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关于GCSM的思维导图，如The nature of logistics and supply chain management.
编辑于2023-05-24 16:34:35 广东
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GCSM
Lecure 1
The nature of logistics and supply chain management
The definition of logistics management
… that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.
The definition of supply chain management
… the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.
The activities of logistics/supply chain management
manufacturing operations;
the coordination of processes and activities with and across marketing, sales, product design, finance, and information technology.
The relationship between logistics management and supply chain management
Three main 'themes' regarding sustainable or 'green' logistics and supply chain management
The simplified supply chain (stakeholder)
Logistics and SCM trends affecting sustainability
Globalization
The geographical length of supply chains has increased along with the attendant environmental issues of fuel use and emissions.
e.g.the increase of global container trade and air freight
Relationships and outsourcing
A need for increased collaboration and mutually beneficial relationships among customers, suppliers, competitors and other stakeholders in an increasingly interconnected and global environment can have positive benefits for sustainability.
Many firms have outsourced their logistics and SCM activities to 3PL specialists to perform activities that are not considered part of a firm’s ‘core competencies’.
Firms thus may not have control over the sustainability efforts of 3PLs or their sub-contractors.
Technology
The use of communication technology has enabled firms to develop faster and longer supply chains due to their ability to trace and track goods in production or storage or in transit.
Time compression: the lean versus agile debate(精益 v 敏捷)
Lean
works best in predictable high-volume, low-variety environments
Firms following a lean approach would assume inventory risk, placing large orders that reduce the costs of order processing and transportation, and reducing stock-outs and uncertainty and their associated costs.
seeks to minimize the inventory of components and work in progress and to move towards a ‘just-in-time’ (JIT) environment wherever possible.
Agile
Being agile means using market knowledge and information in what is known as a virtual corporation to exploit profitable opportunities in a volatile marketplace inventory
to respond in shorter time frames to changes in both volume and variety demanded by customers.
needed in less predictable environments where the demand for variety is high
The rise of e-commerce
imposes enormous pressure on areas of reliability, punctuality and expedition.
parcel deliveries and returns;
the growing importance of Cloud services
the tracking of freight and vehicles and their management; and
omnichannel retailing（全渠道零售）
means a consumer’s entire online shopping experience
Omnichannel requires complete visibility across channels, along with a holistic and unified view of the path to purchase.
increases complexity in e-commerce activities
The ‘one-way flow’ of logistics and SCM
The logistical or supply chain flow of products is predominantly one way from raw materials/resources and producers to consumers.
Sustainable logistics and supply chains
reverse logistics;
… the process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
Different from logistics, reverse logistics activities occur in the opposite direction, ie against the one-way flow. Reverse logistics also includes processing returned merchandise due to damage, seasonal inventory, restock, salvage, recalls and excess inventory.
assessment of emissions; and
Both transportation and storage activities are users of energy, for example, fuel and electricity, and both produce carbon dioxide (CO2) emissions as a result of using this energy.
the ‘greening’ of logistical activities and supply chains.
The ‘greening’ of logistics activities and supply chains means ensuring that these activities are environmentally friendly and not wasteful and particularly focus on reducing carbon emissions across the entire supply chain.
Transportation, vehicles and infrastructure networks
Green buildings
Sourcing, product and packaging design
Administrative issues
Lecure 2
Concepts of sustainability
Meaning
1. Capable of being sustained (i.e., of economic development, energy sources, etc.);
2. Capable of being maintained at a steady level without exhausting natural resources or causing severe ecological damage (i.e., sustainable development).
Dimensions of sustainability
Economic: Productivity, Business activity, Employment, etc.
Environmental: Natural resources, High-energy consumption, Solid waste generation, Global greenhouse emissions, Air and water pollution, etc.
Social: Social equity, Freedom, Community livability, Safety, Public health, etc.
Key areas related to sustainability
Species and Ecosystems (photosynthesis/climate change)
plants absorb CO2 and convert it into oxygen in a process known as photosynthesis. This activity should maintain an ecosystem balance, but the removal of plants and trees or the extinction of species puts the ecosystem into imbalance.
Climate change can occur as a result of internal variability within the climate system and external variability (natural or anthropogenic).
Potential risks related to climate change
Environment (e.g., loss of biodiversity, natural disasters)
Economic (e.g., loss of raw material and business)
Society (e.g., global conflicts and public health)
Energy (types/purposes/challenges)
Conventional energy sources ：fossil fuels etc
Non-Renewable Energies: petroleum, natural gas, coal, nuclear, etc.
Renewable Energies: biomass, hydropower, wind, solar, geothermal, etc.
Each source has its own economic, health and environmental costs, benefits and risk factors that interact strongly with other governmental and global priorities.
Challenges
Environmental Pollution/Impact: The first sustainability challenge to be addressed was environmental pollution, long noticed in industrial regions but often ignored.
Limited Energy Resources: The earth and its fossil resources are finite, a simple fact with the obvious implication that we cannot continue using fossil fuels indefinitely.
Uneven Geographical Distribution of Energy: The distribution of crude oil reserves, with the Middle East having far more oil than any other region and Europe and Asia.
CO2 Emissions and Climate Change: The final and most recent concern is carbon dioxide emissions and climate change.
Purposes
To power various operations processes such as storage (or ‘Stop’) and production and transportation of goods (or ‘Go’) for use and consumption.
Energy that is embedded in physical products, or via their material content such as oil used in consumer products. → These purposes also affect service provision. e.g. energy for refrigerator, cooling
Industry (industrial development/processes)
This process involves shifting resources from low- to high-productivity sectors to be successful in accelerating economic growth
Industry extracts materials from the natural resource base, with financial and human resources, develops products for market.
However, coupled with this activity is the production and distribution of pollution into the human environment.
Food (food surplus & wastage)
food are wasted by households, retailers and food services; irrigation water used globally to grow food
Food Wastage could be Reduced in Supply Chains:
Package (e.g., size and right material)
Suitable Distribution
New Technologies for Transportation
Customer Education
Population & urban growth
Logistical and supply chain challenges in urbanized environments and for an increasing population include traffic congestion, fulfilling needs through provision of goods to markets, demanding a share of finite resources such as fossil fuels and metals for vehicles and warehouses, and adding to pollution from all these sources.
Water
climate change presents important challenges for local and global water resource management e.g. rainfall
Sustainability and Corporate Social Responsibility (CSR)
Different types of corporate social responsibilities
Economic responsibility is the foundation on which all other responsibilities rest. Economic responsibility means corporations need to be profitable.
Legal responsibility is the second hierarchy of responsibility. Corporations need to obey the law because it is society's codification of right and wrong.
Ethical responsibility is the third hierarchy of responsibility. It is about obligation to do what is right and fair and to avoid harm.
Philanthropic responsibility is the highest hierarchy because it is about being a good corporate citizen
The linkage between CSR and sustainability
Both sustainability and CSR consider the fulfillment of environmental and social responsibilities while pursuing economic benefits.
Sustainability is much better developed in environmental terms; by contrast, CSR emphasizes the implementation of social responsibility from the perspectives of stakeholders.
Lecture 3
Impact of freight transport
Externalities
A cost or benefit caused by an economic actor that is not suffered or enjoyed by that same actor.
Noise
The exposure to noise negatively impacts citizens’ health and the social costs
Accident
子主题
Workers in the transportation sector
Transport modes
Five modes of freight transport
Factors to consider when choosing the transport mode
Operational factors
The availability and quality of infrastructure, vehicles and logistics service providers
Local law and regulations
Price
Local climate
Delivery location
Cost and service requirements
Customer requirements towards cost and service impact the selection of transport mode.
Larger order sizes and longer order cycles make the use of less flexible transport modes worth consideration.
Product characteristics
Value density of products
Weight density of products
Perishable products
Hazardous products
Consignment factors
Whether a consignment can actually fill the size of a standardized unit of transportation has a significant impact on the price of freight transport. (utilization)
Strategies to reduce the environmental impact of freight transport
Change of transport mode
The move to alternative transport modes is subject to access to them
multi-modal solutions:the use of more than one transport mode through the trip of a consignment
Reduction of freight transport
emissions from freight transport could be minimized by sourcing locally
Nearshoring locates manufacturing in low-wage countries near or next to the place of consumption. The main advantages of this concept are the reduction of lead times and uncertainties in the supply chain
Reduction of emissions from current mode
Alternative fuels
biofuels--increase land using & harm biodiversity
electricity-- the way to generate it may be costful
Liquefied natural gas (LNG) --a fossil fuel, burns with lower emissions than most oil-based products
Operational options to reduce emissions
slow streaming: to run them at their engines' optimal level
backhauling: reduction of empty running in transport fleets and the increase in the utilization of vehicles
Information strategy
Transportation information can be communicated to the operating vehicle through telematic systems
The use of telematics systems can consider and avoid motorway congestion and traffic accidents, save miles, increase backhauling and reduce fuel consumption
Telematic systems only cover the monitoring side of driver behaviour. Positive environmental effects can only be achieved if drivers are trained in fuel saving.
Infrastructure
The growth in transport puts increasing demand on existing infrastructure.
Insufficient capacity in the infrastructure automatically leads to congestion
Wider aspects of sustainability in freight transport
(Lecture 3, p.6,7,8,9)
Lecture 4
Environmental impact
Air pollution
Noise pollution
Impact on wild life
e.g. light pollution
Land consumption
The roles and functions
The two functions/roles of warehousing
Cross-docking: when goods are received, processed and dispatched without actually being stored.
increased speed;
save costs;
used for goods that need to be moved rapidly.
Fulfilment centre: Orders are picked either by workers or by automated systems, and items are put together in orders, packed and sent out to the customer.
The reduction of returns will reduce unnecessary extra journeys and handling
sometimes high return rate
Consolidation centres bundle smaller deliveries into larger shipments
export-oriented places
function of receiving goods, storing them and dispatching them at a later point
Warehouse location
centre of gravity
Handling equipment
The operational processes in a warehouse are supported by the use of handling equipment.
Impact assessment
Life Cycle Assessment
considers inputs and outputs from raw material extraction, manufacturing, construction, use, and disposal
The two types of carbon emissions
Embodied carbon
the greenhouse gas emissions arising from the manufacturing, transportation, installation, maintenance, and disposal of building materials.
Reduction of environmental impact
Ways to reduce both types of emissions (p.33-37)
In relatively densely populated areas, the upgrading of already established sites avoids the addition of embodied carbon from construction material that would be used for building a new warehouse.
Calculate embodied carbon throughout the initial design and engineering stages and monitor it throughout（careful consideration）
Operational carbon
the CO2 emitted during the ongoing operation of the building
Reduction of Environmental Impact
Temperature control: control electricity that is produced to support refrigeration units and heating systems
Arranging for light only in the areas where it is needed
use of new energy-efficient lights, like LEDs or fluorescent light
A shift to lower-emission fuels and electric forklifts (叉车)
on wider operational issues: less operation hour etc
Reduction of environmental impact
For the erection of a short-term warehouse, operational emissions can almost be neglected, and more emphasis needs to be placed on avoiding CO2 emissions in the construction operations and material
For long-term use of a warehouse, operational savings become more worthwhile even if they cause emissions in the construction phase
Social sustainability
Issues of health and safety need to be considered in the warehouse and workplace design. With the demographic change to older societies in many developed countries, ergonomic workplace design and well-being are gaining more importance.
The use of handling equipment and supportive technological applications needs to be considered differently in light of an ageing workforce.
the overall number of workers is shrinking, making it more important to keep staff and to provide an attractive workplace.
Risks and vulnerability
Natural and man-made disasters
Lecture 5
Product design for environmental and sustainable logistics
design for environment (DfE) or eco-design
guided by the principle of sustainable development
Circular economy: emphasizes restoration (technical) and regeneration (biological) by design; it aims to keep products, components and materials at their highest utilization and value at all times
Selection of materials
An effective and integrated information system helps facilitate the application and compliance of the material list so that the companies can design out hazardous and environmentally damaging substances
attempts to develop an integrated environmental management system (EMS) within its factories and subsidiaries as well as its supply chains
Cleaner production 不用背但是要了解)
The definition of cleaner production
the continuous application of an integrated preventive environmental strategy applied to processes, products, and services to increase eco-efficiency and reduce risks to humans and the environment
The objective of cleaner production
Improve the efficient use of resources and prevent undesirable pollution;
optimize the reuse and recycling of hazardous and non-hazardous materials
Some related concepts
Eco-efficiency: Producing more goods and services with less energy and fewer natural resources.
Waste minimization: The use of a waste-prevention approach focusing on on-site reduction of waste at source by changes in the input of raw materials, technology, operating practices and product design, and off-site recycling by direct reuse after reclamation.
Zero waste: It means no waste is sent to the landfill. → the redesign of product/resource lifecycles so that their production processes produce no waste OR new techniques are used to transform all waste into recycled materials, energy or something useful.
Pollution prevention: It is about preventing or reducing waste where it originates, at source. This also includes conservation of natural resources through increased efficiency in the use of raw materials, energy, water and land.
Green productivity: It is a strategy for enhancing productivity and environmental performance in order to improve overall socio-economic development.
Industrial symbiosis: It is a form of eco-industrial development which applies the concept of industrial ecology to allow by-product resources (e.g., waste, heat and water) produced by one industry to be used by other industries. It promotes the sharing of information, services, utility and by-products
General principles
Reduce the consumption of raw materials and energy used in the production of one unit of product;
Increase productivity by ensuring a more efficient use of raw materials, energy and water;
Promote better environmental performance through reduction at source of waste and emissions;
Reduce the environmental impact of products throughout their lifecycle by the design of environmentally friendly but cost-effective products;
Reduce at source the quantity and toxicity of all emissions and wastes generated and released;
Eliminate as far as possible the use of toxic and dangerous materials.
How to promote cleaner production
minimize the harmful impact of crop protection practices; minimize the harmful impact of crop growth stimulating practices; use water efficiently and care for the long-term availability of water; care about the health of the soil; reuse and recycle packaging materials; promote decent work and fair labour practices; …..
The difference between cleaner production and end-of-pipe technologies
end-of-pipe: not a thorough treatment, but the transfer of pollutants; not involve the effective use of resources and cannot stop the waste of natural resources, but cleaner production can
Packaging for the environment
Packaging materials
The packaging of goods is typically made of materials such as glass, plastic, paper, cardboard, metal and wood.
Functions and roles of packaging (basic and sustainable functions)
It protects goods, allows goods to be contained and transported in a standard unit of loading (e.g. cartons, pallets and containers), and it also allows marketers to provide essential information about the goods to customers.
Using innovative technology and appropriate materials, packaging also helps to conserve resources, reduce carbon emissions and make a supply chain more cost efficient
Plastic debate
the production of every tonne of paper bags consumes four times more energy and more air and waterborne pollution than the production of plastic bags, and furthermore, the recycling of paper consumes 85 times more energy than the recycling of plastic bags [纸比塑料危害大]
Key principles
Use minimum packaging volume and weight as long as it meets minimum adequate amount to maintain the necessary levels of safety and hygiene acceptable for the packaged product and for the consumer;
Packaging shall be designed, produced and commercialized for reuse, recovery, recycling and to minimize its impact on the environment when being disposed of;
Packaging shall be produced so that the presence of noxious and other hazardous substances as constitute the packaging material be minimized when they are being incinerated or landfilled;
Packaging designed for the energy recovery option shall have a minimum inferior calorific value to allow optimization of energy recovery;
Packaging designed for composting shall be biodegradable so that it should not hinder the separation collection and the composting process;
Biodegradable packaging shall be capable of undergoing physical, chemical, thermal or biological decomposition so that the finished compost ultimately decomposes into carbon dioxide, biomass and water.
Sustainable consumption （42-44）
Definition
minimizing the use of natural resources and toxic materials as well as emissions of waste and pollutants over the lifecycle of the service or product
Approaches to promote sustainable consumption
Mandatory government actions by using: Energy efficiency standards and labels; Taxes and charges; Subsidies and incentives.
Manufacturers promote R&D to develop new products that consume less resources
Produce durable products to prolong their lives and avoid wastage
Regulatory frameworks (52-54)
Voluntary Regulations
PEF&OEF
measure the lifecycle environmental performance of products and organizations
evaluate environmental footprints
Compulsory regulations
Eco-design directive
aking into account the environmental impacts of a product right at the early stage of design
Restriction of the use of certain hazardous substances (RoHS)
an EU directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment. (encourage innovation of less-cost products)
Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)
regulation on chemicals and their safe use
improve the protection of human health and the environment, enhance the innovation and competitiveness of the EU chemicals industry
Regulations on packaging and packaging waste
packaging volume and weight must be the minimum amount needed
packaging must be manufactured so as to permit reuse or recovery
noxious or hazardous substances in packaging must be minimized in emissions, ash or leachate from incineration or landfill.
Lecture 6
The role of procurement in the supply chain
Sustainable procurement (11, MCQ)
Definition
aim of sustainable procurement practices is the inclusion of sustainability issues in the procurement strategy and procurement decisions.
Examples of social issues:
child labor/monkey labor/modern slavery(children and women)
Consumers' reactions to the violation of social sustainability
Avoidance of particular brands and retailers;
Supporting ‘good’ products like Fairtrade-labelled products;
Entities that can drive businesses to become more sustainable
Customers/consumers
Public procurement: the purchase by governments and state-owned enterprises of goods, services and works (但是很大都花在建楼上了)
legislations
National governments e.g.the trade restrictions against Russia and Russian individuals
International bodies like the United Nations, e.g. trade sanctions against North Korea
Firms' difficulties to promote sustainability across supply chains
Challenges in coordinating multiple factors to facilitate supplier selection and management
Challenges in monitoring the supply chain
Drivers and barriers for sustainable procurement （22&25, 背）
Drivers for sustainable procurement
External Drivers: Pressure from the general public, governmental regulation and legislation, investors, and the desire for a competitive advantage by gaining a positive and sustainable image
Internal Drivers: The personal commitment of managers and investors, and the wish to reduce costs by a reduction of waste, pollution, brand damage or litigation costs.
Four levels of internal adaptation of environmental and socially responsible practices
Barriers for sustainable procurement
High costs of implementation Limited knowledge regarding sustainable procurement A lack of legitimacy (e.g., regulations, the acceptance from other supply chain members and customers, etc.)
Procurement frameworks
Kraljic Matrix
Suppliers of strategic items are managed in a partnership with a lot of collaboration and innovation between the supply chain partners. The supply of bottleneck items are mainly about volume insurance and control. The supply of leverage items is focused on making the most use of purchasing power and short-term and spot buying. The supply of non-critical items is aiming at efficient ordering processes and standardization.
Comparing purchasing options
cost-benefit analysis can be used to investigate and compare solutions on the way towards a specific target is a systematic process that businesses use to analyze which decisions to make and which to forgo. The cost-benefit analyst sums the potential rewards expected from a situation or action and then subtracts the total costs associated with taking that action. (includes intangible)
Lecture 7
Circular Economy and Regulations
‘Throw-away’ society
material things that could still be used further or reused are only used briefly out of abundance and convenience, quickly disposed of and often bought again.
Difference between linear and circular economy
A 'linear economy' model relies on simply the ‘taking, making and disposing’ of natural materials. Waste is generated by a long line of supply chain members.
A 'circular economy' aims to regenerate biological nutrients (biochemical feedstock and energy) and restore technical nutrients (products, parts, materials). Resource efficiency is the key. (waste and resource management)
Two cycles of circular economy
promotes an economy that is restorative and regenerative by design
Technical cycle: the management of finite resources → achieved through reuse, repair and remanufacturing;
Biological cycle: flows of renewable materials → regenerate biological nutrients
Circular Economy Approach （10）
Reduce: use of fewer natural resources (fewer materials and energy).
Products can be designed to use alternative materials that are more resource efficient, or to use less packaging material.
Consumers: 使用更少的生态资源制造产品来减少顾客浪费
Reuse involves the use of a product or some parts of a used product if it can be shared, refurbished, repaired or remanufactured.
Manufacturers: produce reliable products with prolonged lifecycles.
Consumers can be provided with incentive and information about why such products are more beneficial.
Recycle helps to separate waste into materials that may be reprocessed and incorporated into new products. → a product recovery option
helps to cut the use of natural or virgin resources
Recovery means the process of creating energy in the form of electricity or heat from the incineration of waste such as organic materials.
also called waste-to-energy or energy-from-waste
is an option when the recovered materials cannot be reused or recycled, and they may contain bioenergy
Disposal or landfill
strict regulations
Some materials will not be easily degradable and some of them contain toxic substances(有些材料不易降解，有些含有有毒物质)
Related regulations in different countries and regions
United States : a national solid waste management law called Resource Conservation and Recovery Act (RCRA).
EU: The European Commission (EC): Packaging materials: EU Directive 94/62/EC
Directive 2008/98/EC: By 2020, the preparing for reuse and the recycling of waste materials such as paper, metal, plastic and glass from households and possibly from other origins, shall be increased to a minimum of 50 percent by weight.
biodegradable municipal waste landfill: for reuse and recycling 50 percent of household waste by 2020, and for reuse, recycling and recovery of 70 percent of construction and demolition waste by 2020.
Product Recovery Options
Product recovery options
Repair: return used products to working order
Used products are normally not disassembled. Used products are fixed and some parts may be replaced while some parts can be reused.
The quality of the repaired products is usually lower than the quality of new products
e.g. computers, mobile phones
Refurbishing: to bring used products to a specified quality
It involves disassembly of used products into modules, inspection of the modules and then fixing and/or replacing some modules. (拆开重装)
The quality of refurbished products is often lower than that of new products. e.g. houses
Remanufacturing: bring used products up to quality standards that are as good as those for new product
Used products are often completely disassembled into modules and parts. There will be extensive inspection of modules. Worn-out parts or modules are replaced. Repairable parts are fixed and extensively tested. Approved parts and modules are re-assembled into remanufactured products.
e.g. car parts, machine tools
Cannibalization: recover a limited set of reusable parts from used products or components.
Only a small proportion of the parts of used products are recovered for reuse, remanufacture or repair of other products and components
Involves selective disassembly of used products and inspection of potentially reusable parts. The remaining parts are recycled or disposed of.
Recycling: reuse materials from used products or components
The materials can be used to produce original products and components if their quality is high. Otherwise, the materials can be used to produce other products.
e.g. milk bottles, soft drink bottles
Upcycling: different from recycling; it requires creative reuse
aim is to produce something new and better than the old items.
It is based on a ‘buy low, sell high’ business model.
e.g. recycled materials--> eco-clothing
Main differences between product recovery options
Reverse Logistics
Definition
the process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
The difference between reverse logistics and forward logistics
reverse logistics concerns mainly the reverse direction of a typical supply chain (closed-loop supply chain)
Typical actors in reverse logistics (stakeholders) （44-47）
Retail Companies: they primarily offer reverse logistics services to manage product returns, repairs and warranties.
Manufacturers: they generally do not have stores, so they could own or outsource return centres to third-party logistics service providers, or provide channels for consumers to return used products to.
Governmental Agencies or Local Authorities: they normally offer waste collection and disposal services, generally to households and shops.
Private Waste Management and Product Return Companies: they are third-party logistics service providers specializing in return management and acting on behalf of retail companies, original equipment manufacturers and government agencies
Traders: they are companies that purchase and sell recovered products or recycled materials collected by government agencies, retail companies, waste management companies and scavengers.
Reprocessors: they are companies or individuals who disassemble, repair, remanufacture, refurbish, recycle and reprocess products and materials from the ‘disposal’ market and transform them into (re-) usable forms.
Customers: they form the ‘reuse’ markets: the consumers, commercial companies and non-profit organizations. Charities are also major customer of recovered products.
Lecture 8
Concepts of Corporate Strategy
Definition
The direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resources within a changing environment, to meet the needs of markets and fulfil stakeholder expectations
The three levels of corporate strategies
Strategic plan: Overall corporate mission objectives (> 5 yrs)
Tactical plan: Detailed quarterly revenues and expenses (in one to five years)
Operating or annual plan: Revenues, expenses, associated cash flows and activities by month for a one-year period
The functions of corporate strategy
allows companies to perform:
An analysis of its current situation;
The implementation of its strategic choices;
Its control and feedback mechanisms to ensure its strategy is working successfully.
How to develop a corporate plan (SWOT, PESTLE)
The firm considering its internal Strengths and Weaknesses and its external Opportunities and Threats (i.e., SWOT analysis)
External Analysis (PESTLE)
Theoretical Motivations Underlying Corporate and Sustainable Strategy
TCE
Bounded rationality suggests that managers, while willing to do so, cannot evaluate accurately all possible decision alternatives to make a rational decision due to physical or other constraints.
Opportunism considers that managers will exploit a situation to their own advantage.
Asset specificity arises when one manager in an exchange invests resources specific to that exchange which have little or no value in an alternative use.
Information assumption considers that many business exchanges are characterized by incomplete, imperfect or asymmetrical information.
RBV （SAQ，13背）
A firm’s resources and its capability to convert these resources to provide sustainable competitive advantage are the keys to superior performance
Resources: the physical, financial, individual and organizational capital.
Triple bottom line
Planet or environmental performance emphasizes the benefit to the nature as much as possible or at least do no harm and curtail environmental impact.（Adjustments like using ethically sourced materials）
People or social performance pertains to fair and beneficial business practices toward labor and the community and region in which a firm conducts its business. (customers, employees, and community members，e.g.ensuring fair hiring practices)
Profit or economic performance is the bottom line shared by all commerce. (Maximize profit) (that a firm’s responsibility should be to all stakeholders)
Sustainable supply chain management
the strategic, transparent integration and achievement of an organization’s social, environmental and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term economic performance of the individual company and its supply chains.
Sustainable Logistics and Supply Chain Performance Measurement
The functions of performance measurement (PM)
Traceability;
Identify areas for improvement;
Benchmarking;
Help make the right decisions
Traditional logistics and supply chain performance measurement
cost, time and accuracy
Sustainable supply chain performance measures (SSCPM)
focused on the measurements of greenhouse gas (GHG) emissions.
indicator* （25）
four key categories
emissions to air; emissions to water; emissions to land; and natural resource use
Environmental Management Systems
primary processes
Core processes, their outputs, and the identification of significant environmental aspects and impacts;
Key supporting processes, such as those for maintaining awareness of legal requirements, ensuring competency of employees, providing infrastructure, communicating EMS information, and monitoring and evaluating environmental performance;
Management system supporting processes, such as document control, record control, and internal auditing
classifications
Management Performance Indicators (MPI): firms’ efforts in influencing its environmental performance (e.g., environmental costs or budget)
Operational Performance Indicators (OPI): organizations’ operational environmental performance (e.g., raw materials used per unit of product )
Environmental Condition Indicators (ECI): local, regional, national or global conditions of the environment (e.g., frequency of photochemical smog events)
EMAS is the second most popular EMS standard in Europe
The planning stage is to set the targets and objectives and to detail how these will be attained through assigning individual responsibility.
Implementing or doing the system means providing the necessary resources to accomplish the objectives which have been set.
Checking and correcting areas require attention include monitoring and measurement to determine how well the organization is achieving stated environmental goals.
Finally, there needs to be a periodic review of the actions to ensure progress is as expected; the results from these reviews
Assessing Sustainable Choices and Initiatives
The assessment regarding economic viability, technological feasibility and environmental sustainability is needed.
Lecture 10
Risk and resiliency in logistics and supply chains
The definitions of risk and supply chain disruption
Risk means potential danger, probability of occurrence, and variability of outcomes.
Supply chain disruption is a major risk facing logistics and supply chain functions. It is defined as an unforeseen event that interferes with the normal flow of goods and/or materials within a supply chain
The harmful consequences of supply chain disruptions
loss of productivity remains as the top reported consequence of supply chain disruptions.
Increased cost of working and loss of revenue are also two other commonly reported consequences.
Two sources of risk in logistics and supply chains
Atomic (or unsystematic) sources of risk affect a limited part of a supply chain. These will not disrupt the operations of the entire supply chain. e.g. breakdown of a production
Holistic (or systematic) sources of risk involve widespread disruption and multiple members of a supply chain. These are systemic disruptions that could not be eliminated easily by a single party
Types of logistics and supply chain risk
Demand risk: Variation in demand (fashion, seasonality, new product launch), demand distortion (or bullwhip effect);
Supply risk: Breakdown at supply sides, design changes, quality issues, price fluctuation, supply shortage, shipping schedules and natural disaster;
Operational risk: Breakdown of operations, poor production planning, natural disaster, changes in technology, process variability, industry action (strike), accident, IT and telecommunication outage, power shortage, etc.;
Competitive risk: Innovation form competitor, competitor’s aggressive moves (discounts, special offers, price war), competitor’s influence on customers
Security risk: Infrastructure security, information security, terrorism, vandalism, crime, sabotage e.g. cyber breach/attack 黑客入侵
Macro-economic risk: Economic downturn, governmental financial crisis, problems at the capital market, changes in wage rates, interest rates and costs;
Policy risk: Changes in policies by national and international governmental bodies (treaty currency, quota restriction, taxation, sanctions, advertising restrictions, trading licenses, environmental responsibility.
Reputational risk: Public distrust, negative customer reactions, boycott and bad brand reputation created by serious misconduct or breach of trust with customers;
Corporate fraud and criminal risk: Serious fraud, bribery, corporate crime, corporate shake-up, accounting fraud, unfair/illegal trading practices, misuse of corporate finance;
Sustainability/resource risk: Shortage or depletion of rare national resources (water, metal,, trees, fish stock), manmade and national disaster affecting the supply of national resources, national resources from politically unstable regions.
Processes to mitigate logistics and supply chain risks （22）
Step 1: Identify risk： There are different internet-based software applications that provide real-time views of threat information, help identify events and situations that may threaten a company, and help monitor threat.
risk diversification
Operational, supply and demand risks that occur quite regularly
Macro-economic, policy, corporate governance-related and external risks
Risks brought by catastrophic events such as war or terror attacks, and natural disasters such as earthquake, flooding and storms.
bias may occur
confirmation bias: 指我们更倾向于寻找、解释和记住支持自己观点的信息，而忽略那些不支持自己观点的信息。
selective bias: 用于分析的数据使用了不能保证随机化得方法获得，因此从样本中分析的结果不能代表总体特征，比如在大学中开展社会调查，实际上是condition on受访者上过大学
the tendency not to report risk：这通常是由公司文化造成的，这种文化不鼓励暴露风险或问题，并倾向于惩罚犯错误的个人。
Step 2: Assess and evaluate risk：assign the likelihood and the impact of a particular risk based on past experience, historical data, case studies, external experts and any available forecast data
Step 3: Choose appropriate risk management strategies：The choice of appropriate risk management strategies depends on the type of risks, likelihood of occurrence and extent of potential damage
Accept the risks and losses and do nothing; (low-likelihood & low-impact)
Buy insurance to offset potential losses; (low-likelihood & high-impact)
Invest in measures that can reduce losses, e.g. a flood defense system or a dual supply source that can be activated after the supply is disrupted; (low-likelihood & high-impact)
Prepare for recovery plans that take into account the breakdowns of various infrastructures; and (low-likelihood & high-impact)
Invest in measures that can reduce exposure to risks, e.g. change to a new and safer supplier or operating location. (high-likelihood & high-impact: a combination of these five strategies)
Step 4: Implement supply chain risk management strategies：do something to reduce exposure to logistics and supply chain risks and losses
Phase 1: Plan, prepare and implement risk mitigation before a risk happens.
Phase 2: Responding to an emerging risk when it occurs, mainly to reduce losses and to temporarily recover the ability to resume normal operations.
Phase 3: Longer-term recovery and reconstruction of the supply chains and preventing the same disaster from happening again, if possible.
Step 5: Mitigate risk and further identify risk：mitigate and monitor risks
Ethical framework and codes of conduct
The definition of ethics
Ethics is generally defined as the ‘inquiry into theories of what is good and evil and into what is right and wrong, and the inquiry into what we ought and ought not to do’
Two groups of ethical theories （38）
Consequential theories: urges managers to examine the consequences of their decisions and actions (consequences)
The consequential theories (Egoism) argue that an act is ethical when it promotes the individual’s best long-term interest
The consequential theories (utilitarianism) suggest that we should always act so as to produce the greatest ratio of good to evil for everyone
Non-consequential theories: do not consider the consequences of the decision/action an individual makes (rules, social norms and social obligations)
The single-rule non-consequential theories (golden rule) can be represented using a commonly accepted axiom – do unto others as you would have them do unto you. The main guiding principle is to treat others the way we would want to be treated.
The single-rule non-consequential theories suggest that only when we act from duty do our actions have moral worth; we should act in such a way that we could wish the maxim or principle of our action to become a universal law.
Rawls' principle of justice suggests that each person participating in a practice or affected by it should have an equal right to the greatest amount of liberty that is compatible with a like liberty for all.
Ethical relativism argues that moral principles cannot be valid for everybody, and people ought to follow the convention of their own group.
Other key ethical theories
Multiple-rule non-consequential theories argue that it is necessary to introduce consequences into ethical decision making but consequences alone do not make an act right; there are duties and obligations that bind us morally. Managers should be aware of the most obligatory duties (e.g. not lying, gratitude, justice).
Garrett's principle of proportionality suggests that any moral decision involves three elements: what we intend, how we carry out the intention, and what happens (intentions, means, and ends).
The definition of morality
morality is a term used to cover those practices and activities that are considered importantly right and wrong
Three kinds of business managers from a morality angle （43）
Immoral managers are those whose decisions, actions and behaviours are actively opposing what is deemed right or ethical.
Amoral managers are neither moral nor immoral; they are simply insensitive to the moral obligations of the decisions they make. They lack ethical perception or awareness and often choose to meet only minimum legal requirements.
Moral managers are those who adhere to high levels of ethical norms and aim to be profitable while meeting legal requirements and ethical norms
Codes of conduct (CODs)/ethics (COEs)
Codes of conduct comprise the business principles a corporation expects its employees (and suppliers) to follow.
Labour practices – employment (no forced labour, terms for termination),child labour, living wages, working hours, working conditions, health and safety, medical care, discrimination, human rights, gender equality, training, etc
Corporate governance –mutual respect, honesty, integrity, political contribution, charitable donation, legal compliance, bribery, corruption, fair competition, money laundering, working with governments and suppliers, conflict of interest, executive pay and bonuses, management of shareholder assets, confidentiality, share market trading rules, environment and safety, reputation, etc.
Supplier practices – supplier responsibilities including contractual, labour, health and safety, environmental, society, legal compliance, transparency, reporting, confidentiality, etc.
General moral and ethics – honesty, integrity, professionalism, mutual respect, collegiality, fairness, justice, legal compliance, etc.
Global and industrial initiatives
The Global Compact provides businesses with the challenge to adopt and apply 10 universal principles in the areas of human rights, labour and the environment and to integrate these principles into daily practices and management systems.
GRI provides all companies and organizations with a comprehensive sustainability reporting framework that is widely used around the world.
International non-governmental organizations (INGOs) are also contributing to the development of codes of conducts for different industrial sectors, in addition to balancing the power between corporations and non-governmental or public interests, INGOs work in partnership with companies to create initiatives
Lecture 11
Sustainability labels and certifications
优缺点
Pros:
The burden of monitoring and auditing the supplier is therefore shifted to an external auditor, usually paid for by the supplier, who is charged by the awarding organization for the use of the awarded label.
Certifications and labels are also a way to avoid the pressure from campaigners as they provide evidence that the company fulfils the set standards.
Cons:
These standards are determined by the awarding organization and often only focus on a particular aspect rather than the overall sustainability of the product or service.
..
Fair trade: aims to help producers from developing countries out of poverty,that farmers are supplying in long-term contracts and are paid a stable and 'fair' price
Maritime Stewardship Council: focuses on setting standards for the sustainability of wild-captured fishing(只是setting standards而已)
Rainforest Alliance: does not focus on a single product category but on the protection of the rainforest in the production of a product (和MSC一样不参与auditing)
Carbon Trust：to accelerate the move to a global low-carbon economy through work for and with business and public sector. It engaged in advising decision makers; support the development of new technology and the assessment of carbon footprints; measures and certifies the carbon footprint of organizations, products and supply chains. (两个labels, 一个说做得好一个说只是在合作)
Leadership in Energy and Environmental Design (LEED): sets standards towards the sustainability of buildings. standards vary in scope and requirements depending on the type and purpose of the building and differentiate between new constructions, existing buildings and refurbishments. (做得好的会发奖)
ISO 14001：assess the environmental performance of their suppliers，14001 sets standards for the establishment and improvement of environmental management and aims to engage organizations in a continuous improvement process of their environmental management（也只set standards）
Lifecycle assessment （..,26）
A typical product life cycle contains 5 phases
Raw Material Extraction
Manufacturing & Processing
Transportation
Usage & Retail
Waste Disposal
Different system boundaries
Cradle-to-grave: is the full LCA from resource extraction ('cradle') to use phase and disposal phase ('grave'), including the entire life cycle of the product.
Cradle-to-gate: is an assessment of a partial product life cycle from resource extraction ('cradle') to the factory gate (i.e., before it is transported to the consumer).
Cradle-to-cradle: is the closed-loop recycling, where the end-of-life product can be exchanged to be reusable for a new-round use.
Gate-to-gate: is sometimes used in product life cycles with many value-adding processes in the middle.
Different levels of detail and sophistication
The most accurate investigation: detailed LCA, where all parts are evaluated in detail individually.
More simplified methods: conceptual LCA and simplified or streamlined LCA.
The conceptual LCA is positioned at the opposite extreme to the detailed assessment.
The streamlined LCA allows a comprehensive assessment, but uses generic data and does not measure each aspect individually. Insignificant emission contributors are identified and then do not need to be assessed in the analysis
4 steps of conducting lifecycle assessment (26)
Definition of Goal and Scope: scope of the assessment needs to be defined: what function, system or product is to be assessed etc.
Functional unit: is a unit of measurement upon which you can compare things that serve the same function.
System boundary:系统与环境的分界面
Inventory Analysis: Life Cycle Inventory Analysis (LCI) looks at the environmental inputs and outputs of a product, LCI is the data collection phase of a Life Cycle Assessment; takes the most work
Primary data: 一手数据，Quantitative and qualitative data on a company, process and product levels
Secondary data: 二手数据，industry averages; aggregated data gathered by branch organizations etc.
The tool for modeling the LCI: Inventory Flow Models
Impact Assessment: evaluates the inventory of data that has been collected in order to make it meaningful in the context of potential damage to the environment or human health; all inventory data is put into impact categories and then processed within each category
some impact categories measured in "equivalents" because several emissions contribute to the same impact category.
Interpretation: the results from inventory analysis and impact assessment are connected to gain knowledge about the environmental impact of the assessed product and to make recommendations on improvements
横线是CSQ
2，5，6，7，8 SAQ