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SUSTAINABILITY IN THE SUPPLY CHAIN (design and production for…
SUSTAINABILITY IN THE SUPPLY CHAIN
corporate social responsibility
firm need to consider all the implication of a product-form design to disposal
managerial decision making that considers environmental, societal, and financial impacts in the decision making.
how the products and services affect people and the environment
sustanainability
more than going green - recycling,global warming and saving rainforest.
it also includes employees, customers, community and the company's reputation
meeting the needs of the present without compromising the ability of future
3 concepts that helpful consider sustainability decision that is system view, the commons and the triple bottom line.
system view
looking at product's life from design to disposal, including all the resources required
the product or service itself is a small part of much larger social, economics and environmental system
understanding system allows more informed judgments regarding sustainability
commons
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 line
consider the systems necessary to support the three Ps - PEOPLE, PLANET & PROFIT
decision affect people
globalization and outsourcing complicate the task
supplier selection and performance criteria are important
design and production for sustainability
life-cycle assessment valuates the environmental impacts of a product,from raw material and energy input all the way to the disposal of the product and it end of life
goal - to make decisions that help reduce the environmental impact of a product throughout its entire life.
3R
REDUCE
REUSE
RECYCLE
PRODUCT DESIGN
design decisions affect materials, quality, cost, processes, related packaging and logistic, and how the product will br processed when discarded
incorporate system view to lower
alternative material
PRODUCTION PROCESS
reduce costs and environmental concerns
reduce the amount of resources in the production process - energy - water - environmental contamination
LOGISTIC
reduce costs by achieving efficient route and delivery networks
keeping trucks busy (capacity utilization)
buying in expensive fuel (driving down costs)
getting shipments to customers promptly (rapid response)
END-OF-LIFE-PHASE
what happens at the end -of-life-stage
closed-loop supply chains or reverse logistics - no longer sell a product
automakers design incorporates disassembly, recycling and reuse
regulations and industry standards
product design
consumer products safety comission
national highway safety administration
food and drug administration
manufacturing and assembly activities
Occupational Safety and Health Administration (OSHA)
Environmental Protection Agency
state and local agencies
Disassembly and disposal of hazardous products
EPA
Department of Transportation
Nearly all industries have regulations
Commercial builders
Federal Safe Drinking Water Act
Resources Conservation and Recovery Act
International Environmental Policies and Standards
Organizations and government guiding business
U.N. Framework Convention on Climate Change (UNFCCC)
International Organization for Standardization (ISO)
Elimination of greenhouse green (GHG)
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 asessment
Advantages
positive public image, reduced liability
good systematic approach to pollution prevention
compliance with regulatory requirements, opportunities for competitive advantage
reduction on the need for multiple audit
addresses environmental system
guidance to minimize harmful effects on the environment