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SUPPLY CHAIN MANAGEMENT > FINAL > Flashcards

FINAL Flashcards

1
Q

incorporates environmental concerns into every stage of the supply chain process—from sourcing materials to delivering the final product and managing waste

A

GREEN SUPPLY CHAIN MANAGEMENT

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2
Q

includes policies, practices and tools that an organization can apply in the context of the sustainable environment

A

GREEN SUPPLY CHAIN

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3
Q

What are the key principles of GSCM?

A

REUSE
REDUCE
RECYCLE
REDESIGN

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4
Q

This principle focuses on minimizing resource consumption and waste generation throughout the supply chain.

A

REDUCE

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5
Q

Using energy-efficient processes and technologies.

A

Energy Conservation

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6
Q

Streamlining operations to reduce unnecessary use of raw materials

A

MATERIAL REDUCTION

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6
Q

Avoiding overproduction or excess inventory to prevent waste.

Example: Implementing paperless billing or digital check-ins in hotels

A

WASTE MINIMIZATION

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7
Q

Emphasizing the repeated use of
products or materials to extend their lifecycle and decrease environmental impact.

A

REUSE

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8
Q

Finding alternative uses for items that would otherwise be discarded.

A

PRODUCT REPURPOSING

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9
Q

Repairing and reusing equipment or materials (e.g., furniture in resorts)

A

REFURBISHMENT

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10
Q

Utilizing refillable or returnable packaging for supply chain processes. Example: Hotels using refillable toiletries to reduce plastic waste.

A

PACKAGING REUSE

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11
Q

transforms used materials into new products, reducing the need for virgin resources.

A

RECYCLE

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12
Q

Collecting and processing waste to
extract reusable components.

A

MATERIAL RECOVERY

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13
Q

Establishing systems for separating
recyclable materials from general waste.

A

WASTE SEGREGATION

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14
Q

Designing supply chains that
incorporate recycled materials
into production. Example: Restaurants recycling glass bottles and kitchen waste into compost.

A

CLOSED-LOOP SYSTEMS

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15
Q

This principle aims to reimagine
products, processes, and systems to be more sustainable and eco-friendly from the outset.

A

REDESIGN

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16
Q

Creating products that are energy-efficient, durable, and made with eco-friendly materials.

A

SUSTAINABLE DESIGN

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17
Q

Streamlining operations to lower environmental impact, such as optimizing transportation routes.

A

PROCESS INNOVATION

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18
Q

Designing products with their end-of-life reuse or recycling in mind.
Example: Resorts designing modular buildings that allow materials to be easily reused during renovations.

A

Cradle-to-Cradle Design

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19
Q

WHAT ARE THE KEY PRACTICES OF GSCM

A
  • GREEN PROCUREMENT
  • GREEN MANUFACTURING/ OPERATION
  • REVERSE LOGISTICS
  • GREEN DISTRIBUTION
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20
Q

Refers to the practice of sourcing products and services that are
environmentally sustainable throughout their lifecycle. It involves choosing goods and services that minimize negative impacts on the environment while
meeting organizational needs

A

GREEN PROCUREMENT

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21
Q

Prioritizing materials and products made from renewable, recyclable, or biodegradable resources

A

SUSTAINABLE SOURCING

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22
Q

Selecting goods and equipment
designed to consume less energy and reduce greenhouse gas emissions.

A

ENERGY EFFICIENCY

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23
Q

Ensuring suppliers follow environmental regulations and adopt eco-friendly manufacturing practices

A

ENVIRONMENTAL COMPLIANCE

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24
Q

Preferring products with minimal packaging and that can be reused
or recycled.

A

WASTE REDUCTION

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25
Q

Refers to the integration of environmentally friendly practices into production processes and operational activities. This approach focuses on minimizing the environmental impact of manufacturing and service
delivery while maintaining or improving efficiency and
profitability.

A

GREEN MANUFACTURING/ OPERATION

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26
Q

Refers to the process of managing the return of goods, materials, or resources from the end-user or customer back to the manufacturer or supply chain for purposes
such as reuse, recycling, refurbishment, or proper disposal. It is a critical component of sustainable supply chain management and helps minimize waste while recovering value from used products or materials

A

REVERSE LOGISTICS

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27
Q
  • Using eco-friendly transport, such as electric delivery vehicles or carbon-neutral shipping
  • Refers to the adoption of environmentally sustainable
    practices in the distribution phase of a product’s lifecycle. This involves minimizing the environmental
    impact of transportation, storage, and delivery by optimizing logistics operations, reducing emissions, and using sustainable packaging and transportation methods.
A

GREEN DISTRIBUTION

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28
Q

Cost savings through efficiency and creating recycling programs.

A

ECONOMIC

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29
Q

Reduced carbon footprint, waste minimization, and resource preservation

A

ENVIRONMENTAL

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30
Q

Enhancing the reputation of businesses as eco-friendly, attracting conscious consumers

A

SOCIAL

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31
Q

Meeting government regulations and certifications (e.g., Green Globe, LEED) encourage or mandate sustainable practices

A

COMPLIANCE

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32
Q

Operational Challenges:
* Limited infrastructure (e.g., no recycling facilities nearby).
* Lack of local eco-friendly suppliers.

Cost and Resource Constraints:
* High upfront costs of transitioning to sustainable
alternatives.

Knowledge and Awareness:
* Employees and managers may lack the necessary
training.

Stakeholder Resistance:
* Owners and investors may prioritize short-term profits over
long-term sustainability goals

A
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33
Q

Transitioning to a green supply chain often requires substantial upfront investments in eco-friendly technologies, renewable energy sources, sustainable materials, and systems for waste reduction. This can be a major barrier, especially for small to mid-sized companies.

Example: Hotels might face high
costs when upgrading to energy-efficient appliances or sustainable construction materials.

A

HIGH INITIAL INVESTMENT COSTS

34
Q

Green supply chains often
involve multiple stakeholders, each with varying degrees of commitment to sustainability. This complexity can make it difficult to ensure that every link in the chain
adheres to green practices.

Example: A hotel may want to purchase locally sourced food but struggle with suppliers who lack green certification or who have limited capacity for sustainable
farming.

A

SUPPLY CHAIN COMPLEXITY

34
Q

Many organizations lack adequate
knowledge or understanding of GSCM practices. This can result in mismanagement, poor decision-making, or failure to capitalize on available eco-friendly alternatives.

Example: A hotel management team might not know how to evaluate sustainable suppliers, missing opportunities for more sustainable procurement

A

LACK OF AWARENESS AND KNOWLEDGE

35
Q

Employees, managers, and suppliers may resist green initiatives due to perceived higher
costs, fear of disruption, or lack of
understanding. Change management and continuous training are crucial to overcoming
this resistance.

Example: Workers at a resort may
resist adopting waste-reduction
techniques due to the perception
that these methods are time-consuming or unfamiliar.

A

RESISTANCE TO CHANGE

36
Q

Navigating through varying environmental regulations across different regions or countries can complicate the implementation of GSCM. Companies may also find it
difficult to stay up to date with
evolving laws.

Example: A global hotel chain
might face difficulties in aligning
its environmental practices with
both local laws in each country
and international sustainability
standards

A

REGULATORY AND COMPLIANCE ISSUES

37
Q

Many regions and industries lack the infrastructure to support green supply chain initiatives. For example, waste management systems may be inadequate for recycling or composting materials in the tourism and hospitality sectors.

Example: A hotel in a remote
location might struggle to find local
partners who can handle waste
recycling or provide sustainable
energy solutions.

A

INADEQUATE INFRASTRUCTURE FOR SUSTAINABILITY

38
Q

There is often a conflict between the immediate cost pressures and long-term sustainability goals. Many
businesses are hesitant to adopt
GSCM practices due to the perception that they are too
costly to implement.

Example: A restaurant may want
to shift to using only locally
sourced, organic ingredients, but
may struggle with higher prices
compared to conventional
sourcing.

A

BALANCING COST AND SUSTAINABILITY

39
Q

Measuring the performance of green initiatives and reporting them effectively to stakeholders can be a challenge. Many companies lack the systems to track sustainability metrics accurately.

Example: A resort may find it difficult to quantify reductions in water or energy consumption due to inconsistent reporting systems.

A

PERFORMANCE MEASUREMENT AND REPORTING

40
Q

Partner with eco-conscious
suppliers and engage local
communities for resources

A

COLLABORATIONS AND PARTNERSHIPS

41
Q

Use certifications such as LEED or
Green Globe to validate efforts

A

ADOPTING POLICIES AND INCENTIVES

42
Q

Encourage guests to participate,
such as towel reuse programs or
waste segregation.

A

CUSTOMER ENGAGEMENT

43
Q

Regularly audit and adapt supply
chain practices based on feedback
and technological advancements

A

CONTINOUS MONITORING AND IMPROVEMENT

44
Q

refers to the movement of
product from one location to another as it makes its way from the beginning of supply chain to the customer.

A

TRANSPORTATION

45
Q

is an important supply chain driver because products are rarely produced and consumed in the same location

A

TRANSPORTATION

46
Q

the party who wants to transport the product from one place to another place.

A

SHIPPER

47
Q

is company that moves the goods
from one place to another place.

A

CARRIER

48
Q

Trucking industry is divided into two parts:

A

TL: Truck Load and LTL: Less than Truck load

49
Q

pricing display the economic of scale with respect the distance travel. suited for transportation between manufacturing facilities and warehouses

A

TL (TRUCK LOAD)

50
Q

operations are priced to encourage shipments in small lots, usually less than half a TL. is suites for shipments that are large to be mailed as small packages.

A

LTL (LESS THAN TRUCK LOAD)

51
Q
  • It is a relatively cheaper mode of transport as compared to
    other modes.
  • It is a flexible mode of transport as loading and unloading is possible at any destination. It provides door-to-door service.
  • It helps to carry goods from one place to another, in places which are not connected by other means of transport like hilly areas
A

ROAD TRANSPORT ADVANTAGES

52
Q
  • Due to limited carrying capacity road transport is not economical for long distance transportation of goods.
  • Transportation of heavy goods or goods in bulk by road involves high cost.
A

LIMITATIONS OF ROAD TRANSPORT

53
Q

is commonly used by companies
who work with short lead times, or advanced service levels.

A

AIR FREIGHTING

54
Q

is best suited for small, high- value items or time sensitive emergency shipments that have to travel a long distance.

A

Air transportation

55
Q

normally move shipments that
have high value but light weight.

A

AIR CARRIERS

56
Q
  • It is the fastest mode of transport.
  • It is very useful in transporting goods to the area, which are
    not accessible by any other means
A

Advantages of Air transportation:

57
Q
  • It is relatively more expensive mode of transport.
  • It is not suitable for transporting heavy and bulky goods.
  • It is not suitable for short distance travel.
A

Disadvantages of Air Transportation

58
Q

are transportation companies
which carry small packages. Examples: FedEx, UPS, DHL. Etc

A

PACKAGE CARRIERS

59
Q

use air, truck and rail to transport
the goods. Packages carriers also provide other value added services that allow shippers to inventory flow and track order status, shipper can proactively inform the customer about their packages.

A

PACKAGE CARRIER

60
Q

is suited for e- business.

A

PACKAGE CARRIER

61
Q

uses freight trains for the delivery of merchandise. Freight trains are usually powered by diesel, electricity and steam.

A

RAIL

62
Q

is suited for bulk shipment of products like fertilizer, cement, food grains and coal etc. from the production plant to the warehouses

A

RAIL

63
Q
  • It is relatively faster than road transport.
  • It is suitable for carrying heavy goods in large quantities over long distances.
  • Cost effective.
A

Advantages of Rail transportation

64
Q
  • It is relatively expensive for carrying goods over short
    distances.
  • It is not available in remote parts of the country.
  • It provides service according to fixed time schedule and is
    not flexible for loading or unloading of goods at any place.
A

Limitations of Rail transportation:

65
Q

uses ships and large commercial
vessels that carry billions of tons of cargo.

A

WATER TRANSPORT

66
Q

is used primarily for the movement of large bulk commodity shipments and it is the cheapest mode for carrying such load.

A

WATER TRANSPORT

67
Q

is particularly effective for significantly large quantities of goods that are nonperishable in nature and for cities or states that have water access

A

WATER TRANSPORT

68
Q
  • It is a relatively economical mode of transport for bulky and heavy goods.
  • The cost of maintaining and constructing routes is very low most of them are naturally made.
  • It promotes international trade.
A

Advantages of water transportation:

69
Q
  • The depth and navigability of rivers and canals vary and thus, affect operations of different transport vessels.
  • It is a slow moving mode of transport and therefore not suitable for transport of perishable goods.
  • It is adversely affected by weather conditions.
  • Sea transport requires large investment on ships and their maintenance
A

disadvantages of water transportation

70
Q

is used primarily for the transport of crude petroleum, refined petroleum products and natural gas. it include a significant initial fixed cost in setting up the pipeline and related infrastructure.

A

PIPELINE

71
Q
  • are not flexible and this scope is limited with
    respect to commodities.
  • Unable to transport a variety of materials
A

PIPELINES

72
Q
  • is use of more than one mode of transport for the movement of shipment from origin to its destination.
  • is used two or more mode of transport to take the advantage of inherent economies of each and thus provide the integrated service at lower cost.
A

INTERMODAL TRANSPORTATION

73
Q
  • is the fastest mode of transport and is commonly used by individuals
    and companies alike who work with short lead times and high service levels.
  • It is best suited for small, high-value items or time-sensitive urgent shipments that have to travel a long distance
  • When it comes to costing, this is more expensive in comparison to other modes of transportation.
    Therefore, it is not recommended for short distance travel.
A

AIR

74
Q
  • uses ships and large commercial
    vessels that carry tons of cargo. vessels that carry tons of cargo.
  • Unlike air transport, this one has its share of drawbacks. Primary issue is the slow-moving mode of transport and is only applicable
    specifically for large quantities of non-perishable goods.
  • This is also adversely affected by weather conditions.
A

WATER

75
Q

 Most individuals and companies prefer to send documents and small packages via well-known carriers.
 They provide rapid and reliable delivery services, though a bit pricey.
 uses a combination of air, truck and rail to transport goods especially if the parcel’s origin is from overseas.

A

PACKAGE CARRIERS

76
Q
  • Depending on the volume of items to be delivered, the use of trucks, delivery vans and other vehicles that travel on road may be used to
    transport shipments.
  • It is a flexible mode of transport whereby loading and unloading of parcels are made possible at
    any destination.
A

ROAD

77
Q
  • An alternative for the use of trucks and delivery vans, trains may also be used to deliver merchandise.
  • Some prefer trains because it is relatively faster (no road traffics) and is suitable for carrying large
    quantities over long distance, making it cost effective.
  • The downside, however, is it is not available everywhere in the country, making it not flexible for loading and unloading of goods at any time and place.
A

RAIL

78
Q
  • This make use of more than one mode of transportation to move a shipment to its intended destination.
  • Lower transport cost is the result of the integrated service.
  • It may be a combination of two or more transportation modes such as:
  • Rail and Truck
  • Water, Rail, Truck
  • Air and Truck
A

INTERMODAL

79
Q

Cost of transportation decrease with increasing loads & increasing distance of transportation.

Example: A 100kg shipment cost will be less per kg, as compared to a 50 kg shipment, because cost incurred in executing an order does not vary much with the size of the
order with most cost components like order preparation, invoicing & collecting the shipment remaining fixed irrespective of shipment size.

A

ECONOMY OF SCALE

80
Q

TWO IMPORTANT PRINCIPLES OF TRANSPORTATION:

A

ECONOMY OF SCALE
ECONOMY OF DISTANCE

81
Q
  • Unit cost of transportation decreases with increasing distance transportation.
  • Same load transported in one step across 1000 km cost less than transporting load in two steps of 500 km each across the same km because of double loading & unloading charges
A

ECONOMY OF DISTANCE

SUPPLY CHAIN MANAGEMENT (4 decks)

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