CHAPTER 4: SUSTAINABILITY IN THE SUPPLY CHAIN :<3: (DESIGN AND…
CHAPTER 4: SUSTAINABILITY IN THE SUPPLY CHAIN
CORPORATE SOCIAL RESPONSIBILITIES (CSR)
How products and services affect people and the environment
Stakeholders have strong opinion about environment, social and ethical issues
Managerial decision making that considers environmental, societal and financial impacts.
that developing policies and practices that enhance the competitiveness of an organization while advancing the economic and social conditions in the communities in which its operates.
Meeting the needs of the present without compromising the ability of future generations to meet their needs.
CONCEPTS SUSTAINABILITY DECISIONS
Refers to the 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 environment systems.
Understanding the systems allows more informed judgments regarding sustainability.
TRIPLE BOTTOM LINE
Consider the systems necessary to support:
- Companies are aware of how their decision affect people such as employees, customers, and suppliers.
- Carbon footprint is a measure of total greenhouse gas emissions cause directly or indirectly by an organization, a product, an event or a person.
- Economic sustainability is an appropriately allocating scarce resources to make a profit.
Many inputs to a production system held by public.
Possible solutions include:
:check: Moving some of the common to private property.
:check: Allocation of rights.
:check: Allocations of yield
DESIGN AND PRODUCTION FOR SUSTAINABILITY
Life cycle assessment
is an evaluates 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 goals is to incorporate a systems view in the product or service design that lowers the environmental impact.
Product design teams also look for alternative materials from which to make their products.
Manufacturers look for ways
to reduce the amount of resources in the production process
that revolve around the themes of
Managers strive to achieve
delivery networks to reduce costs
Operation managers also evaluate equipment alternatives, taking into account cost, payback period and the firm's stated environment objectives.
Closed-loop supply chains
(reverse logistics) is a supply chains that consider forward and reverse product flows over the entire life cycle.
REGULATIONS AND INDUSTRY STANDARDS
:check: Food and Drug Administration
:check: Consumer Products Safety Commission
:check: National Highway Safety Administration
MANUFACTURING AND ASSEMBLY ACTIVITIES
:check: Occupational Safety and Health Administration (OSHA)
:check: Environmental Protection Agency (EPA)
:check: State and Local Agencies
DISASSEMBLY AND DISPOSAL OF HAZARDOUS PRODUCTS
:check: Department of Transportation
INTERNATIONAL ENVIRONMENTAL POLICIES AND STANDARDS
European Union Emissions Trading System
To combat climate change.
Reduce industrial GHG emissions.
" Cap-and-Trade principle
which means there is a limit on the total amount of certain greenhouse gases .
Environmental Management Standards Elements:
:check: Environment Management
:check: Performance Evaluation
:check: Life Cycle Assessment
:check: Positive public image, reduce liability
:check:Good systematic approach to pollution prevention
:check: Compliance with regulatory requirements, opportunities for competitive advantage
:check: Reduction in the need for multiple audits
Environmental and Economic Benefits:
:check: Reduced materials/resource usage
:check: Reduced energy consumption
:check: Lower distribution costs
:check: Improve image
:check: Improve process efficiency
:check: Reduced waste and disposal costs
Organizations and Governments guiding business:
:check: U.N Framework Convention on Climate Change (UNFCCC)
:check: International Organization for Standardization (ISO)
:check: Elimination of greenhouse gas (GHC)
NEARLY ALL INDUSTRIES HAVE REGULATIONS
:check: Commercial builders
:check: Federal Safe Drinking Water Act
:check: Resource Conservation and Recovery Act