Tier 1: The Basics of Sustainability
This is the firs level where companies employ simple measures such as switching lights and PCs off when left idle, recycling paper, and using greener forms of travel with the purpose of reducing the day-to-day carbon footprint. Some companies also employ self-service technologies such as centralised procurement and teleconferencing
Tier 2: Thinking Sustainably
This is the second level, where companies begin to realize the need to embed sustainability into supply chain operations. Companies tend to achieve this level when they assess their impact across a local range of operations. In terms of the supply chain, this could involve supplier management, product design, manufacturing rationalization, and distribution optimization.
Tier 3: The Science of Sustainability
The third tier involves balancing environmental, social, ethical and economic factors within a procurement and supply chain strategy. It uses auditing and benchmarks to provide a framework for governing sustainable supply chain operations. It considers agility, flexibility, and cost in the supply chain network. Moving towards this level means being driven by the current climate as well as pushing emerging regulations and standards at both an industry and governmental level.
Time and quality based competition eliminates of waste in the form of time, effort, defective units, and inventory in manufacturing distribution systems.
Two capabilities that are useful in a time and quality based competitive environment are agility and flexibility. With faster product innovations, decrease product life cycles, and rapid imitative competition, only firms that are agile and flexible will survive.
Agility is the agility to respond quickly to changes in the marketing environment. Agile firms are able to successfully market low-cost, high-quality products with short lead times in varying volumes that provide enhance value to customers through customize.
Flexibility is defined as the capability of changing from one task to another rapidly when changing conditions are defined ahead of time.
© 2011, Richard Matthews. All rights reserved.
Related Posts
The Rise of Sustainable Supply Chains
Environmental Regulations Shaping Today's Sustainable Supply Chains
Sustainable Supply Chains and New Environmental Laws
Sustainable Supply Chain Integration
Introduction to (Sustainable) Supply Chain Management
Sustainable Supply Chains are Profitable
Case Study Illustrates the Profitability of Sustainable Supply Chains
Collaboration in Sustainable Supply Chains
Sustainable Procurement Guidelines and Procedures
Sustainable Supply Chains
Puma's Sustainable Supply Chain
PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting
The Sustainable Supply Chain Efforts of Interface Inc
Nike and H&M Bow to Greenpeace and Green their Supply Chains
Walmart and HP's Sustainable Supply Chains
Arizona State University and Green Supply Chains
IT Sector Should Leverage Their Supply Chains
Video: Future Supply Chain 2016
Video: Ten Steps To A Greener Supply Chain
Video: Green Supply Chain
0 comments:
Post a Comment