Supply Chain Sustainability
and Humanitarian Logistics
Chapter 13
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What is Sustainability?
Sustainability
A characteristic of
processes that are
meeting humanity’s
needs without
harming future
generations.
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Supply Chains and Sustainability
Social
Responsibility
Financial
Responsibility
Supply Chains
and
Sustainability
Environmental
Responsibility
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People
• Employment (turnover, local hires, benefits,
wages, career development)
• Health and Safety Policies
• Training and Development
• Diversity and equal opportunities
• Business accountability standards (Ethics,
integrity, transparency, anti-corruption policy)
• Community (local hiring, service hours, e.g)
• Disaster Relief Supply Chains
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What is Humanitarian Logistics?
Humanitarian Logistics
The process of planning,
implementing and
controlling the efficient,
cost-effective flow and
storage of goods and
materials, as well as
related information, from
the point of origin to the
point of consumption for
the purpose of alleviating
the suffering of vulnerable
people.
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Planet
• Recycling- reuse-remanufacture, Reverse
Logistics
• Resource Conservation
• Green energy usage
• Emissions(reductions, zero waste efforts)
• Biodiversity preserving eco-systems)
• Reporting on Carbon footprint
• Fair trade products
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What is Reverse Logistics?
Reverse Logistics
The process of planning,
implementing and
controlling the efficient,
cost-effective flow of
products, materials, and
information from the point
of consumption back to the
point of origin for returns,
repair, remanufacture, or
recycling.
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Flows in a Closed-Loop Supply Chain
Production
process
New
service/product
development
process
Distribution/
Retailers
Customers
Repair
Direct
reuse
Recycle
parts and
materials
Returns
processor
Remanufacture
Product
information
Waste
disposal
Forward flow
Reverse flow
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Energy Efficiency
• Carbon footprint
– The total amount of greenhouse gasses
produced to support operations, usually
expressed in equivalent tons of carbon
dioxide (CO2)
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Profit
• Sustainable profit (net income trends, ROA,
ROE, free cash flow trends, e.g.)
• Percentage of profits reinvested into good
environmental practices that improve
company value (innovation, R&D, risk
minimization).
• Production/Process Efficiency, Productivity
• Customer Satisfaction (retention, customer
surveys, QC improvements)
• Using local suppliers
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