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Sustainability in the Supply Chain (Regulations and Industry Standards…
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
Meeting the needs of the present without compromising the ability of future generations to meet their needs
More than “going green”
Includes employees, customers, community, and company reputation
Systems View
Looking at a product’s life from design to disposal, including all the resources required
The product or service itself is a small part of much larger social, economic, and environmental systems
Understanding systems allows more informed judgments regarding sustainability
Commons
Many inputs to a production system held by the public
Common resources often misallocated
Possible solutions include:
1) Moving some of the common to private property
2) Allocation of rights
3) Allocation of yield
Triple Bottom Line
Consider the systems necessary to support the three Ps: people, planet, and profit
• Decisions affect people
• Globalization and outsourcing complicate the task
• Supplier selection and performance criteria are important
• Materials must be safe and environmentally responsible
Improving livelihoods through the creation of productive, healthy, and safe workplaces
Building strong communities through access to affordable, high-quality services
Preventing exposure to are considered harmful
substances that or toxic
Promoting health and wellness
Walmart’s Objectives
Design and Production for Sustainability
• Life cycle assessment valuates the environmental impact of a product, from raw material and energy inputs all the way to the disposal of the product at its end-of-life
• The goal is to make decisions that help reduce the environmental impact of a product throughout its entire life
• The 3Rs— reduce, reuse, and recycle
Production Process
1) Reduce the amount of resources in the production process
• Energy
• Water
• Environmental contamination
2) Reduce cost and environmental concerns
Logistics
Reduce costs by achieving efficient route and delivery networks
Management analytics can help
Evaluate equipment alternatives
Life cycle ownership costs
End-of-Life Phase
Closed-loop supply chains or reverse logistics
Automaker’s design incorporates disassembly, recycling, and reuse
Regulations and Industry Standards
Product design
1) Food and Drug Administration
3) National Highway Safety Administration
2) Consumer Products Safety Commission
Manufacturing and assembly activities
Occupational Safety and Health Administration (OSHA)
Environmental Protection Agency (EPA)
State and local agencies
Disassembly and disposal of hazardous products
• EPA
• Department of Transportation
Design for disassembly
Nearly all industries have regulations
Commercial builders
Federal Safe Drinking Water Act
Resource Conservation and Recovery Act
International Environmental Policies and Standards
1) U.N. Framework Convention on Climate Change (UNFCCC)
2) International Organization for Standardization (ISO)
3) Elimination of greenhouse gas (GHG)
European Union Emissions Trading System
ISO 14000