Supply Topic 5 (Sustainable Supply Chains)

Question 1

sustainability

Answer 1

• meeting the needs of the present without compromising the ability of future generations to meet their own needs
• possibility that humans and other life will flourish on earth forever
• ensuring all people on planet have resources & environment to survive and thrive now and in future

Question 2

3 Key Words of Sustainability

Answer 2

1. Needs - benefits of something that can be established that is necessary
2. Limitations - imposed by state of tech development/social org in future
3. Intergenerational Equality - offering future generations similar life as current

Question 3

Triple bottom line

Answer 3

1. Environmental
2. Social
3. Economic

Question 4

Economic pillar of sustainability

Answer 4

• how company runs (profits in long run)
• same as economic growth
• profit, cost savings, return on investments

Question 5

Environmental Pillar of sustainability

Answer 5

• evaluate around greenhouse gas emissions
• hopes to reduce all of the scopes

Question 6

Social Pillar of sustainability

Answer 6

• employee maintaining necessary welfare from company
• social equity and cohesion
• protection and promotion of fundamental rights
• stakeholder satisfaction

Question 7

GHG Emission Classification

Answer 7

• environmental pillar
  Scope 1 - direct emmission, owned/generated/controlled by company itself

Scope 2 - generated by supplier network, company cant control

Scope 3 - rest of emission, supply network or customer network, indirect emission

Question 8

Development goals

Answer 8

1. UN global sustainable development goals
2. Global sustainable development report 2023

Question 9

sustainability performance management

Answer 9

• measure performance considering business and non business indicators meeting requirements of enlarged set of stakeholders
• identify KPIs on sustainability
• use 3 basic dimensions under triple bottom line = seems to be most popular performance indicators practiced by business units practicing sustainability
• integrating these dimensions = still unsolved problem

Question 10

indicators

Answer 10

business - economic, technical and operational

non business - environmental and societal

Question 11

Economic (Traditional) KPIs

Answer 11

1. operational efficiency
2. effectiveness
3. quality enhancement of business processes
4. agility
5. innovation and creativity

Question 12

Environmental and Societal KPIs

Answer 12

1. carbon footprint generation
2. consumption of energy
3. supply chain miles or food miles
4. excess consumption of materials
5. social impacts
6. safety and security factors
7. health related factors

Question 13

holistic performance assessment system

Answer 13

first column - main criteria

second column - sub criteria

measures = quantifiable metrics, tailor assessment system to ones that are more suitable or customised to their own business

Question 14

Triple Bottom Line by trade offs and priority based approaches

Answer 14

• intersection of all 3 elements
• area has a trade off
• in reality has to come up with a solution for all 3
• big trade off therefore sacrifices
• better to use priority based approach
• preferences at different stages in the business and prioritise until at a good stage
• conflicts and trade offs with resources
• overview and scope all of the elements