CHAPTER 4: SUSTAINABILITY IN THE SUPPLY CHAIN

Sustainability

Regulations and industry standard

Corporate Social
Responsibility

Includes employees, customers,
community, and company reputation

Meeting the needs of present without compromosing the ability of future generations to meet their needs


make a More than “going green”

also known as CSR

click to edit

Being a socially responsible company can bolster a company's image and build its brand

is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

Stakeholders have strong opinions about
environmental, social, and ethical issues

issue related to CSR

competitive of labour market

commons

Common resources often misallocated

Many inputs to a production system
held by the public

Regulations and Industry Standard

Nearly all industries have regulations

Disassembly and disposal of
hazardous products

International Environment Policies And Standard

European Union Emissions Trading System

To combat climate change

Reduce industrial GHG emissions

“Cap-and-trade” principle

Design and Production for Sustainability

Product Design

Incorporate systems view to lower environmental impact

alternative materials

Production Process

Reduce the amount of resources in the
production process

Reduce cost and environtmental concerns

Logistic

Management analytics can help

Life cycle ownership costs

Evaluate equipment alternatives

Triple bottom Line

Decisions affect people

Decisions affect people

Supplier selection and performance
criteria are important

Materials must be safe and
environmentally responsible

End-of-Life Phase

Automaker’s design incorporates
disassembly, recycling, and reuse

What happens at the
end-of-life stage?

Life Cycle Ownership Costs

Design for assembly