processes and supply chains. Hail 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 amounts of carbon dioxide in the environment which impacts the natural environment of the locality. From the analysis of the case study, it was identified that the management of Halito invested heavily in production line technology (Jollands, Akroyd and Sawabe, 2015). They have three production lines working 8-hour shifts.  Each line is fully automatic with a capacity from 800kg/hour to 2,000 kg/hour. The production process of manufacturing French fire chips is divided into 14 stages. Each stage requires an enormous amount of electricity. From storing potatoes to storing the end products in the deep freezer, a heavy amount of electricity has been consumed by the production line. The organisation has been dealing with frequent sustainability issues in the past such as an increase in carbon dioxide and inappropriate use of resources. It was identified in the case study that an 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 advanced technologies in order to enhance their profitability and productivity.

Quantified analysis of CO2, other emissions 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 an enormous amount of carbon dioxide has been emitted in the supply chain process and harvesting of potatoes. Carbon dioxide is one of the greenhouse gases which affects the climate drastically and leads cause of global warming. From further analysis of case study, it was identified that an enormous amount of electricity and water resources are used in the production phase (Siemieniuch and Sinclair, 2015). It was identified that waste of potato peel has been produced in the 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 has developed effective strategies in order to minimize the emission of carbon dioxide and other harmful gasses that affect the environment. However, management found a few challenges in order to balance environmental and social aspects with business and economic success. Excessive demand for products produced by Hailto affects its overall supply chain management process (Gürtürk and Hahn, 2016). The carbon dioxide emitted during the supply chain management process greatly affects society and people living nearby. Furthermore, the gases emitted from the production of french fries also affect the nearby population greatly.

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Hailto's current approach to sustainability against other organisation

In order to tackle the sustainability issues, Hailto greatly invested in upgraded and advanced technologies which consume less electricity and generate efficient outputs. The management devised strategies in order to improve the supply chain management process in order to make it a 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 use railways. This eventually impacts the emission of CO2 and the management of Hailto's would be able to reduce it to the appropriate level. As compared to its competitors, Hailto's strategy is not very effective due to inadequate use of resources. Thus, it is important for the management to devise a 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 organisations in Idaho Falls. The organisation is known for producing French fries and potato chips and products. It was identified in the case study that organisations have been facing sustainability issues due to excessive consumption of non-renewable sources of energy (Gardetti and Torres, 2017). In order to accomplish the organisational aim and consumer expectations, the management needs to work ceaselessly. However, in the case study, it was identified that management in order to eliminate the issues of sustainability has developed plans and implemented them within the business framework. In order to sustain in the competitive global environment it is important and essential for 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 is 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 the supply chain management process, management indicates reducing the carbon footprints. The sustainable supply chain management system where management of Hailto's will be using efficient modes of transportation and best practices which eventually helps in reducing the overall amount of carbon emission emitted by the organisation. Moreover, the consumption of electricity has reduced (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 sustainability within the organisation.

Application of tolls, techniques or frameworks to the Hailto

From the analysis of the case study, it was identified that major sustainability issues were faced during the supply chain process (Hoque, 2018). Carbon dioxide gas emitted from heavy-duty trucks affects the local environment and impacts natives living in the vicinity. In order to eradicate the issue, Closed Loop supply chains 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, and marketing, that perform the function of delivering value to end customers. Closed-loop companies may develop economically and environmentally sustainable industrial systems. Thus, to make the supply chain management process more sustainable it is being advised to the management of Hailto to implement a closed-loop supply chain management system. Closed-loop supply chain management systems refer to a complete business model (Schaltegger and Burritt, 2018). Elements such as low carbon and environmental protection are 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 promote 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 the 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 the 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 the performance of the process and products according to the requirements of 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 Improves Hailto's Sustainability

In order to enhance sustainability within the organisation, it is important for the management to implement a 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 the 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 devise precise plans in order to implement closed-loop supply chain management within the organisation. It was identified that reverse logistics management has faced numerous issues, especially in the redelivery and collection process. Management of Hailto in the 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 sustainable objectives it is essential for the business organisations to devise specific strategies and plans. Sustainability issues are now common issues which many organisations face. Due to a lack of awareness of the 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 machinery management will be able to tackle the issue of sustainability (Charter and Tischner, 2017). A closed supply chain management system can be beneficial for the management of Hailto as they are facing issues and difficulties in the process of the supply chain. Hailto's is one of the renowned food snack organisations in Idaho Falls. The organisation is known for producing French fries and potato chips and products (Piercy and Rich, 2015). It was identified in the case study that the organisation has been facing sustainability issues during the process of the supply chain. Thus, by using a closed-loop supply chain management system within the organisational framework, the management will be able to enhance sustainability.

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Conclusion

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

References

  • Camilleri, M.A., 2015. Valuing stakeholder engagement and sustainability reporting. Corporate Reputation Review 18(3) pp.210-222.
  • Cebrián, G., Grace, M. and Humphries, 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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