Chapter 14 Sustainable Logistics And Supply Chain Systems

In this chapter, we learned everything concerning sustainability and what solutions

are trying to apply to reduce environmental impact and other disbenefits associated
with moving freight of current logistic systems, seeking in the end that decisions made
today doesnt have an adverse impact on future generations. This chapter divides into
four core sections:
The green revolution and supply chain redesign: we find out about the term
carbon footprint that describes the environmental disbenefits associated
with the movement of freights (in this case). 80% of carbon savings are only
achievable at the supply chain design, and although is unnoticed to the public
eye, deciding where to locate warehouses and DCs and which transport modes
and routes to use in the best way possible are the best solutions to reduce the
carbon emissions. Also, we can conclude that there are 3 ways to improve
sustainability of logistics and SCS: redesigning supply chains, promoting scale
reducing the negative environmental effects of logistic activities and promoting
efficiency solutions.
The link between economic growth and transport growth: it makes the point to
us that this two are closely linked between them; the way economy grows so
will increase the demand for transportation and distribution.
The role of scale in logistics and SCM: we can see perfectly through the
Maersk example that this refers to looking on solutions to reduce the emissions
and affecting the environment without affecting the nature of the business, or
even improving the system or method used.
Efficiency of solutions: its important for logistic operators also to seek
efficiencies on how they move and store freight to reduce the environmental
impact. By reading table 14.1 (improving road haulage logistics efficiency), we
can see some of the ways logistics efficiency can be generated and at the same
time environmental penalties reduced.

Chapter 15 Reverse Logistics

Reverse logistics is the process of planning, implementing, and controlling the

efficient, cost effective flow of raw materials, in-process inventory, finished goods, and
related information from the point of consumption to the point of origin for the
purpose of recapturing or creating value or proper disposal. The following factors
make companies consider managing of return flows as part of their strategic agenda:
Government policy and legislation
Economic considerations
Environmental considerations
Shift towards buying sets of services

The recovery options in reverse logistics are:

Reuse: Refers to a process in which the recovered product is used again for a
purpose similar to the one for which it was originally designed (i.e. bottles).
 Remanufacturing: involves a process of reducing a product into parts, for these
parts to be reused in the assembly of new products (i.e. printers).
Recycling: process of collecting and disassembling used products, components
and materials, then separating them into categories of like materials, such as
plastic and glass, and then processing them into recycled materials (i.e. cartons
back to a paper mill).

The key factors for successful reverse logistics implementation can be grouped in
external factors such as: legislation, customer demand and incentive; and internal
factors such as: environmental concerns, strategic cost/benefits, volume & quality of
returns, resource and integration & coordination.

Chapter 16 Service Supply Chains

We can observe that countries where transitioning from agricultural economies to

manufacturing economies, thus the people working on this manufacturing economies
saw their personal wealth and leisure time increased, so this resulted in those
workers demanding more and better services to complement their lives. Hence, this
brought the transition to service economies, focused on what I explained before. This
made organizations to refocus on becoming service-centric instead of manufacturing-
centric; introducing the concept servitisation: manufacturers offering services with
their products.

A services supply chain is the network of suppliers, service providers, consumers and
other supporting units that performs the functions of transaction of resources
required to produce services; transformation of these resources into supporting and
core services; and the delivery of these services to customers. The service supply
chain model is based on knowledge and resources and consists of the supplier, the
service provider, service provision and the consumer.

Chapter 18 Emerging Supply Chain Designs

In the first part of this chapter we can read in an extensive list and completely
understand about common strategies and practices that logistics and supply chain
managers engage in.

The pace of change in the wider business environment is rapid and relentless with the
ability to compete on time becoming a key determinant of success (companies now
need to make their products obsolete before their competition does).

Design for supply chain efficiency (DSCE): by taking supply chain concerns into
account in the product and process design phase, it becomes possible to operate a
mucho more efficient supply chain.

The supply chain manager of the future requires the following skills:
Market understanding, customer insight
 Management of complexity and change
Information systems and information technology expertise
Ability to define, measure and manage service requirements by market
segment
Understanding of the cost to serve and time-based performance indicators
Specific functional excellence with cross-functional understanding
Team working capabilities
Relationship management

In this chapter we kind of see a little bit about what weve learned in every other
chapter and how to apply it when designing a supply chain.