Podcast
Questions and Answers
Which of the following is NOT a component of the Triple-A supply chain, according to Hau Lee's original concept?
Which of the following is NOT a component of the Triple-A supply chain, according to Hau Lee's original concept?
- Automation (correct)
- Adaptability
- Agility
- Alignment
The complexity of global supply chains has increased visibility, making them easier to manage.
The complexity of global supply chains has increased visibility, making them easier to manage.
False (B)
What is the primary focus of an agile supply chain?
What is the primary focus of an agile supply chain?
Responding quickly to changes in market demand or supply and handling external disruptions.
The apparel industry's contribution to global emissions is more than ______ and shipping combined.
The apparel industry's contribution to global emissions is more than ______ and shipping combined.
Match the following Triple-A supply chain components with their descriptions:
Match the following Triple-A supply chain components with their descriptions:
Which of the following best describes the role of outsourcing in enhancing supply chain adaptability?
Which of the following best describes the role of outsourcing in enhancing supply chain adaptability?
Having contractual relationships with upper-tier suppliers is very common for firms.
Having contractual relationships with upper-tier suppliers is very common for firms.
Why is aligning environmental strategies within a supply chain crucial?
Why is aligning environmental strategies within a supply chain crucial?
The Sustainability Consortium urges companies to prepare their supply chains for potential weather-related disruption risks due to ______.
The Sustainability Consortium urges companies to prepare their supply chains for potential weather-related disruption risks due to ______.
Match the following emission scopes with their descriptions according to carbon emissions reporting:
Match the following emission scopes with their descriptions according to carbon emissions reporting:
In the context of sustainable supply chains, what does agility primarily involve, beyond responding to market demands?
In the context of sustainable supply chains, what does agility primarily involve, beyond responding to market demands?
Carbon legislation provides stable and predictable guidelines for companies to follow.
Carbon legislation provides stable and predictable guidelines for companies to follow.
What is a reverse supply chain concerned with?
What is a reverse supply chain concerned with?
[Blank] regulations place the responsibility for the post-consumer phase of certain goods on producers.
[Blank] regulations place the responsibility for the post-consumer phase of certain goods on producers.
Match the following companies with their sustainable supply chain efforts:
Match the following companies with their sustainable supply chain efforts:
Why must adaptable supply chains do more than simply monitor trends?
Why must adaptable supply chains do more than simply monitor trends?
Haiti Hope was primarily an environmental project aimed at reforestation.
Haiti Hope was primarily an environmental project aimed at reforestation.
Vertical integration allows companies to have greater control over their supply chains. Give an example of a company that pursued this approach.
Vertical integration allows companies to have greater control over their supply chains. Give an example of a company that pursued this approach.
When entities within a supply chain are not ______, siloed decision-making can lead to poor overall performance.
When entities within a supply chain are not ______, siloed decision-making can lead to poor overall performance.
Match the sustainability issues to the supply chain tier they most commonly occur in:
Match the sustainability issues to the supply chain tier they most commonly occur in:
Which of the following is a challenge regarding alignment within supply chains, as mentioned in the text?
Which of the following is a challenge regarding alignment within supply chains, as mentioned in the text?
Patagonia only audits its Tier 1 suppliers to ensure they are meeting its standards.
Patagonia only audits its Tier 1 suppliers to ensure they are meeting its standards.
Transparency is key for an aligned supply chain. According to the text, what does it require?
Transparency is key for an aligned supply chain. According to the text, what does it require?
Companies can gain better control of their supply networks by improving the sustainability practices in their ______.
Companies can gain better control of their supply networks by improving the sustainability practices in their ______.
Match the following companies to examples of innovative practices regarding supply chain sustainability:
Match the following companies to examples of innovative practices regarding supply chain sustainability:
There is a growing sentiment that what specifically isn't a strong enough tool to reveal what is occurring in a supply chain?
There is a growing sentiment that what specifically isn't a strong enough tool to reveal what is occurring in a supply chain?
GreenBlue's Material IQ (MiQ) platform is designed to expose every detail of a product's chemical makeup to downstream buyers.
GreenBlue's Material IQ (MiQ) platform is designed to expose every detail of a product's chemical makeup to downstream buyers.
Give an example of incentives needed to ensure that sustainability practices are adopted in supply chains.
Give an example of incentives needed to ensure that sustainability practices are adopted in supply chains.
As regulations are often ________ they can be unreliable and limited in their ability to drive foundational change within industries.
As regulations are often ________ they can be unreliable and limited in their ability to drive foundational change within industries.
Match the following processes or secondary markets to the correct part of the triple-A supply chain:
Match the following processes or secondary markets to the correct part of the triple-A supply chain:
What action performed by PETA in 2015 had consequences for Patagonia in the same year?
What action performed by PETA in 2015 had consequences for Patagonia in the same year?
Because it puts more pressure on Zara to reinvent itself in the short term, activism surrounding environment safety and similar causes poses few consequences for the company.
Because it puts more pressure on Zara to reinvent itself in the short term, activism surrounding environment safety and similar causes poses few consequences for the company.
Since 2013, what regulation has required companies in the UK to report their carbon emissions?
Since 2013, what regulation has required companies in the UK to report their carbon emissions?
As a first step toward becoming fully circular by 2030, IKEA partnered with logistics start-up ______ to minimize the waste produced in its reverse supply chain.
As a first step toward becoming fully circular by 2030, IKEA partnered with logistics start-up ______ to minimize the waste produced in its reverse supply chain.
Match each company's innovative solution with the correct company:
Match each company's innovative solution with the correct company:
What does the multi-retailer LOOP initiative, which was launched in 2019 by recycler TerraCycle, seek to accomplish?
What does the multi-retailer LOOP initiative, which was launched in 2019 by recycler TerraCycle, seek to accomplish?
It is sufficient for companies to rely solely on audits of first-tier suppliers to monitor supply chain activities.
It is sufficient for companies to rely solely on audits of first-tier suppliers to monitor supply chain activities.
State three actions sustainability incidents in today's global market often lead companies to.
State three actions sustainability incidents in today's global market often lead companies to.
Consumers and companies alike can receive instant insight into whether a product meets fair trade certification requirements or when a printer cartridge requires replacement or recycling by leveraging properly applied _______.
Consumers and companies alike can receive instant insight into whether a product meets fair trade certification requirements or when a printer cartridge requires replacement or recycling by leveraging properly applied _______.
With sustainable practices and transparency in mind, match which effort the following companies took:
With sustainable practices and transparency in mind, match which effort the following companies took:
Flashcards
Triple-A Supply Chains
Triple-A Supply Chains
Supply chains that respond quickly to changes, adjust to market shifts and create incentives for better outcomes.
Agility in Supply Chains
Agility in Supply Chains
Respond quickly to short-term changes in market demand or supply and handle external disruptions smoothly.
Adaptability in Supply Chains
Adaptability in Supply Chains
Adjust supply networks to meet structural shifts in the market.
Alignment in Supply Chains
Alignment in Supply Chains
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Agile Supply Chain
Agile Supply Chain
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Adaptive Supply Chain
Adaptive Supply Chain
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Aligned Supply Chain
Aligned Supply Chain
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Sustainable Agility
Sustainable Agility
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Sustainable Adaptability
Sustainable Adaptability
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Sustainable Alignment
Sustainable Alignment
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Stakeholder Demands
Stakeholder Demands
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Reverse Supply Chain
Reverse Supply Chain
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Extended Producer Responsibility
Extended Producer Responsibility
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Agile and Sustainable Supply Chain
Agile and Sustainable Supply Chain
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Adaptable and Sustainable Supply Chain
Adaptable and Sustainable Supply Chain
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Aligned and Sustainable Supply Chains
Aligned and Sustainable Supply Chains
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Establishing Sustainable Supply Chains
Establishing Sustainable Supply Chains
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Monitoring Supply Chains
Monitoring Supply Chains
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Ensuring Supply Chains
Ensuring Supply Chains
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Ensuring transparency
Ensuring transparency
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Study Notes
- Professor Hau Lee stipulates that the best supply chains involve agility, adaptability, and alignment, and should also be fast and cost-effective
Triple-A Supply Chains
- Triple-A supply chains have been studied in academic and trade publications
- They also influence leader's management approaches
- There is a need to revisit triple-A definitions for a more socially and environmentally conscious world
- Potential enablers of and barriers to sustainable triple-A supply chains warrant discussion
Agility
- Supply chains must respond to market and supply changes and handle external disruptions
- Agile supply chains combine shared, centralized demand and supply data intelligence with efficient, decentralized execution
Adaptability
- Supply networks must adjust to meet market structural shifts
- Adaptive supply chains require flexible network relationships and a change management focus
- Requires routine collection of intelligence on market product needs and continual technological evolution
Alignment
- Incentives must exist for all supply chain partners to achieve better outcomes
- Alignment necessitates roles/responsibilities be clearly defined
- Extended, joint performance measures that adjust risk, costs, and rewards across the supply chain, are critical
Globalization
- Supply chains have become increasingly global, connected, and interdependent
- Greater complexity has reduced visibility and complicated management
Connectivity
- The growing connectivity and interdependence among different stakeholders within supply chains has led to unforeseen environmental and social issues
Fast Fashion & Agility
- Fast fashion models that went against the grain of leading to long lead times, now face scrutiny
- Consumers increasingly demand sustainable clothing options
- Activists and governments pressure fast-fashion companies to reduce carbon footprints, eliminate waste, and to improve sourcing standards
- Fast-fashion models rely on continual assortment turnover and promotion of consumption, amplifying waste issues that already exist
- Short lead times and small production quantities don't necessarily reduce waste
- The industry produces ~20% of global wastewater, expected to increase with discardable clothing production
- The apparel industry contributes more to global emissions than aviation and shipping combined
Adaptability & Outsourcing
- Adaptability involves reacting to unexpected changes in supply and demand and adjusting to long-term market shifts
- Outsourcing can enhance adaptability by securing economies of scale
- Also, changes to sourcing locations and relocation of production can occur more easily
- Outsourcing allowed HP to reduce manufacturing costs and Microsoft to compete with Sony by establishing facilities close to Asia
Sourcing
- Globalization and outsourcing can cause companies to lose control of sourcing
- Multinationals sourcing palm oil face scrutiny after investigations revealed human rights violations and illegal deforestation at plantations
- A single firm like Wilmar that controls 45% of the global palm oil trade, even a large multinational, lacks the power to transform industry relationships and control suppliers, thereby reducing a firm’s capability to adapt its supply chain and promote sustainability
Challenges in Alignment
- Supply chain complexity challenges alignment, and even if upper-tier suppliers are known, contractual relationships are rare
- New environmental and social responsibility pressures complicate the equitable division of cost and risk, especially since externalities are rarely included in cost and risk considerations
- A report by The Sustainability Consortium urgently asks companies to prepare supply chains for potential climate change-related risks
- Many companies don't act on opportunities to align supply chains' environmental strategies
- In 2017, only 23% of brands worked with suppliers to reduce supplier emissions, while the carbon emissions of upstream supply chains are four times greater than those of companies’ direct operations
- Companies must align the environmental decision making of entities in their supply chains just as they have done to improve pricing and quality
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