Cooperated with partners and leaders in the field of supply chains and transport, the World Economic Forum’s Global Agenda Council on the Future of Logistics and Transportation started to conduct research on the supply chain. The report “Beyond Supply Chains Empowering Responsible Value Chains” analyses the impact that supply chain practices has brought to business, society and environment, and explores the issue how shared value can be made through better supply chain decisions. The report identifies “a set of 31 proven supply chain practices which provide companies with a blueprint of where they can gain both commercial and socio-environmental advantage (both environment and local economic development)—driving a triple advantage” (). In addition, the report “provides a framework for evaluating the potential value at stake behind each of these practices, and an implementation framework for
However, in Global Supply Chain Management, there is also a need to protect the environment, although for more selfish reasons. Businesses need to be environmentally friendly because people around the world are catching onto the fad of “going green” and want products and companies that boast that. By having sustainable product development and sustainable transportation methods, business are both protecting the environment and attracting more consumers. This is an interesting point because one would not think that a book about best business practices would attract a business towards being more environmentally friendly, but the book is clear that that is what is
In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.
Transforming a supply chain into a sustainable network is not an easy thing to do. Amongst the existing obstacles that Johnson (2004) gives us is the considerable size of this network: all along the differents ranks of suppliers that constitute the upstream of the chain, it is very hard to track the original source of the material and to broadcast best practices all accross that path. Furthermore, the lack of legal framework for labor conditions and environment preservation in developing countries makes it the more difficult to enforce
Abstract Purpose – Increasingly, private sector companies are aiming to buy and supply products and services in a sustainable way, termed “sustainable supply chain management” (sustainable SCM), using purchasing and supply to reduce negative impacts on the environment, economy and society. There is often a gap between rhetoric and reality, with companies often accused of paying green lip service to sustainable SCM. This research aims to explore sustainable SCM issues in companies that have been recognized as leaders in their sectors, and investigate what
Also, from a packaging point of view, the possibility of repeated use of the same packaging materials (such as pallets) in a closed loop should be investigated. One such example is the use of recycled materials for packaging. A focus on reducing energy has a key influence on structuring key aspects of reverse logistics design. Return centers should be close to customer sites in order to limit transportation times and costs. The size of these centers should be commensurate with return rates. Another example is the use of third party providers for dealing with returns, setting up recycling and disposal depots. In general, collaborations with supply chain partners in recycling and remanufacturing strategies requires the alignment of the firms overall sustainability strategies with its reverse logistics strategy. Also, a focus on educating employees as a key part of sustainability strategy has a key influence on staffing the reverse supply chains. Employees with knowledge of local trends are a great asset that can eventually lead to successful reverse logistics efforts. Taken together, these suggested patterns lead to the hypothesis that a firm׳s sustainability strategy is positively associated with reverse logistics strategies.
Arraigning main activities of supply chains; Borade, A, Bonsad SV (2008) exploring the domain of supply chain management. Environmental ethics for sustainable supply Beamon, Benita M., 2005. chain management. SC network configuration for Product Beamon, Benita M. and Farnandes recovery ,2004
Ever since our emergence into the twentieth century the public has become very conscious about our effect on the environment and how companies manage their environmental foot-print. It’s because of this push from consumers about making products sustainable and he companies have had to implement their sustainable and green supply chain management (GSCM). These GSCM’s are designed to take on old supply chain management systems by reducing the environmental costs of the supply chain. However there is no one industry normal way of doing this and there are many different reasoning’s as to why a company would want to have a GSCM system. In the literature review many articles focused on GSCM will be examined to further understand were agreement son GSCM and misconceptions are. It will help show how GSCM can be implemented and what ways have been working for different organisation with examples. After reviewing the different industry ideas on GSCM recommendations will be made for future implementation
The paper takes a look at one of the most popular topics in all the international companies, which is Supply Chain Management. The study starts by letting you know how it all started, and to explain to the reader what is supply chain, what it is made of, and how it is implemented in companies. The next part will let the reader know how this can help your company going forward, the benefits, and how it improves your company. The next part of this paper will be dealing with the new trends affecting Supply Chain Management, mainly on how technology have let Supply Chain Management improve to make it more effective and sufficient, and also the rising concerns about the environment, and how supply chain management went green.
This paper investigates the impact of green supply chain management on industry, consumer perception and environment. Through research into multiple companies and case studies, a distorted perception among large corporations shows a historic struggle to find a balance between profit and sustainability. However, the potential long-term effects of the lack of environmental courtesy cannot be undone and therefore must be carefully engineered. Multi-billion dollar automotive corporations such as Hyundai and Toyota will be discussed and studied in depth to conclude the innovative changes
Logistics is a term employed in manufacturing and commerce to describe the broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer, and in some cases includes the movement of raw materials from the source of supply to the beginning of the production line. These activities include freight transportation, warehousing, materials handling, protective packaging, inventory control, plant and warehouse site selection, order processing, market forecasting, and customer service. (Grant M. Davis and Stephen W. Brown, Logistics Management, D. C. Health and Company Lexington, Massachusetts 1974)
Walmart has the scale and resources to invest in a premium research and development center in partnership with a top university (known for its supply chain programs) like MIT or Michigan State University, to leverage country’s top brains and conduct research in developing pioneering sustainable solutions for all the levels of supply chain. Previously the suppliers have been burdened with the task of researching, developing and adopting green methods and materials. However suppliers do not operate on the same scale as Walmart. Therefore they lack the necessary resources to develop or access innovative techniques that would enable them to transition to sustainable standards, without incurring huge upfront costs. Through its research center Walmart can leverage and develop solutions that would enable the suppliers to improve efficiency and also comply with the strictest sustainability standards required by
With a particular finished focus to outline the perfect framework, I would firstly review the present logistics structure. It is fundamental to consider the adequately existing structure if any as this would help me to evaluate its lacks, central focuses, costs and
GREEN PROCUREMENTS AND MANAGERIAL DECISION MAKING IN SUPPLY CHAIN ENVIRONMENTS: A REVIEW OF NEWCASTLE UNIVERSITY APPROACH
The increase in the level of consumption of material and energy by economic growth leads to environmental issues and problems of resources depletion. Organisations has become increasingly notable to balance the economic and environmental performance due to pressure of competition and community . A new concept of environmental friendliness, also known as sustainable supply chain or green supply chain is now trending in various organisations involved in supply chain business. The green supply chain management is the process of combination of environment protection and day to day supply chain management, including its different parts like material sourcing, designing of product, selection of material, manufacturing process and