SCM backround & sustainability

Question 1

Definition of SCM

Answer 1

• Planning and controlling of all processes involved in procurement, conversion, transportation and distribution across a supply chain.
• SCM includes coordination and collaboration between partners, which can be suppliers, intermediaries, third party service providers, or customers.
• In essence, SCM integrates supply and demand management within and between companies in order to serve the needs of the end-customer.”

Question 2

Know six major shift in SCM

Answer 2

1. From cross-functional integration towards cross-enterprise integration.
2. From physical efficiency to market mediation.
3. From supply focus to demand focus.
4. From single company product design to collaborative concurrent product, process and supply-chain design.
5. From cost reduction to breakthrough business models.
6. From mass market supply to tailored offering.

Question 3

Physical supply

Answer 3

The production and distribution of physical goods through suppliers, manufacturers, distributors and resellers to end consumers.

Question 4

Market mediation

Answer 4

The matching of the quantity and variety of product supplied through the chain to that which is demanded.

Question 5

Bullwhip effect

Answer 5

How small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels.

Question 6

Postponement

Answer 6

Postponement in supply chains is when part of the process of producing a product is delayed until the product is purchased by a customer. This is done so that the product can be customized according to customer demand later.

Question 7

Definition of sustainability

Answer 7

The principle of ensuring that our actions today do not limit the range of economic, social and environmental options open to future generations.

Question 8

How to improve social sustainability?

Answer 8

• Procurement strategy (supplier qualification).
• Supplier auditing.
• Improving transparency in the supply chain.

Question 9

Reverse logistics

Answer 9

Example, battery swapping stations as the places in the supply chain to collect the used lithium batteries and sort the batteries for second-life use or recycling.

Question 10

Closed loops/circular economy.

Answer 10

Consist of two supply chains, one forward and one reverse chain.

Question 11

Triple bottom line

Answer 11

Three dimensions → environment, economy and people.
What to choose when the three dimensions are in conflict?

This should be throughout the 4 stages in the supply chain.

Question 12

Product stewardship

Answer 12

A product-centered approach to environmental problems.
- Reducing use of toxic ingredients.
- Reducing energy consumption.
- Reducing material waste.
- Designing for reuse and recycling.
- Developing take-back programs.
Example: Interface is a third-party certified carbon neutral enterprise.

Question 13

Green supply chain managament

Answer 13

Integrating environmental thinking into SCM, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life.

Focus on economy and environment.

Question 14

Corporate social responsibility (CSR)

Answer 14

Is based on the idea that a company may be held socially and ethically responsible for a large range of stakeholders such as customers, employees, governments, NGOs, investors, local communities, unions and media. More norms and regulations.

Question 15

Carbon footprints in the supply chain

Answer 15

The introduction of the carbon footprint as a measure, which is the total amount of carbon dioxide and other greenhouse gasses emitted over the entire lifecycle of a product or service.

Question 16

Know the differences between three strategies

Answer 16

Companies with established supply chains → integrated strategy or alignment strategy.

Start ups → replacement strategy.

Question 17

Integrated strategy

Answer 17

Social and environmental sustainability (if possible or customer asking for it).
Driven by cost, quality and time.

Research: Keeping the existing SCM theory and frameworks and adding sustainability perspectives.
Business: Trying to be more sustainable if possible or when customers give the requirements.

Question 18

Alignment strategy

Answer 18

Research: Sustainability is a complementary perspective to the existing SCM theory, for example developing SCM theory based on the thought of a triple bottom line.
Business: Applying triple bottom line thought and putting equal weight on three aspects.

Question 19

Replacement strategy

Answer 19

Re-organizing supply chains. Example, moving from global to local.

Research: Redefinition of SCM based on sustainability.
Business: Reconsider the design of supply chains based on sustainability.

Question 20

Tailored offering

Answer 20

When companies specifically target and tailor their promotions to a specific type of customer based on their age, gender, or other demographic information.