SECTION A $[40$ MARKS$]$

Read the case study below and answer ALL the questions in this section.

Nike Continues Trend Toward Sustainability with New Partnership

March $21,2024$

Sportswear and apparel leader Nike has taken another major step toward sustainability by partnering with French shipping

group CMA CGM$.$ Under the agreement, Nike will purchase sustainable biofuel to power $36\%$ of its maritime cargo.

The initiative is expected to reduce Nike$$s CO$2$ emissions by $25,000$ tons and is a crucial part of the company$$s larger

Move to Zero initiative, which aims to reach a net zero carbon footprint in its shipping operation by $2050.$

$$Collaborating with a key player like Nike and taking this major step towards decarbonization is an important achievement,$$

said Olivier Nivoix, executive vice president of CMA CGM Group Lines.

In $2020,$ CMA CGM introduced its $$ACT With CMA CGM$$ range of solutions, providing clients with a variety of low$-$carbon,

alternative energy options including biofuel, liquefied natural gas $($LNG$),$ and biomethane.

While this partnership will help Nike in reducing its carbon footprint, other companies have struggled with embedding

sustainability into their workflows. A recent study by the IBM Institute for Business Value of $5,000$ C$-$Suite Executives

revealed that nearly half $(47\%)$ struggle to fund sustainability investments while $60\%$ admit to making trade$-$offs between

financial and sustainability outcomes.

Nike is hoping others follow in their path toward sustainability.

$$We are confident that our success will act as a catalyst, encouraging other carriers and customers to join us on this path

to accelerate the transition towards a Net Zero industry,$$ Nivoix said.

Nike Continues Trend Toward Sustainability with New Partnership $-$ Supply Chain $24/7($supplychain$247.$com$)$

QUESTION $1(20$ Marks$)$

There are four major elements of supply chain management$$ integration, operations, purchasing and

distribution. Each of these foundations relies on the others to provide a seamless path from plan to

completion as inexpensively as possible. Outline each of the FOUR $(4)$ elements and discuss the

sustainability trend using examples from the article above to support your answer.

QUESTION $2(20$ Marks$)$

Firms expand their supply base to include foreign suppliers for many reasons. However, the primary reason

for using an international supplier is that better value is perceived to be available from that source than from a

domestic supplier. Provide ANY FOUR $(4)$ reasons for global sourcing and the trend towards sustainability,

refer to the article above