Sustainability & Climate Change L6

Flashcards about Sustainable Supply Chains

Sustainable Supply Chain

The management of environmental, social, and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services.

Supply Chain

The entire process of making and delivering a product—from sourcing raw materials to getting the final product into customers' hands.

Key Stages of a Supply Chain

Raw materials sourcing, manufacturing and production, warehousing and storage, transportation and distribution, retail and sale, and customer use and end of life

Triple Bottom Line

Environmental, social, and economic impacts related to people, profits and the planet.

Transparency and Accountability

Ensuring open communication and accountability throughout the supply chain.

Sustainable Sourcing

Prioritizing suppliers who adhere to environmental and social standards.

Energy Efficiency

Implementing energy-efficient practices and technologies to reduce energy consumption.

Waste Reduction and Recycling

Implementing strategies to reduce waste generation and promote recycling

Challenges of Supply Chain Sustainability

Increased costs, difficulty in monitoring complex supply chains, lack of procurement options, lack of alignment, longer lead times, and lack of eco-friendly logistics.

Tier 1 Supplier

Direct suppliers of the final product

Tier 2 Supplier

Suppliers or subcontractors for tier 1 suppliers.

Tier 3 Supplier

Suppliers or subcontractors for tier 2 suppliers.

Standards

Establish best practices for sustainable supply chains acting as guidelines for ethical sourcing, environmental impact, and fair labor.

Certifications

Companies get certified to show they meet sustainability standards, acting as trust signals.

Regulations

Governments and international bodies enforce them to make sure companies follow ethical and sustainable practices