An Annotated Bibliography: Sustainable Supply Chain and Logistics Network Design - Essay Example

1. Impact of reverse logistics on supply chain performance The author introduces the topic of reverse logistics and defines brief characteristics of sustainable supply chain based on the existing studies. Despite the variety of benefits of reverse logistics the authors stress that adopting such structure might have negative impact on inventory and order oscillation. To address this and some other challenges there is offered a practical tool that might help SC managers to implement correctly reverse logistics. The authors have taken into consideration both forward and backward flow and developed a new order replenishment rule, or better to say, a modified version of the automatic and order based production control (Turrisi, Bruccoleri, and Cannella, 2013). While the authors use a math model for a closed loop supply chain, the results of the study are not based on the empirical analysis and, therefore, its practicability is questionable at this stage. Lack of this information makes the study extremely theoretical and provides less insight for SC managers. In my opinion, this paper doesn’t provide sufficient guidance and information related to real impact of reverse logistics on supply chain performance as it is stated in the article title. 2. The design of sustainable logistics network under uncertainty This journal article provides a brief overview of the logistics network design and key requirements for implementing sustainable logistics operations, divided into forward product flow and returned product flow operations. Further, the authors discuss the existing models and techniques used for design of sustainable logistics network and present a two-stage stochastic programming model as an alternative. To support their choice, authors have applied a proposed model to a case study of an international electrical company is Asia Pacific region. The company manages large-scale operations, as it is handling 112,000 units of used IT equipment which means that approximately 3 million kg of used products per month is processed by the company. The case analysis has illustrated that that product return significantly influences the forward network design. Also, the study has shown that better customer accessibility as well as more cost effective network with a decentralized configuration can help obtain the optimal integrated solution. It is a really good example for analysis as it offers some practical implications for decision makers involved into sustainable SCM and logistics design. The fact that the authors explore the sustainable logistics network under uncertain characteristics makes this study even more applicable and useful for practicing professionals (Lee, Dong, & Bian, 2010). 3. Design of sustainable supply chains under the emission trading scheme In this article authors discussed various important dimensions of sustainability throughout the supply chain life cycle and, based on these dimensions, have offered a formal decision model. In contrast to the a two-stage stochastic programming model offered by Lee, Dong and Bian (2010), authors have focused on the Life Cycle Assessment method, whereas the focus was made on the harmful environmental elements, GHG emissions. Suggested LCA approach enables to establish the link between the critical inputs (raw materials, human, capital, energy, used product) and outputs (final goods, hazardous waste, GHG emissions, etc.) through the entire life cycle. The main point is made on the measurement and assessment of carbon emissions by the LCA methodology. This is specifically relevant nowadays, when many companies should operate under emission trading schemes. The model presented in this paper might be especially helpful for manufacturing facilities and those industrial enterprises which generate GHG emissions, as it enables decision makers to design the optimal supply chain strategy under various environmental restrictions and legislations that impose mandatory targets for recycling end-life products and caps the GHG emissions. 4. Designing and evaluating sustainable logistics networks This paper provides a framework for the design and evaluating sustainable logistics networks. The authors consider two main factors applicable in such cases: profitability and environmental impact. Thus, the readers can learn more about the main factors and activities affecting cost efficiency, which include the following: manufacturing, transportation, product use, testing, and end-of-use alternatives (Neto et al., 2008). Moreover, there is discussed the environmental performance in logistic networks and the ways of measuring/evaluating its results. There is presented a multi-objective programming as a model for designing sustainable networks. The computational challenges of using a multi-objective programming for the design of sustainable logistics networks, with which managers might face, are also discussed. In my opinion, this technique and supporting evidence might be very helpful to SC managers and other professionals who plans to work or works already with sustainable logistics networks and is seeking for the ways to calculate efficiency of the potential/existing logistics network measuring and to determine the trade-offs between the resulting costs in a logistic network and the environmental impacts (Neto et al., 2008). 5. “Packaging logistics”: promoting sustainable efficiency in supply chains" In contrast to the above discussed journal articles, this articles focuses on a specific element of the supply chain logistics - the sustainable packaging logistics. The authors identify and characterize the key cornerstones of implementing sustainable packaging logistics, which include: definition of design requirements, definition of an organizational structure, definition of a system measuring the impact of packaging proposal, and application of innovations and “best practices” in packaging design (García-Arca, Prado-Prado, Gonzalez-Portela, 2014). The three main stages are: structuring, deployment, and systemisation. There is presented a case study of the Spanish company Mercadona, whereas all these four cornerstones and three evolutionary stages are applied. This approach to “sustainable packaging logistics” is viewed as an effective method to improve and increase sustainability in supply chains. The intended audience of this study is professionals who are seeking for ways to increase efficiency and sustainability in the supply chains of the companies they work for. Still further research is required, as the study analyzes only a one supply chain of the Mercadona Company. Element #2: Analysis of Nike operations in the context of Marketing Channels and Logistics Background NIKE, Inc. is the world's largest seller of athletic footwear and apparel. The company employs more than 33,000 people globally, including more than 5,500 at its worldwide headquarters in Beaverton, Oregon. The company business scales are impressive: more than 500,000 different products are produced at 785 contract factories by more than 1 million factory workers; the products are sold in more than 180 countries around the globe (Nikebiz.com, 2014). Sustainable organizational structure In order to integrate sustainability with the supply chain management, Nike has adjusted its organizational structure enabling managers to report to multiple departments (Porteous and Rammohan, 2013). There was also formed Sustainabile Business and Innovation team, which closely works with key services: sourcing, manufacturing, product design, product creation, strategy, marketing, finance, etc. Such collaboration enables the company to better integrate sustainability at various levels and operations (Porteous and Rammohan, 2013). Sustainability at contract factories Nike is company that outsources its manufacturing activity overseas. While the company doesn’t take direct responsibility of working/labor conditions at the contracted manufacturing facilities, it has designed a code of conduct for the local contractors (Guthrie, 2012). Thus, the company sets the traditional supply chain requirements (quality, cost, and on-time delivery) for its partners with a focus made on sustainable measures (safety standards, worker insurance and environmental regulation) (Guthrie, 2012; Fox, 2013). This practice is supported by monitoring and collaboration approaches (Guthrie, 2012). The company has designed special index, the Manufacturing Index, in order to evaluate the sustainability performance of its factories operating globally (Fox, 2013). This manufacturing Index enables Nike to assess the performance of contract factories based on such parameters as: carbon and waste, water use, energy use, etc. (Fox, 2013). Innovation in Product and Process Design In addition to integrating sustainability into organizational structure and at the manufacturing facilities, Nike has concentrated its activity on collaborative product and process design innovations, emphasizing environmental issues (Porteous and Rammohan, 2013). The company continuously works on both product design and manufacturing process innovations. Great examples of those are the World Cup football shirts made from recycled plastic bottles, Flyknit technology enabling to reduce both cost and waste , or Dycooo technology consuming no water in the textile dyeing process (Porteous and Rammohan, 2013; Between-us.com, 2014). References: Between-us.com, (2014). Sustainable Brand Focus: Nike | Sustainable Supply Chain: Nike announces partnership to integrate waterless dyeing technology | Between-us. [online] Available at: http://www.between-us.com/768/sustainable-brand-focus-nike.htm Chaabane, A , Ramudhin A, Paquet M,(2012). "Design of sustainable supply chains under the emission trading scheme", International journal of production economics (0925-5273), 135 (1), p. 37-49. García-Arca J, Prado-Prado C, Gonzalez-Portela A, (2014), “Packaging logistics”: promoting sustainable efficiency in supply chains", International Journal of Physical Distribution & Logistics Management, Vol. 44 (4), pp.325 – 346. Guthrie, D. (2012). Building Sustainable and Ethical Supply Chains. [online] Forbes. Available at: http://www.forbes.com/sites/dougguthrie/2012/03/09/building-sustainable-and-ethical-supply-chains/ Fox, N. (2013). Nike: how supply chain measures up. [online] the Guardian. Available at: http://www.theguardian.com/sustainable-business/nike-supply-chain-measures-up Lee D, Dong M, Bian W, (2010) “The design of sustainable logistics network under uncertainty”, Integrating the Global Supply Chain, Vol. 128(1), pp.159-166. Neto F, Bloemhof-Ruwaard J, E van Nunen J, E van Heck (2008). "Designing and evaluating sustainable logistics networks", International journal of production economics (0925-5273), 111 (2), p. 195-208. Nikebiz.com, (2014). 1.3 About Nike Inc - NIKE, Inc.. [online] Available at: http://www.nikebiz.com/crreport/content/about/1-3-0-about-nike-inc.php?cat=about Porteous A, and Rammohan S. (2013). ‘Integration, Incentives and Innovation Nike’s Strategy to Improve Social and Environmental Conditions in its Global Supply Chain’, Stanford Initiative for the Study of Supply Chain Responsibility (SISSCR). Turrisi M, Bruccoleri M, Cannella D, (2013) "Impact of reverse logistics on supply chain performance", International Journal of Physical Distribution & Logistics Management, Vol. 43(7), pp.564 – 585. Read More