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Sustainable Logistics and Supply Chain Management
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Sustainable
Logistics and
Supply Chain
Management
i
THIS PAGE IS INTENTIONALLY LEFT BLANK
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Second edition
Sustainable
Logistics and
Supply Chain
Management
Principles and practices for sustainable
operations and management
David B Grant, Alexander Trautrims
and Chee Yew Wong
iii
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the
material in this publication can be accepted by the editor, the publisher or the author.
First published in Great Britain and the United States in 2013 by Kogan Page Limited
Second edition published 2017
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographic reproduction in accordance with the terms
and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be
sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street c/o Martin P Hill Consulting 4737/23 Ansari Road
London 122 W 27th St, 10th Floor Daryaganj
EC1V 3RS New York, NY 10001 New Delhi 110002
United Kingdom USA India
www.koganpage.com
© David B Grant, Alexander Trautrims and Chee Yew Wong, 2017
The right of David B Grant, Alexander Trautrims and Chee Yew Wong to be identified as the authors
of this work has been asserted by them in accordance with the Copyright, Designs and Patents
Act 1988.
ISBN 978 0 7494 7827 8
E-ISBN 978 0 7494 7828 5
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Names: Grant, David B., author. | Trautrims, Alexander, author. | Wong,
Chee Yew, author.
Title: Sustainable logistics and supply chain management : principles and
practices for sustainable operations and management / David B Grant,
Alexander Trautrims and Chee Yew Wong.
Description: Second Edition. | New York : Kogan Page Ltd, [2017] | Revised
edition of the authors’ Sustainable logistics and supply chain management,
2015. | Includes bibliographical references and index.
Identifiers: LCCN 2017001791 (print) | LCCN 2017004774 (ebook) |
ISBN 9780749478278 (pbk.) | ISBN 9780749478285 (ebook)
Subjects: LCSH: Business logistics. | Production management.
Classification: LCC HD38.5 .G694 2017 (print) | LCC HD38.5 (ebook) |
DDC 658.5–dc23
LC record available at https://lccn.loc.gov/2017001791
Typeset by Integra Software Services, Pondicherry
Print production managed by Jellyfish
Printed and bound by CPI Group (UK) Ltd, Croydon CR0 4YY
iv
CONTENTS
List of figures and tables ix
About the authors xi
Foreword by James R Stock xiii
Introduction 1
01 Logistics and supply chain management 8
David B Grant
The nature of logistics and supply chain management 8
Logistics and SCM trends affecting sustainability 12
Sustainable logistics and supply chains 22
Summary 33
References 34
02 Science of sustainability 37
David B Grant
Concepts of sustainability 37
Species and ecosystems 39
Energy 44
Industry 49
Food 53
Population and urban growth 57
Water 59
Summary 61
References 62
03 Freight transport 65
Alexander Trautrims
Impact of freight transport 65
Transport modes 67
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Strategies to reduce environmental impact of freight transport 73
Wider aspects of sustainability in freight transport 87
Summary 88
References 89
04 Sustainable warehousing 92
Alexander Trautrims
The environmental impact of warehouses 92
The roles and functions of warehouses 93
Warehouse location 95
Handling equipment 96
Assessing the impact 97
Reduction of environmental impact 101
Social dimension of sustainability in warehousing 110
Risks and vulnerability in warehousing 112
Summary 115
References 115
05 Product design, cleaner production and packaging 119
Chee Yew Wong
Background 119
Product design for environmental and sustainable logistics 121
Selection of materials 123
Cleaner production 129
Packaging for the environment 139
Sustainable consumption and logistics 143
Regulatory frameworks 146
Summary 151
References 152
06 Sustainable purchasing and procurement 155
Alexander Trautrims
The role of procurement in the supply chain 156
What is sustainable procurement? 158
Drivers and barriers for sustainable procurement 161
Contents
vii
Procurement frameworks 165
Sustainability labels and certifications 166
Lifecycle assessment 170
Comparing purchasing options 174
Summary 175
References 176
07 Reverse logistics and recycling 179
Chee Yew Wong
Background 179
Circular economy and regulations 181
Product recovery options 186
Reverse logistics 196
Recycling 201
Summary 207
References 207
08 Risk, resilience and corporate social responsibility 211
Chee Yew Wong
Background 211
Risk and resiliency in logistics and supply chains 212
Corporate social responsibility 228
Ethical framework and codes of conduct 235
Global and industrial initiatives 241
Summary 246
References 247
09 Sustainable logistics and supply chain management
strategy 251
David B Grant
Concepts of corporate strategy 251
Theoretical motivations underlying corporate and sustainable
strategy 256
Sustainable logistics and supply chain performance
measurement 261
Contents
viii
Environmental management systems 262
Lifecycle assessment 265
Assessing sustainable choices and initiatives 268
Summary 275
References 276
Index 279
Contents
list of figures
and tables
Figures
FIGURE 0.1 Chapter pathways in this book 4
FIGURE 1.1 A simplified supply chain 10
FIGURE 1.2 A hybrid lean and agile supply chain 18
FIGURE 3.1 CO2
e emissions by transport mode 69
FIGURE 3.2 Well-to-wheels greenhouse gases emissions for future
mid-size car 78
FIGURE 4.1 BREEAM weighting factors for new constructions 98
FIGURE 4.2 LEED weighting factors for new constructions 98
FIGURE 5.1 Design for environment 122
FIGURE 5.2 Cleaner production 130
FIGURE 6.1 Kraljic matrix 165
FIGURE 7.1 Hierarchy of waste management 183
FIGURE 7.2 Xerox’s closed-loop supply chain 192
FIGURE 7.3 Household recycling in the UK 204
FIGURE 8.1 Risk likelihood–impact graph 222
FIGURE 8.2 Risk management strategies 224
FIGURE 9.1 The ‘triple bottom line’ 259
FIGURE 9.2 Application of the 10 tenets, DAPSI(W)R(M) and bow-tie
techniques for environmental management 271
TABLES
TABLE 1.1 Four aspects of eco-efficiency and supply chain
initiatives 30
TABLE 2.1 Highest energy-consuming countries in 2015 48
TABLE 2.2 Lowest energy-consuming countries in 2015 48
TABLE 2.3 Comparison estimated gross domestic product (purchasing
power parity) in 2015 51
TABLE 2.4 World Bank logistics performance index 2016 52
ix
x List of Figures and Tables
TABLE 3.1 Comparison of greenhouse gas emissions by transport
mode 72
TABLE 5.1 List of common hazardous materials 124
TABLE 7.1 Collection schemes 190
TABLE 8.1 Types of logistics and supply chain risk 214
TABLE 8.2 Different types of corporate responsibilities 231
TABLE 9.1 Example of corporate strategy plans in
logistics and SCM 253
TABLE 9.2 Five key competencies for sustainability 258
About the authors
David B Grant is professor of logistics at Hull University Business School
and professor of supply chain management and social responsibility at
Hanken School of Economics, Helsinki. His recent visiting appointments
include the École Supérieure du Commerce Extérieur, Paris and Universidad
de los Andes, Bogotá as the Silla Corona Distinguished Visiting Professor.
David obtained his PhD from Edinburgh University and his thesis, which
investigated customer service, satisfaction and service quality in UK food
processing logistics, received the James Cooper Memorial Cup PhD Award
from the Chartered Institute of Logistics and Transport (UK). His research
interests include logistics customer service, satisfaction and service quality;
retail logistics; and reverse, closed-loop and sustainable logistics. David’s
business experience includes retail, corporate banking, technical design and
consulting, and recent applied research has investigated on-shelf availability
and out-of-stocks, total loss and waste in food retailing, forecasting and
obsolete inventory, service quality and fulfilment in internet retailing, and
consumer logistics. David has over 200 publications in various refereed
journals, books and conference proceedings and is on the editorial board of
many international journals. Recent books include Logistics Management
(Pearson) and Fashion Logistics (Kogan Page) with John Fernie.
Alexander Trautrims, BA (Hons), MSc, PGDip, PhD, is a lecturer in supply
chain and operations management at Nottingham University Business
School, UK. He also holds adjunct positions at Royal Holloway – University
of London, and Copenhagen Business School.
His current research focuses on ethical issues and compliance in supply
chains and the execution and implementation of responsible sourcing
solutions in procurement. He is working closely with UK businesses and
non-profit organizations on the implementation of the Modern Slavery
Act and is the supply chain lead in the University of Nottingham’s research
priority area for Rights and Justice.
He is a member of the Council of Supply Chain Management
Professionals (CSCMP), the Institute for Supply Management (ISM), the
Logistics Research Network (LRN) in the UK and the German Logistics
Association (BVL).
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xii
Chee Yew Wong is professor of supply chain management at Leeds
University Business School, UK. His doctoral thesis investigated the coordination of supply chain planning across a toy supply chain in Europe. He
teaches operations, logistics and supply chain management at undergraduate and postgraduate levels, and provides speeches, workshop facilitation
and consulting to supply chain companies. Research interests include supply
chain integration; sustainable supply chain management; reverse logistics;
global value chains; service operations; and third-party logistics service. He
has more than seven years’ business experience in engineering, production,
logistics sourcing and supply chain management in industries such as power,
beverages, food, toys, retail, grocery and manufacturing. Recent applied
research has investigated collaborative forecast and planning, centralization of warehouses, implementation of ERP systems, green practices in the
service and manufacturing sectors, and transfer of supply chain management knowledge to small and medium-size companies. Chee Yew Wong
has authored over 80 publications in various refereed journals, books and
conference proceedings and is on the editorial board of three international
academic journals. He is a member of the UK Logistics Research Network
(LRN) and European Operations Management Association (EurOMA).
About the Authors
Foreword
In recent years, the subject of sustainability has garnered increased attention
from individuals, companies and governments. Sustainability in sourcing;
sustainability in manufacturing; sustainability in distribution; sustainability in marketing and sales; and sustainability in consumption and product
disposition. There is not a single area of business that has not been impacted
in some way by climate change, product stewardship, trying to do more with
less, and improving energy consumption. The stakeholders of companies
are demanding that firms employ sustainable practices in their manufacturing, supply chains, supplier relations, human resources, and other corporate
responsibility efforts. For some firms, sustainability has become a requirement of doing business, whether that is in the B2B or B2C sectors. In today’s
omnichannel environment, sustainability has become a key initiative that is
important in a firm’s success, irrespective of whether the firm sells its products or services on the internet, through physical brick-and-mortar stores, or
a combination of both options.
The paradigm of the ‘Triple Bottom Line’ that includes people, planet
and profits, has become the watchword of many companies worldwide. And
rightfully so, inasmuch as all aspects of the triple bottom line are important, both to the present and future wellbeing of the planet, its people, and
the economies of the world. Logistics and supply chain management have
significant sustainability impacts on people, the planet, and profits. The
authors, in the second edition of their book, provide a good overview of the
subject matter relating to the various roles that logistics and supply chain
management play in the physical and fiscal health of individuals, companies
and governments. The authors do a good job of highlighting the importance
of sustainability. The book includes coverage of the major sustainability
aspects of logistics and supply chain management, including transportation,
warehousing, purchasing and procurement, product design, production, and
notably, reverse logistics. Writers often ignore the role of reverse logistics,
including product returns processing, in discussions of sustainability. To their
credit, the authors of Sustainable Logistics and Supply Chain Management:
Principles and practices for sustainable operations and management include
that discussion as one of the chapters of their book.
xiii
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The book can be used in the classes at all higher education levels, including both undergraduate and graduate courses. The book should be ‘student
friendly’, given the writing styles of the authors, its logistics and supply
chain sustainability coverage, and inclusion of highly topical mini case studies. The authors do an effective job in relating the theoretical concepts to
practice and what is actually happening ‘in the real world’. The book offers
excellent insights into logistics and supply chain sustainability that will
provide executives, students, and academics alike with information on how
to manage, implement and control sustainability programmes, policies and
procedures within companies. From a pedagogical perspective, this revised
edition includes valuable supporting online materials, including PowerPoint
presentations, chapter summaries, learning objectives, tips for teaching, and
in-class activities.
James R Stock
Fulbright-Hanken Distinguished Chair in Business and Economics,
Hanken School of Economics (Finland)
Distinguished University Professor and Frank Harvey Endowed Professor
of Marketing, University of South Florida (USA)
Foreword