Suite 520 Form strong and positive partnerships. Home > Books > Applications of Contemporary Management Approaches in Supply Chains. Working together on sustainability can be positioned as better marketing to clients. 4. Recycling plastics can get complicated, since maintaining color and consistency in batches of recycled plastic is tricky. It is used to make grocery bags and squeeze bottles. In terms of the supply chain, this could involve supplier management, product design, manufacturing rationalization, and distribution optimization. As simple and obvious as it may sound, many companies don’t have a holistic view of their entire supply chain from raw materials, through manufacturing to end consumers. Switching to a sustainable path can entail a significant capital investment and no company sets out to lose money by going green. Their supplier relationships are based on key principles including optimizing due diligence processes, building supplier capability with training where they can, and supporting local … The software uses height, length, weight and width as parameters for its algorithm to determine the best way to pack individual cartons. Date and Time: Thursday, 24 October, 8:30-10:00 CET. Products are designed and manufactured with production and reproduction cycles in mind. 5 Business Trends and Implications for Sustainable SCL 6 2. Discuss supply chain sustainability best practices, go over what works well and explain what doesn't and why. For some materials, there may not be any truly sustainable options right now. The term plastics encompasses a wide range of materials, all of which have different chemical formulations, different molecular structures, and different properties. Fewer wasted products mean less waste overall and fewer products needed to fulfill orders. As Environment + Energy Leader reported, “supply chains are responsible for up to four times the greenhouse gas emissions of a company’s direct operations”. Materials like plastics, metals and petrochemical based products circulate in another set of systems. Partnering with recycling, reprocessing, and repackaging firms in areas where a company’s product is heavily used is one step in the right direction. These companies manage a nationwide network of shipping platforms that support the supply chain. As the first Australian bank to establish a sustainable supply chain management policy, we were an early adopter of world leading sustainable sourcing practices. Steel: Steel, like glass, can be recycled over and over again without losing any strength. With countless ways to source materials, process them into fabric and sew our clothes, the fashion supply chain reaches thousands of factories big and small across the … Degrading plastic also releases methane, a greenhouse gas with substantially more warming potential than carbon dioxide. Supply Chain Sustainability Best Practices. If companies don’t personally oversee the farming, processing and finishing of their fabrics, they can’t be sure the organic cotton they invested in wasn’t treated with unwanted chemicals. Companies seeking greener practices are realizing that some of their greatest challenges and opportunities often lie outside their own stores, distribution centres and manufacturing plants. Create an environment for sharing data, experiences and best practices. FMCG Companies that are most sustainably aware may be the earliest to gain from the growth in consumer spending that is expected to take place over the next decade. The goal is to pack the order in the smallest cube size.This automates and improves traditional manual shipping methods by saving costs and reducing waste. Incorporating sustainability into a company's supply chain is complex but the failure to act may be the biggest risk of all. Furthermore, the number of high street fashion retailers committed to sustainability has also soared in response to the widely reported rise of re-sale (or second hand) fashion. Underlying the relatively easy steps some companies are taking to green their supply chains are a few core principles. Establishing and communicating expectations through a supplier code of conduct is a critical step in involving suppliers in your sustainability efforts. The business case for supply chain sustainability is clear. In its non-expanded form, it is used to make plastic plates, cutlery, and cups. In this context, this study has two main aims. That means towing a fine line between bragging about doing good and dismissing the PR value of going green. Product packaging should be redesigned for reuse, biodegradability, or ease of recycling. Sustainable Supply Chain Sustainability Best Practices. To create a more sustainable supply chain, these should be extended wherever possible. Greenhouse gas emissions are perhaps the most urgent, as we confront a widely acknowledged climate crisis. Cartonization is a WMS feature that can promote a huge impact on sustainability. Use your suppliers as force multipliers. Supply chain management best practices are about the essentials: collaboration, strategy and technology. This translates into fewer opportunities for product damage and load rejection. Paper product fibers also shorten with each recycling and can only be recycled five to seven times before the fibers become too short. The expertise of some stakeholders can be leveraged to construct more thoughtful sustainability objectives (Cooper and Owen, 2007, Edgley et al., 2010, O'Dwyer, 2011), and to implement sustainable practices in the supply chain (Manetti and Toccafondi, 2012, McDonald and Young, 2012, Park and Brorson, 2005). This model proves that plastic can be sustainable if properly used. It is also a much less expensive process than refining aluminum from raw ore. Supply chain sustainability is a goal achieved through a process of continuous improvement. This guide provides insights into a successful omnichannel approach, supply chain visibility and sustainability, along with the sophisticated tools and technologies needed to achieve those goals. Try to understand the position and stakes of your suppliers and make sustainable supplier engagement more marketable for them. Through initiatives such as sustainable power utilisation, 600 tons of carbon was removed from the firm’s supply chain over a three-year period to 2013, with the added advantage of massive cost reductions, according to its Chief Supply Chain Officer. We create many complex products and, in 2019, we used almost 500 fabrics, and over 800 components (trims and gear parts) and over 800 bicycle parts. Best practice for implementing sustainable supply chains Published on February 23, 2020 February 23, 2020 • 29 Likes • 2 Comments This is a challenge because there are so many sources of waste, not only from billions of individual consumers, but also from the industries that employ them and that supply them with food, shelter, soap, toys, furniture, and other products. The constant flow of raw materials, energy, and food along the supply chain is what keeps modern civilization going. Product design is done so these can be easily separated at the end of the product’s life. Closed-loop supply chains can mitigate these issues. Save up to 80% by choosing the eTextbook option for ISBN: 9783030619473, 3030619478. Research shows the business case for supply chain sustainability is growing.” – Green Biz. Whether you’re a manufacturer, CPG, 3PL or otherwise, there’s a good chance that your big-brand customers will want to see emissions reporting as well as other environmental barometers such as water risks or lumber consumption.” - HighJump. Every retailer needs to know that their supply chain management is as effective as possible and contributing as much as possible to the company’s bottom line. Challenges and best practices of sustainable supply chain management . Supply chain sustainability is a goal achieved through a process of continuous improvement. Downloaded: 1678. chapter and author info. But the challenge does not end there. DOI: 10.5772/59581. They require first-tier suppliers to set their own long-term sustainability goals. The traditional linear model preaches the concept of 'make, break, and discard'. Additionally, we develop guidance, such as our recent Guide to Traceability and the Practical Guide for Continuous Improvement to assist companies in developing more sustainable supply chain practices. Companies can adopt many different approaches in their pursuit of a greener operation. “Companies that look to become more sustainable start with their own operations, but pretty soon they realise that many of their impacts are in their supply chains rather than in-house, so they start pressuring their suppliers to make changes.” - Forbes. These supply chains are often intricate and dynamic in nature. Tier 1 suppliers pass the invite on to Tier 2s, and so on right down through all the tiers. Pooled plastic pallets make this model even more environmentally friendly, since plastic pallets have several sustainability advantages over pooled wood pallets: Durability: Plastic pallets are more durable than wood pallets, and are able to make around 100 trips through the supply chain in their lifetime. Supply chains are not sustainable unless they are realistically funded and valued. Following the results of the study, it is evident to conclude that there is a positive relationship between Sustainable Procurement Practices and Supply Chain Performance. Use scientific recommendations and government regulations as Key Performance Indicators. They include lower-tier suppliers in the overall sustainability strategy. Banks that pioneer best practices in this area can help to facilitate a cascade of positive change that will flow throughout supply chain and global trade networks.” Incorporating sustainability into supply chain operations is highly complex and the Bank’s Sustainable Supply Chain Finance Framework is designed to encourage clients to innovate and adopt sustainable practices. Sustainability is at the forefront of business conversations today as customers and investors are increasingly pressuring companies to up their environmental responsibility game. Supply chain consultancies are providing expertise to companies to help them understand the benefits of sustainable practices. Using natural and biodegradable materials like wax to give cardboard water resistance instead of plastic can make a positive difference. Collaborate with them to develop programs and policies that will drive sustainable improvements to the chain. – Green Biz. Die Druckversion dieses Lehrbuchs … By Lynn A. “Climate-related regulations, the cost and availability of materials and human resources are all supply chain risks. McKinsey notes that GlaxoSmithKline is developing flexible pricing schedules for drug deployment in developing countries. Beyond our own operations, we continue to look for ways to collaborate and share ideas with others, developing solutions that promote best practices for a responsible supply chain. Telephone: 1-800-884-0225, Sustainable, Reusable Plastic Shipping Pallets, How to Reduce Product Losses in the Supply Chain, A Guide to Top Grocery Chain Pallet Requirements, A Guide to Sustainable Supply Chain Management. The University of Tennessee, Knoxville’s Global Supply Chain Institute study describes six key practices: embracing sustainability as a major business driver, developing a culture of transparency, partnering with sustainable suppliers, ensuring traceability to enable transparency, finding your transparency sweet spot and employing outside auditing partners. A plastic pallet pooling provider is also an example of a sustainable vendor that can support businesses seeking partners in environmental accountability. Unilever has sustainability at the very heart of its business model, extending all the way through the supply chain from distribution to procurement. And in New Zealand this can be entirely powered by renewable energy. Recyclability: When a plastic pallet is at the end of its natural life, it can be ground up, melted down, and turned into a new plastic pallet. Unilever uses a software tool, developed with the University of Aberdeen, to collect data on whether farmers in its supply chain are using sustainable practices. The Sustainable Business Network explained that with circularity materials that can be safely composted or otherwise returned to the environment flow in one set of systems. Author. The circular economy is aimed at eliminating waste. The three MNCs in our study have taken a number of steps to promote suppliers’ social and environmental responsibility: 1. Eventually, the waste, pollution, and resource depletion caused by supply chain operations will put the livelihoods and the lives of those billions of people it supports at risk. We are members of the Responsible Business Alliance, a multi-stakeholder initiative dedicated to advancing sustainability globally, the Responsible Minerals Initiative and the Responsible Labor Initiative. Also known as polyester. The National Bureau of Sustainability, in conjunction with various corporations, summarized these best practices (which have been modified slightly): Just because you’re not as big as Walgreens doesn’t mean that you can’t benefit from SCM. This paper presents results of a pilot study completed as part of the BestLog (Best Practices in Logistics) project. Underlying the relatively easy steps some companies are taking to green their supply chains are a few core principles. Reusable wood block pallets, on the other hand, have a usable lifespan of about 20 trips, after which they are generally taken to a landfill. The environment faces several pressing concerns. A Look At Best Practices For Sustainable Supply Chains Guest Contributor. The key to success is … Building a sustainable supply chain isn't easy, but it is possible — and necessary. Lynn … Plastic pallets are valuable assets built to be used over and over again. Like steel recycling, aluminum recycling offers significant energy savings over extracting and refining raw ore. Companies should take the following measures in order to achieve a more sustainable supply chain: Identify critical issues and areas of improvement within the entire supply chain. A strong, thick plastic used for grocery bags, milk jugs, and shampoo bottles. Companies with best practices around sustainability will continuously screen customers for unmet needs generated by sustainability developments in the marketplace. Supply Chain Digital suggested a ‘cascading invitations’ approach to supply chain mapping, starting with inviting Tier 1 suppliers to join the process. Due to the uncertainty associated with this recycling code it is almost never recycled. Sparen Sie bis zu 80% durch die Auswahl der eTextbook-Option für ISBN: 9783030619473, 3030619478. Of course Unilever also recognises the sustainability impacts of its internal supply chain activities. The key to a sustainable supply chain is trust between customers and suppliers — and this can also create more profitable supplier relationships, according to Suhas Apte and Jagdish Sheth, the authors of The Sustainability Edge: How To Drive Top-Line Growth With Triple-Bottom-Line Thinking.. The first is that more product can be loaded onto a truck before the truck reaches the maximum allowable weight. Armed with the analysis you obtained from your mapping exercise, build momentum within your organisation by meaningfully communicating your supply chain’s issues, risks, and their impact to all stakeholders. Working with suppliers to improve sustainability can help mitigate these, as well as reputational risks.” – Environment + Energy Leader. Window glass is different from that used for beverage bottles and glass items must enter the correct recycling stream in order to be reused. The supply chains that keep our economy running resemble a huge river network; small streams flow together into factories, then spread out to retail stores, and then branch out again into the hands of billions of consumers. Perhaps the best way to create a sustainable supply chain is to turn a linear supply chain into a closed-loop system. That’s because plastics do not break down into their constituent chemical elements. To craft a multisourcing strategy, supply chain leaders must know their supplier networks in detail and be able to categorize suppliers not just by spend, but also by revenue impact if a disruptive event occurs. Lighter Weight: Plastic pallets are also far lighter—up to 35 percent lighter—than wood block pallets and therefore reduce the fuel needed to transport products. Thus, to make a significant environmental impact, businesses must revisit their entire supply chain. The above materials have been successfully recycled for a long time, yet much of the recyclable waste generated by consumers is not recycled for a variety of reasons. January 2014; In book: Emerging Business Sustainability (pp.141-157) ... Green Supply Chain - Best Practices . LDPE is a thinner and more flexible form of HDPE. Plastic pallets made of HDPE plastic can be created directly out of recycled plastic packaging, providing one way to keep plastic out of the environment. The software contributes to critical business drivers such as productivity, scale, customer experience and cost savings. • Provides technical tools & guidance, educational resources, A sustainable supply chain is one that fully integrates ethical and environmentally responsible practices into a competitive and successful model. “Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing  and  recycling to create a close-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions. Therefore, your policies must be developed in alignment with your company’s overall strategy and vision. This allows the materials to be used for more products or to enhance the natural world. About the Center • A resource center for organizations of all sizes looking to expand their work in the area of greenhouse gas (GHG) measurement and management. Once boxes have served their purpose, 48% of the material can be reused to produce new corrugated boxes. The very first step you need to take when planning to enhance the environmental footprint of your supply chain is… well, to know your chain. Smart and Sustainable Supply Chain and Logistics – Trends, Challenges, Methods and Best Practices Volume 1 und Verleger Springer. Supply Chain technology, such as a Warehouse Management System (WMS), can help with identifying risks and opportunities for innovation. Read more: 2 Best Practices for Rebooting the Supply Chain. Supply chain sustainability is a complex issue, and the more people who are working to solve it, the better. In 2015, GSA supplemented these efforts by joining CDP Supply Chain , a third-party supply chain … Sustainable Supply Chains: A Guide for Small- to Medium-sized Manufacturers 19 cogeneration energy. 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