Lecture7 Flashcards
What is a supply chain?
A supply chain covers every company involved in the process of making, buying, and selling.
What is the definition of a sustainable supply chain according to the ISO standard?
A sustainable supply chain meets organizational needs while benefiting society and minimizing environmental impact.
How can supply chains be transformed into sustainable ones?
Steps:
1. Develop or adopt social and environmental standards. (make suppliers adhere to them).
2. Monitor suppliers through audits and enforcing standards.
What is cascading in sustainable supply chains?
Cascading regulates supplier relationships to implement sustainability standards throughout the chain. (upstream)
What are the conditions under which cascading fails?
Reasons cascading fails:
- Conventional purchasing practices. (too large orders)
- Limited monitoring capacity of first-tier suppliers.
- Fragmented contractual relationships.
- Lack of awareness/attention of smaller suppliers.
What are the four effective approaches to sustainable supply chains?
Approaches:
- Direct: Evaluate first-tier suppliers. (by evaluating their performances on
environmental, health and safety and labour practices, and work with first-tier suppliers to map the
supplier network.)
- Indirect: Provide education/training. (ensure that first-tier suppliers have the resources to monitor
and ensure compliance with ESG standards.)
- Collective: Develop industry standards.
- Global: Collaborate with international organizations (UN).
What are the challenges of cascading sustainability practices?
Challenges:
- Unrealistic orders lead to overtime or avoidable practices.
- Decentralized operations limit supplier transparency.
What is the role of sustainability in supply chains?
Sustainability in supply chains is a powerful lever for corporate sustainability but requires significant improvement.
Cascading is a great approach, though, it only works under certain conditions
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