Solution

3.0 Sustainable Global Sourcing Decisions

Sustainable global sourcing is important because it helps businesses optimise environmental, social, and economic factors throughout a product’s lifecycle. Sustainable procurement goals give companies an edge in the market and pave the way for long-term success, as stated by CIPS (2022a). Figure 4 depicts a summary of the sustainable procurement approach.

Figure 4: Supply Chain Sustainable Procurement Strategies

In addition, the idea that multinational entities have not succeeded in managing social and environmental issues holistically guides the relevance of sustainable sourcing in the report by Suprayitno and Stendel (2020), which has built a system model. Therefore, the best suppliers are chosen with consideration given to social, ethical, and environmental performance considerations as part of a worldwide sustainable sourcing strategy.  ADNOC, is a company in the energy sector that prioritises achieving global, comprehensive, sustainable sourcing. This is for the company to get a substantial edge over its competitors and ultimately dominate its market.

3.1 Considered Factors in Sustainable Global Sourcing Decision

Leal Filho et al. (2019) highlights the need to combine social and environmental variables to comprehend the viability of global sourcing decision in terms of profits and long-term practices. Figure 5 of the CIPS notes providing evidence for the Triple Bottom-Line Model depicts this.

Figure 5: Triple Bottom Line in Achieving Global Sourcing Sustainability

People-ADNOC’s mission is to improve the quality of life for all people in the communities where its businesses operate and beyond. ADNOC (2022) emphasises the importance of achieving value for money in ADNOC’s purchased products and services to pave the way for the company’s success in reaping the benefits of its investments in Solar Panels.

Planet-Entities should consider clean practices, incorporating the best environmental management to represent the best approach. When it comes to ensuring their solar panels are safe for the environment, ADNOC makes careful to fix any problems they may have had. This is being handled competently.

Profits-Dividends, repayment of various creditors, and hiring creditors and employees are all suitable uses of a company’s income. The ADNOC organisation has a deadline of 60 days when working with its suppliers. They make sure all of their vendors are covered by company policy.

The importance of these rules lies in the fact that they provide well-defined roles and comprehensive purchasing procedures. These are suitable and in keeping with ADNOC’s overall energy sector focus. This is done while ensuring a bright future through the wise use of donations and the enthusiastic participation of internal stakeholders.

3.2 Sustainable Global Sourcing Decision Making

CIPS (2021) argues that integrating proper decision-making is crucial to the success of global sourcing. This is accomplished by carefully considering the bidding strategy, supplier selection, and induction processes. ADNOC finds this to be an arduous task. According to CIPS (2021a), this is justified by giving weight to issues including the credibility and experience of the sourcing team as well as the cost, quality, logistics, and technical viability of any potential alternatives. All relevant parties must be consulted before any decisions are made. Participation from a wide range of interested parties would facilitate decision-making. The Mendelow stakeholder analysis matrix (Figure 6) could be used for this purpose.

Figure 6:ADNOC Mendelow Stakeholders Analysis

Low Influence; Low Interest-ADNOC’s management and HSE division have little sway or interest in the company. Their primary responsibility would be ensuring their supply chain is managed sustainably. The minimal effort would be needed because there are no competing priorities. Their key impact is ensuring long-term decision-making that leads to optimum performance across all areas of an organisation’s finances and operations.

High Influence; Low Interest-Decisions in the supply chain are heavily influenced by the community and society but receive little attention. ADNOC’s end-customers have a hand in determining the optimum prices, logistics, R&D, and product specifications for the solar panels the company sells.

High Influence; the supply chain, procurement, and finance departments would heavily influence High Interest-Decisions. This can be achieved by incorporating consideration for humanity and the environment into policymaking. As a result, thinking of their needs should take precedence in making decisions.

High Interest; Low influence-Competition and government officials have strong motivations but limited sway. The government of the United Kingdom has made solar panels part of its official policy to reduce the country’s carbon footprint (see Appendix 1). Their rivals would be watching their every move; therefore, they must be kept in the loop.

Therefore, the effectiveness of the ADNOC supply chain may be maximized by the involvement of many stakeholders, as shown in Figure 5. The most important measures of performance are;

Improved material flow in ADNOC-Upwards of 4,000 customers is currently being served, which, according to the ADNOC website, equates to over 500,000 active households being serviced by solar panels. Therefore, their business practices would change if they were to base their judgments on supply chain factors rather than pure shareholder profit maximization.

Harnessed information management-Since the outbreak, ADNOC has made great strides in ensuring the smooth dissemination of information. Recent disruptions in their supply chain have substantially impacted their strategy for achieving sustainability, so this isn’t surprising.

Responsivity to market demands-ADNOC is dedicated to reshaping the UK’s energy landscape and reducing its reliance on fossil fuels. This requires committing to long-term corporate goals and maintaining economic expansion.

3.3 Global Supply Chain Risks Identified

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