W4 Flashcards
H&M + Zara Example of Key Point
- just because you are sourcing from a far away country doesn’t mean your carbon levels are the highest
- depends on production and frequency
- Zara has higher C02 levels due to their frequency of transportation when they ship from Europe
Key developments in PSM
- purchasing becomes SCM (strategic and long term rather than tactical and short term)
- rise of sustainability in the SCM
- integrating sustainability
- triple bottom line
NRBV (Natural resource based view) Hart, 1995
- NRBV criticises RBV (needs a more dynamic view)
- argues the basic assumptions of RBV focus on resource heterogeneity and immobility
- developed through repeated learning experience
- requires coordinated activities
- the difference in NRBV is that firms are interconnected in their pursuit of sustainability, whereas RBV focuses on firm level comp adv.
(look at diagram)
- Considering the entirety of the product, purchasing resources, moving materials, selling to customers for example - incorporate sustainable activities into it (product stewardship) - can pre-empt competitors = first on the market to bring something sustainable to the market or supply chain
○ When you combine 1 and 2 it gets sustainable development - which is much more strategic and long term and bring strat adv than the other two
transparency and traceability in SCM
- these help prevent CSR issues
- transparency requires constant vigilance from local firm
- traceability in SC requires visibility of the supply chain to customers (horse meat scandal)
- need to have control of activities up and down supply chain
- done through stability and transparency
- be truthful to customers
- reduces likelihood of bad rep
procurement in SCM
- incentives to reduce greenhouse gases
- support innovation
- industry adjustment to low carbon processes
- used to shift firm behaviour and encourage them to change
carbon footprint concept - life cycle analysis (LCA)
- looks at levels of C02 in the supply chain at each point
- to understand which areas need to have more attention in C02 levels are high
- carbon footprint starts with the supply chain
- monitor C02 on imports to the country and exports out not just in supply chain
- some countries might have high C02 on imports but low on exports
A new era - sustainable consumption
(look at diagram)
- moved from craft production to mass production to mass customisation
- now moving towards sustainability in production using circular economy
- paradigm shift from mass production to mass consumerism
Butterfly model (important)
- have an industrial economy where we are producing no waste or pollution
- you have material flow in two forms (biodegradable and technology)
tech = non biodegradable products (phones)
- If you a buy a phone don’t just move from maintenance to refurbish
- Try maintain the product by reusing it
- Then reuse the product
- Once you can’t reuse refurbish the product
- When it cannot be refurbished any longer recycle
- BASICALLY DON’T JUMP THE SPECTURM MOVE SYSTEMATICALLY
]
Bio = food and wood (follow approach on the left)
○ Should be able to recapture in the atmosphere safely
○ Restoration - back to its og state
Regenerative - improving on its original state
sustainable issues
- plastics
- only 10% of global plastics are reused
- suppliers need to reduce pollution through reuse techniques - electronic waste
- phones / laptops end in landfill
- valuable minerals are stripped out and the rest is abandoned - fast fashion
- massive landfill problems
- production is mostly unsustainable and unethical
- most companies in fast fashion don’t have reuse techniques to bring clothes back - palm oil sourcing
- make sure suppliers are engaging in good ethics or else NGOs might reduce revenue through exposing
