QUALITY Supply Chain Strategy to Ensure Profitability & Sustainability Essay ACCURATE

QUALITY Supply Chain Strategy to Ensure Profitability & Sustainability Essay



Analyze supply chain strategy to ensure profitability and sustainability.


In your role as a Business Process Consultant at Bryce-Kingston, you are writing an analysis for JBH Electronics who just received approval to acquire one of their competitors. The Board of Directors wants to ensure that the acquisition will be profitable and wants your perspective on how JBH can use a supply chain strategy to make the acquisition profitable. You will need to research the best practices in the industry for supply chain strategies.


Find supplemental articles and prepare an analysis outlining JBH’s profitability and sustainability strategy. Include the following in writing your analysis of the acquisition.

  • Using your supplemental articles, analyze a supply chain strategy for JBH Electronics.
  • Identify any potential issues and threats to resources that JBH may face.
  • Outline any potential areas to increase sustainability practices for JBH Electronics.
  • Based on your analysis and research, make a recommendation on JBH’s acquisition.


For centuries, organizations have been influenced by the location or proximity of raw materials. As we look back to the beginning of the industrial revolution, company’s setup their facilities close to highways, waterways, and raw materials to cut costs.

Fast forward to our current economy, not much has changed because access to raw materials has become even more important to the sustainability of an organization.

The introduction of supply chain logistics has made it possible to manage raw materials sourcing and finished product distribution.

Supply chain has many different aspects but for the objectives of this module, we will discuss supply chain sustainability (SCS). SCS is best described as an overall view of all the supply chain processes that are focused on the environment such as:

Being environmentally focused is a major tenet of SCS because organizations must use logistics to transport raw materials and finished products, which factors into where a production facility should be located.

As an example, to reduce carbon emissions and pollution, a paper manufacturer could decide to build a factory on a piece of property that is close to transportation and has a supply of raw material on site.

The main raw material used in the manufacturing of paper is a tree, the company could promote and institute a practice of planting a new tree for every tree that is cut down for raw material.

This action is a great example of sustainability in motion because the organization is replenishing their own supply of raw materials while cutting pollution by not transporting raw materials.

In addition, SCS also focuses on the desire of organizations being socially responsible through distribution and production of goods and services, while generating long-term profitability.

The structure of an organization’s supply chain process should have a definitive procedure that connects internal resources to external resources for the production of goods and delivering services to their client base.

Organizations also have to think about logistics in every aspect because the location of their facility has an impact on bottom line cost. When organizations select sites to build facilities, many states, municipalities, or countries may offer the organization incentives for bringing jobs to a specific area.

However, the organization has to look at the proximity of raw materials, access to transportation, and how the location fits in with the growth strategy for long-term sustainability.

The largest expense that an organization has is its human capital and since profitability is a main goal of a business, attracting and retaining the “right” talent is equally important. Human capital can be best described as the labor or talent that an organization employs to produce a good or deliver a service

Organizations have to plan carefully for hiring and deploying employees into roles within their business structure.

From a profitability standpoint, human capital is the driving force of success for any organization. As the market changes and evolves, organizations are changing the way that they engage with employees and the value that they bring to processes.

Following are several reasons why investing in human capital can boost a company’s profitability.

  1. Attracting the right talent – organizations must ensure that they hire the correct skill set for essential functions or be able to train a person on job requirements. In many cases, if a role requires a specific skill set, the organization will pay more to find what they are looking for. For instance, a logistics company may have certain requirements for hiring Supply Chain Technology employees such as:
    1. College degree in Information Technology (IT) or IT certification
    2. Experience in supply chain and logistics
  2. The list could go on for requirements, but the main idea is that looking for a specific skill set can be difficult in the market. These requirements are not always available in the market and they may have to pay a referral or incentive to increase their talent pool. Hiring candidates that meet their requirements could have a long-term effect on their profitability because of the boost in productivity, process improvement, or product development.
  3. Develop employee engagement – once an organization hires talent, they have to ensure that the employees are engaged and feel part of the organizational culture. As an example, organizations often form employee affinity groups, which create a sense of belonging and connection to the mission of the organization. An engaged employee may feel empowered to recommend process improvements or ways to cut costs within their span of control, both of which will boost profitability.
  4. Develop client engagement – profitability can also be boosted by the development of client engagement because meeting the requirements of the customer can translate into a deeper business relationship and more business. For instance, a new trend in the industry is to have clients join an advisory council for a particular project. As an example, a major home improvement retailer might have a business advisory council, where they bring in consumers to provide input on the direction of items offered in their stores. Hearing directly from a client is the best way to meet the clients’ needs and boost profitability.
  5. Higher employee retention and satisfaction – employee retention is a topic that has become more prevalent in the economy because of the increased competition for talent. It is cheaper to retain a good employee versus training and sourcing new talent. Keeping the employee workforce happy has be proven to boost productivity and overall profits. As an example, Zappos, a large online retailer, prides themselves on employee celebration and satisfaction because if the employee is happy, then the customer experience is better. Zappos also has a policy that they will pay unhappy employees to leave and find a new opportunity because that is how committed to employee satisfaction the company is (Taylor, 2008).

An organization’s development of human capital is a critical element of its human capital investment. Listed below are some of the common attributes of human capital development that can also boost profitability: Education , health, training.

You can see how valuable human capital can be to boosting profitability because without employees, there would not be a business. Therefore, organizations will begin to view profitability differently and how human capital can be used in a more strategic way.

Human capital will continue to evolve as technology and automation is woven more into our day-to-day responsibilities in a job.

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