logimasterssession 1 introduction · aldi first tier supplier distributor retailer final consumers...

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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