This document provides an overview of topics related to supply chain management that were discussed in an Emerging Topics class. It includes links to resources on supply chain management roles, terms, trends like blockchain, AI and IOT. It also discusses emerging issues like creating shared value, embedding sustainability, and extending corporate social responsibility to global supply chains. The document outlines lessons learned from quality improvement initiatives that could inform supply chain CSR programs with suppliers. Overall, it promotes a collaborative approach and embedding sustainability into business models from the start.

1. EMBA 6913
Supply Chain Management
Emerging Topics
March 15, 2019
Payson E. Johnston,
Adjunct Professor, School of Management
University of San Francisco

2. Flipboard
Supply Chain
Management
http://flip.it/BvYBl

3. Roles and Terms

4. The Value Chain
Source: Dr. Sweta Thota
Or Business (B2B)
Global Distribution
Value Chain Management
Channel
Management
Distribution Channels

5. Top 25 in Supply Chain

6. http://www.gartner.com/webinar/2732618/pl
ayer?commId=111815&channelId=5501&sr
cId=1-2920760834

7. Emerging Trends

8. Keep an eye out for disruptive trends

14. Blockchain
AI
IOT

15. Blockchain in the Supply Chain

16. Supply Chain Financing

17. Buyer FunderSeller
1. Buys Product
Product/Service
2. Submits
Invoice
3. Sells Invoice
4. Provides
Funding
5. Pays Invoice
The Invoice-Financing Process

18. The Triple Bottom Line

19. Social Responsibility
Just the Tip of the Iceberg

20. Creating Shared Value
The concept of shared value can be defined as
policies and operating practices that enhance the
competitiveness of a company while simultaneously
advancing the economic and social conditions in the
communities in which it operates. Shared value
creation focuses on identifying and expanding the
connections between societal and economic
progress.
The concept rests on the premise that both economic
and social progress must be addressed using value
principles. Value is defined as benefits relative to
costs, not just benefits alone. Value creation is an
idea that has long been recognized in business,
where profit is revenues earned from customers
minus the costs incurred. However, businesses have
rarely approached societal issues from a value
perspective but have treated them as peripheral
matters. This has obscured the connections between
economic and social concerns.
Creating Shared Value – HBR – Jan 2011
by Michael E. Porter and Mark R. Kramer

21. History is the Judge
History has shown how
some actions that were
long accepted or at least
condoned in the business
community were eventually
condemned as morally
dubious.
Examples include…..

24. Click to edit Master title style

25. Major Sources of Ethical Values in
Business
3/17/19

26. Morality and the Law
Law is the public’s
agency for translating
morality into explicit
social guidelines and
practices and for
stipulating
punishments for
offenses.

27. A related problem…
“…involves the belief
that a person found
guilty under law is
therefore morally
guilty. Such
judgments are not
necessarily correct,
as they depend on
either the intention of
the agents or the
moral acceptability of
the law on which the
judgment has been
reached.”

28. Click to edit Master title style
Morality
Concerned with social
practices defining
right from wrong
These words refer to attempts to introduce
clarity, substance, and precision of argument
into the domain of morality
Ethical Theory
& Moral Philosophy:
Reflection on the nature
and justification
of right actions

29. Morality and Ethical Theory
Morality
What a person ought to
do to conform to
society’s norms of
behavior
Ethical Theory
Concerns the
philosophical reasons
for and against aspects
of the morality
stipulated by society

30. “If something is legal it is not necessarily moral; if
something is illegal, it is not necessarily immoral.
To discharge one’s legal responsibilities is not
necessarily to discharge one’s moral responsibilities”

32. Applied
Ethics
BioMedical
Ethics
Business
Ethics
Computer
Ethics
Environmental
Ethics
Social
Ethics
Corporate
Social
Responsibility
Sustainability
Management
Theory
Marketing &
Finance
Supply Chain
Management
Social
Implications
Ethical
Theory
Social
Entrepreneurship
Value Chain Management
Business
Practice

33. The branches of philosophy (orange)
and their links with allied fields (yellow)
Adapted from http://www.daviddarling.info/encyclopedia/P/philosophy.html
Axiology - the study of the nature, types, and criteria of values
and of value judgments especially in ethic
Applied
Ethics
BioMedical
Ethics
Business
Ethics
Computer
Ethics
Environmental
Ethics
Social
Ethics

34. Normative
Ethical Theories
Rights
Approach
Individualism
Approach
Justice
Approach
Utilitarianism
Approach
Egalitarian Economic freedom Libertarian
Individuals
Matter
How much
do
individuals
matter?
Community
matters
Virtue
Ethics
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reservedAdapted from McGraw-Hill/Irwin
BioMedical
Ethics
Business
Ethics
Computer
Ethics
Environme
ntalEthics
Social
Ethics

35. What Ethical Theory?
Small – Group Discussion: What ethical theory would you
apply to business and why?

36. The Fortune at the
Bottom of the Pyramid
Recent thinking and practice in
management has challenged the
widely held view that the role of the
poor…is to exercise our generosity
Bottom of the Pyramid = the 2.7
billion people who live on less than
$2 a day.
“Serving the World’ Poor, Profitably”

37. Cost of a Cup of Coffee…

38. Worker Disputes
Moving part of the
manufacturing operations to
India…
The workers want severance
packages
“China Labour Bulletin said it
recorded 201 cases of labor
disputes, including strikes, in
China in the first four months
of the year”
http://online.wsj.com/article/SB100014241278
87323998604578565491218131384.html#pri
ntMode

39. Embedding Sustainability

40. Global Business Management
Extending CSR
(Corporate Social Responsibility)
to a Global Supply Chain
The 7th International Conference on Operations and Supply Chain
Management (ICOSCM 2013)
Antai College of Economics and Management, Shanghai Jiaotong University
Shanghai, China
June 22-25, 2013
Presented by:
Payson E. Johnston, University of San Francisco
Paper Co-Written by:
Robert N. Mefford, University of San Francisco

41. Pressures for CSR
Demands
from the
company’s
stakeholders
(employees,
customers,
suppliers,
communities,
governments
, and
shareholders
(Waddock
2008)
Pressures
from their
peer
companies
Global
concerns
about the
environment
Ratings
and
rankings
such as
Fortune
magazine’s
annual
“Most
Admired
Companies
” issue
Non-
Governmen
tal
Organizatio
ns (NGOs)
working
conditions
in
developing
countries
became
evident
Social
investors
who direct
their
investment
to socially
responsible
firms
“Enlightened
long-term
self-interest”
(Blake 2006)
There is an
increasing
body of
evidence
that
sustainabili
ty efforts
can
actually
increase
shareholde
r value
(Eccles, et al,
2012;
Freeman, et
al, 2010;
Porter and
Kramer,
2011)
Since the 1980’s firms around the world have confronted
an array of pressures to become “socially responsible”
….at first the effort was defensive

42. (Blake 2006; Eccles, el al, 2012; Clark 2007; Mefford 2012)
Increasing Productivity and quality,
reducing costs,
motivating employees,
mitigating risks,
and increasing brand image

43. Lean & TQM
Extended to Suppliers
Similarities to the quality and lean journeys of companies
(Lu, et al. 2012; Gopalakrishnan, et al, 2012; King and Lennox, 2001; Narasimhan and Schoenherr, 2012)

44. Evolution of the MNC CSR Journey
and the Incorporation of Sustainability into the Culture
Starts
discussing
CSR
openingly and
eventually
reporting on
CSR efforts
Compliance
caused a big shift
Moved beyond
brand level
discussions to
ROI
Discussions
CSR starts to
Operationalize
within the
Business w/
Team reporting
to Supply Chain
Executives
Reducing
packaging &
more
comprehensive
take back and
recycling of
products
Embedded
into Design
Principles
Suppliers
Required to
Sign-off on
Code of
Conduct
Grading of
suppliers on their
CSR reports
/performance &
grading of carbon
reduction
disclosures
10 year period

45. Steps Learned by the Firm on Adopting CSR in the
Operations
1. Moving CSR from the corporate level and operationalizing it through the
company
2. Creating the tools and processes necessary to track, collect, and drive
3. Ensuring the finances were/are allocated
4. Look for Win/Win projects (Profit & Society) with positive business ROI:
Sustainability
5. Bottoms up grass-roots efforts and top down support are both needed
6. Don’t be afraid to try and fail and try again and again and again

46. Lessons from
the quality and lean journeys
• History of the quality and lean movements
• Barriers encountered in implementing quality
and lean programs
• Supply chain challenges and solutions
• Collaborative approach emphasizing win-win
most effective
• A few firms were successful in spreading lean
and quality programs to their suppliers
(Mefford 2010, Womack and Jones 1996, Anderson and Skjoett-Larsen 2009 )
Will this approach work for extending
CSR to the supply chain?

47. Conclusions and a look ahead
1. The potential of Supply Chain CSR
2. Embedding CSR in the corporate culture and strategy
3. “Shared value” leads to the best results for the company and society
4. Supply Chain CSR will require time, resources, and patience but is
achievable…a long term project
5. This is the new frontier of CSR for many global companies
6. AND Built into company business models from the start!
“There is little evidence to suggest that ESCM (Ethical Supply Chain Management) is
widely embedded through the supply chain.” (Millington 2008)

48. ”The critical barrier to doing business in rural regions is
distribution access, not lack of buying power.”
Prahlad and Hammond (2002)

49. Terms I should know?

50. Some Standard Terms In Supply Chain Management
MPA
RFQ
RFP
PO
Sales Order
Invoice
Forecast
MRP (Material Requirements Planning)

51. What I want to learn?

53. In Summary….

54. 12 Essentials of Supply Chain Management

55. 1 - Understand your customer - Sales is Key!

56. 2 - The supply chain REALLY matters

57. 3 - Understand your product, service, or technology

58. 4 - Get out of the office

59. 5 - You need to negotiate

60. 6 - It is not just about cost savings

61. 7 - It is about the People

62. 8 - Value the relationships for the long-term

63. 9 - Use the data to make decisions, not your emotions

64. 10 - Limit the risk

65. 11 - Keep an eye out for disruptive trends

66. 12 - Embedded Sustainability is the Key

67. Questions?