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SUSTAINABILITY IN THE SUPPLY CHAIN (DESIGN PRODUCTION FOR SUSTAINABILITY,…
SUSTAINABILITY IN THE SUPPLY CHAIN
CSR
DEFINITION
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
ISSUES
• Employees and workplace issues
• Unfair business practices
• Organizational governance
• Environmental issues
• Issues of market and customers
• Issues involving the community
• Social development
• Human rights
REGULATIONS & 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
International Environmental Policies and Standards
Organizations and governments guiding businesses
► U.N. Framework Convention on Climate Change (UNFCCC)
► International Organization for Standardization (ISO)
► Elimination of greenhouse gas (GHG)
ISO 14000
Environmental management standards
Environmental management
Auditing
Performance evaluation
Labeling
Life cycle assessment
Environmental and economic benefits
Reduced materials/resource usage
Reduced energy consumption
Lower distribution costs
Improved image
Improved process efficiency
Reduced waste and disposal costs
SUSTAINABILITY
DEFINITION
Meet the needs of the present without compromising the ability of future generations
More than “going green”
employees
customers
community
company reputation
CONCEPTS
System view
Look at a product’s life from design to disposal
The product or service itself is a small part of much larger social, economic, and environmental systems
Understand systems allows more informed judgments
Common
Many inputs to a production system held by the public
Common resources often misallocated
Possible solutions include
Moving some of the common to private property
Allocation of rights
Allocation of yield
Triple bottom lin
e
profit (economic sustainability)
planet (environmental sustainability)
people (social sustainability)
DEFINITION
Materials must be safe and environmentally responsible
Supplier selection and performance criteria are important
Globalization and outsourcing complicate the task
Decisions affect people
GOALS/ WALMART'S OBJECTIVES
Improving livelihoods through the creation of productive, healthy, and safe workplaces
Building strong communities through access to affordable, high-quality services
Prevent exposure to substances - harmful or toxic
Promoting health and wellness
DESIGN PRODUCTION FOR SUSTAINABILITY
Life cycle assessment : valuates the environmental impact (raw material and energy inputs -> disposal/ end-of-life
to make decisions that help reduce the environmental impact of a product throughout its entire life
The 3Rs— reduce, reuse, and recycle
PRODUCT DESIGN
Design decisions affect materials, quality, cost, processes, related packaging and logistics, and how the product will be processed when discarded
Incorporate systems view to lower environmental impact
Alternative materials
PRODUCTION PROCESS
Reduce the amount of resources in the production process
Reduce cost and environmental concerns
LOGISTICS
Reduce costs by achieving efficient route and delivery networks
Getting shipments to customers promptly
Keeping trucks busy
Buying inexpensive fuel
Management analytics can help
Evaluate equipment alternatives
Life cycle ownership costs
END-OF-LIFE PHASE
Closed-loop supply chains or reverse logistics
Automaker’s design incorporates disassembly, recycling, and reuse