Supply Chain study guide
Chapter 4 Supply Chain Study Guide
Sustainable Sourcing
Green Purchasing
Practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization
Waste reduction, hazardous material elimination, recycling, manufacturing and material reuse
Globally recognized Institute for Supply management- “making environmentally conscious decisions throughout the purchasing process, beginning with product and process design, and throughout product disposal”
Sustainability
Broad term that includes green purchasing as well as some aspects of social responsibility and financial performance
Sustainability- “the ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations in terms of economic, environmental and social changes
Social Sustainability
Like CSR, concerns involve worker safety, hourly wages, working conditions, child workers, and basic human rights
Sustainable Sourcing
One activity then, which the larger umbrella term of sustainability
Sustainable Sourcing- A process of purchasing goods and services that takes into account the long-term impact on people, profits, and the planet
Includes green purchasing, some form of financial benefit, as well as aspects of ethical sourcing
Companies practicing Sustainable Sourcing seek to:
Grow revenues- by introducing new and differentiated sustainable products and services
Reduce Costs- by increasing resource efficiencies, avoiding use of noncompliant suppliers, and rethinking transportation and distribution designs
Manage Risks- by managing brand and reputation, and developing approaches from meeting regulations and for capturing socially and environmentally conscious customers
Build Intangible Assets- by further enhancing brand and reputation through social and environmental responsibility
To accomplish these goals, companies must rely upon close collaborative relationships with their key suppliers and
Sustainable Sourcing
Green Purchasing
Practice aimed at ensuring that purchased products or materials meet environmental objectives of the organization
Waste reduction, hazardous material elimination, recycling, manufacturing and material reuse
Globally recognized Institute for Supply management- “making environmentally conscious decisions throughout the purchasing process, beginning with product and process design, and throughout product disposal”
Sustainability
Broad term that includes green purchasing as well as some aspects of social responsibility and financial performance
Sustainability- “the ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations in terms of economic, environmental and social changes
Social Sustainability
Like CSR, concerns involve worker safety, hourly wages, working conditions, child workers, and basic human rights
Sustainable Sourcing
One activity then, which the larger umbrella term of sustainability
Sustainable Sourcing- A process of purchasing goods and services that takes into account the long-term impact on people, profits, and the planet
Includes green purchasing, some form of financial benefit, as well as aspects of ethical sourcing
Companies practicing Sustainable Sourcing seek to:
Grow revenues- by introducing new and differentiated sustainable products and services
Reduce Costs- by increasing resource efficiencies, avoiding use of noncompliant suppliers, and rethinking transportation and distribution designs
Manage Risks- by managing brand and reputation, and developing approaches from meeting regulations and for capturing socially and environmentally conscious customers
Build Intangible Assets- by further enhancing brand and reputation through social and environmental responsibility
To accomplish these goals, companies must rely upon close collaborative relationships with their key suppliers and