LogiMastersSession 1 Introduction · Aldi First Tier Supplier Distributor Retailer Final consumers...

Learn Today. Lead Tomorrow.™

Learn Today. Lead Tomorrow.™Learn Today. Lead Tomorrow.™Learn Today. Lead Tomorrow.™Learn Today. Lead Tomorrow.™

Dr. Jon Kirchoff

LogiMasters Session 1Introduction


Jon Kirchoff, PhD.East Carolina University

About Me


About Me


Class ScheduleSession 1 – Introduction to Green Logistics

and Sustainable Supply Chain Management

Session 2 – Green Logistics

Session 3 – Sustainable Supply Chain Management

Session 4 – United States Culture


Upstream Downstream

First Things First: SCM

FLOWS

If we consider Peroni Italia as our Focal Firm

Italian Hops Co. Peroni Italia OnestigroupS.p.A.

Aldi

First TierSupplier Distributor Retailer

Finalconsumers

N. BLOSI

Second TierSupplier



What is Supply Chain Management?

SUPPLY CHAIN MANAGEMENT is theactive management of supply chain activities and relationships to maximize customer value and achieve a competitive advantage.The conscious effort to manage the supply chain in the most efficient and effective ways possible and to differentiate from competitors.



What is Supply Chain Management?

Efficiency – doing more with less. We will refer to this as Cost Efficiency.

Effectiveness – achieving goals. We will refer to this as Customer Effectiveness.



SCM link to green and sustainability:

Creating Value through SCM and Operations

Managing SCM and Operations Processes

Supply Chain and Operations

Management

- Competitive advantage

- Efficiency and effectiveness - Strategy

- SC analysis- Functional areas- Lean- Quality

- Inventory- Design- Integration- Sustainability


Sustainability Defined:

“Meeting humanity’s

needs without harming

future generations”.

Wow. How do we do that?


The Triple Bottom Line or TBL

https://www.youtube.com/watch?v=x9WvCJ3oOL0

https://www.youtube.com/watch%3Fv=x9WvCJ3oOL0


Elkington’s TBL Video Discussion

§ It is difficult

§ There are no legal requirements

§ Precedent is not set


Green LogisticsDefinition: “The process of minimizing damage to the environment due to logistics operations of an organization.”


Why is green logistics an important topic?

Logistics/Transportation in the United States emitted 1,687 million metric tons of greenhouse gases and burned about 21 million barrels of petroleum (gasoline equivalent) per day in 2017.


Green Logistics

Interregional fluxes of emissions embedded in trade (megatons of CO2 per year)


But is Green Logistics Beneficial??


Sustainability and Supply Chain Management or SSCMDefinition: The cooperative management of material, information, and capital flows among companies along the supply chain with a strategic focus on all three dimension of the triple bottom line (TBL), derived from an understanding of customer and stakeholder requirements and perceptions.

https://www.youtube.com/watch?v=VdbKvXh6sLU

https://www.youtube.com/watch%3Fv=VdbKvXh6sLU


SSCM

“You can’t have sustainability operations unless sustainability is part of your company’s DNA” - Hanes Operations Manager

https://cottonleads.org/partner-stories/hanesbrands/

https://vimeo.com/64892254

https://cottonleads.org/partner-stories/hanesbrands/

https://vimeo.com/64892254


SustainabilityTalk Time

Pick a company (any company…it can be one you work for now). Then, think of three ways that company could be more sustainable in their supply chain management.


SustainabilityTalk Time

Pick a company (any company…can be one you work for now). Then, list three ways that company could be more sustainable in their supply chain management.

- Splosh (Wales) – natural cleaning product concentrate.

- Barilla (Italy) – sustainable farming, operations, transport (water, energy).

- Campbell’s Soup Company (U.S.) –packaging reduction and waste recycling (waste).

- Samsung Electronics (Korea) – Strong emphasis on worker health and safety (turnover, accidents, fines).


Green Logistics and SSCM Motivators

1. Risk – Suppliers’ actions can impact their customers in negative ways (think suppliers’ suppliers).

2. Corporate citizenship – Companies want to be good global citizens.

3. The bottom line – Green and sustainability initiatives can improve performance.- 40% energy reduction- 50% water use reduction

Sustainability Lessons from the Front Line (case study)


Challenges to Green Logistics and SSCM

1. Internal vs external supply chain- Lack of visibility and control throughout the supply chain

2. The bottom line- Green and sustainability are expensive

3. Trade-offs- Sustainability in one area of the supply chain may hurt another area

4. SSCM in Non-Exemplar Firms (presentation)- Managers are not always ready to make sustainability decisions

LogiMastersSession 1 Introduction · Aldi First Tier Supplier Distributor Retailer Final consumers...

Documents

Transcript of LogiMastersSession 1 Introduction · Aldi First Tier Supplier Distributor Retailer Final consumers...