Sustainable Supply and Demand Flashcards
(24 cards)
Elements of Supply Networks: Agents
- Actors
- Suppliers, manufacturers, retailers, customers
- Building groups of companies that work together through partnerships and alliances
Elements of Supply Networks: Interaction
- Resources and activities
- Exchanges of material resources, finance, information and knowledge
Elements of Supply Networks: Autonomy
- Companies are entities that have relative autonomy to operate in sectors and markets
Elements of Supply Networks: Learning
- Exchange of knowledge and new knowledge and capabilities
Characteristics of Complex Global Supply Networks
- Adaption
- Non-linearity
- Butterfly effect
- Systemic hierarchy
- Holism
- Path dependence
Supply Chain Network: Revaloriser/Revalorisation
- Materials which can be sent to other companies or used for other purposes
- This can also require (sometimes) a separate supply chain
The Architecture of a Supply Chain Network
- How the supply network is constructed for the most efficient purpose of the company
- E.g. the architecture of the Palm Oil Supply Network involves different purposes for different materials which are sent to various places of distribution.
- This particular network presents challenges for sustainability
Non-market factors in Nth order supply chains
- Sustainability domain – product design that is easy to be revalorised – extended life
- Responsibility domain – creating stakeholder value along ‘the extended chain of responsibility’ established by all relevant stakeholders
- Ethics domain – supply chain design and decision making that reduces ethical dilemmas and misconduct e.g. sourcing from specific states
Adopting the 6 Ts for tracking environmental and social responsibility (Roth et al, 2008)
- Traceability
- Transparency
- Testability
- Time
- Trust
- Training
Supply Chain Engagement: Upstream
- Supplier engagement
Supply Chain Engagement: Downstream
- Client engagement
Supply Chain Engagement
1) Be a role model – establish your own program first
2) Multiply through the chain – extend your program to your suppliers
3) Extend your sphere of engagement - who supplies your suppliers
4) Establish a responsible sourcing program – codify your practice
5) Establish chain transparency and traceability - information
(Iwundu, 2010)
Standardisation and Certification:
Benefits of International Standardisation - Cost savings
- International standards help to optimise operations and therefore improve the bottom line
Standardisation and Certification:
Benefits of International Standardisation - Enhanced customer satisfaction
- International standards help improve quality, enhance customer satisfaction and increase sales
Standardisation and Certification: (ISO, 2016)
Benefits of International Standardisation - Access to new markets
- Help prevent trade barriers and open up global markets
Standardisation and Certification: (ISO, 2016)
Benefits of International Standardisation - Increased market share
- Help increase productivity and competitive advantage
Standardisation and Certification: (ISO, 2016)
Benefits of International Standardisation - Environmental Benefits
- Help reduce negative impacts on the environment
Certifications of Supply Chains
- ISM: Institute for Supply Management
- SC Pro
- APICS
- FairTrade
- Whole Trade Guarantee
- Fair for Life
Industrial Ecology
- A systems-based, multidisciplinary discourse that seeks to understand emergent behaviour
of complex integrated human/natural systems (Allenby, 2006)
Circular Economy
- Another term for an industrial economy that is producing no waste and pollution, by design or intention, and in which material flows are of two types, biological nutrients, designed to reenter the biosphere safely, and technical nutrients.
- Development strategy to address the disparity between economic growth and the lack of raw materials and energy – an efficiency principle
Circular Economy: Resource cascading
- Using resources several times by ordering the usage according to the resource quality required at different stages of usage
Circular Economy: Shared infrastructure
- Corporate facilities sharing – ‘non-linear systems’
Circular Economy: By-product exchange
- Trading on value at different times
Circular Economy: Waste recycling
- Nth order usage – ‘waste is food’
- Revalorisation
