The document discusses sustainable supply chain management. It notes that incorporating sustainability concepts into supply chain practices provides opportunities to review processes from a different perspective and incorporate social and environmental concerns. It identifies key drivers of business sustainability and supply chain management. The document outlines how organizations can align internal business processes, employee engagement, customer expectations, supplier integration, and financial goals to create a sustainable supply chain.
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.
Our Senior Consultant Darina Eades has developed An Introduction to Sustainable Procurement, an insightful guide to help you understand what Sustainable Procurement is, what are the drivers and the business case for it.
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
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.
6 best practices in stakeholder engagementWayne Dunn
I recently did a piece on 5 mistakes companies make in stakeholder engagement and many of you asked me to give a list of best practices. Here are six.
1. Think Value and Interests – and do it transparently
2. It’s OK to disagree – but, disagree without being disagreeable. And stay curious
3. Do compliance but think and act strategic – check the boxes yes, but that is just the foundation
4. Share the credit, multiply the resources. Find partners!
5. Communicate so you are heard and understood.
6. Define stakeholders broadly and strategically – go beyond compliance
"Sustainability Trends within Supply Chain Management" Lisa Geason-Bauer
Consumers today are very concerned about the impact products; services and the companies who produce them have on the greater world. Commercial buyers and end user consumers are looking for independent third party assurances regarding the health and safety of a specific product as well as detailed information on the supply chain that created that product. This session will focus on addressing trends within sustainable supply chain management, third party reporting/certification and environmental, health product declarations.
Our Senior Consultant Darina Eades has developed An Introduction to Sustainable Procurement, an insightful guide to help you understand what Sustainable Procurement is, what are the drivers and the business case for it.
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
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.
6 best practices in stakeholder engagementWayne Dunn
I recently did a piece on 5 mistakes companies make in stakeholder engagement and many of you asked me to give a list of best practices. Here are six.
1. Think Value and Interests – and do it transparently
2. It’s OK to disagree – but, disagree without being disagreeable. And stay curious
3. Do compliance but think and act strategic – check the boxes yes, but that is just the foundation
4. Share the credit, multiply the resources. Find partners!
5. Communicate so you are heard and understood.
6. Define stakeholders broadly and strategically – go beyond compliance
"Sustainability Trends within Supply Chain Management" Lisa Geason-Bauer
Consumers today are very concerned about the impact products; services and the companies who produce them have on the greater world. Commercial buyers and end user consumers are looking for independent third party assurances regarding the health and safety of a specific product as well as detailed information on the supply chain that created that product. This session will focus on addressing trends within sustainable supply chain management, third party reporting/certification and environmental, health product declarations.
Sustainable Procurement: Meeting Corporate Social Responsibility Objectives t...SAP Ariba
Company objectives, customer preferences, and government mandates have raised the status of CSR on the corporate agenda. In this session hear what approach Deloitte, a leader in this space, has taken in developing a sustainable supply chain as part of their overall spend management strategy. Also learn how current and planned innovations in business networks can help you meet CSR objectives without sacrificing cost, risk and other objectives.
On World Environment Day (June 5, 2014), the World Resources Institute (WRI), WorldFish, the World Bank, INRA, and Kasetsart University released the newest installment of the 2013-14 World Resources Report: Creating a Sustainable Food Future, "Improving Productivity and Environmental Performance of Aquaculture."
This working paper examines the implications of doubling aquaculture production between now and 2050, and offers recommendations to ensure that aquaculture growth contributes to a sustainable food future.
Find out more at http://ow.ly/xHnJ2
The Relationship between Sustainability Performance and Financial PerformanceSocial Finance
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In this session we look at some of the ways in which sustainable operations improvement can be embedded in a production environment. We'll talk about some of the common pitfalls that cause programs to falter, and explore a simple model for structuring successful sustained improvement.
At the completion of both sessions you will understand a simple tool for assessing the quality and effectiveness of your processes, and be ready to apply it next week.
Understand the key components to sustainability
Create a set of processes for linking vision to daily life
Understand how to apply the tool in your site, next week
Integrating the UN Sustainable Development Goals into sustainability performance requires new organizational approaches and methods.
Presentation given to Society of Petroleum Engineers, Gulf Coast Section Study Group, Houston, TX October, 2016
Starbucks Case Study : Building Sustainable Supply ChainRiri Kusumarani
This presentation is made by my classmates for Supply Chain Class. Discussion focus on C.A.F.E strategy used by Starbucks. Sustainable supply chain is one of the key issue especially about ethical coffee trade.
GSCM stands for Green Supply Chain Management. It is a concept and practice that focuses on integrating environmental sustainability principles into supply chain management processes. GSCM aims to minimize the negative environmental impacts associated with the production, distribution, and consumption of goods and services throughout the supply chain. The primary objectives of GSCM are to reduce resource consumption, minimize waste generation, decrease carbon emissions, and promote the use of environmentally friendly practices and technologies. It involves the implementation of sustainable practices at each stage of the supply chain, including sourcing, manufacturing, transportation, warehousing, and distribution.
GSCM stands for Green Supply Chain Management, which is an approach to managing supply chains in a sustainable and environmentally friendly manner. It involves integrating environmental considerations into various aspects of supply chain operations, including procurement, production, distribution, and reverse logistics.
The main goal of GSCM is to minimize the negative environmental impact of supply chain activities while also improving overall performance and efficiency. This is achieved through the adoption of environmentally responsible practices and the implementation of green initiatives throughout the supply chain.
The primary objectives of GSCM are to reduce resource consumption, minimize waste generation, decrease carbon emissions, and promote the use of environmentally friendly practices and technologies. It involves the implementation of sustainable practices at each stage of the supply chain, including sourcing, manufacturing, transportation, warehousing, and distribution.
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.
Capital Investment Case Waterways Corporation is a private.docxhacksoni
Capital Investment Case
Waterways Corporation is a private company providing irrigation and drainage products
and services for residential, commercial, and public sector projects, including farms,
parks, and sports fields. It has a plant located in a small city north of Toronto that
manufactures the products it markets to retail outlets across Canada. It also maintains a
division that provides installation and warranty servicing in the Greater Toronto Area.
The mission of Waterways is to manufacture quality parts that can be used for effective
water management, be it drainage or irrigation. The company hopes to satisfy its
customers with its products, provide rapid and responsible service, and serve the
community and the employees who represent it in each community.
Waterways puts much emphasis on cash flow when it plans for capital investments. The
company chose its discount rate of 8% based on the rate of return it must pay its
owners and creditors. Using that rate, Waterways then uses different methods to
determine the best decisions for making capital outlays.
In 2020 Waterways is considering buying five new backhoes to replace the backhoes it
now has at its installation and training division. The new backhoes are faster, cost less
to run, provide for more accurate trench digging, have comfort features for the
operators, and have associated one-year maintenance agreements. The old backhoes
are working well, but they do require considerable maintenance. The operators are very
familiar with the old backhoes and would need to learn some new skills to use the new
equipment.
The following information is available to use in deciding whether to purchase the new
backhoes.
Old Backhoes New Backhoes
Purchase cost when new $90,000 $200,000
Salvage value now $42,000 None
Investment in major overhaul needed in next year $55,000 None
Salvage value in 8 years None $ 50,000
Remaining life 8 years 8 years
Net cash flow generated each year $25,250 $ 41,000
Instructions
a. Using the following methods, evaluate whether to purchase the new equipment or
overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost
of the overhaul. For the new machine, subtract the salvage value of the old machine to
determine the initial cost of the investment.) Ignore income taxes in your analysis.
1. Use the net present value method for buying new or keeping the old.
2. Use the payback method for each choice. (Hint: For the old machine, evaluate the
payback of an overhaul.)
3. Compare the profitability index for each choice.
4. Compare the internal rate of return for each choice to the required 8% discount rate.
b. Are there any intangible benefits or negatives that would influence this decision?
c. What decision would you make and why?
Capital Investment CaseInstructions
quality
Quality management
principles
http://www.iso.org
This document introduces seven quality .
Beyond Supply Chain Scorecards: New Approaches to Elevating Supplier Responsi...Sustainable Brands
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The Road Map:
Phase 1: Identifying Efficiency Gaps
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Phase 4: Results and Reflection – Reaping the Benefits
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4. • Internal Business Processes: Corporate goals focused on the process
improvements which promote and enable a sustainable supply chain.
• Employee Engagement: Individual and organizational performance
metrics which support corporate business sustainability goals.
• Customer Expectations: Sustainable product expectations clearly
communicated down the supply chain.
• Supplier Integration: Integrate processes with supply base to improve
communication, efficiency, product quality, and ensure common
sustainable processes.
• Learning and Growth: Create working relationships that promote change,
innovation, and growth across the supply chain. Customers and suppliers
grow and develop with the business.
• Financial Balance: Allow all partners the ability to succeed financially,
creating a stable business environment and an aligned business
sustainability direction.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Value - Supply Chain Alignment
Sustainable Supply Chain Management
"Sustainability
helps build a new
level of
partnerships not
just based on
product
development but
based on sharing
knowledge and
expertise in order
to accelerate
transformation."
AkzoNobel.
5. • Supplier: A new breed of ‘green’ and eco-minded suppliers are seeking to take market share
from the competition. They are expecting a shift in the playing field, as companies redefine
their metrics for quality.
• Consumer: Growing eco awareness has put the consumer preferences for alternative products
on the leading edge of business sustainability. These consumer expectations will ultimately
ensure that only the most sustainable products and services will rise to the top.
• Social and Local Community: Businesses are aligning their social activities with the
engagement expectations of the communities in which they operate. This provides a
framework for business transactions carried out at the local level through partnerships with
community groups and local businesses
• Environment: Environmental impacts are expanding beyond the walls of the company and
incorporating the full lifecycle of products and services.
• Politics and Legislation: Pending US and global legislation has the business world taking notice.
The outcomes could have significant impacts on not only an individual business’ operations but
across the supply chain.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Value - Risk Management
Sustainable Supply Chain Management
6. Organizational Qualities
• Executive leadership engaged with sustainable supply chain goals.
• Sustainable supply chain management aligned with corporate
sustainability.
• Procurement Strategies aligned with business goals.
• Clearly outlines sustainable procurement policies with defined
governance structure.
• Defined and monitored supplier performance metrics
• A total life cycle based procurement philosophy.
• Health, safety, social, and environmental factors built into business
decisions.
• Sustainability defined as a fundamental part of the cost benefit analysis.
• Main focus on source reduction.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
"The Dell build-
to-order and ‘do
it all ourselves’
model served the
company well for
almost 20 years,
but the
environment has
changed. Our
supply chain
needs to change
dramatically.”
-Dell Computer
7. Key Positions within the Organization
• Supply Chain and Procurement Professionals: Key interface with the company’s supply
chain can implement new sources of supply or work with current suppliers to incorporate
sustainability concepts that improve operations. Procurement play a role in coordinating
sustainable purchasing practices across various departments within the organization.
• Environmental, Health, and Safety Professionals: Key interface with the company’s
operations and establish and implement the company’s sustainability policies. They can
also function as a communication vehicle to the organization.
• Sales and Marketing Professionals: Key interface with the company’s customers
represent the face of business sustainability and communicate the organizations values
and commitment to sustainability. Sales and Marketing link consumer preferences for
sustainable products with the offerings of the company.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
8. Success Factor - Stakeholder Engagement
• Stakeholders actively engaged in the sustainability strategies of the business.
• The supply chain working together under aligned sustainability goals.
• Business responsiveness to the expectations of the consumer.
• Business practices designed for minimal environmental impact.
• Realized benefits of a supportive local community.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
Supply Chain achievements are the result of close collaboration with
key stakeholders committed to the business’s success
9. Green Procurement Best Practices
• Sustainable Product Quality Standards: Business sustainability
standards prevalent in material selection, manufacturing processes and
product packaging.
• Supplier Commitments: Suppliers have aligned value for meeting
internal company business sustainability metrics, environmental law,
and social expectations.
• Supplier Compliance: Companies work with business partners to meet
specific sustainability targets and assist others that fail but are
committed to make improvements over time.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
"Meeting
social and
environmental
standards is
not optional".
- Lee Scott,
Wal-Mart
• Supply Alliances: A Shift from intermittent transactions towards longer-term relationships with
sustainable business partners.
• Integrated Supply: A sustainable flow of materials and services integrated into internal processes
and aligned with material and quality standards.
10. Target Areas for Improvement
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
• Strategy Assessment – Evaluate business needs, market conditions, and sustainability value drivers
(research / benchmarking) to improve supplier relationships or initiating sourcing.
• Strategic Sourcing – Improve sustainable material selection and supplier manufacturing processes as part
of supplier selection criteria.
• Supplier Management – Establish key supplier performance metrics to ensure continuous alignment with
sustainability targets.
• Procurement Processes – Improve transaction efficiency to reduce inventory and warehousing.
• Logistics – Optimize inbound and outbound logistics to reduce fuel consumption and emissions.
• Inventory Management – Reduce inventory levels on non-critical supply resulting in lower carrying cost,
waste and material obsolescence.
• Organizational Effectiveness – Establish cross-functional work-groups to reduce rework and process waste
through early supplier involvement in business planning.
11. Educate and Train
• Outline and communicate a common vision.
• Roll-out a consistent corporate policy.
• Clearly define the governance structure.
• Establish common practices and procedures.
• Hold on-going training.
• Incorporate sustainable practices early in the planning process.
• Document and celebrate successes.
• Identify areas for ongoing improvement.
Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Sustainable Supply Chain Management
12. Post Office Box 271255, Houston, Texas 77277 I 888.824.4220 I info@taigacompany I www.taigacompany.com
Resources
• The Institute of Supply Management. http://www.ism.ws/.
• CAPS Research. Global Research Center for Strategic Supply Management. http://www.capsresearch.org/.
• Forum For the Future. Hallmarks of Sustainable Performance. Draper, Hanson, Uren.
• Pew Center. http://www.pewclimate.org/business
• APQC Publications. http://www.apqc.org/promos/marketing/books/pubs_index.html
• Aberdeen Group. The CPO's Agenda 2009: Smart Strategies for Tough Times.
http://www.aberdeen.com/summary/report/benchmark/5717-RA-procurement-officer-agenda.asp
• LMI Government Consulting. Best Practices in Implement Green Supply Chains. April, 2005.
Sustainable Supply Chain Management