SUSTAINABILITY IN THE SUPPLY CHAIN
Corporate Social Resposibility
how products & services affect people & the envairoment
stakeholders have strong opinions about environmental,social and ethical issues
doing what right can be beneficial to all stakeholders
Sustainability : meeting that needs of the present without compromising the ability of future generations to meet their needs
Design and production for sustainability : to make decisions that help educe the environmental impact of a product throughout its entire life
systems view
product life from design to disposal inc all the resources
product or service itself is a small part of much larger social,economic & environmental systems
understand systems informed regarding sustainability
Commons
many inputs production system held by the public
common resources often misallocated
moving some of the common to private property
Triple bottom line : people planet & profit
Decisions affect people
overarching objective is to conserve scarce resources
material must be safe and environmentally responsible
carbon footprint : total 75g
look for ways to reduce the environmental
farming 44%
manufacture 30%
packaging 15%
shipping 9%
disposal 2%
product design
design decisions affects materials, quality, cost , related packaging and logistic
incorporate systems view to lower environmental impact
alternative materials
Design for disassembly
Harmonizer
rocker
production process
reduce the amount of resources in the production : energy,water & environmental contamination
reduce cost & environmental concerns
Logistics : reduce cost by achieving efficient route & delivery networks
getting shipments to customers
keeping trucks busy
buying inexpensive fuel
Life cycle ownership costs
total life = cost of vehicle + life cycle cost of fuel + life cycle operating cost
end of life phase
closed loop supply chains or reverse logistics
automaker design incorporates disassembly,recycling
and reuse
REGULATIONS AND INDUSTRY STANDARDS
product design
food & drug administration
consumer products safety commisions
national highway safety administration
Manufacturing & assembly activities
occupational safety health administration (OSHA)
State & local agencies
Nearly all industries
commercial builders
federal safe drinking water act
international environmental policies standards
organizing and governments guiding business
U.N. Framework Convention on
Climate Change (UNFCCC)
Elimination of greenhouse gas (GHG)
European Union Emissions
Trading System
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To combat climate change
Reduce industrial GHG emissions
“Cap-and-trade” principle
ISO 14000
Environmental management standards
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Environmental management
Auditing
Performance evaluation
Labeling
Life cycle assessment
Advantages
Positive public image, reduced liability
Good systematic approach to pollution
prevention
Reduction in the need for multiple audits