Chopra Scm5 Ch18

Embed Size (px)

Citation preview

  • 8/12/2019 Chopra Scm5 Ch18

    1/16

    PowerPoint presentation to accompany

    Chopra and Meindl Supply Chain Management, 5e

    1-1

    Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    1-1

    Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    1-1

    Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    18-1

    Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    18Sustainability and

    the Supply Chain

  • 8/12/2019 Chopra Scm5 Ch18

    2/16

    18-2Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Learning Objectives

    1. Understand the importance o sustainability in

    a supply chain

    2. !iscuss the challenge to sustainability posedby the tragedy o the commons

    ". !escribe #ey metrics that can be used to

    measure sustainability or a supply chain

    $. %dentiy opportunities or improved

    sustainability in various supply chain drivers

  • 8/12/2019 Chopra Scm5 Ch18

    3/16

    18-"Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    &he 'ole o Sustainability

    in a Supply Chain

    ( &he health and survival o every supply chainand every individual depends on the health o

    the surrounding )orld

    ( *+pand the goal o a supply chain to others thatmay be aected by supply chain decision

    ( ,actors driving ocus on sustainability1. 'educing ris# and improving the inancial

    perormance o the supply chain

    2. ttracting customers )ho value sustainability

    ". a#ing the )orld more sustainable

  • 8/12/2019 Chopra Scm5 Ch18

    4/16

    18-$Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    &he &ragedy o the Commons

    ( !ilemma arising )hen the common gooddoes not align perectly )ith the good o

    individual entities

    ( /etting any agreement on action is diicultbecause the optimal joint action is not

    individually optimal

    ( 0eed or intervention but considerabledisagreement on the reuired orm o

    intervention

  • 8/12/2019 Chopra Scm5 Ch18

    5/16

    18-Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    3hat re Some Solutions

    to &his 4&ragedy56

    ( 0o solution )ithout ta#ing a)ay someo the reedom that participants

    ( 0eed to choose rom options that areunli#ely to be supported by all o their

    o)n ree )ill

  • 8/12/2019 Chopra Scm5 Ch18

    6/16

    18-7Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    3hat re Some Solutions

    to &his 4&ragedy56

    ( utual coercion social arrangements ormechanisms coerce all participants to

    behave in a )ay that helps the common

    good

    Command-and-control approach

    ar#et mechanisms

    Cap-and-trade

    9roportional ta+

  • 8/12/2019 Chopra Scm5 Ch18

    7/1618-:Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    ;ey etrics or Sustainability

    1. *nergy consumption

    2. 3ater consumption

    ". /reenhouse gas emissions$. 3aste generation

    (.Challenges )ith scope(.bsolute or relative measures o

    perormance

  • 8/12/2019 Chopra Scm5 Ch18

    8/1618-8Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Sustainability and

    Supply Chain !rivers

    ( Opportunities identiied by matching theour categories )ith supply chain drivers

    ( ,acilities Signiicant consumers o energy and )aterand emitters o )aste and greenhouse gases

    Separate the improvement opportunities into

    those that generate positive cash lo)s and

    those that do not

  • 8/12/2019 Chopra Scm5 Ch18

    9/1618-

  • 8/12/2019 Chopra Scm5 Ch18

    10/1618-1ACopyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Sustainability and

    Supply Chain !rivers

    ( &ransportation Lo)er transportation costs also tends to

    reduce emissions and )aste 9roduct design a signiicant role in reducing

    transportation cost and emissions

    'educing pac#aging and allo)ing greater

    density during transportation

  • 8/12/2019 Chopra Scm5 Ch18

    11/1618-11Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Sustainability and

    Supply Chain !rivers

    ( Sourcing ajority o energy and )ater use and )aste

    and emissions occurs in e+tended supplychain outside the enterprise

    *+tended supply chain and )or# )ith their

    suppliers to improve perormance

    Beriying and trac#ing supplier perormanceon sustainability is a major challenge

  • 8/12/2019 Chopra Scm5 Ch18

    12/1618-12Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Sustainability and

    Supply Chain !rivers

    ( %normation /ood inormation is a big challenge

    bsence o standards leads to claims oimprovement that are not veriiable

    Leads to company-speciic standards and an

    e+plosion o certiications and certiying

    agencies Use o consistent measures )ithin a supply

    chain

  • 8/12/2019 Chopra Scm5 Ch18

    13/1618-1"Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Sustainability and

    Supply Chain !rivers

    ( 9ricing Consumption visibility and dierential pricing by

    load or time o day may ma#e a signiicant

    dierence in the usage o energy

    Change customer@s )illingness to pay or a product

    that is produced and distributed in a more

    sustainable manner but costs more Sustainability cannot be improved simply by

    ocusing on reducing costs or the use o incentives

  • 8/12/2019 Chopra Scm5 Ch18

    14/1618-1$Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Closed-Loop Supply Chains

    ( Supply chains cause signiicant harm to theenvironment )hen their output ends up in a

    landill

    ( %mprove sustainability by designing products thatcan be reused and recycled( ust be supported by a supply chain that ensures

    recycling

    ( *conomic interests o all the parties must beunderstood and aligned or the activities to be

    perormed

  • 8/12/2019 Chopra Scm5 Ch18

    15/1618-1Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

    Summary o Learning Objectives

    1. Understand the importance o sustainability

    in a supply chain

    2. !iscuss the challenge to sustainability posed

    by the tragedy o the commons

    ". !escribe #ey metrics that can be used to

    measure sustainability or a supply chain

    $. %dentiy opportunities or improvedsustainability in various supply chain drivers

  • 8/12/2019 Chopra Scm5 Ch18

    16/1618 17

    ll rights reserved. 0o part o this publication may be reproduced= stored in a retrieval

    system= or transmitted= in any orm or by any means= electronic= mechanical= photocopying=recording= or other)ise= )ithout the prior )ritten permission o the publisher.

    9rinted in the United States o merica.