TITLE: An evaluation of Sustainable Supply chain practices in emerging economies; A case study of Ghana Commercial Bank

• Introduction / Background to Study

Sustainable supply chain practices involve the integration of environmental and financially viable practices into a supply chain life cycle that is complete. Sustainable supply chain practices are key in improving environmental, social, and economic performance throughout the supply chains of a company (Schaltegger, et al., 2014). Companies will be able to conserve resources, discover product innovations, optimize their processes, save costs, increase company productivity, and promoting corporate values (Porter & Kramer, 2019) therefore, leading to the growth of the company, which is essential for consistency and productivity. Sustainable supply chain practices can be linked to high production levels in a company, which is critical in making sure that the company can meet the needs of its customers (Porter & Kramer, 2019). Sustainable supply chain practices are achieved by increasing the supply of products from the company to the market. Hence the company being able to meet the demand, leading to an increase in sales that is key in maximizing the profits of the company. According to Walker et al. (2014), while many companies in emerging economies are in the process of expanding their supply chain sustainable practices, they are struggling to make sure every sector complies with the implementation. However, many organizations are making progress in the talks about supply chain sustainability. The major existing problem is that the companies are unable to support expectations with concrete actions that aim to drive sustainability performance in the supply chain (Yawar & Seuring, 2017). Failure to act on the practices is a major risk towards a sustainable company’s supply chain.

The main focus on sustainability for many companies’ has been on the profiling of their products. That is mainly based on the source of the product and its possibility of being recycled. There is a need for companies to know that their supply chain has a more significant impact on the environment compared to their operations. When companies are making management decisions, they should make sure that they consider the impact of supply chains on the environment (Carvalho, Govindan, Azevedo, & Cruz-Machado, 2017).

The existence of training and capacity building programs has been a key step in improving supply chain sustainability by promoting behavioral changes in supply chain practices (Silvestre, 2015). The transfer of knowledge across companies has been key in enabling companies to save costs that are used in production, therefore, being able to maximize their profits. The economic development and growth in Ghana have been boosted by the service sector, which is contributing significantly through tax revenue and income to the Gross Domestic Product hence, outdoing industry and agriculture ( Tribe & Huq, 2019). Therefore, the urge for the application of sustainable chain practices in the service sector since it is considered crucial in making sure that the needs of the customers are fully satisfied. Leading to the growth of the sectors, increasing the supply of their services, and meeting the demand that exists.

1.1 Problem specification

Various organizations and governments have proposed that there is a need for sustainable supply chain practices in emerging economies. It is significant because it will help in improving environmental, social, and economic performance throughout the supply chains of companies within different areas. Sustainable supply chain practices will also boost the production efficiency in different companies that will lead to cost-saving. It is essential since all the companies’ wish is to maximize production and increase the profit margins, which has a direct impact on the growth of the company.

The survival of most of the companies in the emerging economies depends on the ability of the companies to minimize the costs of production and have a dependable supply chain. There is however a major problem of high costs of production, inability to conserve resources, and no product innovations. That comes as a big blow to the companies leading to the inability to meet the demand of the consumers. Companies end up struggling to maintain the production of goods and services, which is the main component to enhance the flow of cash for the company. Poor supply chain practices have resulted in many companies in the emerging economies shutting down, as it has made it hard for them to meet the goals of the company and its sustainability objectives.

There is a need for companies and various organizations in the emerging economies to make sure that they adopt sustainable supply chain practices. It is because of the growth of the companies, its ability to satisfy the demand of its consumers and compete effectively in the growing economy depend on sustainable supply chain practices. Therefore, companies should see the positive side of sustainable supply chain practices and embrace it. Basing on this argument, the researcher aims at evaluating sustainable supply chain practices in emerging economies to conserving resources, product innovations, optimize company processes, saving costs, increasing company productivity, and promoting corporate values using Ghana Commercial Bank as a case study.

1.2 Main Objective of the Study

The general objective of the study is to evaluate Sustainable Supply chain practices in emerging economies

1.2.1 Specific Objectives

1. To evaluate the sustainable supply chain practices that are being used by Ghana Commercial Bank.
2. To determine the impact of sustainable supply chain practices to Ghana Commercial Bank workers towards accomplishing the set goals and the performance of the company.

• To determine the challenges faced during the implementation of the practices to Ghana Commercial Bank.

1.3 Research Questions

1. What are the sustainable supply chain practices that are being used by the company?
2. What is the impact of sustainable supply chain practices to the company?

• What are the challenges faced during the implementation of the practices of the company?

1. What is the effect of sustainable chain practices on the performance of the company?

1.4 Literature Review

This section of the proposal seeks to address how the literature aims to focus on and review certain theories and frameworks. It will also discuss other concepts related to Sustainable Supply chain practices.

1.4.1 Theory of constraints

Every company considers best practices in management as the key element towards the success of the implementation of critical components to a company (Rosemann & Vom Brocke, 2015). The theory emphasizes the priorities towards the improvement of activities. Every process has a possibility to have a constraint; the only option a company has in such a situation is improving the constraint, thus having a positive impact on the overall process.  An organization focusing more on non-constraints will not have any benefits; however, dealing with an existing constraint will be an aid towards achieving maximum profits (Pretorius, 2014). An institution implementing sustainable supply chain practices will only be successful with the company making sure it deals with the existing constraints. According to Özceylan and Paksoy (2014), solving the supply chain problem under uncertainty, there is always the need to come up with a decision-making process that corresponds to the main strategic and tactical decision. In doing this into the company will be able to deal with the constraints that are affecting the smooth running of the existing supply chain practices.

The growth of a company can be impacted by having a precise and sustained focus, which helps an organization in solving the existing constraint. It is until an organization doesn’t feel the impact of the current constraint, then it can move ahead in solving the next possible constraint. It creates an environment that is key to improving its performance and maximizing the existing resources. The theory of constraints (TOC) helps in creating the ability for a company to base its focus towards the goal of making profits, thus minimizing the existing constraint and focusing on achieving the set goal of the company (Pretorius, 2014). Goldratt considers focus as the main aspect of the theory of constraints (Mabin, 2015).

A company to make sure that it successfully eliminates constraints in the implementation of sustainable supply chain practices, TOC provides steps toward eliminating a constraint. The first step is identifying the constraint by looking for any indication for the existence of a constraint. The second step is through exploiting the constraint, achieved through quick wins and rapid relief from the constraint. The third step is through subordinating and synchronizing the constraint. The fourth is through elevating the performance of the constraint and finally, the need to repeat the process.

1.4.2 Transaction Cost Theory

The main company target in getting a supply mechanism that will help in making sure its products and services reach the consumers. Being able to have the bargaining power on the cost of the products. It is also essential for a company to be able to monitor the quality of the products and services being offered into the market. These factors are key in making sure the company can maximize its production levels, save cost, and conserve resources. The business can put itself in a position where it can easily supply the need quantity to the target market. That being the main key factor that will help the company in making sure that it maximizes its profits.

The transaction cost theory is essential in a business to enable and determine transactions that are linked to the costs (Acquier, Valiorgue, & Daudigeos, 2017). The interest of a company is to be able to internalize transactions as much as possible, being able to undo costs, risks, and uncertainties that are linked to the prices and quality of products. It is key to making sure that a company can remove the negotiating problems between them and the suppliers. It makes it easier for the company to do its transactions, hence leading to an increase in the supply of commodities and services from the company. This is directly linked to the production levels of the company, which are key to making sure the business has stable growth. Thus, being instrumental in maximizing the profits that help in creating the value of the company. A stable company can compete effectively in the market and be able to create sustainable supply chain practices

1.4.3 Supply chain roadmap

Companies work towards obtaining better results that are key to strengthening their growth (Manello, Calabrese, & Frigero, 2016). With the application of the supply chain roadmap, it is an independent way a company can be able to obtain accurate results. Since bigger companies usually have many supply chains. Having the best results on the supply chain practices, it gives a company a better scenario on how to promote their growth (Govindan & Hasanagic, 2018), therefore, being able to maximize its productions and being able to increase its sales. In doing so, the company can increase its profits that may help in the expansion of the company. The method is also essential for development strategy, and it helps in understanding the strategy and how to support it through defining the factors. The framework is also critical in being able to understand the gaps that exist between supply chain strategies. Highlighting the gaps helps a company to gain a competitive advantage, which is a key factor in the success of the company. Supply chain roadmap acts as a tool that a company can be used to understanding a competitor’s strategies and the probability of failing in the market. A business may be able to prepare against hypothetical business situations.

Supply chain policies should be made in a way it has considerations in case of the existence of factors that may affect policies (Heckmann, Comes, & Nickel, 2015). It comes hands in situations where the implementation of certain practices is not effective. Hence, the need to come up with ideas that may help in making sure the company can save costs and also increase production. In doing so, the company will be able to meet its market demand. Supply chain assessment is key in being able to evaluate the business unit range through geography, product category, and a group of customers. Mapping in the method helps in understanding the scenario in the supply chain. Gap analysis helps a business in finding the dominant behavior of a supply chain. A company can get a competitive advantage in the market and being able to access scenarios that may lead to failure. The analysis is key for a company that needs maximizing in creating the value of the company.

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1.5 Methodology

The methodology will analyze the techniques to be used to gather data and other related information from the management and staff to be involved in the research study.

1.5.1: Population and Sample Size of the Study

1.5.1.1: Target Population

The study target population will focus on the staff and workers of Ghana Commercial Bank, consisting of 2,299 for both the staff on contract and full-time workers (WSJ Markets, 2020).

1.5.1.2: Sample Size

Basing on the population of the study, the investigator will use a sample size of 114 respondents, being a representation of 5% of the target population under the study. This means 114 or more surveys are needed to have a confidence level of 95% that the real value is within ±5% of the measured/surveyed value (Lee, 2016). All the staff members will take part in study, that includes those in contract and fulltime.

1.5.2: Sampling Technique 

The study will adopt both the purposive and simple random sampling techniques in collecting data. It will be key to avoiding bias and creating fairness during the process. Thus, each worker has an equal chance of being selected to participate in the study.

1.5.3: Data Collection Instruments

The study will utilize both the open and closed-ended questionnaire. They will be administered to the respondents of the study to help in gathering the needed information that is key and relevant to the research study.

1.5.4: Data Analysis

The data collected from the study will be categorized. Accordingly, it will be critical to enhance meaningful and valid conclusions and reasonable recommendations. The analysis of the quantitative data collected will be done using Microsoft Excel or Statistical Package for Social Sciences (SPSS).

1.6: Scope of Work

With regards to the research study and the complications that may come along with it, some challenges may occur during the process of doing the research, thus hurting the success of the research study.

1. There could be difficulties in obtaining the necessary data needed for the study from the workers of the company. It is due to their busy schedules and issues of confidentiality.
2. The other challenge is combining both academic and the research study, hence posing a negative effect towards completing the research because of limited time.

The study will also be accompanied by some benefits, thus making the whole process a success.

1. It will enhance knowledge, therefore, being able to understand the topic in a better way.
2. It will help in clarifying confusion; the study will be essential in clarifying complicated facts about sustainable supply chain practices.

• The study will enhance learning about the method and current issues about doing research.

1. It will be essential to learn how to create a balance between collaborative and individual work.

1.7: Significance of the Study

1. The study will serve as a guide to both private and public organizations or companies as to the various sustainable supply chain practices that should be adopted to enhance the conservation of resources, product innovations, optimization of processes, saving costs, increase company productivity, and promoting corporate values.
2. It will improve the knowledge level of different management in helping companies to increase productivity and performance.

• The study again shall provide the various risks and challenges available during the implementation of sustainable supply chain practices in a company.

1. The study will serve as a reference point on existing literature for all students and other researchers who wish to pursue research or projects on topics related to sustainable supply chain practices in emerging economies.

List of References

Acquier, A., Valiorgue, B., & Daudigeos, T. (2017). Sharing the shared value: A transaction cost perspective on strategic CSR policies in global value chains. Journal of Business Ethics, 139-152.

Carvalho, H., Govindan, K., Azevedo, S. G., & Cruz-Machado, V. (2017). Modelling green and lean supply chains: An eco-efficiency perspective. Resources, Conservation and Recycling, 75-87.

Govindan, K., & Hasanagic, M. (2018). A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective. International Journal of Production Research, 278-311.

Heckmann, I., Comes, T., & Nickel, S. (2015). A critical review on supply chain risk–Definition, measure and modeling. Omega, 119-132.

Lee, K. D. (2016). Alternatives to P value: confidence interval and effect size.

Mabin, V. (2015). Goldratt’s” Theory of Constraints” thinking processes: A systems methodology linking soft with hard.

Manello, A., Calabrese, G. G., & Frigero, P. (2016). Technical efficiency and productivity growth along the automotive value chain: evidence from Italy. Industrial and Corporate Change, 245-259.

Porter, M. E., & Kramer, M. R. (2019). Creating shared value. Managing sustainable business. 323-346.

Pretorius, P. (2014). Introducing in-between decision points to TOC’s five focusing steps. International Journal of Production Research, 496-506.

Rosemann, M., & Vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management, 105-122.

Schaltegger, S., Burritt, R., Varsei, M., Soosay, C., Fahimnia, B., & Sarkis, J. (2014). Framing sustainability performance of supply chains with multidimensional indicators. . Supply Chain Management: An International Journal.

Silvestre, B. S. (2015). Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids, and sustainability trajectories. International Journal of Production Economics, 156-169.

Tribe, M., & Huq, M. (2019). Ghana’s New National Income Data Series: Follow-up To M Huq and M Tribe’s the Economy Of Ghana: 50 Years of Economic Development .

Walker, H., Seuring, S., Sarkis, J., Klassen, R., Huq, F.A., Stevenson, M., and Zorzini, M., 2014. Social sustainability in developing country suppliers. International Journal of Operations & Production Management.

WSJ Markets. (2020). Retrieved from Ghana Commercial Bank Ltd: https://www.wsj.com/market-data/quotes/GH/XGHA/GCB/company-people

Yawar, S. A., & Seuring, S. (2017). Management of social issues in supply chains: a literature review was exploring social issues, actions, and performance outcomes. Journal of Business Ethics, 621-643.

Özceylan, E. and Paksoy, T., 2014. Interactive fuzzy programming approaches to the strategic and tactical planning of a closed-loop supply chain under uncertainty. International Journal of Production Research, 52(8), pp.2363-2387.