Supply Chain Management Socially Responsible Supply Chain Management

Top 5 Pressures Driving the Green Supply Chain 1. Industry leader 2. Rising costs of fuel/energy 3. Competitive advantage 4. Current/expected regulations 5. Rising in/outbound transportation costs

Introduction Major terms and frameworks associated with professionals in supply chain management Part I: Strategic Approaches Part II: Operations and Terminology Part III: Sourcing Part IV: Metrics

Codes of Conduct: Electric Energy Industry Consortium Necessary to define acceptable behavior Integrity, honest, gambling, bribes, human labor, environmental responsibility Promotes high standards Benchmarks for self-evaluation Framework for behavior/responsibility Identity and maturity

Supply Chain Integration

Coordination of all the players from raw material to customer Purchasing Operations Logistics Work together in decision making Shared strategy, goals, objectives and practices = strategic partnership

Collaborative, Meaningful Partnerships Integration shared strategic goals, objectives, and outcomes Reduces inventory levels Reduces transportation costs Increase sales and operational effectiveness Barriers: lack of strategic approach Trust and technology Wrong partner selection Cultural issues

Let’s Talk About Packaging Institute of Packaging Professionals (IoPP). University of California, Santa Barbara’s Donald Bren School collaborated with Hewlett Packard, IBM, and AMD to create the Environmental Packaging Guideline for the Electronics Industry.

Packaging Functions Product protection Marketing

Packaging Design Corrugated cardboard Paperboard Wood Solid plastics

3 Objectives of IoPP Guideline 1. Decrease the negative impacts on the environment and society 2. Increase financial benefits by reducing costs of materials and shipping 3. Reduce risks as well as increase brand value through social responsibility

Let’s talk about Sourcing and Purchasing Global vs. Local? Supply management defines local as within the borders of the same country Global sourcing across borders Decision based on: Costs and efficiencies Vendor performance Environmental and social performance Delivery and reliability of capacity

GreenSCOR is a modification of version 5.0 of the Supply Chain Operations Reference (SCOR) model developed by the Supply-Chain Council (SCC). LMI used SCOR as a foundation because it has been proven over several years of continual development.

GreenSCOR 1. Plan: coordinate supply chain 2. Source: guidelines and codes conduct 3. Make: finished good or maintenance 4. Deliver: storing, packaging, delivering 5. Return: reverse logistics 6. Enable: movement of materials

Sustainable Supply Chain Metrics Operational performance over a given time period Appropriate Metrics: Greenhouse gas emissions and target reduction goals; Product-to-package ratio; Space utilization; Innovation; Solid waste generated and reduction targets; Water usage and reduction targets; Establishment of public purchasing guidelines for direct suppliers; and Social responsibility.