Supply Chain Sustainability: A Force For Good

BYU Supply Chain

15 Dec 201405:01

EducationalLearning

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TLDRThis script introduces the vital yet often overlooked role of supply chain management in driving sustainability and efficiency. It explains the multi-step process of a product, like a V8 beverage, reaching the consumer, highlighting the importance of logistics, manufacturing, and sourcing. The script emphasizes how supply chain efforts can reduce environmental impact, save costs, and support social responsibility, showcasing the triple bottom line of people, planet, and profit. It invites viewers to explore the field further through provided resources.

Takeaways

🌐 Supply Chain Management (SCM) is a crucial force for good in the world, impacting not only businesses but also humanity and the environment.
🔍 SCM involves the oversight of the entire process from sourcing raw materials to delivering the finished product to the customer.
🚚 Logistics, a key part of SCM, focuses on the efficient transportation and distribution of goods, which can significantly reduce a company's environmental footprint.
💰 Companies like P&G have demonstrated that logistics efficiency can lead to substantial cost savings and environmental benefits, such as a 50% reduction in energy usage, CO2 emissions, and waste disposal.
🏭 Operations management within SCM plays a role in ensuring products are made with quality and efficiency, and can contribute to sustainability by using renewable energy sources.
🌿 Nestle's use of renewable energy in their manufacturing plants is an example of how SCM can contribute to a lower carbon footprint and savings in non-renewable fuel consumption.
🛍 Sourcing managers are responsible for procuring the best materials at the right price and time, and they also have the opportunity to support social responsibility by including diverse suppliers.
🌟 Disney's sourcing managers exemplify how SCM can promote inclusivity and support minority and women business owners, contributing to innovative and cost-effective business solutions.
💼 SCM offers various roles that require good management to ensure efficiency and contribute positively to people, the planet, and profit—the triple bottom line of sustainability.
🌱 The script emphasizes that SCM is not just about business operations but also about being socially responsible and making a positive impact on the world.
📈 For those interested in SCM, the script encourages visiting mm.byu.edu or supplychainclub.byu.edu for more information and to join the growing field.

Q & A

What is the primary purpose of supply chain management?
-Supply chain management is a force for good, serving not only businesses and the economy but also humanity and the environment by ensuring the efficient and sustainable flow of goods and services from production to consumption.
Why is supply chain management important for businesses?
-Supply chain management is important for businesses because it helps to save money by closely monitoring and managing each step of the process, from sourcing raw materials to delivering finished products to customers.
What is an example of a supply chain process described in the script?
-The script describes a supply chain process involving the production and distribution of a V8 beverage, which includes the beverage manufacturer (Campbell), the bottle manufacturer (Amcore), and the retailer (Kroger), as well as the sourcing of raw materials like oil-based plastics.
What is the role of logistics in supply chain management?
-Logistics is a key part of supply chain management that involves the efficient planning and execution of the movement and storage of goods. It is responsible for reducing costs and environmental impact by optimizing routes and shipping methods.
How did P&G's logistics team contribute to sustainability efforts?
-P&G's logistics team planned to reduce road mileage traveled by trucks by 30% before 2015, achieving significant reductions in energy usage, CO2 emissions, waste disposal, and water usage, leading to nearly $1 billion in cost savings.
What is the triple bottom line in sustainability, and how does supply chain management relate to it?
-The triple bottom line in sustainability refers to people, planet, and profit. Supply chain management can contribute positively to these areas by ensuring social responsibility, environmental conservation, and economic viability throughout the supply chain process.
How do operations managers in manufacturing contribute to sustainability?
-Operations managers in manufacturing contribute to sustainability by ensuring products are made with quality and efficiency, and by implementing practices such as using renewable energy to power manufacturing plants, which can lower carbon footprints and save on costs.
What is an example of how sourcing managers can impact the world positively?
-Sourcing managers can impact the world positively by maintaining strong relationships with suppliers and promoting diversity and inclusion in the sourcing process, such as Disney's efforts to support minority and women business owners by hosting events to educate them on becoming Disney suppliers.
What are some of the potential results of supply chain management's focus on sustainability?
-Focusing on sustainability in supply chain management can lead to reduced environmental impact, lower energy and resource consumption, cost savings, and the development of innovative, high-quality, and cost-effective business solutions.
How can someone learn more about supply chain management and get involved in the field?
-Individuals interested in supply chain management can learn more and get involved by visiting websites like mm.byu.edu or supplychainclub.byu.edu, which may offer resources, educational opportunities, and networking within the supply chain community.

Outlines

00:00

🌐 Introduction to Supply Chain Management

This paragraph introduces the concept of Supply Chain Management (SCM), emphasizing its positive impact on the world. It explains that SCM is not about managing chains but rather the process of getting products from manufacturers to consumers. The paragraph uses the example of a V8 beverage bottle to illustrate the complexity of a supply chain, which involves multiple parties such as retailers, manufacturers, and suppliers. It highlights the role of supply chain managers in monitoring and managing this process to save costs and support environmental sustainability.

🚚 The Role of Logistics in Supply Chain Sustainability

This section delves into the logistics aspect of supply chain management, focusing on the efficiency of transportation and its environmental implications. It mentions a specific initiative by P&G's logistics team, which successfully reduced road mileage by trucks by 30%, leading to significant cuts in energy usage, CO2 emissions, waste disposal, and water usage. The paragraph also points out the financial benefits of such sustainability efforts, with P&G saving nearly $1 billion in costs.

🌿 Sustainability in Manufacturing Operations

The paragraph discusses the role of operations managers in manufacturing plants and their contribution to sustainability. It highlights Nestle's use of renewable energy, sourced through anaerobic digestion, to power a portion of its manufacturing facilities. This practice has resulted in a lower carbon footprint and reduced consumption of non-renewable fuels, along with annual savings of over $156,000, showcasing the dual benefits of sustainable practices for both the environment and the company's profitability.

🛍️ Sourcing for Social and Environmental Impact

This part of the script addresses the responsibilities of sourcing managers in the supply chain, who are tasked with procuring the best materials at the right time and price. It provides an example of Disney's sourcing managers who actively support minority and women business owners by offering them opportunities to become Disney suppliers. This not only fosters diversity and inclusion but also contributes to developing innovative, high-quality, and cost-effective business solutions.

Mindmap

Keywords

💡Supply Chain Management

Supply Chain Management (SCM) is the coordination and management of activities involved in the production and delivery of a product or service. It encompasses the movement and storage of goods from raw materials to the end consumer. In the video, SCM is portrayed as a force for good, impacting not only business and the economy but also humanity and the environment, through efficient processes and sustainability efforts.

💡Sustainability

Sustainability in the context of the video refers to the practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs. It is associated with the 'triple bottom line' of people, planet, and profit. The video illustrates how supply chain management can contribute to sustainability through logistics, manufacturing, and sourcing, as seen in the examples of PNG and Nestle's efforts to reduce environmental impact and save costs.

💡Logistics

Logistics is a part of supply chain management that deals with the transportation and storage of goods. It is about finding the most efficient ways to move products from the point of origin to the point of consumption while minimizing costs and environmental impact. The video mentions how PNG's logistics team reduced road mileage and achieved significant cost savings and environmental benefits.

💡Beverage Manufacturer

A beverage manufacturer is a company that produces beverages, such as the V8 beverage mentioned in the script. In the context of supply chain, the manufacturer is responsible for creating the product, which includes sourcing raw materials, producing the beverage, and packaging it. Campbell is used as an example in the video, showing how they rely on other manufacturers for the bottles and raw materials.

💡Plastic Bottles

Plastic bottles are containers made from plastic, used in this case for beverages. The script uses plastic bottles as an example of a component in the supply chain that requires sourcing raw materials, manufacturing, and eventually ends up in the hands of the consumer. The production and sourcing of these bottles are part of the sustainability considerations in supply chain management.

💡Raw Materials

Raw materials are the basic materials used to produce goods. In the video, the raw material for plastic bottles is oil-based plastics, which need to be sourced and processed before they can be made into bottles. The sourcing of raw materials is a critical step in the supply chain, with implications for cost, quality, and sustainability.

💡Operations Manager

An operations manager oversees the production process in a manufacturing plant, ensuring that products are made efficiently and with quality. In the context of supply chain management, they play a role in sustainability by implementing practices that reduce the environmental footprint, such as using renewable energy, as illustrated with Nestle's manufacturing plants in the video.

💡Sourcing Manager

A sourcing manager is responsible for procuring the necessary inputs and raw materials for manufacturing processes. They work to establish relationships with suppliers and ensure the best materials are acquired at the right price and time. The video highlights how sourcing managers can contribute to social responsibility by supporting minority and women business owners, as seen in Disney's example.

💡Triple Bottom Line

The triple bottom line is a framework for measuring a company's performance in three areas: people, planet, and profit. It is used to evaluate the sustainability of a business. The video explains that a sustainable company positively affects these three areas, and it uses this concept to discuss how supply chain management can be a force for good.

💡CO2 Emissions

CO2 emissions refer to the release of carbon dioxide, a greenhouse gas, into the atmosphere. In the context of supply chain management, reducing CO2 emissions is part of efforts to minimize environmental impact. The video cites PNG's logistics team's success in reducing energy usage and CO2 emissions by optimizing shipping routes.

💡Renewable Energy

Renewable energy is energy derived from natural resources that are replenished on a human timescale, such as sunlight, wind, and rain. The video mentions how Nestle's manufacturing plants use renewable energy, specifically anerobic digestion, to reduce their carbon footprint and reliance on non-renewable fuels, contributing to sustainability.

Highlights

Supply Chain management is a force for good, impacting not just business and economy but also humanity and the environment.

Supply Chain management involves the oversight of the entire process from raw materials to the finished product reaching the customer.

An example of a supply chain is illustrated with the production and distribution of a V8 beverage, showing the complexity of sourcing materials and manufacturing.

The role of supply chain managers is crucial in ensuring efficiency and cost savings while also contributing to environmental sustainability.

Sustainability in supply chain management is characterized by the triple bottom line: people, planet, and profit.

Logistics, a key part of supply chain, involves efficient shipping and route planning, which can significantly reduce a company's environmental footprint.

P&G's logistics team achieved a 30% reduction in road mileage, cutting energy usage, CO2 emissions, waste disposal, and water usage by more than half.

Efforts in logistics can lead to substantial cost savings, as demonstrated by P&G's nearly 1 billion in savings.

Manufacturing operations within the supply chain can utilize renewable energy to reduce carbon footprint and non-renewable fuel consumption.

Nestle's use of renewable energy in manufacturing plants has led to a lower carbon footprint and annual savings of over $156,000.

Sourcing managers are responsible for procuring high-quality materials at optimal times, quantities, and prices, while also fostering strong supplier relationships.

Disney's sourcing managers promote inclusivity by supporting minority and women business owners, contributing to innovative and cost-effective business solutions.

Supply chain management offers a variety of roles that contribute to business efficiency and can be a force for good in society.

The field of supply chain management is growing, providing opportunities for managers to excel in both business operations and social responsibility.

For those interested in supply chain management, resources and clubs are available for further learning and engagement.

The transcript emphasizes the multifaceted benefits of supply chain management, from economic gains to environmental and social improvements.

Transcripts

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