Sustainability in the Supply Chain (Regulation and Industry Standard (ISO…
the Supply Chain
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
Meeting the needs of the present without compromising the ability of future generations to meet their needs.
Includes employees, customers,
community, and company reputation
Looking at a product’s life from design to disposal.
Many inputs to a production system held by the public. Common resources often misallocated.
Triple Bottom Line:
Consider the systems necessary to support the three Ps: people, planet and profit.
Design and Production for Sustainability
Life Cycle assessment
valuate the environmental impact of a product, from raw material and energy inputs all the way to disposal of the product at its end of life.
Reduce the amount of resources in the production energy (water,energy and environmental contamination)
Reduce costs by achieving efficient route and delivery network.
Life Cycle Ownership Costs
( Total life cycle = Cost of vehicle + Life cycle cost of fuel + Life cycle operating cost )
Closed-loop supply chains or reverse logistics.
Design decisions affect materials, quality, cost, processes, related packaging & logistic and how the product will be processed when discarded.
Design for disassembly
( Revenue Retrieval = Total resale revenue + Total recycling revenue - Total Processing costs - Total disposal cost )
Regulation and Industry Standard
Food and Drug Administration, Consumer Products Safety Commission and National Highway Safety Administration
Manufacturing and assembly activities:
Occupational Safety and Health
Administration (OSHA), Environmental Protection Agency (EPA) and State and local agencies
Disassembly and disposal of
EPA, Department of Transportation and
Design for disassembly
Policies and Standards:
U.N. Framework Convention on Climate Change (UNFCCC), International Organization for Standardization (ISO), and Elimination of greenhouse gas (GHG)
European Union Emissions
(Reduce industrial GHG emissions)
Environmental management standards:
Environmental management, Auditing, Performance evaluation, Labeling and Life cycle assessment.
Positive public image, reduced liability, Good systematic approach to pollution prevention, Compliance with regulatory requirements, opportunities for competitive advantage and others.