| Description |
The purpose of this research project is to propose solutions for reducing waste to optimize supply chains that are both workable and yield tangible results when applied by firms as theorized. In addition to the well-established cost-saving rationale behind reducing supply chain waste, the pressing issues of sustainability and corporate social responsibility are emerging as factors in firms' strategic decision-making. Supply Chain managers can implement waste-reducing techniques and policies with the firmwide goal of simultaneously increasing profit margin (to maximize shareholder value) and environmental and social responsibility (to maximize stakeholder value). Feasible ecological sustainability practices also hold the theoretical promise of paying dividends in the long-term, which contributes further to a firm's profitability and value. Supply Chain managers and theorists typically designate eight categories of waste that negatively impact the value of a supply chain: Overproduction, Excess in Inventory, Waiting Time, Excess in Motion, Excess in Transportation, Defects, Overprocessing, and Wasted Talent. Unnecessary waste in one category can often cascade into others, creating a snowball effect that presents an opportunity for significant supply chain optimization. The results of our research delineate which categories of waste present the greatest opportunity for supply chain optimization on the basis of profitability, sustainability, and social responsibility. Additionally, our research demonstrates the efficacy of sustainable and socially responsible measures in corporate supply chain optimization, which is growing in desirability among supply chain managers and firms because of its utility. |
