Sustaina

C
V
bility in Supply
Chain
BY
VERNIKA AGARWAL
Supply C
Purchase
anagement Materials
M t Management
Integr
SC
SCM
Close
Loo
SCM
Chain Evolution
rated
CM
ed
p
Green Supply
Chain
S t i bl
M
Sustainable
supply chain
S t i bl Sustainable
Abukhader and Jonson (2
di l i ti d regarding logistics and su
1. What is the im
2. What is the im
L i ti d S l Logistics and Supply
Chain Chain
2004) posed two important questions
l h i d t l i t upply chain and natural environment:
mpact of logistics on environment?
mpact of environment on logistics?
Sustainable Sustainable
Impact of logistics on env
by using carbon assessme
On the other hand impac On the other hand impac
For example: Cotton
Cotton doesnt grow natu Cotton doesn t grow natu
Canada.
Thus because of that som
warehousing is required t
markets.
Logistics and Supply Logistics and Supply
Chain
vironment can be easily conceptualized
ent.
ct of environment is difficult to assess ct of environment is difficult to assess.
urally in many European countries or urally in many European countries or
me form of logistics activities such as g
o bring cotton/ cotton products to these
Sustainability Sustainability
Seuring and Muller (2008) de
management as: g
The management of mate g
cooperation among comp
goals from all three dime
economic environmental a economic, environmental a
from customer and stakeho
y in Supply Chain y in Supply Chain
efined sustainable supply chain
erial, information and capital flowsaswell as , p
panies along the supply chain while taking
ensions of sustainable development, i.e.,
and social into account which are derived and social, into account which are derived
older requirements.
T i l B Triple Bo
The triple bottom line (abbrevi
known as "people, planet, pro
captures an expanded spectr captures an expanded spectr
measuring organizational (and
ecological and social.
tt Li ottom Line
iated as "TBL" or "3BL", and also
fit" or "the three pillars")
rum of values and criteria for rum of values and criteria for
d societal) success: economic,
S t i bil Sustainabil
The achievement of sustaina
i l diti simple conditions:
The worlds current use of
must not reduce the reso must not reduce the reso
constraints their standard
The management of plan
degradation that makes
generations to match ou
our physical surroundings p y g
it i S l Ch i ity in Supply Chain
ability requires us to meet two deceptively
f minerals, fuels and the products of the soil
urce available to future generations if this urce available to future generations if this
of living below us.
net must avoid pollution, disruption or
it sustainably more difficult for future
r material prosperity, health or pleasure in
.
K M t i Key Metric
1. Energy consumpt gy p
2. Water consumpti
3. Greenhouse gas 3. Greenhouse gas
4. Waste generation
f S t i bilit cs for Sustainability
tion
ion
emissions emissions
n
Sustainable Sustainable
Sustainable development
the present without comp
f t re Far from req iring future. Far from requiring
recognizes that the proble
cannot be solved unless w
developing countries play
O C F t 1987 Our Common Future, 1987
The Brundtland Commission
(UN World Commission on Environment & D
Development Development
t seeks to meet the needs and aspirations of
promising the ability to meet those of the
the cessation of economic gro th it the cessation of economic growth, it
ems of poverty and underdevelopment
we have a new era of growth in which the
y a large role and reap large benefits.
Development)
Sustainabilit Sustainabilitty in Indian Context ty in Indian Context
S t i bi Sustainabi
Co Co
IndustrySector
Power&Energy
Mining
P t l d Petroleumand
Refinery
Agribusiness Agribusiness
lit i M j I di lity in Major Indian
ompanies ompanies
ListofCompanies
1.TATApower
2.ReliancePower
1.CoalIndiaLimited
2.Hindalco
1 IOCL 1.IOCL
2.BPCL
1.ITC
2.RallisIndiaLtd.
Sustainabili Sustainabili
Industries Major Sustainable j
Automotive Efficient Supply Cha
vehicles Green Infra
and energy usage i gy g
process Provision of
alternative sources o
Corporates Smarter Buildings Gr Corporates Smarter Buildings Gr
planting at IT camp
technologies Focus
B ki I t t d M bil Banking Internet and Mobile
the usage of paper
loan rates for the pu
buildings Green awa buildings Green awa
Retail Eco friendly produc
Green Buildings Alte
management
ity Initiatives ity Initiatives
e Initiatives
ain Management Development of innovative fuel effic
astructure for offices and factories Conservation of wa
n the processes Optimization of material management p p g
employee buses to reduce carbon foot print Utilization
of energy
reen IT virtualization of servers desktops using Cloud T reen IT virtualization of servers, desktops using Cloud T
uses Reduction of travel using innovative communicati
on reduction of paper in the offices
b ki d th i t d ti f IVR f ilit h d e banking and the introduction of IVR facility has reduce
Innovative product offerings provision of preferential
urchase of hybrid vehicles and construction of LEED des
areness campaign among employees Solar powered A areness campaign among employees Solar powered A
ts and packaging Eco friendly sourcing Recycling initia
ernative Energy sources Energy, water and waste
Gl b l R Global Rep
The Global Reporting Initiativ The Global Reporting Initiativ
sustainability field. GRI prom
for organizations to become
sustainable development sustainable development.
GRIs Sustainability Reporting
all companies and organiza
d t d d i understand and communica
GRI's mission is to make susta
one which helps to promote p p
global economy.
GRI is an international not-fo
mission is to make sustainab mission is to make sustainab
guidance and support to or
Source: https://www.global
reporting/Pages/default.asp
ti I iti ti (GRI) porting Initiative (GRI)
ve (GRI) is a leading organization in the ve (GRI) is a leading organization in the
motes the use of sustainability reporting as a way
e more sustainable and contribute to
g Framework is a reporting system that enables
ations to measure,
t thi i f ti ate this information.
ainability reporting standard practice;
e and manage change towards a sustainable g g
or profit-organization based in Amsterdam. Its
ility reporting standard practice by providing ility reporting standard practice by providing
rganizations.
reporting.org/information/sustainability-
px
Sustainability Re y
Trend
The National Voluntary Guidelines on y
Social, Environmental and Economic
Responsibilities of Business (NVGs) released
by the Indian Ministry of Corporate Affairs
in July 2011 highlight the need to integrate in July 2011 highlight the need to integrate
sustainability and inclusiveness into core
business practice.
Innovative instrument like the recently Innovative instrument like the recently
launched GREENEXat Bombay stock
exchange in India is introduced to assess
energy efficiency performance of gy y p
companies.
There are around 80 Indian companies
from various sectors that have been
reporting, and there are about 60
companies, who publicly declare that
they follow the GRI Guidelines on almost
all aspects of reporting environment all aspects of reporting environment,
social and governance performance,
although the rigour and details vary.
eporting Practices & p g
ds in India
d
e e
G t I i Government Ini
The Companies Bill, 2012.
The Lok Sabha (Lower House o
the Companies Bill. The Act m
spend on acti ities related to spend on activities related to
DPE Guidelines on CSR and Su
Th l M d f The annual Memorandum of
Sector Enterprises (CPSEs) and
objectives for a CPSE, in which
Sustainable Development.
Annual environmental audit r
Reporting in the environmenta
d t i l ti and raw material consumptio
prescribed standards), quanti
wastes, impact of pollution co
resources and the cost of pro
environmental protection environmental protection.
ti ti i I di tiatives in India
of Indian Parliament) in December 2012 passed
makes it mandatory for profit-making companies to
CSR CSR.
ustainability, 2013.
U d t di (M U) b t C t l P bli Understanding (MoU) between Central Public
d Government Ministries defines the targets and
h a fixed percentage is defined for CSR and
report.
al statement includes parameters such as water
ll ti t d ( l ith i ti f on, pollution generated (along with variations from
ties and characteristics of hazardous and solid
ontrol measures on the conservation of natural
duction, and additional investment proposals for
G t I i Government Ini
Corporate Responsibility for
A charter promoted by the C
initiative aims to go beyond initiative aims to go beyond
prevention and control of p
waste minimization, in-plant
technologies in environmen g
large businesses in the 17 hig
National Voluntary Guideline
Responsibilities of Business 2 Responsibilities of Business, 2
The Indian Ministry of Corpor
Guidelines on Social, Environ
B i d t Businesses are encouraged t
provisions articulated in the
addressed across the value
ti ti i I di tiatives in India
Environmental Protection (CREP), 2003.
Central Pollution Control Board of India, this
compliance with regulatory norms for compliance with regulatory norms for
ollution, through various measures including
t process control, and adoption of clean
tally-intensive industries. CREP is mandatory for y y
ghest polluting sectors in India.
es on Social, Environmental & Economic
2011 (2009) 2011 (2009).
rate Affairs launched the National Voluntary
nmental & Economic Responsibilities of Business.
t b d th d d i i to move beyond the recommended minimum
document and to ensure CSR issues are
chain.
B i S Basic Sup l Ch i pply Chain
Wh Where can we a
EVERYW EVERYW EVERYW EVERYW
hi S t i bilit ? achieve Sustainability?
WHERE WHERE WHERE WHERE
Sustainabl Sustainabl
Pro
le Purchasing and le Purchasing and
ocurement
I t Int
The idea that it is not the pro
chains directs the view on su chains directs the view on su
perspective to the inclusion
service providers.
In an organization aiming fo
given a crucial role in reduc
control emissions stemming f
t d ti troduction
oducts competing with each other but supply
ustainability away from intra organization ustainability away from intra-organization
of suppliers, sub-suppliers, customers and
or sustainability, the procurement activities are
cing the environmental footprint as they mainly
from the upstream suppliers.
S t i b Sustainab
Sustainable purchasing is all abo
factors into account in purchas
h t d t d what your products are made o
has made them
While Green procurementis aimed at ensuring pro
waste reduction, reuse and recycling.
bl P t ble Procurement
out taking environmental and social
sing decisions. Its about looking at
f h th f d h of, where they come from and who
oducts or materials meet environmental objectives e.g.
S t i b Sustainab
Sustainable procurement ad Sustainable procurement ad
Sustainable procurement wa
perspective
Social injustice (for example
violation of the basic human
to incorporate sustainable p
bl P t ble Procurement
ddresses all parts of the triple bottom line ddresses all parts of the triple bottom line
as and is often initiated from an ethnical
e the situation of the coffee farmers) and the
n rights (child labour) triggered consumer reactio
practices.
D i f t i Drivers for sustai
Regulationscan be conside
environmental efforts environmental efforts.
Customersare another impo
and procurement.
Competitorsact as drivers fo
advantage because of thei
by implementing sustainabil by implementing sustainabil
New products and services
the supplier more knowledg
i bl t inable procurement
ered as a major driver for organizations
ortant driver for sustainability in supply chain
or green/sustainable SC. When competitors gain
r environmental SC companies have to respond
ity themselves. ity themselves.
developed with other customers can also make
eable partner for sustainability improvements.
EE
To simplify the selection of supp
independent organizations acn independent organizations acn
environmental certifications are
1. Fairtrade
2. Marine stewardship counc
3. Rainforest alliance
4. Carbon trust
5. LEED
6. ISO 14001
E l bl Ecolables
pliers, certifications or ecolabels of external and
ne be used Some of the known well known ne be used. Some of the known well known
e:
cil
Supply Chai
StorageFacilities
CoffeeGrowers
Vendors
Ret
in of Starbucks
RoastingPlants
Warehouses
DistributionCenter
tailers Retailers Retailers
Coffee Coffee
Operations:
EquatorialBelt
Highqualityan g q y
Senddriedbean
Inventory: Inventory:
Storagefacilities
Information Technology: InformationTechnology:
GPStrackingde
e Growers e Growers
G
ndservice
Growers
nsbyship
StorageFacilities
s
g
evices
Shi Ship
Ve Ve
Operations:
Morethan40,0
Commodities p Commoditiesp
Inventory:
SendstoDistri
Centerbytruck y
endors endors
Vendors
000suppliers
products products
Distribution Center
ibution
k
DistributionCenter
Truck
R ti Pl Roasting Pla
MajorOperations
3 i US 1 i A 3inUS,1inAm
Roast,destone,
Packaging:
Automatedb
Palletizingsy
Inventory: y
Storepalletized
t & W h ants & Warehouses
t d msterdam
,tasteprofile
RoastingPlants
boxingg
ystems
Warehouses
cafinwarehouse
Truck
Distribution Distribution
Operations:
Lo ated e io ally Locatedregionally
24hours/5.5daysaweek
Outsourcesdistributionto3PL
Inventory:
Push/Pullboundary
Order supplies from endors Ordersuppliesfromvendors
Holdpackagedproductsandmerchan
InformationTechnology gy
HighJump SoftwaresSupplyChainEx
StreamlineProductDistribution
Prepare for Future Growth PrepareforFutureGrowth
n Centers n Centers
DistributionCenter
Warehouses
ndise
Retailers
xecutionSolutionto
T k Truck
RR
Operations
Morethan10,500Storeslocate
Companyownedandlicensed
Standardizedregulations g
RelationshipManagement
Inventory
PeriodicReview
Coffee,milkandpaperprodu
Foodproducts:Fourtimesaw
InformationTechnolog
Computersinformationsystem
R t il Retailers
Retailers
edglobally
d
Retailers
Truck
ucts:Onceperweek
week
gy
ms
Procuremen Procuremen
Focusonhighqualityandserv
Payspremiumprices
Preferredcustomer
nt: Quality nt: Quality
vice
PProcurem
Longtermrelationships
Mutuallybeneficial
Relationshipmanagement
L
an
mo
ttra
Sta
foo foo
t R l ti hi ent: Relationships
Losingavendorislikelosing g g
employee youlosethe
oneyandtimeyouputinto
i i th J h Y i iningthem,JohnYamin,
arbucksVicePresidentof
od od.
C t S i CorporateSocia
FairTradeMovement
Pricesetting
Focusonvalueofentiresuppl
Coffee for Conservation Proj CoffeeforConservation Proj
Improvesqualitywhilefocusi
CurrentRegions:
Tanzania
Rwanda
Kenya y
Ethiopia
l R ibilit alResponsibility
lychain
ject ject
ingonenvironmentalsustainability
OOvera
Maintainsrelationalcapital
Focusesonqualityandpurity q y p y
Education
Strategicretaillocations
ll SC St t all SC Strategy
S i l R Social Respon
In 2013 starbucks continued to live up to that m
in communities, and minimized their environme
Ethical Sourcing Ethical Sourcing
Starbucks have developed strong, long-term r
make sure that they can buy the high-quality c
all of their coffee will be grown using ethical tr g g
They opened first Farmer Support Center in Co
(Coffee and Farmer Equity) Practices. Around
C.A.F.E. Practices standard.
Community Involvement
In March 2013 Starbucks announced a first-of-i In March 2013 Starbucks announced a first of i
opportunities for job-ready disengaged youth.
Starbucks awarded an initial $1 million grant fo
LeadersUp, that will bring community-based re
t i i t l training to young people.
ibiliti f St b k nsibilities of Starbucks
mission of ethnical sourcing of products, invested
ental footprint.
relationships with farmers all over the world, to
coffee that their customers. By 2015 it hopes that
ading and responsible growing practices. g p g g p
osta Rica in 2004 to implement our C.A.F.E.
95% of the coffee purchased in 2013 met the
its-kind initiative to create employment its kind initiative to create employment
.
or the development of a nonprofit corporation -
esources to provide job and leadership skills
http://www.starbucks.com/responsibility/global-report
E i Environmen
SS
Recycling: Starbucks is committed to reducing
especially when it comes to recycling.
Starbucks goal is to have recycling available i Starbucks goal is to have recycling available i
collection and serve 25% of beverages in reusa
Recycling in Stores :In the last year, 70% of Star
but recycling is reliant on the local availability bu ecyc g s e a o e oca a a ab y
some local communities that provide a minima
Greener Cups: Over the years, Starbucks has la
environmental impact of the one-use cups.
Energy: The energy used in Starbucks stores ma
footprint.
Water: Starbucks reduced their water use by m
nearing o r goal of a 25% sa ings b 2015 nearing our goal of a 25% savings by 2015.
Green building: We also expanded our green
countries, and the inclusion of green building s
t l St d hi i ntal Stewardship in
tarbucks tarbucks
g the waste which their stores generate
in all of their stores where they can control waste in all of their stores where they can control waste
able cups.
rbucks stores recycled at least one type of waste
of commercial recycling. However, there are also o co e c a ecyc g. o e e , e e a e aso
al cost or non-commercial recycling.
aunched numerous initiatives to decrease the
akes up nearly 80% of their entire carbon
more than 21% over our baseline levels, and are
building program, with LEED-certified stores in 18
strategies in all remodels and new construction.
http://www.starbucks.com/responsibility/global-report
Product Product
Productio
Design, Cleaner Design, Cleaner
n and Packaging
I t Int
Traditionally the main objec
packaging are to reduce co packaging are to reduce co
strategies.
Now a days there is a shift to
environmental sustainability
consciousness) into the prod
t d ti troduction
tive of product design, production and
ost and at the same time meet pricing ost and at the same time meet pricing
o include not only cost but other parameters of
(social safety and environmental
duct design, production and packaging.
F k t Framework to
Hart (1995, 1998) laid down fram
1. The first step is to achieve p
pollution control.
2 In the next stage the focus 2. In the next stage the focus
materials and recyclable p
3. In the third stage the comp
d l i l t h l developing clean technolo
sustainable.
d t i bilit owards sustainability
mework towards sustainability as:
pollution prevention by shifting away from
s is on greener product design cleaner raw s is on greener product design, cleaner raw
packaging materials.
panies encourage to invest in planning and
i th t k th ti l h i ogies that make the entire supply chain
P d t d Product des
and s and s
Design for environment (DfE) or
OEMs The following are some o OEMs. The following are some o
1. Selection of materials
2 Design for sustainable (rev 2. Design for sustainable (rev
3. Design for cleaner produc
4. Design for sustainable con g
i f i t sign for environment
sustainability sustainability
r eco-design is becoming the major concern for
of the main principles of eco design: of the main principles of eco design:
erse) logistics erse) logistics
tion
sumption. p
Eco-de co de
Key Aspects of
esign for Reuse es g o euse
f the Fuji Xerox Supply
Ch i Chain
Source: www.plestech.
R l t Regulat
Some of the essential regulation
1. Restriction on the use of ce
2. Registration, Evaluation, Au
(REACH) (REACH)
3. Regulations on packaging
t F k tory Framework
ns are:
ertain Hazardous substances (RoHs)
uthorization and Restriction of Chemicals
g and packaging waste
Cl Clean
Cleaner production attempts to im
materials and prevent undesirable
delivery of products and services to
The following concepts can be inc
1. Eco-efficiency
2. Waste minimization
3. Pollution prevention
4 G P d ti it 4. Green Productivity
P d ti ner Production
mprove the efficient use of energy and raw
pollution during production process and
o customers.
corporated:
Cl Clean
1. Reduce the consumption of raw materials
unit of product.
2. Increase productivity by ensuring a more e
water.
3 Promote better environmental performanc 3. Promote better environmental performanc
emission.
4. Reduce the environmental impact of prod
i t ll f i dl b t t ff ti environmentally friendly but cot effective
5. Reduce at source the quantity and toxicit
released.
6. Eliminate use of toxic and dangerous mate
P d ti ner Production
s and energy used in the production of each
efficient use of raw materials, energy and
ce through reduction at source of waste and ce through reduction at source of waste and
duct throughout their lifecycle by design of
d t products.
y of all emissions and waste generated and
erial.
P k i f Packaging f
Globally packaging industry
billion (world packaging org billion.(world packaging org
Packaging is required for pra
Technically all packaging m Technically all packaging m
However packaging is also o
environment if not properly m
EU has given a number of di
f th i t for the environment
y has a turnover of around US $5000
g 2012) g. 2012)
actically all goods.
materials can be reused recycled or recovered materials can be reused , recycled or recovered.
one of the main waste steam that can harm the
managed.
irective for packaging and packaging waste.
Freig Freight transport ht transport
L i ti d Logistics and
Sus Sus
Environmental issue
growing concern f
These issues compl
SCM, increasing co
Key trends and the
i. Globalization
ii Relationships and ii. Relationships and
SCM t d ff ti SCM trends affecting
stainability stainability
es have been an area of
or business on a global scale.
icate the job of logistics and
osts and limiting options.
eir impact are as follows:
d outsourcing d outsourcing
Global Global
Globalization has increased tremend
Due to that geographical length of s
attendant environmental issues of fu
For Example: FOOD MILES
Food miles is a term which refers to t
production until it reaches the consu production until it reaches the consu
Food miles are one factor used whe
including impact on global warming
It includes getting food to the consu
lization lization
dously since 1970. y
supply chain have increased along with their
uel use and emission.
he distance food is transported from the time of
umer. umer.
n assessing the environmental impact of food,
g
umes but also getting waste food way to landfill.
FOOD FOOD
CASE: Lindt Chocolate
S S it l d Source: Switzerland
Destination : India
A single pack of chocolate has travell A single pack of chocolate has travell
3
By air By air,
1396 k
By road y
1125 k
By train
388 kg
MILES MILES
led approximately : led approximately :
3878 miles (6239km)
it would create approx: it would create approx:
kg of CO
2
381 kg carbon
d, it would create approx: pp
kg of CO
2
307 kg carbon
n, it would create approx:
g of CO
2
106 kg carbon
Source: www.foodmiles.c
R l ti hi Relationship
There is a need to outsource an
of the companies to provide po
Sh i f t t ti d Sharing of transportation and w
avoidance of empty running of
Outsourcing logistics and SCM t g g
d O t i p and Outsourcing
nd collaborate the non core competencies
ositive benefits for sustainability.
h i f f l i ti d warehousing for ease of revere logistics and
f trucks
to 3PL specialistics such as DHL. p
Carbon Footprint: Carbon Footprint:
of Modern Supply
Annual greenhouse gas
(GHG)emission by various sec (GHG)emission by various sec
increasing day by day.
A carbon footprintis historical
defined as "the total sets
ofgreenhouse gasemissions
caused by an organization, e
product or person.
Around 72% of the total GHG
to CO
2
.
There is a dire need to contro
emission in all spheres of the
product life cycle.
: Environmental Assessment : Environmental Assessment
y Chains
ctors is ctors is
ly
vent,
is due
l the
http://en.wikipedia.org/wiki/Greenhou
C b A Carbon Assessm
The Intergovernmental Panel on Clim
that most of the observed temperat
concentrations of greenhouse gase
burning and deforestation.
According to the Kyoto Protocol, gr
dioxide nitrous oxide and methane dioxide, nitrous oxide, and methane
hydrofluorocarbons, and sulphur he
Carbon dioxide accounts for by far
atmosphere hich is h there is so atmosphere, which is why there is so
particular gas.
Thus the integration of environment
supply chain while taking carbon em
considered by the companies.
t I S l Ch i ment In Supply Chain
mate Change (IPCC, 2007) concludes
ture increase is caused by increasing
es from human activity such as fossil fuel
reenhouse gases are natural (carbon
e) and industrial (perfluorocarbons e) and industrial (perfluorocarbons,
exafluoride).
the largest proportion of GHGs in the
o m ch attention foc sed on this o much attention focused on this
management and its impact into the
missions into account must be
Carbon Assessm
Cha
To allow economies to meet their
introduced three flexible mecha
The first two of these are the Joint
allows countries to carry out emis allows countries to carry out emis
to gain emission credits, and the
allows countries to gain emission
projects in developing countries. p j p g
The third mechanism is Emissions
which serves as an economic inc
and emissions Governments set l and emissions. Governments set l
pollutants allowed to be emitted
emission allowance, it will have to
that produce less GHGs or are be that produce less GHGs, or are be
ment In Supply
ains
r emission restrictions, the Kyoto protocol
anisms.
t Implementation mechanism, which
sion reduction projects in other countries sion reduction projects in other countries
Clean Development mechanism, which
credits by financing emission reduction

Trading (also known as carbon trading)
centive for companies to reduce pollution
imits or caps on the amount of certain imits, or caps, on the amount of certain
. If a company wishes to exceed its
o buy emission credits from companies
elow their cap elow their cap.
F i Freig
Freight transport is the most
supply chain greener supply chain greener.
The proportion of environme
varies strongly between diffe
network and the product/se
As supply chains are becom
products are now characte products are now characte
chains.
ht T t ght Transport
visible issue for making logistics activities in
ental impact of transport and transport intensity
erent supply chains depending on the nature of
ervices.
ming more and more global, even simpler
rized by increasing complex and long supply rized by increasing complex and long supply
TTranspo
Different transport modes are:
1. Sea Freight
2. Rail Freight
3. Road Freight
4. Air Freight
5 Pipelines 5. Pipelines
t ti M d ortation Modes
CO2 E i i CO2 Emission
The choice of transportation
i. Characteristics of mode
ii. Operational Factors
iii. Cost
iv. Service requirements
Carbon Emissions b ario s Carbon Emissions by various
selecting the transportation
the supply chain.
http://lipasto.vtt.fi/ can prov
modes.
b T t M d n by Transport Modes
n modes is influenced by
modes differ and can also pal a major role for modes differ and can also paly a major role for
mode in order to reduce the overall emission of
vide data on carbon emission by different
F t t Factors to con
tran tran
Operational Factors:
Availability of infrastructure
Fuel taxations to lower emis
Local climate ( Eg Rains aff Local climate ( Eg. Rains aff
Cost and Service requireme
Product characteristics Product characteristics
Perishability plays an import
Consignment Factors
Truck load or less than truck
id h h i nsider when choosing
sport mode sport mode
ssions
fect many modes of transportation) fect many modes of transportation)
nts
tant role
k load
St t i t Strategies to re
impact of impact of
Change in transport mode
Green transport by governm
M lti d l t t Multi model transport
Reduction of freight transpo
Procure locally Procure locally
Reduction of emission from c
Alternative fuels
d i t l educe environmental
f freight transport f freight transport
ment
ort
current mode
Sustainab Sustainab ble Warehousing ble Warehousing
Th i The environ
wa wa
Warehouses can be found at a
impact of warehouses include impact of warehouses include
Green house emission
Traffic congestion of vehicle Traffic congestion of vehicle
Noise pollution
Interfere with nature balanc
But still warehouses are necessa
generate employment opportu
t l i t f nmental impact of
arehousing arehousing
almost all the stages along supply chain. The
es in that area es in that area
ce of that area
ary to bring products to the consumers and they
unities.
A i Assessi
The environmental balance of w
Emission from Construction
Operational Emission
th i t ng the impact
warehouse consists of two levels:
St d Standar
sustainability sustainability
LEED (Leadership in Energy a
Building Council
BREEM (Building Research Es BREEM (Building Research Es
from building research estab
Both the schemes measurer the
scores based on several weight
energy and other emissions, en gy
energy consumed, the amount
d t th rds to assess the
of warehouse design of warehouse design
and Environmental Design)from U.S Green
stablishment Environmental Assessment Method) stablishment Environmental Assessment Method)
blishment in UK
e sustainability of warehouses by awarding point
ted criteria's such as embedded carbon,
nd-of-life issues such as disposal of materials and p
t of natural resources used etc.
http://www.emeraldskyline.com/home/leed-s
BR BREEAM EEAM
http://www.innervision-design.co.uk/breea
assessments.html
R d ti Reduction o
Following the lifecycle concept
Operating carbon emission
Operational sustainability also c
efficiently and reducing the wa efficiently and reducing the wa
Embedded carbon emission
In the constructional phase em p
construction process.
f th i t l of the environmental
impact impact
t we generally differentiate between
considers aspects like using all resources more
aste generated by site aste generated by site.
n
mission is caused by the material and y
TTempera
wa wa
Temperate control warehou
the required temperature bu the required temperature bu
The thickness of the insulatio
therefore also reduces the e
Thus carbon at the operatio
increases.
t t ll d ature controlled
arehouses arehouses
use not only depend on the ability to achieve
ut also to hold that temperature ut also to hold that temperature.
on material reduces the temperature loss
energy for constant temperature adjustment.
onal stage is reduces but the embedded carbon
S i l di Social dimens
wa wa
Technology and increasing
and knowledge and knowledge
Issues of health and safety n
workplace design.
i f t i bilit i sion of sustainability in
arehousing arehousing
complexity of supply chain require new skill sets
need to be considered in the warehouse and
M D ld S McDonalds S t i bl A h ustainable Approach
Reverrse Logistics
Reverse Flow (Re Reverse Flow (Re
Reverse supply chain refers to the move
Reverse logistics is the process of plann g p p
efficient and effective inbound flow and
information for the purpose of recoverin
everse Logistics) everse Logistics)
ement of goods from customer to vendor
ning, implementing and controlling the g, p g g
d storage of secondary goods and related
ng value or proper disposal.
Reverse Log
Reverse processes as defined by Dekke
Collection refers to all activities rend
physically moving them to some poin physically moving them to some poin
Inspection/ separation denotes all op
product is in fact re-usable and in wh
used products according to distinct used products according to distinct
Reprocessing means the actual tran
Product/ component/ material. This
including recycling, repair and rema g y g, p
cleaning, replacement and re-assem
Disposal is required for products that
reasons. Disposal may include transp
Re-distribution refers to directing reus
physically to moving them to future u
and storage activities.
istics Process
r et al. (2004) follows:
ering used products available and
nt for further treatment nt for further treatment.
perations determining whether a given
hich way, it results in splitting the flow of
re-use (and disposal) options. re use (and disposal) options.
nsformation of a used product into a usable
transformation may take different forms
anufacturing. In addition, activities such as g ,
mbly may be involved.
t cannot be re-used for technical or cost
portation, land filling and incineration steps.
sable products to a potential market and
users. This may include sales, transportation
Types of R
Based on the literature (De Brito (20
By-products and scrap: These inclu
the production process, that are un
process or do not fulfil the quality re
Commercial return: These are prod Commercial return: These are prod
after the sales process. Among the
customer dissatisfaction, customer
promotional actions. promotional actions.
Warranty, repairs and product reca
components that are suspected or
the same or similar product (functio the same or similar product (functio
eturns
003)), the six main types of returns are:
de materials or products resulting from g
navoidable in a blending or cutting
equirements.
duct returns that occur during or shortly duct returns that occur during or shortly
reasons for commercial returns are
tests, overstocking at retailers and
alls: These are returns of products or
r defect. The customer is entitled to have
on) back on) back..
Types of
Reusable items: These returns are re
of the main product. This type conc
containers and pallets refillable car containers and pallets, refillable car
cameras.
End-of-use returns: These are produc
due to end of lease, trade-in or repl
the return, the product is refurbished
alternative channel, or remanufactu
k t f d t il b t markets for products can easily be t
End-of-life returns: These are the retu
no longer useful. g
Returns
lated to consumption, use or distribution
cerns many different items, e.g. reusable
rtridges bottles and one way rtridges, bottles, and one-way
cts returned after some period of use
lacement. Depending on the status of
d or repaired and sold through an
ured into new goods. Alternative
t t d f th t f t targeted for these type of returns.
urns of products that are worn out and
Recovery O
Once the product is returned back there a
be used in order to retrieve maximum valu
Product recovery options include the f
Component recovery options include d
components to obtain reusable comp
Material recovery option is through rec
These recovery options can be exercised These recovery options can be exercised
the take back. The objective of recovery
economic value as reasonably possible, t
waste.
Options in RL
are different recovery decisions that can
ue from the product such as:
abrication of products.
disassembling products into its
onents.
cycling.
by incorporating the various Rs of RL into by incorporating the various R s of RL into
process is to recover as much of the
hereby reducing the final quantities of
Th R f The Rs off R L i ti f Reverse Logistics
Recovery Recovery
Remanufacture
Re
The aim of remanufacturing is to
bring used products up to the
quality standards that are as good

as new as those for new products;

The process involved are similar to
refurbishing;

g;
Reuse:
The aim is to select the part/

Re
product that can be reused
It involves selective disassemble
and inspection of potentially
Re

reusable parts

y in RL y in RL
cycle
The aim is to reuse materials from
used products and components;
Recovered materials are separated
into categories;
The material can be used to
produce original products and
components; components;
It is also referred to as assert
recovery.
market market
The aim is to sell the returned
products again in either primary
market or second hand market;
Old or new parts can be used in the
processing of the product so that it
meets pre specified quality
standards standards.
RRecover
Refurbish
The aim of refurbishing is to b
used products up to specifie
quality;
Refurbishing needs similar pr
as to repair: it involves
disassemble of used produc
modules inspection of the modules, inspection of the
modules and fixing or replac
as required.
The quality of the refurbished The quality of the refurbished
products is often lower than
new products.
i RL ( td ) ry in RL (contd..)
Repair
i f i i bring
ed
The aim of repair is to return used
products to working order;
Used products are normally not
rocess
cts into
disassembled rather are fixed;
Some parts may be replaced
while some can be reused;
cing
d
The quality of the repaired
products is usually lower than the
quality of new products;
d
the Repair can be performed at retail
stores or repair centers;
I i R Issues in Rev
When managing, coordinating and con
have to be taken into consideration by
performance (Blumberg, 2005). These is
Uncertain flow of materials usually
condition are unknown to the comp
Customer specific since return flow
knowledge and understanding of th knowledge and understanding of th
Time critically of critical importanc
the need to process returned items
reuse or disposal;
Value maximisation the choice of
option;
Flexibility processes connected w
(f ilit t t ti t ) (facility, transportation etc.);
Multiparty coordination in order to
chain processes a proper timely com
involved (Blumberg, 2005) involved (Blumberg, 2005).
S l Ch i verse Supply Chain
ntrolling reverse supply chain processes certain issues
companies in order to achieve economically viable
ssues are:
the time of product return or returned product
panies;
ws depend on end users or customers, comprehensive
he specific customers is required; he specific customers is required;
ce in reverse supply chain management and repair is
as fast as possible in order to make them available for
f the most appropriate returned product value recovery
ith product returns have to support flexible capacity
o avoid slowdowns and inefficiencies in reverse supply
mmunication has to be established among the parties
I t ti f Integration of
The supply chain con
business and its custo
The greatest benefits
focus as far as possib
materials, downstrea
back again as the pr back again as the pr
Thus there is a need t
downstream viz forwa downstream viz forwa
Closed loop supply c
f F d d R f Forward and Reverse
logistics g
nsiders the interactions between a
omers and suppliers.
s are derived by extending the
ble upstream towards the raw
m towards the consumer and then
roduct and wastes are recycled roduct and wastes are recycled.
to integrate upstream and
ard and reverse logistics called ard and reverse logistics called
chain.
Closed-Loop S
A supply chain in which forw
h i ti iti i t t chain activities are integrate
closed-loop.
Reverse logistics network es
between the market that rele
the market for new produ
markets coincide, then it is c
network.
Supply Chain
ward and reverse supply
di idt b f d is said to be one of a
stablishes a relationship
eases used products and
cts. When these two
called a closed loop
Th N d F The Need Fo
Chain In
Scarcity of resources . Limite
the urgent need of rethinkin the urgent need of rethinkin
closing of the material loop
natural resources.
Increased product liabilities
forcing manufacturers to pra
enforcing take back laws w
R ibilit (EPR) EPR i d Responsibility (EPR). EPR is de
accept significant responsib
or disposal of products.
Cl d L S l r Closed Loop Supply
n Today`s Industry y y
ed availability of natural resources has led to
g of the entire design of a supply chain Hence g of the entire design of a supply chain. Hence,
is a logical solution to the excessive use of
. Increased pressure from the customers is
actice take back policies. Many countries are
hich is the policy principal of Extended Producer
fi d li h i hi h d efined as a policy approach in which producers
bility, financial and/or physical, for the treatment
Risk, Corporat Risk, Corporat
a
e Social Responsibility e Social Responsibility
nd ethics
Wh Wh
Cases such as use of child la
factories raise the question a factories raise the question a
source from other countries.
The issue of child labour in c
issue.
The kit kat killer campaign
down trees. down trees.
The use of water resources b
who should be responsible f
The reports on Dirty Laundry
putting pressure on global c
h CSR??? hy CSR???
abour at Nikes factories and its supplier
about welfare of children when a company about welfare of children, when a company
.
hocolate industry is another important welfare
n by greenpeace accused Nestle of cutting
by Coca-Cola, India raised the question about
or depletion of water resources.
y and Detox campaign by greenpeace are
clothing brands to clean up their supply chains.
Ri k C t Risk, Corporat
aa
Economic benefits due to g
because of it companies are because of it companies are
Such problems are normally
risk called REPUTATIONAL RIS
Once the trust with custome
the brand, leading to a fall i
Thi i h h i k This is why such risks are con
which is a way to reduce the
S i l R ibilit e Social Responsibility
nd ethics nd ethics
lobal sourcing and distribution are irresistible but
e facing a lot of ethnical issues e facing a lot of ethnical issues.
revealed by NGOs and create a new type of
SK.
ers are broken, there is a tendency to boycott
n market share.
t d t C t i l R ibilit (CSR) nected to Corporate social Responsibility (CSR)
ese risks.
Csr determines the relations
Under Triple bottom line, cor
for economic consequence
implications.
Social responsibility includes
Responsibility towards itself
Responsibility towards stake
Responsibility towards state
Responsibility towards custo Responsibility towards custo
CSR CSR
hip between business and the larger society.
rporates have a degree of responsibility not only
es but also for social and environmental
eholders
omers omers
S i l Social
Social responsibility emphas
society society
Means of production should
total socio-economic welfar
In every society there are so
responsibility. These forces in
S i l i tit ti Social institutions
Labour laws
Social consciousness Social consciousness
R ibilit Responsibility
es on relationship between corporate and the
d be employed that leads to enhancement of
re
ocial laws which form the basis of social
nclude;
References
Web pages
www.sustainablemeasures.com
http://www.rallis.co.in
http://www itcportal com http://www.itcportal.com
http://ccl.gov.in
http://www.hindalco.com p
http://www.iocl.com
www.bharatpetroleum.com
http://www.reliancepower.co.
http://www.tatapower.com
http://www cxotoday com/sto http://www.cxotoday.com/sto
http://www.ibef.org/india/Susta
http://www.financialexpress.co http://www.financialexpress.co
climate-change-risks-into-biz-o
m/indicators
in
ory/the sustainability factor in indian businesses ory/the-sustainability-factor-in-indian-businesses
ainableDevelopment.aspx
om/news/mapping-how-corporate-india-is-conve om/news/mapping how corporate india is conve
pportunities/401247/
THANK THANK K YOU K YOU