International Islamic University Chittagong

Department of Business Administration

Assignment of Chapter-01
Course Title: Sustainable Supply Chain and Logistics Management
Course Code: SCM-5508
Program: MBA
Semester: 5th
Section: SCM

Submitted To:
Abdullah Mohammad Ahsanul Mamun
Assistant Professor,
DBA, IIUC

Submitted By:
Abhishek Barua (M-191102)
Md. Imranul Hoque (R-191209)
Abdur Rahman (R-191210)
Mobinul Islam (R-191212)

Date of submission: 21/08/2020

 Chapter: 01
Answer to the Q-No: 01

Logistics:-
Logistics is used more broadly to refer to the process of coordinating and moving resources –
people, materials, inventory, and equipment – from one location to storage at the desired
destination. The term logistics originated in the military, referring to the movement of
equipment and supplies to troops in the field.

Logistics Management:-

Logistics management is a supply chain management component that is used to meet

customer demands through the planning, control and implementation of the effective
movement and storage of related information, goods and services from origin to destination.
Logistics management helps companies reduce expenses and enhance customer service. The
logistics management process begins with raw material accumulation to the final stage of
delivering goods to the destination. Logistics management involves numerous elements,
including:

 Selecting appropriate vendors with the ability to provide transportation facilities

 Choosing the most effective routes for transportation
 Discovering the most competent delivery method
 Using software and IT resources to proficiently handle related processes

Supply chain management:-

Supply chain management is the management of the flow of goods and services and includes
all processes that transform raw materials into final products. It involves the active
streamlining of a business's supply-side activities to maximize customer value and gain a
competitive advantage in the marketplace. SCM represents an effort by suppliers to develop
and implement supply chains that are as efficient and economical as possible. Supply chains
cover everything from production to product development to the information systems needed
to direct these undertakings.
 Answer to the Q-No: 02
Every organization wants to excel in its functionality. They want the work to be done with
optimal utilization of resources. Supply chain management corresponds to the management of
products & services from the point of production to the end-user. It includes planning,
designing, implementing, managing, and tracking supply chain activities. Efficient supply
chain management promotes resource optimization, proper material distribution, information,
and resources while reducing operational costs and minimizing delays.

A supply chain is very much important for the organization. SCM's main aim is to take care
of 7 R's as it continues to follow. Briefly describe in below,

1. Right Product:

The essential component of the supply operations is the goods delivered to the customer from
the supplier. Supply chain managers should be aware of. That what kind of product they need
to make, treat, and transport. The best approach is to pick a product that is in demand and
which can guarantee income. Getting the right information and using the right product would
help maximize the time and money efficiently.

2. Right Place:-

The next important aspect is that they will give the right material to the correct location.
Supply chain administrators should ensure that they have competent and qualified logistics
personnel to deliver the content at the proper place. Managers should build a comprehensive
position tracking distribution system so that both consumers and suppliers should monitor the
products at the exact location & deliver it to the right spot.

3. Right Price:-

Pricing is crucial for companies, as it is the aspect that determines the profit or loss that has
sustained. The supply chain manager will analyze industry dynamics and place the products
and services at reasonable prices. Also, a program should be in a place that maintains a record
of costs and periodically checks them so that the goods sold at the correct cost.

4. Right Customer:-

Customers are the cornerstone of supply chain operations. The managers need to learn their
target audience. If the goods are sold in the correct market so that the business will receive
more leads and they will get the best customers to stick with them for a lifetime.
Organizations should always target the right customers.

5. Right Condition:-

The product should reach the customer in good condition. Of utmost importance is the
consistency of the deliverables. The procurement department is obligated to ensure that the
products are properly packed and shipped in the right condition to the customers.

6. Right Time:-

In logistics, the duration is a crucial factor. The happiness of consumers and the long-term
partnership is only possible if the goods delivered to consumers at the perfect time. Managers
tasked with creating a tracking system and working with the distribution team to get the items
shipped before the deadline. Customer satisfaction is the key to success. Thus the delivery
time for the product is always crucial for a business as this leads to happy faces of the
customer.

7. Right Quantity:-

It's also necessary to submit the right amount of goods in logistics. The supply chain
administrators charged with identifying the right amount of deliverables and working with the
production and distribution department to get the best quantity of goods distributed to the
customers. All the things should be taken proper care and handled wisely. While packing it
must be checked that the quality should be according to the demand.

Answer to the Q-No: 03

Identify the major logistic functions with necessary illustrations and examples. The major
logistics function are :

a) Warehousing : Under this goods are stored after manufacturing Ill the time they are
required for consumption .Warehouses are used by manufacturers, importers, exporters,
wholesalers, transport businesses, customs, etc. They are usually large plain buildings in
industrial parks on the outskirts of cities, towns or villages.

They usually have loading docks to load and unload goods from trucks. Sometimes
warehouses are designed for the loading and unloading of goods directly from railways,
 airports, or seaports. They often have cranes and forklifts for moving goods, which are
usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include
any raw materials, packing materials, spare parts, components, or finished goods
associated with agriculture, manufacturing, and production.

b) Inventory management : Goods like raw materials which are required for day to cay
operations of the business also need to be properly stored and keep track of .A company's
inventory is one of its most valuable assets. In retail, manufacturing, food service and
other inventory-intensive sectors, a company's inputs and finished products are the core of
its business. A shortage of inventory when and where it's needed can be extremely
detrimental.

At the same time, inventory can be thought of as a liability (if not in an accounting sense).
A large inventory carries the risk of spoilage, theft, damage or shifts in demand.
Inventory must be insured, and if it is not sold in time it may have to be disposed of at
clearance prices—or simply destroyed.

c) Transportation : Goods need to be transported from one place to another They may have
to be shipped from supplier location to factory and thereafter from factory to customer.
Transportation management systems play a central role in supply chains, affecting every
part of the process—from planning and procurement to logistics and lifecycle
management. The broad and deep visibility afforded by a powerful system leads to more
efficient transportation planning and execution, which results in higher customer
satisfaction. That, in turn, leads to more sales, helping businesses grow. With such a
dynamic global trade environment that we live and transact in, it is important to have a
system that will allow you to successfully navigate complicated processes around trade
policies and compliance.
 Answer to the Q-No: 04

For any given supply chain to be effective, it is imperative that third-party logistics
businesses meet several internal logistics goals and objectives. These business goals include,

 Increasing Efficiency
 Rapid Response
 Fewer Unexpected Events
 Minimum Inventory
 Reduced Transportation and Logistics Cost
 Quality Improvement

Now briefly describe the different goals of logistics in below.

Increased Efficiency:
Increasing efficiency for both inbound and outbound logistics and transportation should
always be a top priority for every logistics organization. To do so, they will need to develop
cost-effective transportation rates while, at the same time, reducing overhead, cost-per-order
processing, and inventory. By working closely with a transportation provider, warehouse
operations like processes, layout, and flow can be improved significantly.

Rapid Response:

Similar to efficiency, customer satisfaction plays a crucial role in the overall success of a
logistics company. To satisfy your customer service goals promptly, consider a rapid
response approach. Thanks to today’s technology, you can now postpone many logistics
operations to the last possible moment. This means that you can eliminate excessive
inventories that were usually stockpiled in anticipation of customer requirements. You will
also be able to shift your operational emphasis from an anticipatory posture

Fewer Unexpected Events:

Unexpected events can happen with every aspect of logistic operations. An unexpected
disruption during manufacturing, goods arriving damaged at their final destination, delays
with the customer order receipt, or wrong delivery, can all result in wasted time and
resources. Traditionally, these unforeseen events were addressed by establishing safety
stocks of inventory or by using a high-cost transport mode.
Minimum Inventory:

While on the topic of minimums and unexpected events, inventory management is critical. In
the end, aiming to keep these events at a minimum will also involve asset commitment and
relative turn velocity. This turn velocity translates to the rate of inventory usage over a given
period of time. Inventory availability and high turnover rates indicate that your stocks are
used effectively. The objective of reducing inventory deployment to the lowest possible
levels also works to satisfy customers and lower the total logistics cost. The concept of Zero
Inventory has been gaining some traction in recent years as managers seek to reduce
inventory deployment.

Reduced Transportation Cost:

One of the major costs associated with logistics is transportation. Lowering the cost of
transportation requires movement consolidation. It’s important to remember that
transportation costs are directly influenced by the type of product being shipped, the size of
the shipment, and the distance. Many logistics systems that provide premium, high-quality
service often depend on high-speed, small-shipment transportation. This typically comes at a
cost. As a general rule, the larger the shipment, and the longer the distance, the lower the
transportation cost per unit. Therefore, having software capable of grouping small shipments
for consolidated movement is ideal.

Quality Improvement:-

Another goal that needs to be taken seriously is long-term quality improvement, increasing
sales and boosting customer satisfaction. In fact, total quality management (TQM) has
become a major trend throughout the business landscape. If a product becomes defective for
whatever reason or if service promises are not kept, there’s nothing much that can be done
about it from a logistics perspective. Once expended, logistics costs cannot be reversed. And
when quality fails, the logistical performance will almost always need to be repeated or
reversed. As such, logistics will need to perform to high-quality standards. The problem
arises when logistical operations are carried out around the clock and across vast
geographical areas. It’s particularly difficult to maintain a zero-defect performance in this
type of scenario. In addition, much of the work will be carried out outside of a supervisor’s
vision. Everybody knows that it’s far more costly to rework a customer order as a result of an
incorrect shipment or in-transit product damages than to get it right the first time.
Takeaway:-

These are, in large, the main goals and objectives every logistics organization should look to
achieve. It is for this reason why they should also look to adopt a transportation management
software (TMS) and freight management that will best suit their needs.

As we said before, it’s also beneficial to work with expert trucking companies capable of
offering you that software, as well as all other services that will help you achieve your goals
more quickly and effectively. Rather than having to deal with everything yourself, you can
rely on your logistics partner to share the load, exchange ideas and best practices, and help
you optimize your processes for mutual success.

Now on the other hand the top three strategic goals and objectives of supply chain
management include the following:

Ensuring Efficiency :-

Effectively managing inventory, transportation, and logistics can be a complex process, but
overall understanding how to do it can greatly benefit your operation. It can be incredibly
costly if your company does not have an adequate ERP, MRP, or APS system. When
manufacturers, wholesalers, and retailers collaborate on a supply chain system, it is far much
easier to maximize efficiency for your operation.

Optimizing Transportation and Logistics:

Another key component within supply chain management is optimizing transportation and
logistics. Within an independent business environment, each company is responsible for its
role in ordering, shipping, and transportation of goods. In this business model, the cost are
rather high due to poor timing and collaboration. With supply chain management, your
process should “flow” and have suppliers, manufacturers, wholesalers, and retailers all on the
same page at all times. With SCM, you can plan optimized transportation and logistics
activities with any vendors or buyers that you work with. Orders are automatically put into a
system and alert other facilities that are needed to fulfill this order.
Focusing on Quality Improvement:

It is important to keep in mind that providing consumers with the absolute best value is a goal
that is shared by you and your supply chain partners. As you are more connected with your
partners, product and service quality should be enhanced dramatically. This can also pertain
to Quality Function Development (QFD) and allows customers to tell you what is most
valuable within your product or service - which will save you money down the road. Within a
collaborative supply chain, you are creating a system where customer feedback is enabled to
your company and others within your supply chain. These inefficiencies and drawbacks that
are included in the feedback enable you to address any issues that you should focus on.

Answer to the Q-No: 05

There is a lot more to logistics than just making tactical decisions about transportation and
warehousing. You need to develop a logistics strategy to ensure high performance of the
supply chain.

A logistics strategy can be defined as a set of guiding principles, attitudes and driving forces
that help you coordinate plans, goals and policies between different partners across any
supply chain. It helps you increase the supply chain performance while improving supply
chain management on a whole.

The tactics which create an effective logistics strategy given below:

 Focus on Connectivity. We should design the logistics strategy in a manner that connects
you to the suppliers, corporations and manufacturers that are situated in various parts of
the world. You should have the technology to link all the entities in a way that offers
consistency, enhances visibility and streamlines processes so that you can meet
challenges in real time. Make sure that you use solutions that can deliver to everyone in
the supply chain, regardless of their location.
 Go for a Configurable Solution. Make sure we choose to implement a configurable
solution instead of the one that is a forced fit. Find a solution that can be configured fully
to various needs of your supply chain. A configurable solution adapts to the company’s
needs instead of forcing you to adapt to them.
 Take Actions that are Backed by Facts. When we rely on facts and have real-time access
to information, you can take actions that help your business reach its maximum potential
with minimum time investment. Avoid turning to old company customs if they are
irrelevant in the current times.
 Use Accurate Data. When we have accurate data, you can make informed decisions that
can help you plan for future success. Don’t be afraid to use innovation to plan ahead.
Implement automated systems that offer accurate data about almost everything you need.
Do not compromise on this aspect as it can make or break your future plans.
 Adopt New Technologies. Incorporate innovations such as cloud technology, track and
trace technology, use of truck scales, and voice technology in your logistical processes.
Keep an eye out for new developments such as 3D printing which have the potential to be
a game-changer in the future.
 The future of logistics is really promising and we must take proper steps to keep up with
it. Make sure that you make long term decisions so that you can ensure that logistics plays
a full role in supporting a company’s products in the market place at all times and stand
strong against the competition.

Answer to the Q-No: 06

For years, logistics professionals have used "perfect order" as an indicator of performance.
Perfect order remains a key goal, but is there a perfect logistics network to meet the
expectations of digital commerce.

To answer this question, let’s look at the process of network design. Experts define the
"optimal" distribution network as one that meets the stated delivery expectations at the lowest
cost. Comprehensive designs use sophisticated models. These tools aid in determining the
"sweet spot" solution (number, location, role, and size of facilities — manufacturing, DCs,
cross-docks, etc., transportation modes, inventory deployment, and policies) by balancing the
trade-offs between customer service requirements, assets and costs.

Most models stop short at minimizing costs. However, now logistics professionals are using modeling
to plan and optimize networks to maximize profit, speed to customer, sustainability, and/or other
strategic goals. Minimizing is no longer sufficient The secret sauce is designing the perfect network to
optimize profitable growth.
To develop the perfect network, follow these critical steps:

 Define requirements and network alternatives

 Identify current and future service demands
 Capture transportation, distribution, and service costs
 Identify alternative networks
 Determine value-ranking criteria
 Select candidate networks to model

It is important to engage all stakeholders in the process, including sales and marketing,
product development, supply chain, finance, etc. Conducting an accelerated strategic
workshop is a great way to get everyone aligned when kicking off such an important
initiative.

Consider the following:

 Develop alternative network solutions

 Model all flows, dc/fcs, and transportation
 Service and cost comparisons
 Risk analysis

The data is critical, especially when combined with critical thinking of all the implications of
each scenario. When reviewing model outputs, it is important to go back to our initial
network alternatives and look with fresh eyes at each potential solution. This is the
opportunity to consider what has to be true for our solutions to succeed, or what if anything
could change in the future that we have not considered. This is where we start to see that
while one scenario might carry the lowest total cost, it has limitations that may prohibit future
enhancements to delivery schedules, the potential for new client acquisitions, and/or new
product launches, or whatever critical factors could future growth.

Answer to the Q-No: 07

Inventory can be the lifeline or the death rattle of companies in the retail ecosystem.
Companies – regardless of size – need to balance inventory with meeting customers’ needs
(whether your customer is an actual shopper, a retailer, or a manufacturer). You improve the
chances of meeting all your customers’ needs all the time by maintaining a higher level of
inventory, but face the prospect of doing so at significant costs. The financial impact of
higher inventory or safety stock, storage of additional goods, and potential for liquidation of
obsolete inventory are just some of the consequences.

Companies can avoid those potential costs by slashing their inventory levels, but risk missing
sales, disappointing customers, and impacting future revenue. Many companies are finding
that the inventory balance is helped with one word: information. The right information at the
right time can actually replace the need for a certain layer of inventory, enabling
organizations to become more flexible while continuing to meet the needs of the customer. I
am not suggesting that you can put a stack of information on a truck instead of a box of
products and send it to your customers. Instead, I am suggesting that the right information
can be a replacement for inventory in your supply chain, whether it is in your warehouse, on
the water or on your store shelves.

And that information doesn’t have to be solely contained within one organization. Sharing the
right information in the right manner with your supply chain partners enables them to make
smarter decisions and recommendations for your business

Answer to the Q-No: 08

2019 has come and gone, and it's time to look at the latest supply chain trends for 2020.
Many exciting things are happening as supply chain executives respond to changes arising
from the availability of Big Data, supply chain digitization and omni-channel marketing, to
name just a few. Looking forward, there's also the economy to consider, as its performance
has a direct effect on supply chain trends. While economic performance has been good, there
are signs that 2020 will be somewhat bumpy. According to Deloitte, the trade war is heating
up and the automotive industry is slowing down, but at the same time, unemployment is at its
lowest and the economy is resilient. These and other indicators will undoubtedly have an
impact on supply chain innovation, speeding up some initiatives while slowing others.
Against this backdrop, here are our predictions for the top 11 supply chain trends in 2020.

1. Supply Chain Digitization

Digitization of the supply chain, encompassing all efforts to integrate corporate systems into
a unified whole as well as implementing new digital technologies, will continue to be a
priority. The goal of digitization, as described by PwC, is a smart, efficient supply chain
ecosystem that demolishes silos, creates transparency and enhances responsiveness. It
envisages a digital environment that does away with manual processes and provides a single
view of the organization. It encompasses initiatives for creating paperless systems right
through to techniques for modeling supply chain networks and creating what-if scenarios.

2. Supply Chain Solutions Will Continue to Move to the Cloud

While many organizations still rely on legacy on-premise supply chain software, the future is
in the cloud. Available in many forms, including Software as a Service (SaaS), Infrastructure
as a Service (IaaS) and Platform as a Service (PaaS), supply chain cloud computing offers
flexibility, scalability and a global reach while doing away with the need to maintain
extensive, expensive on-premise computing infrastructure. According to McKinsey, cloud -
specific spending in 2020 will grow six-times faster than other IT expenditures. Able to work
with and complement on-premise supply chain software, cloud-based supply chain
applications offer a better user experience, greater functionality and easy access to new
features and releases.

3. Omni channel Supply Chains Become the Norm

In response to customer demand, businesses will make big strides towards offering a true
omni channel buying experience. Allowing customers to seamlessly shop online or in brick-
and-mortar stores, omni channel supply chains place greater demands on logistic and supply
chains with the simultaneous requirements of supplying individual customer orders as well as
replenishing stock at retail outlets. The switch from single- and multi-channel supply to omni
channel supply requires a complete rethink of supply chain logistics.

4. Sustainability Is Becoming Essential

Sustainability has become one of the key global supply chain trends, with customers
demanding green products and sustainable practices. The NYU Stern Center for Sustainable
Business reports products marketed as sustainable grew 5.6 times faster than those that did
not. For Unilever, the organization's sustainable living brands were responsible for 70% of its
growth in turnover. These trends highlight the importance of eco-friendly supply chain
practices, such as switching from plastic to cardboard packaging and using smaller
packaging. Organizations also need to be aware of their carbon footprint, take steps to
become carbon neutral and include sustainability as part of their supply chain planning.
5. Growth in Circular Supply Chains

There's a move away from the traditional linear supply chain to the circular supply chain
where manufacturers reuse and rework discarded and worn out products through
refurbishment or by recycling components into raw materials. Apart from regulatory
requirements for the safe disposal and reuse of discarded products, there's a clear indication
that customers favor businesses that recycle materials, and many leading companies are
discovering additional value through circular supply chains.

6. Agile Supply Chains

To effectively compete, supply chains need to be flexible and agile, as well as able to respond
to changes on short notice. This is a radical departure from traditional supply chain thinking
that focuses on reliability, consistency and low cost. One of the notable supply chain
management trends is a switch from off-shore manufacture to local or near-shore supply.
Advantages of this include shorter delivery times and lower shipping costs. With less money
tied up in stock, organizations can respond more quickly to changes in demand.

7. Internet of Things

It appears the Internet of Things (IoT) is coming of age. As costs fall, research shows the
number of businesses using IoT devices grew from 13% in 2014 to 25% in 2019. The IDC
forecasts 13.6% annual growth through to 2022. IoT allows organizations to monitor
inventory, automate stock reordering and keep track of deliveries, all in real time. Sensors
can predict wear and tear on equipment, allowing timely ordering of spare parts. IoT
increases supply chain transparency.

8. Big Data Analytics and Supply Chain Logistics Coming Together

Big Data is here, thanks to the digitization of the supply chain, the growth in IoT, and the
greater availability of customer data. Companies today have access to enormous amounts of
data and are using this to generate business intelligence ranging from understanding past
performances to predicting future trends. Using Big Data, it's possible to determine customer
preferences and market trends, as well as redefine the supply chain.
9. Artificial Intelligence (AI) and Machine Learning

With greater access to Big Data, more organizations are turning to AI and machine learning
to simplify tasks and automate procedures. Gartner reports that in the four years to 2019,
there was a 270% increase in the number of organizations using artificial intelligence.
Predictive analytics and machine learning algorithms are being used to improve planning and
decision support systems, identify purchasing patterns, automate tedious warehousing
processes and manage inventory. Many organizations are using AI to replace humans performing
repetitive supply tasks and to perform complex supply chain calculations.

Answer to the Q-No: 09

Lean Supply Chain Management:

The lean supply chain is the traditional “factory” chain, which focuses on producing high
volume at low cost. The goal is to add value for customers by reducing the cost of goods and
lowering waste. This sort of supply chain management focuses on reliability and
predictability rather than on flexibility and adaptability. Production is planned months or
even years in advance rather than adapting to a changing market. This pre-planning helps to
find the lowest possible cost for large volumes of goods.

The lean supply chain has traditionally been the most popular form of production because it
focuses on reducing costs—and all consumers like to pay less. However, more and more
companies are moving away from a strictly lean model since today’s markets can change
overnight.

Agile Supply Chain Management

Agile Supply Chain is built to be highly flexible for the purpose of being able to quickly
adapt to changing situations. This methodology is considered important for organizations that
want to be able to adapt to unanticipated external economic changes, such as economic
swings, changes in technology, or changes to customer demand. Implementing an agile
supply chain allows organizations to quickly adjust their sourcing, logistics, and sales.
Agile vs Lean Supply Chain Management

Deciding whether to adopt a lean or agile supply chain strategy can often be as simple as
determining a product’s appeal, via basic market research, and establishing a supply chain
accordingly. However, the more successful supply chains come together when businesses
take a broader view of the market, taking into account wider economic factors that may
influence customer demand in the longer term.

The difference between lean and agile is the fluidity with response to the market. A lean
supply chain focuses on cutting costs by producing high volumes of products with low
variability. An agile supply chain focuses on responding to the market demand with smaller,
customizable batches of items. Often a lean supply chain is more cost-effective and
predictable, while an agile supply chain is more flexible and adaptable.

Answer to the Q-No: 10

Sustainability has increasingly become a growing concern for consumers, businesses,
governments and communities. In recent years, mounting regulatory pressures, scarcity of
natural resources, and increased population and urban growth have prompted companies to
remain competitive and continuously deliver new products and services in today’s
marketplace. There have also been increased levels of waste, and growing demands from
customers and stakeholders. Due to these issues, companies develop efficient and sustainable
supply chain operations to gain positive results and uncover monetary benefits.

The purpose of this study is to analyze various challenges and trends affecting the global
supply chain and logistics. The study recognizes several sustainable supply chain
management practices and initiatives and focuses on the economic, environmental and social
impacts. In addition, the study provides some key measures and recommendations for
organizations to adopt a sustainable supply chain operation. The findings were developed and
evaluated based on journal readings, literature review studies, textbooks and articles. The
unique synergies between sustainable supply chain versus traditional logistical and supply
chain practices have been instrumental by incorporating the triple-bottom line theory within
the organization’s logistics and supply chain operation. Companies must continually adapt to
change and anticipate unforeseeable current and future challenges. Sustainability will not
only support organizations to sustain their supply chain operations, but they will be able to
further sustain the world’s business environment for better living and economic prosperity.

Challenges in Logistics:

The logistics function plays a critical role in organization’s supply chain operations.
According to a research review titled Building Sustainability in Logistics Operations: A
Research Agenda, “Billons of products are in transit every day, transportation requires a large
amount of fossil fuels. The burning of these fossil fuels causes GHG emissions, such as
carbon dioxide that can have a major negative impact on environment and individual health”

Challenges and Trends of Sustainability:

There is an increased presence and growing evidence of organizations taking a practical

approach to integrate sustainability within their daily supply chain operations. Companies
that take the initiatives in developing innovative supply chain strategies and integrating
sustainability within their operations are more likely to stay ahead on supply chain
performance over a long period of time.

Obstacles for Sustainable Supply Chain:

Aside from the internal and external pressures, companies have also faced obstacles to
integrate sustainability within their daily supply chain operations. Internal obstacles are
considered resource costs, lack of knowledge, lack of training, lack of integration of
information technology (IT) systems, and poor organizational structure. Today, consumers
are endlessly seeking lower prices; however, the resource costs incurred to integrate
sustainability into the supply chain processes are generally expensive and not reasonable
enough to offer low selling price to their customers.

Logistics and Supply Chain Risks:

One major risk facing logistics and supply chain functions is supply disruption risk. Kim and
Chai (2017) define “supply disruption as unknown events that hinder the flow of materials in
the supply chain, thereby leading to various negative effects on the supply chain.”
Essentially, it is an unforeseen event that interferes with the normal flow of goods and
materials within the supply chain To help mitigate supply disruption risk, companies must
identify, assess and employ continuous improvement process within their global supply
chains. Failure to mitigate disruption in logistics and supply chain operations, will not only
cause loss of productivity and revenue. It is significant for supply chain managers to identify
the risks and their monetary impact because any disruptions in the global supply chain could
affect their operational, financial and supply chain performances. Analyzing the risks will
allow companies to make well informed decisions with respect to the environment.

Answer to the Q-No: 11

Reverse Logistics:

Reverse logistics stands for all operations related to the reuse of products and materials. It 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 value or proper disposal.
More precisely, reverse logistics is the process of moving goods from their typical final
destination for the purpose of capturing value, or proper disposal.

Remanufacturing and refurbishing activities also may be included in the definition of reverse
logistics.” The reverse logistics process includes the management and the sale of surplus as
well as returned equipment and machines from the hardware leasing business. Normally,
logistics deal with events that bring the product towards the customer. In the case of reverse
logistics, the resource goes at least one step back in the supply chain. For instance, goods
move from the customer to the distributor or to the manufacturer. Consumers have come to
expect no-fuss return policies; that's why returns on e-commerce orders are three to four
times higher than brick and mortar purchases, according to the Reverse Logistics Association.
That means reverse logistics is a fact of life for most companies.
Reverse supply chain management (RSCM) is defined as the effective implementation of the
series of activities involved in collecting a product from any stage of the forward supply
chain to either dispose it or recover value. In reverse supply chain, there are a sequence of
steps required to pick up the used product and to carry out the most suitable product
disposition strategy like reuse, remanufacturing and/or recycling. The reverse supply chain
initiates with accumulation of products from different stages of supply chain which includes
firms as well as customers. These members of supply chain are generally widely dispersed
geographically. From a broader perspective, when the forward and reverse supply chains are
combined, it forms a closed loop supply chain. Reverse Logistics is a part of such reverse
supply chains. Product Disposition alternatives in a Reverse Supply Chain There are a wide
array of products, which in the forward supply chain reach at the end of their supply chain
before even reaching the consumer.

Answer to the Q-No: 12

An emission is something that's been released or emitted into the world. Car exhaust, burps,
and radio broadcasts are all examples of emissions. Technically, an emission is anything
that's been released out into the open.

Direct measurements of greenhouse gases emissions are not possible. Assessments are
therefore using precise theoretical calculations for each sectors. They are called “emission
factors” and are regularly updated. Trying to quantify emissions related to a given activity
requires consideration of complete life-cycles. That means counting emissions from all
related activities, raw materials, transformed products and necessary infrastructure (indirect
emissions). Naturally, one has to stop imputing indirect emissions to the evaluated activity at
some point. This will depend on the working branch and on the assessment methodology
used.

New York agriculture has the capacity to mitigate its own greenhouse gas emissions, two
Cornell researchers say in a state-funded report commissioned by the New York State
Department of Agriculture and Markets.“It’s not commonly known, but methane and nitrous
oxide account for 75% of agricultural emissions,” Wightman said, noting that methane is 84
times more potent than carbon dioxide as a GHG, and nitrous oxide is 264 times more potent,
making them important mitigation targets.

Answer to the Q-No: 13

The term sustainable or green supply chain refers to the idea of integrating sustainable
environmental processes into the traditional supply chain. This can include processes such as
supplier selection and purchasing material, product design, product manufacturing and
assembling, distribution and end-of-life management. Instead of mitigating harmful impact of
business and supply chain operations, green supply chain involves value addition and/or
value creation through the operations of whole chain. Undeniably, reducing air, water and
waste pollution is the main goal of green supply chain, while green operations also enhance
firms’ performance in terms of less waste manufacturing, reuse and recycling of products,
reduction in manufacturing costs, greater efficiency of assets, positive image building, and
greater customer satisfaction. Figure 1 displays a green supply chain of child’s crib
manufacturer as an example.

Figure 1. Green supply chain of child’s crib manufacturer

Green supply chain makes the applications of the key sustainable development strategy
outstand. It emphasizes how green practices can be adopted in firms to mitigate the

environmental degradations and increase the economic and operational performance of firms,
while Figure 2 illustrates a simple model of green supply chain. Khan et al. have explained
the concepts of sustainable and green supply chain management
 Figure 2 :- Simple model of GSCM

Application of environmental management principles to the entire set of activities across the
whole customer order cycle, including, design, procurement, manufacturing and assembly,
packaging, logistics and distribution. Integrating environmental thinking into supply chain
management, including ecological design of products, purchasing green materials and
components, reengineering of manufacturing steps towards eco-friendly, reverse logistics
management of the product after its useful life. Integrating environmental consideration onto
firms’ supply chain including reverse logistics.

Reducing and controlling the harmful impacts of supply chain on the environment. Adoption
of ecological design, sourcing green materials and chemicals, and provide green trainings to
employees under ethical leadership. Green supply chain are integrating eco-friendly concept
into supply chain management to improve environmental sustainability with different green
practices including, green purchasing, green distribution and warehousing, green
transportation with usage of bio-fuels, green manufacturing processes and the products’ end-
of-life management.
Recommendations:

1. Increasing environmental constraints due to global warming.

2. Corporate social responsibility.
3. Beneficial for organization.
4. Eco-friendly.
5. Increasing environmental awareness in stakeholders.
6. Evolving consumer and client demand.
7. Response to increasing fuel prices.

Answer to the Q-No: 14

Four aspects of eco-efficiency identified by Mollenkopf:

Eco-efficiency generates more value through technology and process changes whilst reducing
resource use and environmental impact throughout the product or service's life. Eco-
efficiency applies to all business aspects, from purchasing and production to marketing and
distribution. Linking environmental and economic performance, eco-efficiency is primarily a
management concept. Eco-efficiency differs from sustainability in that eco-efficiency does
not measure social aspects.

The WBCSD defines eco-efficiency as:

Eco-efficiency = Product or service value / Environmental influence

Implementing eco-efficiency measures gives businesses a greater understanding of their

activities and impacts as eco-efficiency requires the development of organizational, financial
and environmental profiles.

Making the concept of green growth operational for public policies requires a measurement
that would capture the pattern of the quality of economic growth over time. Without
indicators or a conceptual framework to guide policymakers, Green Growth as a paradigm
shift in policymaking would prove an elusive goal. To enable countries in the Asia-Pacific
region to improve the ecological efficiency of national, system-wide economic development
planning, the use of EEI has been identified as one of the key tools for measuring Green
Growth. EEI can be used to:

1. Measure the eco-efficiency of different sectors within the country.

2. Compare the eco-efficiency of economic growth of different countries.
3. Identify policy areas for improvement in achieving economic benefit.
4. Track trends in eco-efficiency over time.

The EEI shall strengthen the role of the public sector and provide it with policy formulation
tools to increase its influence on the pattern of economic growth of the countries in the region
on a national and sectoral system-wide level. The EEI is designed to capture the ecological
efficiency of growth by measuring the efficiency of economic activity both in terms of
consumption and production (resource-use) and its corresponding environmental impacts.

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