10 Sustainable Supply Chain Flashcards
Sustainability
Use of resources to meet present needs without compromising the ability of future generations to meet theirs
Sustainability has three dimensions
- environmental performance
- economic performance
- social performance
Supply chain main purpose
Customer satisfaction at minimum cots
Closed loop supply chain
Have reverse logistics: e.g. recycling
Sustainable supply chain (what does it account for)
Network system that involves entities that bring products to customers and returns, accounting for:
- social
- environmental
- economic impacts
Difference sustainable and traditional supply chain
Not only economic but also environmental and social aspects considered
Advantages sustainable SC
- higher product quality (to avoid scandals)
- innovation: more efficient businesses
- transparency
- collective values
How to make SC more sustainable
- mapping SC
- identifying sustainability impacts, risks, hotspots
- implementing measures
- reporting
Challenges sustainable SC
- obstacles while promoting sustainability to suppliers (especially when low power to influence: low contract volume)
- should go beyond direct suppliers
More challenges
- modelling footprint across all supply chain activities
- integrate decisions over the whole life cycle of products (design, produce, recycle)
- develop measuring indicators
- develop tools that support design, planning, operations
- while profitabel consider: minimising environmental impacts, maximizing social health