Supply Chain Management Argumentative Essay
Introduction – Supply Chain Management
Supply Chain Management is process of managing and developing both way relationships with the customers and the suppliers to deliver the needs, wants and customers value at low cost and environmental free to the supply chain.Christopher (1998)
Abstract of Coursework
The coursework considers Toyota Motor European sustainable green logistics as an idea can be used as element of supply chain approach.The main objective of logistics is to manage activities in such a way that meets consumer requirements at least amount.
As fear for the atmosphere rises, companies must take more account of the logistics associated with climate change, air contamination and.
Hitchcock and Willard (2008), Sustainability is a business development and many organizations are pursuing it, in order to get more success than others. This coursework considers importance of create a plan to practice sustainability inside logistic of companies. The most central strategy is logistics development because includes all aspects concerned is characterization of the strategy involves the supply, production, distribution and reaches final client.
In above all we are concerned in techniques that consider both financial (gold) and ecological (green) criteria at the same time.
Logistics & Green Logistics
Logistics is the included organization of all the activities mandatory to move products through the deliver chain. For a representative product this supply chain extends from a raw material starting place through the production and distribution structure to the end of consumption and the linked reverse logistics. The logistical activities consist of freight transport, storage space, inventory management, resources handling and all the related information dealing out.
The Green or Sustainable Supply Chain is a method which is looking to reduce a product or service’s ecological track (BearingPoint 2008). The idea covers all the phases of a product’s life cycle, from the taking out of raw materials through the design, manufacture and delivery phases, to the use of the product by customers and their ultimate disposal of same. (Rodrique JP 2001)
It means a practice to define strategy from a value generate, because requires account reduced consumption of raw materials and release, lucidity levels, social and green responsibility, expansion of new technologies and gather the needs of the marketplace and the society in which it operates. This provides a set of activities in the supply chain and value. Hitchcock e Willard (2008).
Components of Logistics
The most common components of the logistics are
Infrastructure and resources
Logistic services hold the movement of materials and products from input from side to side production to customers as well as linked waste discarding and reverse flows. Most activities of logistics services are two way directional.
It includes modelling and administration of decision making and important issues are tracking and tracing. It provides essential data and discussion in each step of the interaction among logistic services and the objective stations
Infrastructure and Resources
Infrastructure comprises human resources, economic resources, wrapping materials, warehouse, transport and communication.
Case Study – Toyota Motor European (TME) Sustainable Logistics
Abstract – Toyota Motor European Case Study
Toyota stress changes from acceptance of tools such as Lean Thinking, especially in logistics processes. In terms of sustainable logistics, corporation focuses on greater elasticity in transport operations, specifically in Toyota Motor European, since the transportation sector is responsible for upsetting the environment, being the main cause of CO2 emissions.
Methodology for Designing & Implementing Green Logistics
In this focus, to companies build up new sustainable strategies that means changes and results to the company, by environment, communal and financial benefits. Toyota motors follow the following strategy to implement green sustainable logistics
Revolutionary environmental technologies such as hybrid (petrol and electric) drive systems
Developing a extended range of vehicles motorized by fuel efficient gasoline and cleans diesel engines
Reducing the environmental contact of all their operations
Minimizing the natural resources used in manufacture and maximizing recycling and reuse
Work with local communities to improve the quality of the environment.
The need for these investments is established in recent study by the International Panel Climate Change (IPCC, 2009), as well as the sustainability story of Toyota Motor Europe, which shows that nearly a quarter of CO2 emissions in the world comes from haulage activities, where it is found that eighty per cent of production come from cars.
Therefore, TME monitors the efficiency of their logistics operations and methods continually to make sure the most excellent solutions are being used at all times to diminish such problems.
Sustainable Logistics in Accessories Services
In 2004, Toyota began to measure the collective data of CO2 emissions to spot areas where it can make discharge reductions. To share services and accessories logistics, such achievement resulted in improvements in effectiveness and capacity and haulage modes.
Increased extra-large trailers use, which allowed carrying bigger capacity by lorry;
Alter the route to fast supply parts
This point of view of Toyota shows the sustainable background is predictable in companies and is the foundation of their concerns about the green and social resources. Thus, the structure shaped is necessary to hold up the change and take delivery of the sustainable logistics approach.
It is the way to companies become sustainable and creates value to customers. The TME approach to sustainability of three key aspects: environment, finances and social, represents the live out plan in companies, to get costs and resources decrease, and competitiveness.
It is essential to think about expenses and aggressive to work on sustainable logistics, by optimizing the use of resources, such as the reduction of energy utilization and waste.
In logistics, the total cost associated with the inventory consists of the following
Cost connected with inventory as received stock level
Risk costs, consisting of price associated with deterioration and damage
Cost related with scrap and revise
Cost associated with deficiency of inventory.
Reducing the social cost in transport operations by sustainable
A factor to be well thought-out is the social and green cost of transport process. Breaks down the accomplishment of measures to reduce the social costs of freight transport in a widespread way as part of cost logistically to the goals of fewer impacts to the public.
The sustainable green logistics is attitude trade management that stays in understanding of this is a complex perception, multidimensional, that cannot be functional by a single corporate action and the creation of sustainable value requires that we take into account one of the drivers, either by sinking the utilization of raw materials and pollution, control with broader levels of precision and responsibility, expansion new technologies and meet the needs of those who are in the bottom of the pyramid of planet earnings.
A sustainability strategy should not only lead the activities growth and skills but also a form of business association with suppliers, customers, vendors, shareholders and stakeholders.
By the illustration of Toyota Motor European (TM E), sustainable logistics means the upgrading performance of all logistics operations, in a trade environment of rapid growth. This conception includes the supply chain management, manufacture process, stakeholders and cores. It can be concluded that sustainable green logistics makes it uncomplicated pro-active monitoring of the administration of waste in processes, which are key to achieving a high level of sustainable routine in transport operations. Thus, Toyota is a big example, to show that how to implement sustainable logistics, in your manufacture processes, that includes environment, finances and societal costs and possessions, involved by a effort system care with environment, public, business and chain as a part of one organization.
BearingPoint (2008) Supply Chain Monitor “How mature is the Green Supply Chain?”
Christopher, M. (1998) Logistics and Supply Chain Management.
Hitchcock. D, Willard .M. (2008), The step-by-step guide to sustainability planning.
IPCC (2009). International Panel Climate Change.
Liker, J. K.Meier (2007), D. Toyota Talent. New York: M cGraw-Hill 2007.
Rodrique, J.P, Slack(2001), Green Logistics.