by Fronetics | Jan 19, 2015 | Blog, Supply Chain
The call for more transparent and more ethical supply chains
Events such as hurricane Sandy, the Fukushima nuclear disaster, the Bangladesh factory collapse, and the Ikea horse meat scandal, have positioned the spotlight on the supply chain and have consumers, regulators, and businesses calling for an increase in supply chain transparency.
The increased scrutiny of the supply chain is not a result of an increase in the number of events; rather it is a result of technology. The Internet of Things (IoT) is reducing the number of “black holes” within the supply chain and offering the capability of end-to end visibility – making the supply chain more transparent. The internet and social media is also increasing visibility and transparency. Tom Seal, head of research at Procurement Professionals, astutely points out that:
“The internet and social media leave almost no dark rocks for corporations to hide under.”
It is here that it is important to make the distinction between transparency and visibility. David Linich, Principal, Deloitte Consulting, does this well:
“Transparency goes beyond gaining visibility into the extended supply chain. It is the process by which a company takes action on the insights gained through greater visibility in order to manage risks more effectively.”
Environmental and ethical practices within the supply are areas where there is often a “disconnect between intentions and actions.” Seal:
“It’s far simpler to change branding and marketing – and present a company as environmentally and ethically aware – than it is to reconfigure or rebuild an entire global supply chain.”
That being said, companies who do use the insights gained through greater visibility and do take action can reap positive results. PepsiCo, for example, was able to identify energy-savings opportunities as a result of a carbon management and energy assessment program it undertook with its suppliers. The savings was not small – it totaled $60 million. However, savings are not always realized. It has been estimated, for example, that the cost of an iPhone could effectively double if it were manufactured in the United States, under stricter labor standards.
The question is, as companies strive to meet the demands for increased transparency, will a more ethical supply chain ultimately pay off for companies in the form of improved reputation as well as customer and employee loyalty?
Software Advice, a company that reviews supply chain management software, recently conducted a series of surveys with the objective of helping business owners and supply chain managers better understand consumer attitudes towards improving the ethics and environmental impact of the supply chain. The surveys found that, on average, consumers would pay for more for a product made by a company whose supply chain is ethical and has a reduced environmental footprint. For example, survey respondents indicated that they would pay as much as $27.60 more for a $100 product that was made by workers working in good conditions.
Does attitude equal behavior?
Ian Robinson of the University of Michigan and his team conducted an experiment at a suburban Detroit department store. The researchers placed identical socks side by side on display. Some socks were labeled as coming from factories with good working conditions. When priced the same, half of the customers chose the ethical socks. When the researchers increased the price of the ethical socks, the number of customers who chose ethical socks dropped to 33%. When the price of ethical socks increased to 20% or more than the regular socks the number of customers who chose the ethical socks dropped further – to 15%.
And why do consumers care?
Ahir Gopaldas of Fordham University’s business school conducted a study called “Marketplace Sentiments.” The objective of the study was to gain insight into why certain consumers are willing to spend more on “ethical products.”
The study defines marketplace sentiments as “collectively shared emotional dispositions toward marketplace elements.”
The study’s abstract explains that:
“From outrage at corporations to excitement about innovations, marketplace sentiments are powerful forces in consumer culture that transform markets. This article develops a preliminary theory of marketplace sentiments. Defined as collectively shared emotional dispositions, sentiments can be grouped into three function-based categories: contempt for villains, concern for victims, and celebration of heroes.”
Gopaldas notes that these sentiments are “critical to understanding how consumer culture works.” Specifically that:
“Contempt happens when ethical consumers feel anger and disgust toward the corporations and governments they consider responsible for environmental pollution and labor exploitation. Concern stems from a concern for the victims of rampant consumerism, including workers, animals, ecosystems, and future generations. Celebration occurs when ethical consumers experience joy from making responsible choices and hope from thinking about the collective impact of their individual choices.”
What does this mean for the supply chain?
The internet, social, media, and the IoT is making it less possible for companies to not only have skeletons in their closet, but also less possible for companies to have skeletons in general.
Consumers, regulators, and businesses are all calling for more transparent supply chains. Companies that listen, and who identify ways by which they can improve the ethics and environmental impact of their supply chain will be rewarded.
by Fronetics | Jan 19, 2015 | Blog, Supply Chain
The call for more transparent and more ethical supply chains
Events such as hurricane Sandy, the Fukushima nuclear disaster, the Bangladesh factory collapse, and the Ikea horse meat scandal, have positioned the spotlight on the supply chain and have consumers, regulators, and businesses calling for an increase in supply chain transparency.
The increased scrutiny of the supply chain is not a result of an increase in the number of events; rather it is a result of technology. The Internet of Things (IoT) is reducing the number of “black holes” within the supply chain and offering the capability of end-to end visibility – making the supply chain more transparent. The internet and social media is also increasing visibility and transparency. Tom Seal, head of research at Procurement Professionals, astutely points out that:
“The internet and social media leave almost no dark rocks for corporations to hide under.”
It is here that it is important to make the distinction between transparency and visibility. David Linich, Principal, Deloitte Consulting, does this well:
“Transparency goes beyond gaining visibility into the extended supply chain. It is the process by which a company takes action on the insights gained through greater visibility in order to manage risks more effectively.”
Environmental and ethical practices within the supply are areas where there is often a “disconnect between intentions and actions.” Seal:
“It’s far simpler to change branding and marketing – and present a company as environmentally and ethically aware – than it is to reconfigure or rebuild an entire global supply chain.”
That being said, companies who do use the insights gained through greater visibility and do take action can reap positive results. PepsiCo, for example, was able to identify energy-savings opportunities as a result of a carbon management and energy assessment program it undertook with its suppliers. The savings was not small – it totaled $60 million. However, savings are not always realized. It has been estimated, for example, that the cost of an iPhone could effectively double if it were manufactured in the United States, under stricter labor standards.
The question is, as companies strive to meet the demands for increased transparency, will a more ethical supply chain ultimately pay off for companies in the form of improved reputation as well as customer and employee loyalty?
Software Advice, a company that reviews supply chain management software, recently conducted a series of surveys with the objective of helping business owners and supply chain managers better understand consumer attitudes towards improving the ethics and environmental impact of the supply chain. The surveys found that, on average, consumers would pay for more for a product made by a company whose supply chain is ethical and has a reduced environmental footprint. For example, survey respondents indicated that they would pay as much as $27.60 more for a $100 product that was made by workers working in good conditions.
Does attitude equal behavior?
Ian Robinson of the University of Michigan and his team conducted an experiment at a suburban Detroit department store. The researchers placed identical socks side by side on display. Some socks were labeled as coming from factories with good working conditions. When priced the same, half of the customers chose the ethical socks. When the researchers increased the price of the ethical socks, the number of customers who chose ethical socks dropped to 33%. When the price of ethical socks increased to 20% or more than the regular socks the number of customers who chose the ethical socks dropped further – to 15%.
And why do consumers care?
Ahir Gopaldas of Fordham University’s business school conducted a study called “Marketplace Sentiments.” The objective of the study was to gain insight into why certain consumers are willing to spend more on “ethical products.”
The study defines marketplace sentiments as “collectively shared emotional dispositions toward marketplace elements.”
The study’s abstract explains that:
“From outrage at corporations to excitement about innovations, marketplace sentiments are powerful forces in consumer culture that transform markets. This article develops a preliminary theory of marketplace sentiments. Defined as collectively shared emotional dispositions, sentiments can be grouped into three function-based categories: contempt for villains, concern for victims, and celebration of heroes.”
Gopaldas notes that these sentiments are “critical to understanding how consumer culture works.” Specifically that:
“Contempt happens when ethical consumers feel anger and disgust toward the corporations and governments they consider responsible for environmental pollution and labor exploitation. Concern stems from a concern for the victims of rampant consumerism, including workers, animals, ecosystems, and future generations. Celebration occurs when ethical consumers experience joy from making responsible choices and hope from thinking about the collective impact of their individual choices.”
What does this mean for the supply chain?
The internet, social, media, and the IoT is making it less possible for companies to not only have skeletons in their closet, but also less possible for companies to have skeletons in general.
Consumers, regulators, and businesses are all calling for more transparent supply chains. Companies that listen, and who identify ways by which they can improve the ethics and environmental impact of their supply chain will be rewarded.
![The Girl Scout Cookie Supply Chain [Infographic]](https://www.fronetics.com/wp-content/uploads/2024/10/Girl-Scout-Cookie-Supply-Chain-810x675.jpg)
by Fronetics | Jan 15, 2015 | Blog, Marketing, Supply Chain
In 2015 The Girl Scouts launched the “Digital Cookie.” How will this impact the Girl Scout Cookie Supply Chain?
When the Girl Scouts of America began selling their now ubiquitous cookies way back in 1917, their operations were simple: cookies were baked in the ovens of troop members and sold in a high school cafeteria. On a mission to raise enough funds to cover the activities of their Muskogee, Oklahoma-based troop, these first cookie salesgirls unknowingly set the stage for a century-long operation that now includes over 2.8 million Girl Scouts and tops $700 million annually.
Throughout the program’s history, the Girl Scouts have made significant changes to the way they do business. To understand the evolution of their supply chain you have to look not only at the physical growth of the program, but the societal factors that have shaped their manufacturing, distribution, marketing and sales functions throughout the years.
From the cookie program’s modest beginnings in the late 1910s through the 1920s, operations were kept small and simple. Cars weren’t yet pervasive in American cities and towns, and door-to-door sales and delivery of goods were the norm. As such, each local troop of Girl Scouts baked, packaged, and priced their own cookies and then combined marketing and sales functions by going door to door. The 1930s saw the Girl Scouts professionalize their manufacturing operations by partnering with and licensing their first commercial bakery – a move concurrent with the rise of automated and commercial bakeries across the United States.
During World War II, flour, sugar, and butter shortages caused a brief stoppage of Girl Scout cookie production. In the post-war boom though, the Girl Scouts were back in the cookie business, setting up shop outside the shopping malls that had sprung up in the suburbs.
As membership rapidly grew, cookie flavors were narrowed to four types in order to standardize their product for greater manufacturing efficiency. Meanwhile, advancements within the packaging industry proved to be a boon for the marketing and sales of Girl Scout cookies as it brought extension to the shelf-life of their products. The most dramatic shift in operations came in 1978. By that time, the number of commercial bakeries involved in the manufacture of GirlScout cookies had swelled to an unmanageable amount. That year officials made the decision to limit operations to only four bakeries, showing a commitment from the organization to uniform quality, packaging, and distribution (a practice even further evidenced today by their licensing of only two bakeries).
From the 1950s through 2014 the sales and marketing strategy of Girl Scout cookies has remained almost unchanged. Each year, between January and April, thousands of girls and their parents have sold cookies by going door-to-door or by hawking their wares outside local supermarkets.
In 2015, in a move that has significant implications for their supply chain, the Girl Scouts have unveiled a new strategy that is directly influenced by yet another societal shift. “Digital Cookie” enables Girl Scouts to market and sell cookies online.
With Digital Cookie, girls are able to create personalized cookie websites and invite customers to visit their website via an email invitation. Digital Cookie also allows girls to take in-person cookie orders (at a local cookie booth for example) via mobile app.
Additional features of Digital Cookie include: campaign advertising, inventory tracking, and shipping management.
Kelly Parisi, Girl Scouts of the USA chief communications executive, points out that these changes are essential in terms of building leadership skills: “It is all about the girls and building future business leaders. They are learning about e-marketing, managing money and additionally creating their first websites.”
The Digital Cookie will have a significant impact on the organization’s supply chain. Not the least of which is that this year, for the first time, the majority of customers will have cookies delivered directly to them – the option of having a Girl Scout deliver the cookies is only available in select markets.
Hungry? Connect with your local Girl Scout or Girl Scout Troop, or try the free mobile Cookie Finder app for your iPhone or Android phone.
by Fronetics | Jan 15, 2015 | Blog, Marketing, Supply Chain
In 2015 The Girl Scouts launched the “Digital Cookie.” How will this impact the Girl Scout Cookie Supply Chain?
When the Girl Scouts of America began selling their now ubiquitous cookies way back in 1917, their operations were simple: cookies were baked in the ovens of troop members and sold in a high school cafeteria. On a mission to raise enough funds to cover the activities of their Muskogee, Oklahoma-based troop, these first cookie salesgirls unknowingly set the stage for a century-long operation that now includes over 2.8 million Girl Scouts and tops $700 million annually.
Throughout the program’s history, the Girl Scouts have made significant changes to the way they do business. To understand the evolution of their supply chain you have to look not only at the physical growth of the program, but the societal factors that have shaped their manufacturing, distribution, marketing and sales functions throughout the years.
From the cookie program’s modest beginnings in the late 1910s through the 1920s, operations were kept small and simple. Cars weren’t yet pervasive in American cities and towns, and door-to-door sales and delivery of goods were the norm. As such, each local troop of Girl Scouts baked, packaged, and priced their own cookies and then combined marketing and sales functions by going door to door. The 1930s saw the Girl Scouts professionalize their manufacturing operations by partnering with and licensing their first commercial bakery – a move concurrent with the rise of automated and commercial bakeries across the United States.
During World War II, flour, sugar, and butter shortages caused a brief stoppage of Girl Scout cookie production. In the post-war boom though, the Girl Scouts were back in the cookie business, setting up shop outside the shopping malls that had sprung up in the suburbs.
As membership rapidly grew, cookie flavors were narrowed to four types in order to standardize their product for greater manufacturing efficiency. Meanwhile, advancements within the packaging industry proved to be a boon for the marketing and sales of Girl Scout cookies as it brought extension to the shelf-life of their products. The most dramatic shift in operations came in 1978. By that time, the number of commercial bakeries involved in the manufacture of GirlScout cookies had swelled to an unmanageable amount. That year officials made the decision to limit operations to only four bakeries, showing a commitment from the organization to uniform quality, packaging, and distribution (a practice even further evidenced today by their licensing of only two bakeries).
From the 1950s through 2014 the sales and marketing strategy of Girl Scout cookies has remained almost unchanged. Each year, between January and April, thousands of girls and their parents have sold cookies by going door-to-door or by hawking their wares outside local supermarkets.
In 2015, in a move that has significant implications for their supply chain, the Girl Scouts have unveiled a new strategy that is directly influenced by yet another societal shift. “Digital Cookie” enables Girl Scouts to market and sell cookies online.
With Digital Cookie, girls are able to create personalized cookie websites and invite customers to visit their website via an email invitation. Digital Cookie also allows girls to take in-person cookie orders (at a local cookie booth for example) via mobile app.
Additional features of Digital Cookie include: campaign advertising, inventory tracking, and shipping management.
Kelly Parisi, Girl Scouts of the USA chief communications executive, points out that these changes are essential in terms of building leadership skills: “It is all about the girls and building future business leaders. They are learning about e-marketing, managing money and additionally creating their first websites.”
The Digital Cookie will have a significant impact on the organization’s supply chain. Not the least of which is that this year, for the first time, the majority of customers will have cookies delivered directly to them – the option of having a Girl Scout deliver the cookies is only available in select markets.
Hungry? Connect with your local Girl Scout or Girl Scout Troop, or try the free mobile Cookie Finder app for your iPhone or Android phone.
by Fronetics | Jan 6, 2015 | Blog, Logistics, Strategy, Supply Chain, Talent
The start of a new year generally brings with it a host of resolutions. For individuals finding and landing a new job, or advancing in their current job are common resolutions. For companies, identifying talent, hiring, and retaining great talent are typical goals for the new year.
At Fronetics we work with clients to understand and execute on talent acquisition, performance management, learning and development, and succession management. We also work with clients to design and develop roles and responsibilities, on leadership development, mentoring and counseling, and on performance management and compensation strategies.
Throughout 2014 we have created content focused on talent. Topics have included: networking; how to identify and hire top top talent; and how to solve the supply chain talent crisis. We have identified the most popular talent blog posts of 2014, #1 receiving the most pageviews.
Here are the top talent blog posts of 2014
Kathryn Minshew, founder and CEO of The Muse and The Daily Muse, began a piece for the Harvard Business Blog Network with this sage advice: “Network Your Face Off.” The truth and value of this statement cannot be underestimated. Here are 5 reasons why networking is essential and why connections matter. Read the full blog post.
CrossFitters recognize that good outcomes only come with hard work, and lots of it. For that reason, it generally attracts people who are willing to make sacrifices and go the extra mile to get results both in the gym and at work. If you want to hire top performers who have staying power hire people who do CrossFit. Here are eight reasons why CrossFitters make great employees. Read the full blog post.
The supply chain industry has a talent crisis. The question is: how can we solve this crisis? To answer this question I turned to Rodney Apple, founder of the SCM Talent Group. Apple has worked as a supply chain recruiter for the majority of his 19+ year career within the staffing industry and he has filled more than 1,000 positions within the industry ranging from executive-level in Fortune 500 headquarters settings to leadership and staff-level roles across large networks of manufacturing and distribution facilities within North America. Apple’s role affords him the ability to witness the talent crisis from the perspective of the industry, the company, and the job seeker. Read the full blog post.
Here’s the thing – the supply chain industry is perceived by those outside the industry as having no “wow” factor whatsoever. If the supply chain industry is going to attract new and qualified talent, it needs a face lift. It is time for the supply chain industry to re- brand itself. Read the full blog post.
Wouldn’t it be nice if great talent looked like Waldo? If great talent looked like Waldo we could simply look at the pool of candidates and be able to identify them by their telltale red and white striped shirt. Unfortunately, great talent doesn’t show itself like our friend Waldo. Given this, how can the supply chain industry spot great talent? Read the full blog post.
Be honest. How does your company approach talent acquisition? Is it viewed as a cost center or is it viewed as a strategic department, crucial to the success and growth of your business? If your answer is the former, it is time to rethink your approach. Read the full blog post.
With more than 240 million active users, LinkedIn is one of the largest social media networks. LinkedIn is an incredible tool for networking and professional development. LinkedIn is also an essential component in a job search strategy. Optimizing your LinkedIn profile is crucial to your success. Read the full blog post.
If the supply chain industry is going to attract new and qualified talent, it needs a face lift. The industry needs to be proactive. It needs to communicate what it is, what is currently happening within the industry, and what is in store for the future. Who is responsible for making change possible? You. Read the full blog post.
After the ball has dropped and after the champagne has been drunk, the New Year will begin. Forty-five percent of American’s will start the New Year with at least one resolution. Whether or not you are typically a resolution-maker, the New Year is a great time to evaluate your career and set goals. Here are nine career resolutions everyone should make. Read the full blog post.
Whining. Just writing the word makes me cringe. Whining is a truly unattractive characteristic. It is unattractive in children and it is even more unattractive when adults partake. One of the reasons why whining is just so unattractive is that it is ineffective and it can make a brilliant leader look like, well, like a blithering child. Read the full blog post.
