Logistics and Supply Chain Management, 4th Edition

LOGISTIC S & SUPPLY CHAIN MANAGEMENT

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Beyond the carbon footprint

Whilst there is an understandable concern that the supply chain’s carbon footprint

should be minimised, it must also be recognised that supply chain decisions have

a wider impact on resources generally. Rather than limiting the focus of attention to

reducing greenhouse gas emissions, it is important to recognise the effect of eco-

nomic activity on the use of scarce resources across the value chain as a whole.

Decisions that are taken at every stage in a company’s value chain can have sig-

nificant implications for resource requirements and for the wider environment.

Figure 13.2 highlights some of the potential linkages.

Because so many natural resources are being depleted at an increasing rate, it

is important that businesses understand these linkages. Some examples of the

resource implications of supply chain decisions are described below.

Design

We have previously argued that the supply chain ‘starts on the drawing board’,

meaning that decisions that are taken regarding the design of the product can

have a significant impact across the supply chain. This is particularly true when

considering the supply chain’s ‘resource footprint’. More and more companies

are actively seeking to reduce the amount of packaging material that is used, for

example, but there can be other, less obvious ways to improve resource sustaina-

bility. If those managers responsible for new product development are not aware of

the resource implications of their design decisions, this may lead to the launch of

products with a bigger than desirable resource footprint. For example, many high-

tech products rely for their functionality on scarce materials such as the so-called

‘rare earth metals’ (e.g. dysprosium and neodymium) whose future availability may

increasingly be limited.

• The choice

of materials

for both the

product

and the

packaging

• The physical

characteristics

of the

product

• Focus on

opportunities

for reuse

and recycling

Design

• Location of

suppliers can

impact

differentially

on a resource

footprint

•

Environmental

implications

of supply

source, e.g.

‘food miles’

• Society and

ethical issues

Source

• Improve

energy

efficiency

• Reducing

waste,

rework and

scrappage

• Reduce/

eliminate

pollution and

emissions

Make

• Optimise

network

configuration

• Minimise

transport

intensity

• Reconsider

transport

modes

Deliver

• Develop

‘reverse

logistics’

capabilities

• Manage

product end

of-life

• Create

‘closed-loop’

supply chains

Return

Figure 13.2 Supply chain decisions impact the resource footprint