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UT Knoxville BUAD 331 - BA 331 Chapter 13

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Slide 1Slide 2Sustainability…. Corporate CitizenshipSlide 4Eco-EfficiencyResource FootprintSlide 7The Triple Bottom LineSlide 9Slide 10Slide 11Slide 12Sustainability… ExampleDiscussionBusiness Administration 331Supply Chain ManagementChapter 13Dr. John E. BellAssociate Professor of Supply Chain Management 343 Stokely Management [email protected]’s on many companies’ strategic agenda?Growth?Growth?Performance?Performance?Change?Change?Sustainabi l ity?Sustainabi l ity?Sustainability…. Corporate CitizenshipShay Scott3•Are environmental strategies appropriate for business and supply chain?•Can they still be profitable?•How do firms create an environmentally sustainable supply chain?Sustainability?Sustainability?What’s “Sustainable”?Eco-Efficiency5Producing more value in terms of products/services with less resources, waste, and pollutionResource Footprint6Sustainable vs GreenPeople, Planet, Profit (Triple Bottom Line)Requires new technology and new business processesPerforming current business processes more efficientlyEco-efficiencyFocus of sustainability is to find the balance between sound ecological decisions and profitable operationsSustainable GreenSocial•Human rights•Education•Labor standards•Access to products & services•Health•Community impact•DiversitySocial•Human rights•Education•Labor standards•Access to products & services•Health•Community impact•Diversity8The Triple Bottom LineEnvironmental•Climate change•Energy use•Water•Biodiversity•Chemicals, toxins•Air pollution•Water management•Ozone depletion•Oceans & fish stockEnvironmental•Climate change•Energy use•Water•Biodiversity•Chemicals, toxins•Air pollution•Water management•Ozone depletion•Oceans & fish stockEconomic•GDP•Return on investment•Tax•Corruption•Poverty alleviation•Employment & wages•Corporate ethicEconomic•GDP•Return on investment•Tax•Corruption•Poverty alleviation•Employment & wages•Corporate ethicProduct Developmentand StewardshipInternalOperationsUpstreamSuppliersDownstreamCustomersMarket EnvironmentCompetitive EnvironmentRegulatory EnvironmentInternal EnvironmentCreating a Sustainable SC•Design for Environment•Lifecycle analysis•Packaging Minimization•Product reacquisition and disposal(cradle to grave)DownstreamCustomersUpstreamSuppliersInternalOperationsCreating a Sustainable SCProduct Developmentand StewardshipDownstreamCustomersUpstreamSuppliersInternalOperationsCreating a Sustainable SCProduct Developmentand Stewardship•Customer/Supplier requirements•Code of conduct•Traceability and chain of command/custody•Returns management/policiesDownstreamCustomersUpstreamSuppliersInternalOperationsCreating a Sustainable SCProduct Developmentand Stewardship•Transformation•Logistics (transport,facilities mgmt, warehousing•Scrap & packagingrecovery, recycling•Reverse logistics•RemanufacturingShay Scott13•Upgraded plants reduce emissions & ensureclean-water discharge•Solid waste reduction strategy •Recycled content in containers•Reusable pallets, packaging•Eliminating expendable corrugate•Replacing shrink-wrap w/ recyclable metal bandsSustainability… Example14Discussion Given your knowledge of the activities required to create form, time and place utility, what are some supply chain areas that you believe represent “low hanging fruit” for significant sustainability improvement?Improved transportation efficiency – full loads, reduce idling time at docks, better routing through traffic, etc.Improved product packaging – less air shipped, recycling, …Less inventory = less facilities = less environmental wasteNatural lighting in facilities, trucks (UPS),


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UT Knoxville BUAD 331 - BA 331 Chapter 13

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