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Summary Chapter 14: sustainable logistics and supply chains
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Chapter 14: sustainable logisticsand supply chain systems
P275-288 + extra content added
1. Introduction
Sustainability and sustainable logistics
Sustainable logistics is concerned with reducing the environments and other disbenefits associated with
the movement of freight
Sustainability seeks to ensure that decisions made today do not have an adverse impact upon future
generations
Sustainable supply chains seek to reduce these disbenefits by for example redesigning sourcing and
distribution systems so as to eliminate any inefficiencies and unnecessary freight movements
Not only about “green” issues! How can a firm itself survive and grow in a sustainable manner
without having adverse impacts on future generations, and specifically, what is the role of
logistics and SCM in this context.
Cradle to cradle (waste = food)
Cradle-to-cradle (C2C) is a way of designing products or processes that work more like natural
systems. This design method is intended to replace a make-take-dispose approach which begins with
new raw materials mined from the earth and ends with piles of garbage.
Circular economy
Regenerative system in which resource input and waste, emission, and energy leakage are minimized.
Circular economy production and consumption, which involves sharing, leasing, reusing, repairing,
refurbishing and recycling existing materials and products as long as possible". CE aims to tackle global
challenges like climate change, biodiversity loss, waste, and pollution by emphasizing the design-based
implementation of the three base principles of the model.
, Lean and green
Cost reduction 6 reduction of CO2
2. The ‘green revolution’ and supply chain redesign
The drivers behind the increased emphasis on green issues
The international Kyoto Protocol has called for a 60% reduction in carbon emissions by 2050
- Hard to believe we will obtain this by the proposed date
- Emissions trading..
Some terminology:
- Carbon footprint: the environmental disbenefits associated with economic activities
such as the movement of freight
- Food miles: the distance by which the various components of a particular food item
have to travel before final consumption
Supply chain redesign
• ‘Greening’ the supply chain:
- Largely about forward/strategic planning
- Over 80% of carbon savings are only achievable at the supply chain design stage, e.g.:
deciding where to locate warehouses and distribution centres
deciding which transport modes to use
reconfiguring distribution networks so as replace small deliveries direct to all
end customers with centralised deliveries to a hub from where end customers
retrieve their goods
Example Port Centric Logistics
• Some ports are actively encouraging companies to locate distribution centres at ports rather
than in their traditional locations which tend to be in geographically central, inland locations
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