supply chain management socially responsible supply chain management

Supply Chain Management

Socially Responsible Supply Chain Management

Top 5 Pressures Driving the Green Supply Chain1. Industry leader2. Rising costs of fuel/energy3. Competitive advantage4. Current/expected regulations5. Rising in/outbound transportation costs

Introduction Major terms and frameworks associated

with professionals in supply chain management• Part I: Strategic Approaches• Part II: Operations and Terminology• Part III: Sourcing • Part IV: Metrics

Codes of Conduct: Electric Energy Industry Consortium Necessary to define acceptable behavior

• Integrity, honest, gambling, bribes, human labor, environmental responsibility

Promotes high standards Benchmarks for self-evaluation Framework for behavior/responsibility Identity and maturity

Supply Chain Integration

Supply Chain Integration Coordination of all the players from raw

material to customer• Purchasing• Operations• Logistics

Work together in decision making Shared strategy, goals, objectives and

practices = strategic partnership

Collaborative, Meaningful Partnerships Integration shared strategic goals,

objectives, and outcomes• Reduces inventory levels• Reduces transportation costs• Increase sales and operational effectiveness

Barriers: lack of strategic approach• Trust and technology• Wrong partner selection• Cultural issues

Let’s Talk About Packaging Institute of Packaging Professionals (IoPP). University of California, Santa Barbara’s

Donald Bren School collaborated with Hewlett Packard, IBM, and AMD to create

the Environmental Packaging Guideline for the Electronics Industry.

Packaging Functions Product protection Marketing

Packaging Design Corrugated cardboard Paperboard Wood Solid plastics

3 Objectives of IoPP Guideline1. Decrease the negative impacts on the

environment and society2. Increase financial benefits by reducing

costs of materials and shipping3. Reduce risks as well as increase brand

value through social responsibility

Let’s talk aboutSourcing and Purchasing Global vs. Local? Supply management defines local as within the

borders of the same country Global sourcing across borders Decision based on:

• Costs and efficiencies• Vendor performance• Environmental and social performance• Delivery and reliability of capacity

GreenSCOR is a modification of version 5.0 of the Supply Chain Operations Reference (SCOR) model developed by the Supply-Chain Council (SCC). LMI used SCOR as a foundation because it has been proven over several years of continual development.

GreenSCOR1. Plan: coordinate supply chain2. Source: guidelines and codes conduct3. Make: finished good or maintenance4. Deliver: storing, packaging, delivering5. Return: reverse logistics6. Enable: movement of materials

Sustainable Supply Chain Metrics Operational performance over a given

time period Appropriate Metrics:

• Greenhouse gas emissions and target reduction goals;• Product-to-package ratio;• Space utilization;• Innovation;• Solid waste generated and reduction targets;• Water usage and reduction targets;• Establishment of public purchasing guidelines for direct suppliers; and• Social responsibility.