Running head: SUPPLY CHAIN MANAGEMENT

Importance of Supply Chain Management for Global Organizations [Name of the Writer] [Name of the Institution]

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Table of Contents Supply Chain Management ............................................................................................................. 3 Supply Chain Management (SCM)................................................................................................. 3 Purpose of the Code of Ethics for managing the supply chain ....................................................... 3 Common Practices prevalent in the area of SCM ........................................................................... 4 Personal integrity and professionalism ............................................................................ 4 Accountability and transparency ...................................................................................... 5 Compliance and continuous improvement ....................................................................... 5 Longer delivery times and logistics complex ................................................................... 5 Lack of communication and trust ..................................................................................... 6 Trade offs in Supply Chain Management ....................................................................................... 6 Researchers views & opinions concerned regarding ethics and supply chain management ......... 8 Major Supply chain issues: A example of car manufacturing ...................................................... 12 Issues addressed by the Smart Concept and Logistics at MCC .................................................... 13 Postponement and Extended enterprise ........................................................................................ 16 Quality Assurance in the supply chain through Co-operation with suppliers .............................. 18 Disaster Management through Effective Supply chain ................................................................ 19 Conclusion .................................................................................................................................... 23 Recommendations ......................................................................................................................... 24

SCM Supply Chain Management

Supply Chain Management (SCM) As we have been stressing throughout this text, ethical decisions are critical to the longterm success of any organization. However, the supply chain is particularly prone to slippage, as the opportunities to behave unethically are enormous (Carterm 2002, 37). With a sales staff eager to sell, and purchasing agents who spend huge amounts, the temptation to unethical behavior is considerable. Many sellers end up making friends with their customers, making favors, taking them to lunch or giving them small (or big) gifts. Define when a gift of friendship becomes a bribe is a challenge. Many companies have rules and strict codes of conduct that limit what is considered acceptable. Being aware of these problems, the Institute for Supply Management has developed principles and standards that can be used as guidelines for ethical behavior (Halldorsson, 2007, 284). Ethical supply chain is viable because ethical supply chain sets the basic global principles to condition the behavior of the broader public sector, their suppliers, their advisors and others involved in activities related to chain supply (Oliver, 2009, 246).

Purpose of the Code of Ethics for managing the supply chain Ethics in supply chain management is viable because this is a type of activity that is need to been handled with care and efficiently because if these principles would not be followed it could have drastic impact on the organizations and their reputation. The Code does not replace the ethical codes in place in some organizations, but rather just add the codes by providing specific standards of practice applicable to the supply chain (Masters, 2008, 78).

SCM Common Practices prevalent in the area of SCM Personal integrity and professionalism All persons involved in purchases or other activities related to the supply chain must act with integrity and professionalism and show their involvement. Honesty, diligence and reasonable care must be integral to all activities of the supply chain, both within the broader public sector organizations, suppliers and other stakeholders among themselves. All must show respect for others and the environment.

Confidential information must be protected. All concerned must refrain from engaging in any activity that could create or appear to create a conflict of interest, such as accepting gifts or favors, giving preferential treatment to certain public or press suppliers and products (Movahedi, 2009, 75). There might be a question from where to begin but these few elaborative prominent points will provide an overview of how it should be done. 1. Make a commitment - Actions must affirm words and dedication towards the financial maximization keeping in mind the ethical perspective. 2. Assess where you stand thoroughly assess where organizations stand and then execute strategies accordingly to tackle it. 3. Decide and plan where you want to go - Based on assessment of risks and opportunities, a strategy and action plan can be developed. Targets help focus efforts and also provide a benchmark for measuring success. 4. Get efficient - Looking at your life or business can help in other ways by increasing the efficiency of resource use ultimately improving overall performance and reputation.

SCM Accountability and transparency Activities related to the supply chain should be conducted openly and be based on responsible management. Thus, contracting and procurement should be conducted in a fair and transparent and seek the optimization of federal funds. All persons involved in these activities must ensure the responsible use, skilled and effective public sector resources (Worrell, 2009, 277).

Compliance and continuous improvement Those involved in procurement or pursuing other activities related to the supply chain must comply with this Code of Ethics and the laws of Canada and Ontario. They must continually work to improve policies and procedures relating to the supply chain, their skills and knowledge related to supply chain and for disseminating leading practices (Woodhouse, 2010, 23).

Longer delivery times and logistics complex The production is increasingly located abroad, providers are more dispersed and in distinct social and cultural contexts, which leads to more complex logistics. Another growing trend is to pressure suppliers to occur faster and to accept an order confirmation as close as possible delivery day, so the buyer can make changes in quantity and design art hour (Kouvelis, 2009, 449).

SCM Lack of communication and trust The lack of communication and exchange of information on the production process can lead a lack of trust between buyer and supplier, with the possible consequences of failures planning and production delays. If there are communication failures, it is difficult to specify product and design changes already decided. The result in the whole process can be delayed delivery or failure in the final product. Moreover, in some cultures, for example in China, considered impolite to refuse requests from clients, but still an order for buyer is a fact, the reality may be impossible to meet. By contrast, it can offer opportunities for global remote producers in developing

countries. The term "ethical supply chain management" refers to the creation of equal conditions for suppliers. Corruption and bribery Corruption is an issue always present, although more common in some places than others. Because the supply chains are increasingly complex, include more players and more international control and transparency are difficult.

Trade offs in Supply Chain Management The basic problems and concerns that are usually being addressed with individuals in different organizations tend to make way for being resolved and rectified in the area of supply chain management. These specifically include transport networks, distribution chains, inventory management, purchases, logistics and other amenities that related to effectively, timely and safe distribution of goods or services, depending upon the nature of the business. To come to note precisely, there are several factors that act as driving forces of the supply chain management towards the kind of business that people are involved in. However, there are certain patent tradeoffs and the kind of issues and concerns that are involved and directly

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influence, change, amend or even halt the timely execution and development of all activities that are related to supply chain management. Some of the major causes involved are as follows: 1. Distribution Network Configuration: this implies the kind of location, date of delivery, vendors and suppliers involved in the development and establishment of the networks, cross-docks or even, in some unique situations, direct dealing and understanding with the customer. 2. Distribution Strategy: here, it depends on the kind of channels that you as a facilitator or as an intermediary to transport and transmit your immediate goods or contents required for distribution. This could wary depending upon the kind of goods that are being transferred and transmitted and the kind of destination and location where the containers or cargo would be dispatched and received from the end customer. 3. Tradeoffs in Logistical activities: In order for this occur, the former two need to be aligned, be coincided and at the same time should be in-scope together in order to produce and yield the minimum lowest cost. This is by far the most important component, since supply chain management is all about delivering the right good, at the right place on the right time and at the right price. Hence, careful analysis, projections and speculations should make way for being the immediate driver for the success and failure of the supply chain incorporated in the company. 4. Information: This factor is, although not the single most factor, yet hold enough capacity to influence, persuade, amend and bring transformation in the current setup and development of the system that has paved way for the development of your newborn supply chain in the company or could change the dynamics of already

SCM established routes and gates of the contemporary supply chain undertaken by the company. 5.

Inventory Management: Another derivative of supply chain management implies the kind of issues and concerns is the inflow and outflow of inventory. An inevitable component on the financial statements of companies across the globe, managing the inventory is amongst the most liquid assets or even a current asset which could notify the company's current financial position. In particularly to manage and maintain the supply chain of the company it must be understood and comprehend the kind of issues related to inventory inflow, which could actually make way for adding more profit company or even losses for the company, in case of storage for a longer period.

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Cash Flow: The final countdown comes upon precisely how much profit has been earned and the kind of performance the company closes, which reference of cash inflows and outflows.

Researchers views & opinions concerned regarding ethics and supply chain management The ethical problems, that emerges in interaction with business partners and competition with other businesses can also be considered as, external stake-holder relations issues (Herkert, 2010, 403). Both business partners and competitors can be accounted for as stakeholder according to the definition of a stakeholder as anyone who affects or is affected by the corporation. There are many ethical problems related to suppliers, competitors, and other businesses with which the corporation interacts. Relations between businesses are becoming increasingly important in the context of globalization and network economy (Harris, 2009, 138).

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There has been a penchant to regard business competition as dependent on economics and not as a subject for ethical analysis; however, as has been previously discussed, there are ethics of competition, which corporations should follow in interaction with each other. Moreover, in the global environment, suppliers may sometimes be considered as equivalent to employees. A corporation may have increased responsibility towards its suppliers, who are very dependent on its treatment of them. In the competitive environment of business-to-business relations, there are also a great many ethical questions related to problems of trust in dealing with trading partners and in formulating contracts. In international business, the question of bribery and gift giving is also important and emerges not only in relation to governments, but also in business-to-business situations (Halldorsson, 2009, 89). There may, furthermore, be ethics of negotiation with possible business partners and suppliers which sets a limit to workable aggressiveness and deceptive practices (Winner, 2011, 53). Certainly, there are many ways in which a corporation can hurt and violate the rights of suppliers and competitors, but there is also a great deal of mutual dependence between the corporation and the other corporations in the business environment. Some complain about an environment of negative dependence on competitors, in the way that businesses in mutual competition shape to be the social field of their industry and its developments and innovations, but it is often possible to learn a lot about business developments by looking at the actions of competitors (Halldorsson, 2007, 284). The same dialectics between competition and dependence may to a lesser extent be the case with supplier relations, where a different dependency may exist. Sometimes a corporation

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cannot live without its suppliers, and they totally determine its existence, for example, in the case of suppliers of very sophisticated software for televisions or computers. In other cases, it may be that the corporation is so strong, and there may be so many suppliers on the market, that the corporation can do anything it wants with suppliers. This raises provocative questions about multinational companies and their relations to some suppliers in developing countries. In both cases, corporations have to respect basic ethical principles and comply with the laws and values of competition and values-driven management (Fiksel, 2009, 289). Surely corporations are not isolated entities but are mutually dependant on other companies in advanced network economies. The general ambience of ethics in different industries is very significant for the integration of values driven management. It is routinely argued that a corporation cannot, and will not, establish an ethics program because it is not common in the industry and, further, that the expense of an ethics program will raise overall costs and have a determinant influence of the corporations competitiveness. Consequently in order to succeed with ethics policies. It is necessary to convince all corporations in the industry to make an effort to comply with ethics and advance ethics programs. This was the case when the United States defense industry, pushed by the government, formulated its business ethics program and codes of compliance in 1986 (Davis, 2010, 379). Ethic issues related to suppliers concern questions of loyalty and partnership. These issues are particularly complicated when people from different countries collaborate in a global economy. Issues of correct behavior, may complicate different cultural norms, as well as, different conceptions of a contract (Carter, 2009, 191). The power differentials

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that exist between business partners, for instance in meetings between Western and northwestern partners, or big and small firms, may define the pressure of ethical behavior. Large European or American firms have quite extensive responsibilities towards their eventual suppliers from imperfect and small third world countries (Roberts, 2009, 159). Powerful corporations can use their force in regard to self-interested profit maximization in order to dominate suppliers in a negative way that has a damaging impact on their mutual relationship. Suppliers can play with their loyalty in order to deal with the best buyer, hut they can also go into stable business relations with one business partner, which may benefit both corporations (Carter, 2010b, 37). Loyalty may likewise be broken because of better business opportunities with different suppliers. The ethics of business negotiations between different corporations presents comparable issues. As Albert Carr has argued, there is a close link between the ethics of business competition and negotiation, but there is a wider degree of latitude to the game of negotiation (Carter, 2010a, 180). Most would agree that (here is nothing wrong with being rude, as long as one plays by the rules of the game. However, there are also practices of negotiation that are at the borderline. What about lying, deception, misleading nondisclosure, exploitation, or simply running away from foregoing agreements? How many of such practices arc part of rules of the game? And what about the cultural differences in concepts of negotiation, such as cases where one party may view the aggressive style of American negotiation as a war? Carroll stated that with a bias toward the basic ethical principles of autonomy, dignity, integrity and vulnerability, it is possible to conceive of negotiation as consensual openness searching for solutions that will be an advantage for all (Carroll, 2011, 39).

SCM As economists emphasize, competition is necessary for business innovation, but it can

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also be destructive insofar as businesses use forceful measures to obtain market share or destroy other competitors. In addition to the issue of aggressive competition, the ethics of oligarchic and monopolistic practices are of concern in free markets. State intervention in such practices firms with dominant market share is occurring in many countries in order to protect the ethics of free markets. In the context of liberalization and globalization of international markets, this issue of the legal and ethical limitations of market behavior is becoming more important (Carroll, 2009, 497). Corporations may not only have to be aware of their own relations with competitors and suppliers, but also to investigate the ethical dimensions of their supply chain. Ethical supply chain management involves investigating the ethical issues pertaining to all the members of the business network. In relation to developing countries, the firm would probably have to deal with questionable working practices of business partners in these countries (Brumsen, 2010, 378). A widespread practice of supply chain ethics management is represented by the fair trade movement, which was discussed previously. To provide proof of supply chain ethics firms, are frequently requested to give a transparent description of the production history of their goods (Beamon, 2008, 20).

Major Supply chain issues: A example of car manufacturing Supply chain is recognized as the major opportunity for business improvement for almost all the industrial sectors. The sector of automotive is the furthermost advanced in its supply chain management but there are some major issues which are being faced by the conventional volume

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car manufacturers. If the supply chain is managed effectively by the automotive sector than it can bring substantial outcomes and the benefits would continue. The needs of the customers should be met reliably, quickly and consistently on high service levels. But this was not being done by the conventional volume car manufacturers and they were facing problems in making their customers satisfied. The main issue is to keep up the quick and rapid pace of technological advancements. Growth and change is needed to make a place in saturated market. While keeping costs level under control, the quality and diversity is difficult to achieve. The marketing strategies are old and the companies do not focus on innovative ideas. Many industries have just started to recognize the importance of supply chains, and are not able to make progress. The demand of the customers could not be met by such industries. They face ultimate issues of cost effective processes and in providing compelling value to the customer. The conventional industries are not able to connect extensively with suppliers and customers. They lack continuous improvement required in saturated markets. The strategies built are not up to date and does not contain such features which makes the product different from others. Flexibility is absent. People, processes and systems are not adaptive and innovative.

Issues addressed by the Smart Concept and Logistics at MCC The supply chain issues which are conventional for car manufacturers are addressed by Smart cars. The set-up of the Smart has a number of apparent and obvious benefits. Variety of the product can be supplied to the customers without additional costs, this is not easy to handle. The issue which is being faced in the market is addressed by Smart Cars and is able to create a strong position in the saturated market.

SCM The idea of modular creation and rearrangement permits cost efficient, diversity, the harmony of modules and the general nature of manufacturing processes allows fast cycle times and a small level of stock. External integration is strong. The involvement and participation of dealers and suppliers is high.

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This can be done due to the large share of value added they create and the input that they have in product and process development. Fast cycle times interpret into squat lead times while postponement and modular production allows for a dialogue with customers and enable them to deal greatly with the conventional issues. Marketing strategies are infamous and creates hype. Marketing concepts challenges the conventional car marketing by establishing new channels which includes internet sites, retail formats and customer involvement in designing and color scheming. Innovative marketing strategies made them outclass and strong enough to capture the market. In addition to these, the car fits within a mobility concept for urban lifestyle. The included deal with Rent-a-car Company for abridged rental fees for hiring a smart car in foreign cities made a mobility concept for urban movement. The company also focuses on the latest issues of global warming and thus attracting the customers. Smart car is being made environmental friendly and the parts are recyclable which made it different. The engine is fuel efficient, thus reducing the effect of carbon emission and cost on the fuel. Minimum product complexity with product variation is the key idea. Customization is providing longer lifetime to the car. Making the car different from other small cars by introducing latest technology, makes the car a big success. The factor of differentiation is being focused by MCC.

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The innovative little car is destined to be unlike any other car currently on the road. The public were intrigued by both the concept and the cars appearance but other carmakers were much more interested in the MCCS manufacturing systems. Smart Car could be built in only seven and a half hours, some two and a half hours less than the time taken to build a car by the industrys leading performers. The difference in performance is due to the fact that MCC is a very different kind of Car Company with a radically different approach to vehicle development and manufacturing. The cars were to be produced in a region with no previous history of automotive manufacturing, at a single site factory complex in eastern France. At the heart of the complex is a large cruciform building housing the main assembly line, radiating off each arm of the cruciform are a number of smaller structures, containing one or another time, via one of five European regional distribution centers. To retain maximum flexibility, some elements of product customization will take place at the distribution centre, where stocks of easily interchangeable modules and body parts will be held, so that features can be changed or added as required. Likewise, the modular construction of the vehicles means that they can easily be upgraded or reconfigured at any point during the lifetime of the car by simply replacing easily detachable sub assemblies or body parts. This changes the nature of the product itself from a fixed consumer durable to a much more flexible, renewable product, with associated benefits in terms of reverse logistics and recycling. In practice the Smart Car and the organization that builds it represent a curious blend of out-sourcing and reintegration. MCC has secured the expertise and full commitment of leading manufacturing specialists and service providers, while spreading the investment and financial risks associated with this ground-breaking project.

SCM If the public do take to the little car, then despite a long set-back when the prototype failed a crucial high-speed stability test.4 Smart Cars makers could still recoup their $1bn

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investment, as originally planned, during the cars first five to six year production cycles If this is so then Smart Car could be set to redefine the processes of car manufacturing and ownership.

Postponement and Extended enterprise The cars are mainly built to customer orders. Centers of Smart do not have cars in stock and in the situation when the car is needed; a customized car is being made. The car is made on the specifications provided by the customers. Thus postponement which is a business strategy that maximizes possible benefit is applied at MCC through customizing the product to clients needs. The risk is being delayed and further investment in product to produce stock is saved. One of the distinguishing characteristics of a supply chain at MCC is that the final product or offer is not created until the last possible moment. The idea is that maximum flexibility is achieved. The challenge is to delay the final configuration as long as possible and hence reduce the risk. To achieve this specification is being offered. Can the product be modularized, can it be designed so that localization can be performed at a later stage? Hewlett Packard has made the idea of design for localization a fundamental element of their product development philosophy. Often the final assembly or finishing of the product may be performed by another partner in the supply chain. MCC as the logistics service providers is now acting as value-added partners in an extended, often global supply chain. Whilst the unit costs of manufacturing under a postponement strategy may he higher than under the traditional mass production model, the overall cost benefit will often be considerable

SCM as inventory holding costs fall, obsolescence reduces and customer service improves. In many ways the concept of postponement is making redundant the conventional wisdom of the economies of scale.

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The system at MCC is practicing outsourcing and differs from traditional supply chains. The coordination of internal logistics, painting the body of the car and pressing the body parts are not performed by MCC and thus practicing extend enterprise. The suppliers are not just participating in final assembly of the car but are also involved in development of the product. Smart sourcing in MCC enables the company to meet the changing needs of the market. The approach brings trusting relationships and a positive growth. Postponement enables the company to integrate as the customers are giving specifications and then the cars are being made. Outsourcing that is extended enterprise permit the company to integrate in a great way as the efficiency increases. The plants which are being outsourced permit the company to deliver large number of goods at delivery points, while using less number of transports. The integrated suppliers can also supply their finished goods directly to the point. MCC has single sources for all major suppliers. About seventy percent of the material that reaches the assembly line is produced by system suppliers. The suppliers not only manufacture and deliver but design it as well. Transparency in the supply chain increases as the complications incurred by the host of non-interacting suppliers can be reduced. Manufacturing process starts with an outsourced company assembling the body and then providing the finished body to the next partner. Then the body is being painted. Every outsourced company knows what to do and they are master of the particular work they perform. This can be seen from the prospect of specialization. Information flow becomes easy as the

SCM hierarchy of the system is defined. Particular function is performed at a particular step and information is kept flowing. Rayport and Sviok1a have coined the term market space to describe the new world of

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electronic commerce, internets and virtual supply chains. In the market space, customer demands can be identified as it occurs and through CAD/CAM and flexible manufacturing products created in minimal batch sizes. Equa1ly networks of specialist suppliers are joined together to create innovative yet cost-effective solutions. The way that Smart cars are now designed and assemble, would not be possible without the use of global information networks that link one end of the value chain to the other. The Internet has perhaps provided one of the biggest breakthroughs of the late twentieth century when its potential impact upon supply chain management is considered.

Quality Assurance in the supply chain through Co-operation with suppliers The suppliers also monitor the successes and failures of MCC. By making the suppliers analyze the need of quality, it can be assured. Communication between the suppliers and the manufacturers should be effective enough so that misunderstandings can be avoided. To ease communication and the swap of ideas in the middle of staff and partners, a central area of the plant is considered as a meeting room. Its function as marketplace is reinforced by its use for open discussion of problems and for quality management and quality improvement meetings. The evaluation of the processes is being done automatically and is displayed at the market place. Actions include assembly line stoppage times, delivery performance, product reclamation and scrap, productivity targets and trends, as well as qualifications of teams or sections along the line.

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The model which is based on partnership is being practiced. The carmaker bears overall responsibility and is the module system integrator, process manager and manufacturer. The partners also share a substantial quantity of responsibility. The advantage of this modern system is to form co-operation, which enables the partners to contribute to the success and supports in the organizational success.

Disaster Management through Effective Supply chain Logistics comes under supply chain management. Logistics is divided into inbound and outbound logistics. Inbound logistics deals with internal transportation of firms such as moving raw materials from supplier to manufacturer. Outbound logistics deals with storage of data in warehouses and the distribution of products. Logistics is the professional key element of successful disaster management. It is a support service for relief operations in disaster and ongoing programs of the International Federation of Red Cross and Red Crescent. The basic task of the logistics function is to provide appropriate goods and services, under appropriate conditions, the quantity required and in the places and the time needed. (Ketchen & Hult, 2006, pp. 573-580) In the humanitarian field, logistics refers to the efficient and effective form of emergency relief from its origin to the beneficiaries. In a humanitarian context, the coordinated management of the supply chain to an effective response and optimal use of scarce resources are becoming crucial. It save lives and reduce the effects of disease due to inhumane living conditions. Logistics activities, then, must be managed from a global perspective that considers the full term of the supply-manufacturing process, delivery, greater exchange of information, more involvement of all companies, sharing responsibilities, and with the active participation of each a

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partner in decision-making and in addressing all the problems that arise (Ireland & Crum, 2005, pp.123). This means, changing the fragmented and by function, into a horizontal and processes. Positioning the supply chain and logistics within the establishments, it is possible to recognize the advantages that the company perceives as the product is delivered at the time, place and appropriate state, meeting the expectations of partners chain and customer (Makadok, 2001, pp. 387). To achieve the objectives of better performance in the competitive environment, companies should manage supply chain as it involves several processes or activities (Kevin, 2003, pp. 52). These activities include the procurement, planning, compliance with all relevant orders, emergency orders by the process on analysis of stocks, transfer and release of products, management and receipt of inventory, collateral management, monitoring of possible failures that may have components, invoicing, receipting and processing payments (Naim, Childerhouse, Disney & Towill, 2002, pp. 135). If we dig a little in the supply chain, distribution systems usually work with the management of the supply chain as the product is first passed through a small warehouse or store that is located in the business to be transferred (Hoopes, Madsen & Walker, 2003, pp. 889). Then the product is moved to a regional warehouse where the product will be stored until it is sent to storage for businesses that marketed it. In order to offer more specific concept, managing the supply chain is responsible for carrying out the planning, organization and control of all activities involving the supply chain (Chris, Harrity & Vitasek, 2005, pp.20). The companies that use SCM include Silicon Graphics, IBM, soft power and the German software titan SAP AG. According to a study conducted in UK, Ovum Associates has increased sales of SCM tools since 1995 to an average of 50 percent per year. In 1999, it won the global

SCM market for configuration management and "CM" tools and services, an increase of about $ 1.5

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billion. The fact that users of these SCM are already in first tests and have successfully applied it which leads to sustained growth. There are numerous strategies and processes that have been recommended for management is fragmented and complex characteristics of the tourist destinations, including planning, cooperation and partnership. In the Caribbean, it is noted that the multifaceted nature of the tourism industry of tourism ministries and agencies at the national level to address the marketing and promotion rather than product development in general. This focus will not be optimal, and "new and innovative ways should be designed for the tourism product in your hand". It is described that the sub-sector, consisting of producers (e.g., airlines, service providers, on-site), distributors (e.g. tour operators), intermediaries (such as financial service providers) and consumers (passengers / tourists). At the producer level, also believes that because of the complexity and the development of marketing campaigns, they will be able to change the direction of the value creation of the product development and integration of these two functions. Although the integration of marketing and planning at the regional and local level is not discussed in detail, Pun said that the cooperation of public and private sector cooperation is crucial to the success of building a dynamic private sector in tourism Caribbean. Development of this new measure requires regional cooperation and development of new institutions. This problem is evident when one examines the role and functions of tourism organizations, which are mainly engaged in marketing and promotion of tourist destinations. Review of tourism organizations in several developed countries, as provided on tourism organizations, shows that most travel agencies do not usually participate in the planning aspect

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of directions, with some exceptions. For example, the Department of Tourism New Zealand, one of the first national tourism organizations (NTOs), traces its roots back to 1901. Its activities prior to 1984 include the direct management and development of tourist zones, performing an extensive tour of the operating divisions and overseas sales and promotions, however, since 1984, the department has been deprived of their business operations and is currently focused on assisting the private sector develop and market New Zealand as a tourist destination in the framework of the objectives of the government. ROC is in connection with its important role in tourist destinations. Sustainability has been recognized by most members of the international scientific community, and increasingly accepted part of society, as the development model which should underpin the management of destinations tourist. However, the process of awareness and decision making regarding practical implications stemming from it has not been an easy road, facing often with conflicting positions and controversial debates in which warns that good intentions do not always found space policy to be real effective. This approach has been insufficiently incorporated into the development models implanted on the coastal tourism, expressed clearly problematic destinations traditional tourist sun and beach. New alternatives for these tourist areas have been made and taken to roads made on the basis of the principles of planning strategic space tourist, reorienting towards its consolidation as destinations Sun and Beach Resorts Plus. It is possible therefore, to assume the best and corroborated management practices of sustainable tourism development with critical approach and adapt to reality of coastal and inland areas of the Cuban archipelago. Derived from that statement is timely to reflect on how to structure strategic planning for coastal destinations to project management to local tourist a new scenario of sustainability? The

SCM scientific concern behind the selection of issue of finding geospatial management practices

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incompatible with fitness local functional space, which creates real adverse impacts potential. In that sense, it is necessary to design a strategic plan to guide the tourism implementation alternatives, therefore the high levels sensitivity of the receptive space to new development projects. To cope with the processes of local and regional development are used to local politics and management of tourist areas comprising different fashion planning, as problems to be solved, objectives and actors participants, among other determining factors.

Conclusion Today consumers and suppliers are increasingly concerned about the SECH (social, ethical, cultural and health) of the product. Everyone today is focusing on ethics in business because it is the only factor that contributes towards the success and trust in the organization. Research has indicated that today organizations are meeting the challenges without creating waste, loosing energy or damaging the communities touch. From the preceding discussion, it can be concluded that ethical supply chain management is viable. By comparing and contrasting researchers views and opinions about the issue of ethics and supply chain management, we come to know that they should ensure quality control that companies must build more accountable, transparent, and ethically managed supply chains. Corporations may not only have to be aware of their own relations with competitors and suppliers, but also to investigate the ethical dimensions of their supply chain. Ethical supply chain management involves investigating the ethical issues pertaining to all the members of the

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business network. In relation to developing countries, the firm would probably have to deal with questionable working practices of business partners in these countries. Recommendations The company should start the manufacturing of buses and truck that should be compact. This would make the traffic easier on the roads. The drive would be easier and the issues of parking would be further solved. The company should work on the electric cars because it would magnetize environment lovers and would considerably decrease the operating costs. The company should make its positioning extremely apparent to the target market segment which includes students, business people and working ladies along with the old people.

SCM REFERENCES

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Achrol, S. & Kotler, P. (1999),Marketing and the Network Economy, Journal of Marketing, vol. 63 no. (4), pp. 146-163. Bowersox Donald J. , David J. Closs , and T. P. Stank, (2003). How to Master Cross-Enterprise Collaboration, Supply Chain Management Review, vol. 7 no. (4) pp. 18-26 Bowersox, Donald J. , David J. Closs M. Bixby Cooper. (2002). Supply Chain Logistics Management. Boston: McGraw-Hill/Irwin, pp. 200-245 Chen, C. and Wang, L. ( 2008). Product Platform Design Through Clustering Analysis and Information Theoretical Approach , International Journal of Production Research, 46(15): pp. 4259-4284. Christopher M. and L. Ryals, (1999). Supply Chain Strategy: Its Impact on Shareholder Value, International Journal of Logistics Management, vol. 10 no. (1) pp. 1-100 Cooper Martha C. , Douglas M. Lambert , and Janus D. Pagh, (1997). Supply Chain Management: More Than a New Name for Logistics, International Journal of Logistics Management, vol. 8 no. (1) pp. 14-110 Daugherty P. J. and P. H. Pittman, (2002). Utilization of Time-Based Strategies: Creating Distribution Flexibility/Responsiveness, International Journal of Operations 8 Production Management, vol. 15 no. (2) pp. 54-60 Galbraith, Jay R. and Daniel A. Nathanson (1978), Strategy Implementation: The Role of Structure and Process. St. Paul, MN: West Publishing, Pp.98-250 Galbraith, Jay R. and Robert K. Kazanjian (1986), Strategy Implementation: Structure, Systems, and Process. St. Paul, MN: West Publishing, Pp.67-90

SCM Gulati, Ranjay and James B. Oldroyd. (2005), The Quest for Customer Focus, Harvard Business Review, April, pp. 92-101.

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