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SUSTAINABILITY IN SUPPLY CHAIN - Coggle Diagram
SUSTAINABILITY IN
SUPPLY CHAIN
Corporate Social
Responsibility
How products and services affect people
and the environment
Stakeholders have strong opinions about
environmental, social, and ethical issues
Doing what’s right can be beneficial to all
stakeholders
Sustainability
Meeting the needs of present w/o neglecting future generations needs
More than “going green”
Includes employees, customers,
community, and company reputation
System view
Looking at a product's life, including all resources
The product or service itself is a small part of much larger social, economic, and environmental systems
Understanding systems allows more informed judgments regarding sustainability
Common
Many inputs to a production system held by the public
Possible solutions include
Moving some of the common to private property
Allocation of rights
Allocation of yield
Common resources often missllocated
Triple Bottom Line
Consider the systems necessary to support three Ps:
Planet
Profit
People
Regulations and Industry
Standards
Product design
Food and Drug Administration
Consumer Products Safety Commission
National Highway Safety Administration
Manufacturing and assembly activities
Occupational Safety and Health
Administration (OSHA)
Environmental Protection Agency (EPA)
State and local agencies
Disassembly and disposal of
hazardous products
EPA
Department of Transportation
European Union Emissions
Trading System
To combat climate change
Reduce industrial GHG emissions
“Cap-and-trade” principle
ISO 14000
Environmental management standards
Environmental management
Auditing
Performance evaluation
Labeling
Life cycle assessment
Advantages
Positive public image, reduced liability
Good systematic approach to pollution
prevention
Reduction in the need for multiple audits
Environmental and economic benefits
Reduced materials/resource usage
Reduced energy consumption
Lower distribution costs
Improved image
Improved process efficiency
Reduced waste and disposal costs
Design and Production for
Sustainability
Logistics
Reduce costs by achieving efficient route and delivery networks
Evaluate equipment alternatives
Life cycle ownership costs
Life cycle assessment valuates the environmental impact of a product, from raw material all the way to the disposal of the product
The goal is to make decisions that help reduce the environmental impact of a product using the 3Rs
Production process
Reduce the amount of resources in the production process
Reduce cost and environmental concerns
End-of-Life Phase
Closed-loop supply chains or reverse logistics
Automaker’s design incorporates
disassembly, recycling, and reuse