L5. Sustainable Supply Chain Flashcards
Puma
2011: EP&L: cost of nature utilisation: 145€ millions
Basics of SC:
Supplier > Manufacturer > Retailer > Customer: around 5 to 20% of the impact; the larger part is upstream (80 to 95%)
Sustainable Supply Chains
The management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services.
= Green supply chain, Responsible supply chain, Closed loop supply chain, Resilient supply chain
SSC: elements
- Three dimensions of sustainability
- Connect supply chain and stakeholder
- Adopt a long-term view
- Business case
- Main focus on direct suppliers
Suppliers codes of conduct
- Ensure that a company’s suppliers adopt and integrate a set of procedures in order to comply with environmental and social principles and with the requirements of the focal company
- Create a shared foundation
Standard
Set of voluntary predefined rules, procedures, and methods to systematically assess, measure, audit and/or communicate the social and environmental behaviour and/or performance of firms.
Innovative market-based instrument
Standard
characteristics
- Voluntary
- Multi-Stakeholders
- Dynamic, subject to evolution and improvement
- Provide a system of elements and tools that integrate the standard (certification)
Quality standards
systems of principles, guidelines and assurance mechanisms for ensuring the maintenance of proper standards in manufactured goods or services.
Certification
- A procedure by which a third-party gives written assurance that a
product, process or service is in conformity with certain standards. - The process ends with a written certification (e.g., the use of a label
on the product package), which guarantees the buyer that the
supplier complies with the • requirements. - The third-party auditor, in order to perform the certification and assure credibility, has to be a part of a certification body and should be independent from any direct interest in the economic relationship between the parties (supplier and buyer).
Verification
- Used by some entry-level standards where the aim is to rapidly enter and scale up the market, mainstream sustainability practices into the sector, and push capacity building with farmers and producers
- Does not include the provision of a certificate or of a label and relies on some degrees of self-assessment
Traceability
The ability to identify and trace the history, distribution, location, and application of products, parts, and materials from raw materials to ensure the reliability of sustainability claims (UNGC and ISO)
dessiner le graphe
Product segregation
certified materials and products are physically separated from non-certified materials and products at each stage along the value chain.
Bulk Commodity
separates certified from non- certified materials but allows mixing of certified materials from different producers.
Identity Preservation
requires segregation of the certified material from the non-certified material and doesn’t allow mixing of certified materials throughout the value chain to provide traceability from a specific plantation or primary processor to the final users. The IP model enables the traceability of products back to the originating farm, forest or production site.
Mass Balance
- Certified and non-certified materials can be mixed. The exact volume of certified material entering the value chain must be controlled and an equivalent volume of the certified product leaving the value chain can be sold as certified. Common for products and commodities where segregation is very difficult or impossible to achieve, such as for cocoa, cotton, sugar and tea.
