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Questions and Answers
What is the primary purpose of conducting a Materiality Analysis?
What is the first step organizations should take to implement sustainable practices in their supply chain?
What should organizations consider when categorizing direct suppliers and sub-suppliers?
Which of the following is NOT mentioned as a necessary consideration when mapping the supply chain?
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What is a key characteristic of a Sustainable Supply Chain (SSC)?
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What does the term 'Great Unbundlings' refer to?
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How has globalization impacted the supply chain?
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What was a significant factor leading to the first unbundling in supply chains?
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What is a significant challenge that drones face in the delivery market?
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Why are drones considered a viable option for transportation in certain regions?
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What type of delivery challenge are drones particularly aimed at overcoming?
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Which aspect is NOT included in the sustainability goals related to storage facilities?
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What does BREEAM evaluate in a warehousing site?
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What is the main goal of reverse logistics?
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Which of the following is a key benefit of reverse logistics?
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Study Notes
Sustainable Supply-Chain Strategies
- The text discusses the importance of sustainable supply chains (SSCs) and how they impact the environment and communities.
- The globalized supply chain has increased emissions and environmental damage due to the "Great Unbundlings," which include the relocation of manufacturing and services.
- The text outlines steps to implement SSC practices:
- Mapping the Supply Chain: Identifying all steps involved in the chain, from raw materials to finished goods.
- Materiality Analysis: Determining the most significant impacts on the environment and stakeholders.
- Gap Analysis & Plan of Action: Assessing existing practices and prioritizing actions to improve sustainability.
- Clarifying Supplier Requirements: Establishing a Code of Conduct to ensure suppliers adhere to ESG standards.
- Reporting on Supply Chain Operations: Communicating SSC practices and performance to stakeholders.
Mapping Your Supply Chain
- The text emphasizes the importance of understanding the entire supply chain beyond immediate suppliers.
- It includes visualizing the chain through graphics.
Materiality Analysis
- It's crucial to assess which areas have the greatest impacts on the environment and stakeholders.
- Example: Purchase of raw materials can contribute to water scarcity, chemical pollution, and labor issues.
Gap Analysis & Plan of Action
- This analysis helps identify the areas where improvement is needed.
- It involves comparing current and desired performance to determine the best course of action.
Clarifying Supplier Requirements with a Code of Conduct
- It outlines the company's expectations regarding ESG standards for suppliers.
- The Code of Conduct should be legally binding and address:
- Greenhouse gas emissions
- Waste management
- Fair labor practices
- Transparency
- Compliance with international regulations
Reporting on Your Supply Chain Operations
- Transparency is crucial in demonstrating commitment to SSC.
- Businesses can leverage metrics like the Logistics Performance Index (LPI) to communicate their efforts.
Logistics Performance Index (LPI)
- Developed by the World Bank, it measures a country's logistical efficiency based on six dimensions:
- Clearance processes
- Infrastructure
- Pricing
- Logistics services quality
- Tracking and tracing
- Timeliness
Freight Transport Options
- Sea: Relatively slow but with low emissions compared to other modes. Consumes bunker fuel, a highly polluting source. Requires double handling at ports.
- Road: Widely used due to its accessibility and flexibility. Good for shorter distances and can easily accommodate different needs.
- Rail: Offers slower inland transport but is less prone to disruptions compared to road. Often used for bulk loads.
CO2e Emissions by Transport Mode
- Sea transport has the lowest CO2 emissions per ton-kilometer.
- Road transport generates the highest emissions.
Drones in Delivery
- Drones are gaining traction in the delivery sector, particularly in reaching remote and challenging locations.
- Drones have a notable advantage in last-mile delivery due to their lightweight design, speed, and minimal emissions.
- Amazon is currently exploring the use of drones for delivery services.
- Traditional methods remain dominant in final-destination deliveries despite the potential of drones.
- Noise pollution and regulatory hurdles in airspace stand as obstacles to drone delivery expansion.
Sustainable Supply Chain Storage
- Sustainable supply chains prioritize sustainable storage facilities alongside efficient transportation.
- Storage facility sustainability encompasses various aspects, including:
- Energy and water usage
- Employee safety and well-being
- Pollution, waste, and material management
- Transportation practices
- BREEAM (Building Research Establishment Environmental Assessment Methodology) is a widely adopted standard for assessing the sustainability of warehouses.
- BREEAM uses weighted criteria to evaluate the sustainability performance of warehousing facilities.
- The BREEAM criteria provide a roadmap for companies to ensure their storage centers meet green building standards.
Reverse Logistics
- Reverse logistics focuses on managing the flow of products during the end-of-life stage, aiming to divert them from landfills.
- It involves returning products to manufacturers for various purposes:
- Repair
- Refurbishment
- Remanufacturing
- Recycling
- The goal is to make efficient use of materials and reduce waste.
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Description
This quiz explores the concepts of sustainable supply chains (SSCs) and their significance in today's globalized economy. You'll learn about the steps necessary for implementing SSC practices, including mapping the supply chain and conducting materiality and gap analyses. Join us to discover how these strategies can mitigate environmental impacts and enhance community engagement.
