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Supply Chain Management > Lecture 10 - Strategic Supply Chain Management > Flashcards

Lecture 10 - Strategic Supply Chain Management Flashcards

1
Q

Name examples of irresponsible supply chains.

A

The Rana Plaza, Bangladesh, 2013
- Nike, GAP

BP oil disaster, Gulf of Mexico, 2010

Lac-Megantic rail disaster, Quebec, 2013

Horesemeat Scandal, UK & Europe, 2013
- Tesco

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2
Q

Name examples of responsible supply chains

A

Abengoa - investing in renewable energies

IKEA - IWAY sustainable trees

DuPont - investing in reducing raw materials through innovation and increasing transparency between factories as part of Responsible Care programme.

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3
Q

What is sustainability?

A

“Development that meets the needs of the present without compromising the ability of future generations to do the same”

  • Brundtland Commission, 1987
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4
Q

Why should companies take a green supply chain perspective?

A
  • EU laws - restriction of hazardous substance directive
  • UK pledging to clean up environmental emissions by 80% in 2050.
  • WEEE legislation
  • Greenpeace pressues
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5
Q

What are the motivations for having a responsible supply chain?

A 
Gender equality
Provide safer working conditions
Fair wages
Fairtrade
Alleviate pressures on charities and non profit organisation
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6
Q

Why act responsibly?

A 
ENHANCE/PRESERVE THE BRAND (Ikea, Apple, Nike)
MEET LEGAL REQUIREMENTS
MAKE PROFIT (Seventh Generation)
CREATE SAVINGS (DuPont and Abengoa)
PRE-EMPTY FUTURE LEGISLATION (Ikea)
AVOID BOYCOTTS (Coke and Nestle)
CATER FOR ENVIRONMENTALLY FRIENDLY CUSTOMERS (Body Shop)
COMPANY STRATEGY/ETHOS (eg Patagonia)
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7
Q

How can acting responsibly enhance/preserve a brand?

A

Can prevent bad publicity. eg Apple and Nike suicides

Can create competitive advantage. eg IKEA

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8
Q

How can a responsible supply chain help a firm meet legal requirements?

A

Can help meet EU and UK law

Can help meet WEEE directive (Electrical products)

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9
Q

How can a responsible supply chain help a firm make profit?

A

WIN/WIN SITUATION (LOW HANGING FRUIT)

Closed loop supply (H&M)

Eco branding (Patagonia, Seventh Generation)
- Plant based and recycled materials, reduce waste

Environmental cost leadership (Colgate-Palmolive)
- Strategy based around triple bottom line, not at high prices

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10
Q

How can a responsible supply chain help a firm create savings?

A 
REDUCE WASTE (lean) -> material efficiency
- DuPont by reducing consumption of raw materials

INNOVATION -> new processes that are greener (can boost competitive advantage)

  • DuPont using technology, biology and chemistry to make products with reduced environmental impact
  • Abengoa investing in R&D to create wave energy (diversification from purifying sea water and biofuel)
  • US car manufacturers fighting legislation for fuel efficient cars yet German’s embraced it.
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11
Q

What is the triple bottom line?

A

Concept that simultaneously considers and balances economic, environmental and social goals from a microeconomic standpoint.

ELKINGTON, 1998, 2004

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12
Q

What do Carter and Roger’s identify as key elements in sustainable supply chain management?

A

Supply chain risk management
Transparency
Strategy and culture

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13
Q

What is risk management?

A

The ability of the firm to understand and manage its economic, environmental and social risks in the supply chain.

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14
Q

What is transparency regarding SSCM?

What are the issues with it?

A

Actively engaging with stakeholders, using their feedback to input to secure buy in and improve the sustainable supply chain.

Try to avoid greenwashing

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15
Q

What is the GRI?

A

Global Reporting Initiative
- Shared reporting structure to compare sustainable practises within firms if they use the same structure.

Many firms use their own frameworks across a whole supply chain eg IKEA

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16
Q

What do Carter and Roger propose about visionary SSCM firms?

A

Firms that strategically undertake SSCM will achieve high economic performance than those that pursue only one or two components of the triple bottom line.

17
Q

How does SSCM link to TCE?

A

Firms dependent on key, external resources improve economic sustainability through vertical coordination.
eg: IKEA

Positive relationship between vertical coordination and the interaction of uncertainty and resource dependency.

18
Q

How does SSCM link to RBV?

A

Supply chains which integrate social and environmental resources and knowledge may be more difficult to imitate, thus leading to economic sustainability (better use of resources in house)

19
Q

What are the two approaches to SSCM?

A

Reactive

Proactive

20
Q

What the 3 types of SSCM firms?

A

Formentini and Taticchi, 2016

SUSTAINABILITY LEADERS

SUSTAINABILITY PRACTITIONERS

TRADITIONALISTS

21
Q

What are sustainability leaders?

A
  • Clear actions reflecting a desire to support the environment, reflective through the whole supply chain.
  • Characterised by a triple bottom line approach which extends to SSCM.

Eg: IKEA, Patagonia

22
Q

What are sustainability practitioners?

A

One or two triple bottom line approaches worked on, little focus and isolated SSCM initiatives.

Eg: GAP.
- Main focus on people and performance, not planet.
Chemical dyes in Indonesian rivers.

23
Q

What are traditionalists?

A

Use a myopic and business/financial mind with the intention to make high profit.

Lean approach may be efficient for business but may not be a clear action to show explicit triple bottom line and SSCM approach, may include only some elements.

24
Q

How should firms create sustainable practises?

A

1) Create meaningful expectations
2) Confirm suppliers and agree upon targets
3) Measure supply chain performance
4) Evaluate and improve

eg: Illy working to improve by having clear indicators regarding the maximum amount of water and pesticides that can be used on their coffee plantations.

eg: Starbucks’ C.A.F.E. Coffee and Farmer Equality
- Ensure Starbucks source sustainability by evaluating triple bottom line of coffee production through measures on practises generic and smallholder scorecards.
- Benefitted over 1 million workers.

25
Q

What is Seuring and Miller’s (2008) conceptual framework - STRATEGY 1?

A

SUPPLIER MANAGEMENT FOR RISK AND PERFORMANCE

- Which factors triggering SSCM act as barriers and which as opportunities?

26
Q

What are the barriers to SSCM in relation to Seuring and Miller’s conceptual framework STRATEGY 1?

A
  • High costs
  • Coordination effort and complexity
  • Insufficient/missing communications
27
Q

What are the opportunities to SSCM in relation to Seuring and Miller’s conceptual framework STRATEGY 1?

A
  • Company overlapping communication
  • Management systems
  • Monitoring, evaluation and sanctions
  • Training of employees and suppliers
  • Integration into corporate policy
28
Q

What are the GOALS to SSCM in relation to Seuring and Miller’s conceptual framework STRATEGY 1?

A
  • Win win sitautions
  • Trade offs
  • Minimum requirements
29
Q

What is STRATEGY 2 in Seuring and Miller’s conceptual framework?

A

Opportunities to interact with suppliers to improve sustainability whilst gaining competitive advantage and satisfying customers.

Requires:

  • Increased communications
  • Sharing the same criteria
  • Supplier development
30
Q

What are the pressures and incentives for sustainability according to Seuring and Miller, 2008?

A 
Legal demand
Customer demand
Response to shareholders
Competitive advantage
Environmental and social pressure groups
Reputation bias
31
Q

What broad perspective does SSCM have to consider?

A

Beyond buyer/supplier relationships

Consider cultural and environmental dimensions of sustainability

Increasing the need for cooperation among partnering companies
- sharing knowledge will improve overall social approaches of suppliers

32
Q

What does Pagell, 2010 theorise?

A

It is important to treat commodities differently according to their importance in the supply chain.
- Move from traditional leverage items being purchased in a style closely aligned to critical/strategic items.

33
Q

Talk through the Barilla case study.

A

Supply contracts for durum wheat sourcing in Emilia Romagna region for sustainability.

Farmers stopped exiting durum wheat business
- Barilla paid a premium price

Farmer had more monthly cash flow
- No need to time the sale of durum wheat

Barilla had more locally procured wheat in line with sustainability goals at a more stable price

Supply Chain Management (9 decks)

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