Sustainability in logistics and supply chain management (16)

The circular economy is characterized by the 3Rs . What are the 3Rs?

Reduce the use of resources Reuse products and components Recycle products and components

What are the drivers behind the emphasis on green issues?

- Market pressure - Legislation - Cost reduction - CSR

We know that there is interdependencies between the prices of different fuels. (more of one fuel decreases the price and encourage firms to use that fuel). What is then the main challenges when it comes to transport

- Reduce the harmful effects of the fuel it does use - Convert to using other energy sources - Developing engines with ever-greater fuel efficiency, thus ensuring that less fuel is used per kilometre travelled

define carbon footprint

A term that has come into use to describe the environmental disbenefits associated with economic activities such as the movement of freight or manufacturing

Overcoming the inhibitors regarding the ESCPM what can then be the resulting benefits of the measurement?

many benefits can accrue from ESCPM, which include helping companies to innovate, reduce waste and become more efficient, give them an improved image and reputation with a reduced risk of consumer/public criticism and help to reduce costs.

Define the term reverse logistics

Material flows from the point of consumption towards the point of origin (i.e. back upstream in the supply chain) for the purpose of reuse/repair/remanufacture/recycling

name three ways to improve the sustainability of logistics and supply chain systems

1) Redesigning supply chains (DSCE) 2) Using scale to reduce the negative environmental effects of logistics activities (i.e. by moving freight in larger single loads, thus cutting down on both unit costs and environmental disbenefits per unit carried) 3) Similarly promoting various efficiency solutions (by transporting and handling freight more effectively and efficiently a smart environmentally sensitive supply chain would combine all three

Explain what the Circular economy is

As opposed to the linear economy - where products are manufactured, used and disposed - the circular economy aims to eliminate waste by designing and optimizing products for a cycle of disassembly and reuse

According to the GHG (Greenhouse Gas) Protocol Corporate standard how are emissions classified? explain each classification

Emissions are classified into scope 1, 2, or 3. - Scope 1 emissions are direct emissions from owned or controlled sources. - Scope 2 emissions are indirect emissions from the generation of purchased energy - Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions

What are the enablers and Inhibitors of ESCPM (Environmental Supply Chain Performance Measure)

Enablers: ● Desire to reduce cost ● Improving operational efficiency ● Government regulation/legislation ● Reducing energy consumption ● A genuine care for the environment Inhibitors: ● Cost ● The complexity of the supply chain ● Obtaining data ● Too many disparate governing bodies and regulations ● Lack of reporting/measurement tools

sustainability issue in JIT-systems

JIT systems can lead to some resource inefficiencies (e.g., smaller, frequent deliveries in less than full trucks)

explain sustainable logistics

Sustainable logistics is concerned with reducing the environmental and other disbenefits associated with the movement of freight. Sustainability seeks to ensure that decisions made today do not have an adverse impact upon future generations. Sustainable supply chains seek to reduce these disbenefits by inter alia redesigning sourcing and distribution systems so as to eliminate any inefficiencies and unnecessary freight movements.

Define food miles

Term used to refer to the distance over which the various components of a particular food item have to travel before final consumption

what is meant by supply chain redesigns in the context of sustainability

While various initiatives such as, for example, switching to electric vehicles are obviously welcome, and generate publicity benefits for companies, it is the supply chain design decisions, such as deciding where to locate warehouses and distribution centers and which transport modes to use, that have the greatest impact on the total carbon footprint. In this context, short-sea shipping is becoming increasingly popular (shorter roads).