GMCR’s senior managers believe that once consumers understood the company’s sustainability goals and practices, (protecting scarce resources, strengthening communities, reducing poverty, and ensuring equity in commercial relationships) they would be more likely to purchase the company’s products and thereby “partner” with the company to help build a better world. - By lowering dependency on other supply chain intermediates in procuring its coffee, the company could lower supply chain logistical and procurements costs, improve turnaround time, and respond more quickly to customer preferences. o Supply Chain Intermediates: Firm or person who acts as a mediator on a link between parties to a business deal, investment, decision, negotiation, etc. Also sometimes called a “middle-man” - Sustainability practices in the supply chain can result in lower costs, shorter cycle times, and improved opportunities for product and process innovations - Sustainable business practices can help differentiate a company from rivals in profitable and meaningful ways - The United States is the single largest consumer of coffee worldwide - The Fair Trade Certified organic coffee movement attempted to reduce the environmental devastation that occurred in coffee producing countries. Fair trade was meant to counteract the practice pursued by large multinational corporations that used mass production methods for coffee farming - A supply chain is composed of multiple players of various sizes who compete on brand, price, and market segmentation - Fair trade and sustainable coffee is an emerging and growing market - Bob Stiller said the company’s purpose and guiding principles were, ‘to create the ultimate coffee experience in every life we touch from tree to cup- transforming the way the world understands business” - Stiller focused his company’s purpose around supply chain management o Supply Chain Management (SCM): Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost. - GMCR’s management adopted the Global Reporting Initiative (GRI) guidelines because the company’s senior managers believed that their organization could benefit from sustainability measurement and comparison and GRI’s guidelines served this purpose - Triple Bottom Line: Financial, social, and environmental effects of a firm’s policies and actions that determine its viability as a sustainable organization - A corporate social responsibility team was established consisting of 6 individuals focused specifically on supply chain outreach, domestic community outreach, social compliance, environmental management systems, and communication - These six practice areas are partnering with supply chain communities, supporting local communities, protecting the environment, building demand for sustainable products, working together for a change and creating a great place to work.
You've reached the end of your free preview.
Want to read all 18 pages?
- Fall '08
- Balance Sheet