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Gr7 SS | Globalization: Supply Chains

Supply Chains

Supply Chain Overview

A supply chain is a network of organizations, people, activities, information, and resources involved in producing and delivering a product or service. It encompasses all stages from sourcing raw materials to manufacturing, distribution, and ultimately delivering the finished product to consumers.

Supply Chain Example: Smartphone Production

  1. Raw Material Sourcing:
    • Tier 3 Suppliers: Mining companies extract essential minerals like lithium, cobalt, and rare earth elements from various countries, including Chile and the Democratic Republic of Congo. These materials are crucial for batteries and circuit boards.
    • Environmental Impact: Mining operations can lead to significant ecological damage, including habitat destruction and water pollution.
  2. Material Processing:
    • Tier 2 Suppliers: Refineries process raw materials into usable components. For instance, lithium is converted into lithium carbonate, which is then used by battery manufacturers.
    • Labor Practices: These suppliers may face scrutiny regarding labor conditions, especially in regions with lax regulations.
  3. Component Manufacturing:
    • Tier 1 Suppliers: Companies like Samsung produce critical components such as chips and displays. They source their materials from multiple Tier 2 suppliers.
    • Supply Chain Complexity: The interdependencies among suppliers mean that delays at one level can impact production schedules at another. For example, a shortage of semiconductors can halt assembly lines.
  4. Assembly:
    • Manufacturer: Companies like Foxconn assemble the smartphones in factories located in countries such as China or India. This process involves coordinating multiple suppliers for various parts.
    • Ethical Concerns: Labor practices in these factories have been criticized for poor working conditions and low wages.
  5. Distribution:
    • Logistics Providers: Once assembled, smartphones are shipped globally through complex logistics networks involving air and sea freight.
    • Regulatory Compliance: Companies must navigate various regulations regarding electronics shipping and customs in different countries.
  6. Retail and Consumer Sales:
    • Retailers: Smartphones are sold through physical stores and online platforms, where consumer preferences can shift rapidly based on trends or new releases.
    • Consumer Awareness: Increasingly, consumers are concerned about the environmental impact of their purchases, leading companies to enhance transparency about their supply chains.
  7. End-of-Life Management:
    • Recycling Programs: Companies are beginning to implement take-back programs to recycle old devices, aiming to reduce electronic waste and recover valuable materials.
    • Sustainability Goals: Many brands set targets for sustainability, such as using recycled materials in new products or reducing carbon emissions across their supply chain.

Sustainability Coverage (Positive)

The resources below provide generally positive coverage about sustainability. Use the search function to look up your company or products your company makes. 

Other Tips & Resources

Searching for Issues

It's in a company's best interest to try and minimize coverage of unethical practices or mishaps. Use your search browser in different ways to try to find instances of these. For example: 

  • [Company] and greenwashing
  • [Company] and scandal
  • [Company] and environmental concerns

Sometimes in your research, you'll stumble upon a problem that the company encountered in the past. Go ahead and spend more time exploring those. Research can be a meandering process.

 

Company Disclosures

Companies that are publicly traded are required to give information to the public. Follow the steps below to find it.

  1. Navigate to the company website. 
  2. Scroll to the bottom of the page where a list of links generally is.
    1. Links are typically at the bottom. You might have to find them somewhere else on the webpage. Ask your teacher for help if needed.
  3. Look for links that are called something similar to the words below:
    1. Investors
    2. Sustainability
    3. Environment
    4. Disclosures
    5. Supply Chain

Take some time to explore the company website and the information they provide. As you explore, take note of how the information is organized -- there might be a tag or link you can click on that will provide you with what you're looking for based on the way the company has organized and labelled their information.

Product Supply Chains

Finding the supply chain of a specific product can be very difficult. Unfortunately, highly specific information is often behind a paywall. Instead try some of these tips:

  • Use a search engine, searching like this:
    • "[Company] supply chain"
    • "[Product] supply chain"
    • "Supply chain transparency [Product]"
  •  Use a search engine to look up related topics that you've already found connections with 
    • "Environmental impact of [lithium ion batteries]"
  • Use the terminology of supply chains in your searches:
    • supply chain practices
    • supply chain management
    • supply chain visibility
    • sourcing
    • logistics
    • procurement
    • raw materials
    • distribution channels
    • inventory management
    • warehousing
    • just-in-time inventory
    • sustainable sourcing
    • environmental, social, and governance (ESG)
  • When finding things online, remember to evaluate the sources for:
    • Currency
    • Relevance
    • Authority
    • Accuracy
    • Purpose
  • Try finding information on the company website

Sustainability Coverage (Critical)

The resources below provide generally critical coverage about sustainability. Use the search function to look up your company or products your company makes. 

Investigative Reporting

The resources below are "investigative journalism," which is more critical in coverage that seeks to dig deep to uncover information that might be hidden from the public. Often, coverage is about corruption, scandal, crime, and unfair practices. The goal is to hold those in power accountable. Use the search feature to look up your company, names of high-level people in your company, or products your company makes.