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SUSTAINABILITY IN THE SUPPLY CHAIN* (Triple Bottom Line (Consider system…
SUSTAINABILITY IN THE SUPPLY CHAIN*
Corporate Social Responsibility
How products and services affect people and environment
Stakeholders have strong opinion : enviromental,social, and ethical issue
Doing whats right be beneficial to stakeholders
Sustainability
Meetings need of present without compromising ability of future generation to meet ther need
More than going green
Meeting needs of present without compromising ability of future generations to meet their need
System View
Looking: product's life from design to disposal
The product/service itself is a small part of much larger social, economic, environmental ssystems
Understand system allows more informed judgements regarding sustainability
Commons
Many inputs to a production system held by public
Resource: often misallocated
Possible solution includes
Moving some common to private property
Allocation rights
Allocation of yield
Triple Bottom Line
Consider system necessary support three Ps: people, planet, profit
Decision affect people
Globalization and outsourcing complicate the task
Supplier selection and performance-important
Material - safe and enviromentally responsible
Social and environmental sustaintainability not exist without economic sustainability
Staying in business- requires making profit
Design and Production for Sustainability
Life cycle assessment
valuates environmental impact of product
Goal: to make decisions to help reduce environmental impact of product
The 3Rs - Reduce, Reuse, Recycle
Product design
Affect materials, quality, cost, processes,related packaging and logistic
Effect how product will be processed when discarded
Incorporate systems view to lower environmental effect
Alternative material
Production Process
Reduce amount of resources in production process : energy, water, environmental contamination
Reduce cost and environmental concerns
Logistic
Reduce cost : achieve efficient route and delivery networks
Management analytics can help
Evaluate equipment alternatives
Life cycle ownership costs
End of Life Phase
Close-loop supply chains
Automakers design incorporates disassembly, recycling, and reuse
Regulations and Industry standard
Product Design
Food and Drug Administration
Manufacturing and assembly activities
Environmental Protection Agency (EPA)
Disassembly and disposal of hazardous products
Department of Transportation
Design for diassembly
Nearly all industries have regulation
Commercial builders
International Environmental Policies and Standards
Organizations and governments guiding businesses : Elimination of greenhouse gas
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 assessment
Advantages
Positive public image, reduce liability
Good systematic approach to pollution prevention
Reduction in need for multiple audits
Implemented : more than 200 000 organizations in 155 countries
Environmental and economic benefits
reduce material/resource usage
Reduced energy consumption
Lower distribution costs
Improved image
Improve process efficiency
Reduce waste and disposal costs
Guidance to minimize harmful effect on environment