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SUSTAINABILITY IN THE SUPPLY CHAIN : (Sustainability (System view (The…
SUSTAINABILITY IN THE 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
Includes employees, customers,
community, and company reputation
Meeting the needs of the present without compromising the ability of future.
More than “going green”
System view
The product or service itself is a small part of much larger social, economic, and environmental systems
Understanding systems allows more informed judgement regarding :sustainability
Looking at a product's life from design to disposal, including all the resources required
Triple bottom line
Consider the system necessary to support three Ps:
Profit
People
Planet
Common
Many inputs to a production system held by the public
Common resources often misallocated
Possible solution include
Allocation of right
Allocation of yield
Moving some of the common to private property
Design and Production for sustainability
Life cycle assessment valuates the environmental impact of a product, from raw material and the energy inputs all the way to the disposal of the product at its end-of-life
The 3Rs-- reduce, reuse, and recycle
Production process
Reduce amount of resources in the production process
Reduce cost and environmental concerns
Logistics
Reduce cost by achieving efficient route and delivery networks
Management analytics can help
Life cycle ownership costs
End of Life Phase
Closed loop supply chains or reverse logistics
Automakers's design incorporates disassemble, recycling, and reuse
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
International environmental policies and standards
Organization and governments guiding business
Elimination of greenhouse gas (GHG)
U.N framework convention on climate change (UNFCCC)
International organization for standardization (ISO)
European Union Emissions Trading System
To combat climate change
Reduce industrial GHG emission
"Cap and trade" principle
ISO14000
Environmental management standards
Environmental management
Auditing
Performance evaluation
Labeling
Life cycle assessment
Advantage
Positive public image, reduced liability
Good systematic approach to pollution prevention
Compliance with regulatory requirements, opportunities for competitive advantage
Reduction in the need for multiple audits
Environmental and economic benefits
Reduced energy consumption
Reduced material/resourcesusage
Lower distribution costs
Improved image
Improved process efficientcy
Reduced waste and disposal costs