Sustainability & business relationships

Question 1

Explain “logistics”

Answer 1

Is the process of strategically managing the procurement, movement and storage of materials, parts, and finished inventory (and related material flows) through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost effective fulfillment of orders.

Question 2

Explain “Supply chain management”

Answer 2

The management of upstream and downstream relationships with suppliers and customers in order to deliver superior customer value at less cost to the supply chain as a whole

Is the integration of key business processes from end user through original suppliers that provides products, services and information that add value for the customers and other stakeholders.

Question 3

State the six main trends of logistics and SCM

Answer 3

1. Globalization
2. Relationships and outsourcing
3. Technology
4. Time compression
5. The rise of e-commerce
6. One-way flow

Question 4

Explain “Globalization” as a trend

Answer 4

• Transport infrastructure and containers
• International trade liberalization
• Cost of production and logistics
• Demand on sea and air transport

Question 5

Explain “Relationships and outsourcing” as a trend

Answer 5

• Specialization -> more suppliers
• Opportunities for mutually beneficial collaboration in logistics
• Logistics, a function out of organizational boundaries

Question 6

Explain “Technology” as a trend

Answer 6

• Effective communication and information sharing needed
• Technology -> enabler of longer supply chains and efficiency
• How about point consumption?

Question 7

Explain “Time compression” as a trend

Answer 7

• Speculations vs postponement
• Increase sustainable impact of go and stop activities
• Increased responsiveness
• (lean vs Agile)

Question 8

Explain “The rise of e-commerce” as a trend

Answer 8

• Significant increase in ecommerce
• Last-mile logistics

Question 9

Explain “One-way flow” as a trend

Answer 9

• Linear economy
• Circular economy

Question 10

What are the consequenses in sustainability due to production/logistical/SCM trends?

Answer 10

1. Increased resource use due to production and consumtion
2. Increased waste and pollution due to production, supply chain design and transportation
3. Inefficient movement and storage of goods due to supply chain design and strategy

Question 11

What can be done to create a more sustainable supply chain?

Answer 11

• Reverse logistics
• Assessment of emissions
• Greening of logistics activities and supply chains

Question 12

Explain “reverse logistics”

As a way to create a more sustainable supply chain

Answer 12

The direction of flows changes, from point of consumption to point of origin
The purpose changes, recapturing value, proper disposal

Main questions
- What types of materials can be returned, recovered and recycled?
- How are responsibilities defined in a reverse supply chain?
- How are economic value and ecological value determined?

Question 13

Problems with reverse logistics?

As a way to create a more sustainable supply chain

Answer 13

High uncertainty in production condition, quantity and timing
Return forecasting, more difficult than demand forecasting
Consumers role
Dispersed collection points and small consignment sizes
Labor intensive

Question 14

Explain “assessment of emissions”

As a way to create a more sustainable supply chain

Answer 14

Transport.
Majority from private cars
Energy efficient engines
Alternative fuels

Question 15

Explain “Greening of logistics activities and supply chains

As a way to create a more sustainable supply chain

Answer 15

Transportation, vehicles and infrastructure networks
Green buildings
Sourcing, product and packaging design
Administrative issues