This document discusses sustainable supply chain management. It defines a sustainable supply chain as one that considers social and environmental impacts in managing materials and services from suppliers to customers. Key drivers for sustainable supply chain management include government regulations, financial factors, environmental concerns, internal business processes, and customer demands. The document also examines methods for measuring sustainability performance in supply chains, including using key performance indicators, and provides an example of Walmart's sustainability scorecard for suppliers.
This presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply chains can be expected to change in the future, as a result of the need to "go green".
Green design principles are introduced, including the need to avoid creating a "monstrous hybrid". The limitations of recycling are explained and the need for business models centred upon reuse is made clear. The presentation is designed for use at HE5 and HE6 (UK second year or final year Bachelors degree) but it could also be of interest to companies and individuals.
The slides are downloadable, and the download includes presenter notes – plus a short sustainability game that was used in class.
This presentation provides an introduction to the key concepts of the sustainable supply chain, providing definitions of sustainability, explaining climate change and the ways that supply chains can be expected to change in the future, as a result of the need to "go green".
Green design principles are introduced, including the need to avoid creating a "monstrous hybrid". The limitations of recycling are explained and the need for business models centred upon reuse is made clear. The presentation is designed for use at HE5 and HE6 (UK second year or final year Bachelors degree) but it could also be of interest to companies and individuals.
The slides are downloadable, and the download includes presenter notes – plus a short sustainability game that was used in class.
Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption.
Purchasing departments contributes in product design, quality, cost of goods sold, manufacturing cycle time.
Ethical and Sustainable sourcing practices have become area of concern over the past five to ten years.
Global population growth, increasing environmental awareness, consumers desires for better corporate responsibility, and declining worldwide levels of natural resources has pressured companies to effectively implement these practices.
Strategic supply chain management and logisticsBhavi Bhatia
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-7696003714, +91-9814614666
Digital Transformation is one of the most important business trends of our time. A lot of research has already been done on this topic. Most research has examined Digital Transformation within organisations, or between organisations
and their customers.
But in today’s globalised and outsourced world, an organisation’s success is no longer dependent on its own efforts alone. Today, the success of an organisation depends largely on how effectively it can orchestrate a vast, global network of supply chain partners to deliver goods and services that meet the needs of individual consumers.
This presentation [which was presented today to mark European Supply Chain Day in Ireland] highlights how the utilisation of digital technologies and processes enable supply chains to be more effectively and efficiently managed, creating business networks and increasing the overall supply chain visibility within the network.
The Development Of Closed Loop Supply ChainsWyndham Cramer
Sustainable Supply Chains are discussed frequently and are in vogue at present. This paper published in 2005 provides an insight in to the author\'s futuristic thought process on sustainability specifically the development of closed loop supply chains. A leader who has guided the supply chain of many global multinationals in the South Pacific, this paper was awarded the runner- up prize for the 2005 Logistics Development Award by the Logistics Association of Australia.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption.
Purchasing departments contributes in product design, quality, cost of goods sold, manufacturing cycle time.
Ethical and Sustainable sourcing practices have become area of concern over the past five to ten years.
Global population growth, increasing environmental awareness, consumers desires for better corporate responsibility, and declining worldwide levels of natural resources has pressured companies to effectively implement these practices.
Strategic supply chain management and logisticsBhavi Bhatia
Thanks to all my readers. It gives boost when I get calls from my readers and am always happy to revert back to my followers and readers. I am sorry if I am unable to reply to all the e-mails due to my busy schedule.
Contact me for any type of assignments help(nominal charges).
Thanks and Regards,
Er. Bhavi Bhatia
e-mail: bhavi.bhatia.411@gmail.com
Phone: +91-7696003714, +91-9814614666
Digital Transformation is one of the most important business trends of our time. A lot of research has already been done on this topic. Most research has examined Digital Transformation within organisations, or between organisations
and their customers.
But in today’s globalised and outsourced world, an organisation’s success is no longer dependent on its own efforts alone. Today, the success of an organisation depends largely on how effectively it can orchestrate a vast, global network of supply chain partners to deliver goods and services that meet the needs of individual consumers.
This presentation [which was presented today to mark European Supply Chain Day in Ireland] highlights how the utilisation of digital technologies and processes enable supply chains to be more effectively and efficiently managed, creating business networks and increasing the overall supply chain visibility within the network.
The Development Of Closed Loop Supply ChainsWyndham Cramer
Sustainable Supply Chains are discussed frequently and are in vogue at present. This paper published in 2005 provides an insight in to the author\'s futuristic thought process on sustainability specifically the development of closed loop supply chains. A leader who has guided the supply chain of many global multinationals in the South Pacific, this paper was awarded the runner- up prize for the 2005 Logistics Development Award by the Logistics Association of Australia.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the
following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Supply Chain Efficiency Evaluation: A Contemporary Theoretical ModelWorld-Academic Journal
Supply chain management has gained a prodigious amount of attention from both practitioners and industriessince the last decade. Until now, there are many articles, and dissertations that address supply chain management, but there is still a lack of integration between the current efficiency evaluation methods and practical requisites for the supply chain management. A contemporary efficiency evaluation method is proposed to provide necessary support for efficiency improvement in supply chain management. The proposed method will address this aim in the following main aspects: a basic supply chain model; concrete and unconcrete efficiency measurement in various dimensions; a cross-organizational efficiency evaluation; and weighted average and fuzzy set theory method.
Measuring Environmental Performance of Supply Chaintheijes
Environmental performance is a hot topic for researchers in management science. It is also one of the major concerns of supply chain leaders. To assess this performance, there are increasingly many management tools. It is then appropriate to wonder the role of these tools in supply chain: are these tools meet real organizational needs? Or they are used to promote supply chain image face institutional constraints increasingly strong? In this context, many modules and methodologies have been established in literature in order to evaluate environmental performance of supply chain, since it has become an important issue for society. However, few of them analyze environmental impacts. So, this work presents an integrated methodology to perform this evaluation, based on issues which significantly affect the environment. We purpose a module which will allow the assessment of this performance.This module was tested in an automotive supply chain in north of Morocco.
Final Project (Real Estate 3400)1. Individual ProjectThe fiChereCheek752
Final Project (Real Estate 3400)
1. Individual Project:
The final project will be due on November 22th, before the Thanksgiving break on Blackboard.
You have to choose one among the following types of CMBS securities:
• Sequential Pay with three tranches
• Sequential Pay with three tranches with a Z-bond
• Floater / Inverse Floater
• PAC + Support Tranche
• TAC + Support Tranche
After that, build an excel model that will compute cash flows towards each tranche. The model will feature the following:
a) Customizable inputs for the following:
• Initial principal in each tranche (summing to total principal on the underlying mortgages)
• Maturity of the underlying loans in months
• Interest rate of the underlying loans
• Interest rate to investors in each tranche
• Servicing fee paid by the investors (same for each tranche)
• Prepayment assumption (PSA or constant CPR)
• Current market rate
b) User will input all the criteria in a) and be able to see the following update automatically:
• Amortization table for the underlying pool (initial principle, scheduled payments, prepayments, scheduled principal, interest)
• Servicing fee of each tranche
• Cash flow of each tranche
• Investor valuation for the security
c) An additional tab should include the following, fully annotated graphs (title + labeled axis)
• Initial principal of each tranche over time
• Total payments to each tranche
The grades will be awarded based on the following criteria:
· Accuracy: the spreadsheet should compute accurate cash flows for any inputs of the parameters above. The spreadsheets must necessarily be dynamic.
· User-Friendliness: it should be obvious where one should enter the parameters above and where to look for cash flows towards each tranche. Clearly state what type of security you chose.
Note: This is an individual project and intended for you to learn how to build a spreadsheet yourself from scratch. The use of a pre-made template or collaboration of any kind is strictly prohibited. It would be treated as plagiarism and duly measures would be taken against that.
Excel Functions That Might be Useful:
I. ADDITION, SUBTRACTION, MULTIPLICATION, AND DIVISION LOGIC
II. SUM() AND AVERAGE() FUNCTIONS
III. TRUE AND FALSE LOGIC
IV. IF() FUNCTION
V. AND() & OR() FUNCTIONS
VI. MAX() AND MIN() FUNCTIONS
VII. COUNTIF() AND COUNTA() FUNCTIONS
VIII. IRR() AND NPV() FUNCTIONS
Additional Excel Features:
1. DATA VALIDATION: Data Validation restricts the type of data or the values that users enter into a cell. So for instance, with Data Validation you can limit inputs in a given cell to a specific type of value (e.g. whole numbers only). You can also restrict inputs to only predetermined values (e.g. a drop-down menu with a specific list).
2. CONDITIONAL FORMATTING: Conditional Formatting allows you to create a custom look for certain cells (or the entire model) based on user inputs.
3. DATA TABLE: The Data table feature is a feature in Excel t ...
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...
Sustainable Supply Chain
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. 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. SUPPLY CHAIN
Raw Material Suppliers Manufacturer Wholesaler/Distributor Retailers Consumer
Receiving and filling a customer demand
(Amer, 2013)
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)
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. INTERNAL BUSINESS PROCESS RIVERS
Minimise
Waste
Generation
Less Usage Less
Material
Reduction in
Energy
Consumption
(Scott, 2011).
11. “In the end, the consumer
pull will be what really
shapes the future”
(Scott, 2011)
CUSTOMER
13. COMMON BARRIER TO SUSTAINABLE
SUPPLY CHAIN OPERATION
(Council, 2010)
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. SCOR based
sourcing function -
categories
MEASURING
SUSTAINABILITY
PERFORMANCE IN
SUPPLY CHAIN
(El Saadany, Jaber, & Booney, 2011)
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.
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.
Editor's Notes
Welcome to Supply Chain Management G.
A topic on Sustainable Supply Chain will be discussed in the following presentation.
Today, the word “sustainability” is almost synonymous to standard practices for most business enterprise worldwide.
Small to Medium Enterprises (SMEs) through to publicly traded companies are instilling sustainable practices explicitly (e.g. its vision and mission) or implicitly (e.g. local initiative of certain division) within their daily operation.
Despite the lack of direct quantifiable link between sustainability and improvement in overall business performance, many business leaders agree that there are intangible benefit in adopting sustainable practices such as improvement in staffs’ morale, improve in overall productivity within the company, etc. As a result, the subject has attracted many business leaders to collaborate with academic institution, not-for-profit organisation and/or other businesses hence produce a standardise guideline to best link sustainability and daily business performance (Bonini & Gorner, 2011).
In this presentation, we will focus on the holistic view of sustainable business operation that is sustainability in supply chain.
Firstly, we will explore the definition of sustainable supply chain and followed by;
Exploring the key drivers for businesses to adopt sustainable supply chain practice;
Exploring the commonly used key performance indicator for measuring and managing companies’ sustainable performance and business activity;
Lastly exploring real-life example of the implementation of sustainable supply chain management in an operation of a company.
Traditionally, supply chain can be viewed as the integration of key business processes from end user through original supplier that provides projects, services and information and information that add value for customer and other stakeholders. (Chopra, 2001). Mann, Kumar, Kumar, & Mann, 2010 suggested in their recent paper “Drivers of sustainable supply chain” published in IUP Journal of Operation Management that the traditional view has a strong focus on efficiency and effectiveness flow of goods, information and funds from supplier’s supplier through to the customer’s customer and less emphasis on the management of waste, recovered products as well as overall product life cycle; Contrary to Sustainable supply chain.
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). This definition suggest that it requires companies to adopt a holistic approach from selecting their raw material through to service provider that make a best available processes, manufacturing methods for ensuring minimal waste generation, energy consumption hence better overall product/service life cycle, cradle-to-grave approach.
In its recent survey, McKinsey has reported that there are a steady increase in the number of businesses adopting sustainable supply chain practice (Bonini & Gorner, 2011). Leading corporation such as Apple Inc., P&G, and Walmart are leading the world by example on managing environmental and social impact of its product and services throughout its entire value chain.
In one of the keynote speakers in 2011 Steve Jobs – former CEO of Apple Inc. declared that apple has eliminated the use of harmful chemical within any of its product;
In fall 2010, P&G has committed a minimum of 30% in the use of renewable energy to power its factories around the world, use at least 25% of sustainably sourced renewable material to replace its petroleum derived product, and to have more than 99.5% of its manufacturing waste recycled or re-use by 2020 (Scott, 2011)
In July 2009, Walmart announced to double the company’s solar program in California, started the first of four annual wind energy purchases for store in Texas, started Carbon Disclosure Project and measure energy use and emission throughout its supply chain, aim to reduce product packaging in its supply chain 5% by 2013 (Quinn, 2009).
In the next slides, we will detailed list of key drivers behind these emerging trends.
The various key drivers that motivate companies in taking on sustainability practice within their supply chain operation are (Mann, Kumar, Kumar, & Mann, 2010): Government Legislation, Financial Drivers, Environmental Drivers, Internal Business Process Drivers, and Customers.
Firstly, Government Legislation and other regulatory body. Government legislation form the first and foremost motivator for companies to embed sustainability practice into their organisation. Compliance with government regulations, leverage government program and stay ahead of government are the main motivating factors (Amer, 2013). From strategic point of view, compliant with government regulation can yield a competitive advantages for the companies’ future. For example, in 2009 Walmart has worked together with The Sustainability Consortium (TSC) to develop a Sustainability Index, reporting system and measurement tools that are now become standard for determining companies’ sustainability ranking around the globe (Walmart, 2012). The proactive approach provides the opportunity for government and business to collaborate in developing a more practical, realistic, achievable expectation of sustainable supply chain.
Secondly, Financial Drivers. Some of sustainability often require company to innovate and moving away from a conventional means to satisfy the essentials in its daily operation. In the article of “Walmart’s Sustainable Supply Chain” Barbara Quinn suggest that the innovation often minimise business risk, enhance existing business, and creates news business opportunities (e.g. reverse logistics).
It is worth noting that the size of reverse logistics was estimated to be about $56 billion in 2007 in the USA alone and growing which implies a positive relationship between green practices and the economic competitiveness of a company (El Saadany, Jaber, & Booney, 2011).
Thirdly, 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).
Fourthly, Internal Business Processes Drivers. Sustainability in supply chain often involved reduction in energy consumption, minimise waste generation, less usage of raw material, more use of recycled material, etc. These requirements often align with business goal for reducing its operational cost. For example: There are an increasing number of food and textile companies that are using biotech processes to manufacture their product since Biotech Process are typically run at ambient temperature and may yield energy savings compared with more energy intensive chemical process (Scott, 2011).
Fifth, Customer.
“In the end, the consumer pull will be what really shapes the future,”
In his article – “Corporate Social Responsibility Greening the Supply Chain” Alex Scott, suggested that there are number of customer who prefer sustainable product/services over non-sustainable alternatives.
He also added that government intervention in setting up governing structure as well as rules and regulation for a companies to offer more sustainable product have helped many companies to offer more of sustainable product/services variety to its customers as well as motivates larger corporation to become more socially responsible companies.
In the next slide, the relative comparison between these key drivers will be presented to enhance understanding on its relative importance to companies.
Harvard Business Review performed a survey on several major companies in United States and summarise the relative importance of these drivers to companies’ CEO.
And the result is presented in the diagram.
It is interesting to note that financial driver plays key role over regulatory compliance when it comes to opting to implement sustainability practices into businesses’ value chain.
Fortunately, research has shown that most companies who are willing to embark into the journey for making its value chain more sustainable are often reaching to new customer/markets, new technology and products hence adding new composition to its business portfolio which in turn improves companies overall financial performance (Bonini & Gorner, 2011).
Despites the promising result for embarking in the journey to achieve sustainable value chain, there are many companies that are still reluctant in adopting this practices.
Survey has indicated that the following items are dominating the concerns for many companies to implement sustainable practice in its value chain:
Cost and financial concern that are affecting companies’ core business
Focus on more pressing priorities that are affecting companies’ core business (other than financial issues)
Limited resource available for implementation, monitoring, etc. (i.e. “to make the process sticks” in the long run)
Lack of guidance and uncertainty in quantifying Return On Investing in sustainable practice within value chain
In-sufficient understanding hence buy-in for the overall process.
Close observation on the matter has indicated that there are numbers uncertainty within the subject of supply chain sustainability hence cause reluctance to business to adopt this practice.
Therefore, in the next slide we will discuss method that are commonly used for measuring sustainability in supply chain.
As discussed previously, measuring Sustainability performance in supply chain can become a demotivating challenge to an organisation due to lack of standardise method for doing so.
Fortunately, many researchers, academia and not-for-profit organisation have worked with many businesses in defining a clear manageable boundaries in order to generate quantifiable measure for supply chain sustainability.
Global Reporting Initiative (GRI) has proposed that it is best proceed from broad category through definite aspects to specific indicator to make quantifiable measure for sustainability possible. Each of this stages can be define as follows (Clift, 2002):
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.
Once determined, analytical model such as Life Cycle Analysis, Supply Chain Operation References (SCOR) Model, Design For Environmental Model, etc can be used to link environmental and economic benefits which in turns can be analysed, monitor and improved overtime.
The SCOR-based sourcing function business and environmental performance measures is presented in this slides to provide an example on the list of categories that are commonly analysed and monitored by businesses’ to ensure its perform sustainably.
Cost dimension includes: supplier cost-saving initiatives, labour efficiency, cost variance from expected cost, etc.
Time dimension includes: supplier lead time against industry norm, supplier’s booking in procedures, purchase order cycle time, etc.
Quality dimension includes: Buyer-supplier partnership level, Level of supplier’s defect-free deliveries, supplier rejection rate, etc.
Flexibility: Supplier ability to respond to quality problems, response to product changes, materials variety (number of materials available), etc.
Innovation: satisfaction with knowledge transfer satisfaction, technological capability levels, involvement in new product design, etc.
It is worth noting that not all companies are prepared to monitor all category listed within the table.
Therefore, one often find that many company choose to develope its own category to reflect the sustainability of its supply chain more accurately.
In the next slides, we will show an example on how to use items listed within the table and use them to measure environmental quality and its associated costs.
In the technical journal titled Environmental Performance Measures for Supply Chains, El Saadany, Jaber, & Booney, 2011, demonstrate the use of numerical method to measure environmental quality and its associated costs by using two-level supply chain coordination model as an example.
El Saadany, Jaber, & Booney, 2011 demonstrate that by combining the mathematical formula of two-level supply chain coordination model and the quality function one can generate graphical representation that illustrate the behavior of the total profit, price, demand for varying aggregate quality measure for certain number of product, process and environmental quality characteristics. In the nutshell the steps can be summarise as follows:
Determine the essential quality measures of the company or organization in order to improve both product and environmental quality.
Assign weights to each measure relevant to its importance.
Determine maximum expectations for each quality measure and associated costs (either +ve or -ve) to reach this maximum.
Determine the final quality function.
Apply quality function in an operations decision-making process.
Optimize for optimum quality and other optimal operational decision variables.
Set and plan for new optimal environmental quality targets.
Apply the DMAIC methodology (www.dmaictools.com/) to bridge gaps and improve performance towards the optimal environmental targets.
Please note that the derivation of equation and details calculation are beyond the scope of this presentation. Should viewer decides to investigate further, list of references are listed at the very end of this presentation.
From the graph, it is interesting to note that as aggregate quality measure continue to increase (i.e. increase in environmental cost) so does price per unit of item.
Consequently, the phenomena cause reduction in company’s profit.
The graphical representation given in previous slides have provided us with good example on how sustainability should be measured within the organisation.
In addition, it has also shown that many model can be use to simulate several different scenario thus select the one that best suited company operational performance to allow for better internal reporting, monitoring, and improvement management tool.
Large company such as Walmart for example, published result of the their environmental performance in addition to its financial performance to promote transparency. This has also shows company’s commitment to achieve sustainability within its operation.
An up-to-date report of Walmart’s sustainable performance can be obtained from the following webpage www.corporate.walmart.com/global-responsibility/environment-sustainability.
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.