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The role of networks and sectors - Coggle Diagram
The role of networks and sectors
Costing
What costs are included?
Not all resources are accounted for
Pollution
Bad working condition
Taking externalities into consideration - many products would cost more to produce, and buy
NPV
Supply chains and networks
Related to development of idea/theories ... core competences
Outsourcing as a way to focus on core competence
National suppliers
Global supply chains
Supply chains and sustainability
Problems hidden in the supply chain
To identify risk
Reputation
Commercial
Environmental
Shared value in supply chains
From organizations to networks
Networks
Alternative view of markets
Markets as networks
Limited numbers of units
S
Some very strong
All more or less dependent upon each other
Commercial
Technical
Social
Knowledge is limited or bounded
All act in their own interest
Coordination forms
Hierarchy
Market
Cooperation
Complementary rather than alternatives
Business to business
Firms do business with other firms
Simple episodes
Transactions
As a part of something larger
Relationships
These rel. are connected and create networks
The firm must handle its network
A simple case
Gov. puts in large sums of money into research to create ergo. tools
Why do not reach end users?
What model are government using?
The hand tool network
Researchers
Industry
Building construction
Retailers
Whole salers
Manufactrurers
Designers
Gov thought it would work since they thought of it as a market instead of network
Control in Supply chains
Different forms
Direct and supervision
Indirect - rules
Socialization
A case in a supermarket supply chain
How suppliers are controlled
Power and authority
Control and accounting in supply chains
Open book accounting
Target costing
Total cost of ownership
Accounting teqniques
Shapes practices
How things are done
Priorities and behavior
Neu, Accounting, Supply chains
Accounting for Sweatshops
Alliance perspectie in uncertain business and legal environments
Low price apparel- price competition and short delivery times
Small production facilities, emergence and disappearence of producers
"Time, Quality anbd price pressure is passed along from the retail buyer to the buyer intermediary and then to the factory owner, and then to the individual factory workers"
Accounting in supply chains
Help coordinating activities in supply chains
Various techniques
Open book accounting
common product costing
integrated cost information systens
Aims to minimize info assymetry
Accounting can be both enabling and coercive in supply chain relationships
Low price apparel production
Retailers segment their products:
Commodty: Vary by season, long planning(months)
Fashion: Small production runs, short planning cycle(weeks)
Sourcing decisions involve tradeoffs:
Geographic proximity
Low wage production
Sweatshop
The conditions that are present in production facilities
"Sweat"
Long days- hard conditions but still pride
Manage and have a job and better paid than other jobs
Accounting is used in both a coercive and transparent way
"If you don't hurry upp there will be no work next month"
Big brands responden to conditions in 90s
Codes of conduct
GRI and other standards
Training of work force and management
Multi-stakeholder initiative
Include NGO, governments, trade unions, private org
Driven by societal actors
Ex,
Ethical trading initiative
Fair labour association
Social accountability international
Relationship types
Captive
High compliance
Relational
High cooperation
Modular
Low sswithing cost
Collaborative(buyers opt)
High compliance
Managing a sustainable supply chain
90s, naming and shaming
accountability for what supplyers do
Millions of people work in suply chains
Three phases
1) comply and arms length
Mapping out
What factories, and conditions
Documentation
Wages
Age
Contracts
Compliance
Some suppliers refused to sign code and termination of contract
2) Full audit program
Reluctant acceptance af accountant
Dialogue
Capacity building
Launch of FAP, membership FLA
3) Leveling the playing field
Self assesment
Ranking of suppliers
Ownership
Accountability and rewards
Auditing and evaluating the supply chain
From compliance to tight audit dicipline, to supplier self assement
Higg index