Question

List and describe the seven principles of Supply Chain Management.

List and describe the four R's of sustainability. How can the R's become a value stream for the company to increase profitability?

Answer 1

The seven principals of Supply Chain Management are:-

Principal 1- Segement customers based on the service needs of distinct groups and adapt the supply chain to serve these segements profitably.

Principal 2- Customize the logistics network to the service requirements and profitability of customer segements.

Principla 3- Listen to market signals and align demand planning accordingly across the supply chain, ensuring consistent forecasts and optimal resource allocation.

Principal 4- Differentiate product closer to the customer and speed conversation across the supply chain.

Principal 5- Manage sources of supply strategically to reduce the total cost of owning materials and services.

Principlal 6- Develop a supply chain-wide technology strategy that supports multiple levels of decision making and gives clear view of the flow of products, services, and information.

Principal 7- Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently.

The four R's of sustainability are:-

Reduce: This means to use the environmental resources in a sustainable way and prevent the wastage. For example, using a bucket full of water instead of a shower while bathing.

Reuse: This means we can use the same thing many times. For example, using a polythene bag again for different purposes.

Recycle: This means things are processed and may get converted into some other product so that they can be used again. For example, paper is recycled.

Recover: This means a safe and eco-friendly alternative should be used in place of a thing. For example, using a clothing bag instead of a polythene bag.

For example, Smith & Vandiver Inc. of Watsonville, California, manufactures and distributes natural ingredient toiletries and body care products. To minimize packaging waste, it reuses boxes in which it has received shipments by recutting the cardboard into smaller cartons. its waste reduction program has enabled the company to reduce its inventory of shipper cartons, saving both stroage space and $20,000 a year in material costs.