Supply Chain Sustainability and Humanitarian Logistics Chapter 13 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall13- 01

What is Sustainability? Sustainability A characteristic of processes that are meeting humanity’s needs without harming future generations Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Supply Chains and Sustainability Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall Environmental Responsibility Financial Responsibility Social Responsibility Supply Chains and Sustainability

People Employment (turnover, local hires, benefits, wages, career development) Health and Safety Policies Training and Development Diversity and equal opportunities Business accountability standards (Ethics, integrity, transparency, anti-corruption policy) Community (local hiring, service hours, e.g) Disaster Relief Supply Chains

What is Humanitarian Logistics? Humanitarian Logistics The process of planning, implementing and controlling the efficient, cost-effective flow and storage of goods and materials, as well as related information, from the point of origin to the point of consumption for the purpose of alleviating the suffering of vulnerable people Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Planet Recycling- reuse-remanufacture, Reverse Logistics Resource Conservation Green energy usage Emissions(reductions, zero waste efforts) Biodiversity preserving eco-systems) Reporting on Carbon footprint Fair trade products

What is Reverse Logistics? Reverse Logistics The process of planning, implementing and controlling the efficient, cost-effective flow of products, materials, and information from the point of consumption back to the point of origin for returns, repair, remanufacture, or recycling

Flows in a Closed-Loop Supply Chain Production process Distribution/ Retailers Product information New service/product development process Recycle parts and materials Remanufacture Repair Returns processor Customers Direct reuse Waste disposal Forward flow Reverse flow

Energy Efficiency Carbon footprint – The total amount of greenhouse gasses produced to support operations, usually expressed in equivalent tons of carbon dioxide (CO 2 ) Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Profit Sustainable profit (net income trends, ROA, ROE, free cash flow trends, e.g.) Percentage of profits reinvested into good environmental practices that improve company value (innovation, R&D, risk minimization). Production/Process Efficiency, Productivity Customer Satisfaction (retention, customer surveys, QC improvements) Using local suppliers