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Sustainable Supply Chain

Sustainable Supply Chain Definition and Examples complete with current case study

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Sustainable Supply Chain

  1. 1. S U P P LY C H A I N M A N A G E M E N T SUSTAINABLE SUPPLY CHAIN PRESENTED BY: ADI HARSONO
  2. 2. KEY ELEMENTS Definition of sustainable supply chain Drivers for sustainable supply chain management Measuring Performance of Sustainable Supply Chain Real-life example of the implementation of sustainable supply chain management in an operation of a company
  3. 3. SUPPLY CHAIN Raw Material Suppliers Manufacturer Wholesaler/Distributor Retailers Consumer Receiving and filling a customer demand (Amer, 2013)
  4. 4. DEFINITION “Sustainable supply chain can be viewed as management of raw materials and services from suppliers to manufacturers/service provider to customer - with improvement of the social and environmental impacts explicitly considered.”(Amer, 2013)
  5. 5. GLOBAL TRENDS (Bonini & Gorner, 2011)
  6. 6. KEY DRIVERS Government Legislation Financial Drivers Environmental Drivers Internal Business Processes Drivers Customers (Mann, Kumar, Kumar, & Mann, 2010)
  7. 7. GOVERNMENT REGULATIONS Company Comply with regulations Leverage Government Programs Stay ahead of government intervention (Amer, 2013)
  8. 8. FINANCIAL DRIVERS Enhance Existing Business Minimise Business Risk Create New Business Opportunities (Quinn, 2009)
  9. 9. ENVIRONMENTAL DRIVERS “It is expected that more socially responsible firms may have systems in place to take into account environmental sustainability. Also, organizations sustained partially or completely by the government are generally expected to adhere to environmental concerns” (Mann, Kumar, Kumar, & Mann, 2010).
  10. 10. INTERNAL BUSINESS PROCESS RIVERS Minimise Waste Generation Less Usage Less Material Reduction in Energy Consumption (Scott, 2011).
  11. 11. “In the end, the consumer pull will be what really shapes the future” (Scott, 2011) CUSTOMER
  12. 12. KEY DRIVERS (Council, 2010)
  13. 13. COMMON BARRIER TO SUSTAINABLE SUPPLY CHAIN OPERATION (Council, 2010)
  14. 14. MEASURING SUSTAINABILITY PERFORMANCE IN SUPPLY CHAIN Defining Key Performance Indicator – Global Reporting Initiative (GRI): • Categories: broad areas or groupings of economic, environmental or social issues of concern to stake-holders • Aspects: general types of information related to a specific category (e.g. greenhouse gas emissions, or donations to host communities) • Indicators: specific measurement of an individual aspect that can be used to track and demonstrate performance. (Clift, 2002)
  15. 15. SCOR based sourcing function - categories MEASURING SUSTAINABILITY PERFORMANCE IN SUPPLY CHAIN (El Saadany, Jaber, & Booney, 2011)
  16. 16. Numerical Example MEASURING SUSTAINABILITY PERFORMANCE IN SUPPLY CHAIN (El Saadany, Jaber, & Booney, 2011)
  17. 17. MEASURING SUSTAINABILITY PERFORMANCE IN SUPPLY CHAIN (El Saadany, Jaber, & Booney, 2011)
  18. 18. WALMART SUSTAINABILITY SCORE CARD www.corporate.walmart.com/global-responsibility/environment-sustainability
  19. 19. SUMMARY In summary, many companies realises that the importance of adopting sustainable supply chain to its daily operation is no-longer driven by regulatory compliance, social/corporate responsibility, or company’s reputation management. Today, Sustainable supply chain is part of many companies’ growth strategy as well as best investment area with quantifiable and better return on capital in some instances. In addition, the ever increasing collaboration between academia, not-for-profit organisation and businesses have generated tremendous advantages in standardising evaluation processes and methods to allow companies to monitor, manage and improve sustainability within its supply chain.
  20. 20. THANK YOU
  21. 21. REFERENCE Reference List  Amer, D. Y. (2013, July 01). Supply Chain Management G. Study Guide - OUA , 32. Adelaide, South Australia, Australia: University of South Australia.  Bonini, S., & Gorner, S. (2011, October 10). McKinsey Insight - Energy Resources Material - the business of sustainable supply chain. Retrieved October 25, 2013, from McKinsey: www.mckinsey.com/insigh/energy_resources_materials/the_business_of_sustainable_supply_chain  Chopra, S. (2001). Designing the Distribution Network in a Supply Chain. Transportation Researth Part E , 123-140.  Clift, R. (2002, October 1). Metric for supply chain sustainability. Clean Techn Environ Policy , 240 - 247. Guildford, Surrey, United Kingdom: Springer - Verlag 2003.  Council, H. A. (2010, October). Is Your Supply Chain Sustainable. Harvard Business Review . New York, New York, United States.  El Saadany, A., Jaber, M., & Booney, M. (2011). Environmental performance measures for supply chains. Management Research Review , 34 (11), 1202 - 1221.  Mann, H., Kumar, U., Kumar, V., & Mann, I. (2010, November 05). Drivers of Sustainable Supply Chain. IUP Journal of Operations Management . Hyderabad, Hyderabad, India: IUP Publications.  Plambeck, E., & Denend, L. (2011, October 12). Supply Chain Management Review. Retrieved September 29, 2013, from Supply Chain Management Review: www.scmr.com  Quinn, B. (2009, September 11). Walmart's Sustainable Supply Chain. Retrieved September 19, 2013, from Greenconnections: www.pollutionengineering.com  Scott, A. (2011, March 28). Corporate Responsibility Greening the Supply Chain. Chemical Week , p. 21.  Sloan, T. W. (2010). Measuring the Sustainability of Global Supply Chains: Current Practices and Future Directions. PhD Thesis, University of Massachusetts Lowell, Massachusetts.  Walmart. (2012, October 25). Walmart Announces New Commitments to Drive Sustainability Deeper into the Company's Global Supply Chain: Walmart Foundation Awards $2 Millin Grant to Launch The Sustainabilility Consortium. PR Newswire . New York, New York, United States: PR Newswire Association LLC.

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