Operating ethically and operating profitably are no longer mutually exclusive concepts. Leading companies are “walking the walk,” balancing the goal of achieving profitability with gaining social and environmental advantages.
Companies stuck in a mind-set of “what’s the minimum I need to do” are missing out on opportunities to use ethical business practices as an integral part of what makes them unique.
Achieving responsible and profitable supply chains is about gaining a triple advantage creating a clear business case for organisations, as well as benefits for the environment and society. Those focused on this “triple advantage” is supply chain operations can increase competitiveness through increased revenue and brand reputation while decreasing cost and risk.
To sustain competitiveness, companies need to recalibrate their strategies towards ethical behaviour—moving from a focus on compliance to differentiation. Companies engaged in responsible supply chain efforts often refer to their “license to operate.” That implies they’ve established trust with local governments and society by complying with regulations and establishing health and safety programs that give them tacit permission to do business.
So you may think what is a supply chain?
Supply chains are present in every economic sector – they are made up of connections between suppliers of all the goods and services that go into the delivery of products to consumers.
A sustainable supply chain is one that involves the incorporation of socio-cultural, environmental and economically viable practices placed into the full lifecycle of the supply chain. The full lifecycle of the supply chain means all the steps from product design and development, to selection of appropriate materials, manufacturing, packaging, transportation, storage, supply, consumption, and recycling.
What are sustainable tourism supply chains?
In the context of the tourism sector, a sustainable supply chain includes all suppliers of goods and services;
– either contracted straight from tour operators and associated ground handlers
– or via suppliers including accommodation providers
A holiday is the end product most commonly purchased in a tourism supply chain.
Sustainable Supply Chain (SSC) encapsulates the trend to use purchasing policies and practices to facilitate sustainable development at the tourist destination. Most research has focused on environmental aspects of manufacturing, while other aspects of sustainability or the challenges for the service sector are largely ignored. Yet SSC is particularly important for tour operators, as the product depends on the activities of suppliers such as accommodation, transport and activities. Therefore, tour operators’ contribution to sustainable tourism will be more effective through the definition and implementation of policies that acknowledge responsibility for the impacts of suppliers.
Across tourism supply chains, research has suggested that the process of implementing sustainable practices is most challenging in the area of transport, and most straight forward in accommodation. Attempt to generate sustainability at the scale of a destination need the combined efforts of the widest partnership of stakeholders.
It is therefore important, when supporting and connecting to a local destination, for businesses to have a strong grasp of the whole holiday experience and the type of advice that will be useful for customers. Each destination has its specific setting, but a general summary of links looks like this:
So why might a business wish to apply a sustainable tourism supply approach – what are the principal benefits?
All supply chains can be optimised using sustainable practices. Sustainability in the supply chain encapsulates a number of different priorities:
- Environmental stewardship
- Conservation of resources
- Reduction of carbon footprint
- Financial savings and viability
- Social responsibility
Managing supply chains in a sustainable manner can help businesses in not only reducing their total carbon footprint, but also in optimising their end-to-end operations to achieve:
- Improved credibility, visibility and brand reputation
- Improved access to markets
- Greater operational effectiveness leading to cost savings and profitability
We have created a free online tool to help you develop. Our training tool was developed by and with the tourism industry. This free online training covers 11 modules to complete with short quizzes at the end of each module. This tool helps you to design your own strategy in relation to your individual business needs. All you need is an internet connection.
Click here to register and start your free online training today: http://smartour.dcnet.eu/
Marzena Reszka, Staffordshire Business School
Accenture Consulting (2017). Walking the Walk Driving Competitiveness Through Ethical Supply Chains. [Online] Available from: www.accenture.com