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
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Jon Kirchoff, PhD.East Carolina University
About Me
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About Me
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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
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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
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First Things First: SCM
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.
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First Things First: SCM
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.
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First Things First: SCM
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
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Sustainability Defined:
“Meeting humanity’s
needs without harming
future generations”.
Wow. How do we do that?
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The Triple Bottom Line or TBL
https://www.youtube.com/watch?v=x9WvCJ3oOL0
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Elkington’s TBL Video Discussion
§ It is difficult
§ There are no legal requirements
§ Precedent is not set
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Green LogisticsDefinition: “The process of minimizing damage to the environment due to logistics operations of an organization.”
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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.
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Green Logistics
Interregional fluxes of emissions embedded in trade (megatons of CO2 per year)
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But is Green Logistics Beneficial??
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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
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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
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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.
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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).
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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)
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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
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