LOGISTICS & SUPPLY
CHAIN MANAGEMENT
ASSIGNMENT
Mentor- Ms.Neha
KSHITIJ GIRI
BBA018063 IB
Case study - LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Gucci the world’s leading brand has voluntarily launched its worldwide eco-
friendly program, to reduce the dependence on materials and use 100%
recycled paper in packaging.
This 90 yr. old company, during its 90th anniversary in 2011 has taken this
important action towards environmental responsibility. The shopping bag is
100% recyclable and forest stewardship council (FSC) certified. FSC certificate
verify that all trees used to create paper bags and boxes come from managed
forests.
All stages in production process compile to FSC standards. In addition, Gucci is
also rationalising its packaging to limit its excess, e.g., shoes will be packed in
one flannel instead of two, gift boxes will only be given out only when
requested. All mannequins will be replaced by 100% recycled materials. Gucci
took a leadership position in industry by voluntarily initiating the process of
certification of CSR.
Q1) state the facts and analysis the above case ?
Ans :- Gucci took a major step in the industry to go with recyclable material
which will help company and save a huge amount of its money from producing
extra bags.
2. This step will make a Gucci a leader in “Go Green” initiative which many
companies lacked behind.
3. Getting Certified by FSC will improve the Gucci increase it’s sales.
4.Gucci didn’t take only the first step towards but also proved that with long
history of existence they can survive in the different environments.
5.It will also convince other Brands and as well as its consumers to use
recyclable items.
Q2) what are the advantages and disadvantages of green logistics?
Ans :- Advantages-
Less waste :-
By going green, your workplace can become a far healthier environment. This
can have a significant impact on man hours and result in a decrease in sick
leave taken by staff.
A healthier work place :-
By simply encouraging staff not to print emails and other documents
unnecessarily, significant savings can be made on printing and paper costs.
Consumer demand :-
Many consumers are demanding green products and services throughout the
world. This can be used to your advantage by ensuring the products/services
your organization provides are indeed green.
Good Public reputation :-
Other than saving money, going green has more implications for your
organization. One of these is the fact that an organization’s reputation
improves in the eye of the general public.
Disadvantages
Going green takes time
As a well-established company, choosing to turn green is not something that
will happen overnight. In fact, it can take some time to implement across the
board.
Initial costs can be high
Although going green is not a new concept, much of the technology associated
with it is fairly new and certainly more expensive than conventional
technology.
High cost of products
Often, choosing green products over conventional ones will result in more
money being spent.
Q3) what is green logistics? how does green logistics helps and international
brands like Gucci to sustain in global market?
Ans - Green logistics includes a company’s effort of lowering emissions,
implementing more sustainable operations processes and reducing
environmental pollution. Also, there is a variety of solutions that companies
can apply to be greener, from simple to very advanced, progressive actions.
The environmental issues in the world are only getting worse. So, it is now
more important than ever for companies to get involved.
Gucci’s commitment to green logistics which helps them to sustain in
international market-:
1.we adopt solutions which rationalise and minimise energy consumption,
the release of substances harmful to the environment and to humans, water
consumption and waste production in our shops, offices, warehouses,
manufacturing plants and distribution and logistics networks;
2. for our facilities and premises, we evaluate the adoption of design and
construction criteria and standards aimed at improving energy efficiency and
reducing the impact on the environment
3. we promote the use of sustainable packaging by reducing the quantities
used, promoting the re-use of materials and the use of raw materials from
sustainable sources; throughout our supply chain we promote the ethical
treatment of animals, eschewing any animal testing and refusing to deal with
suppliers or sub-contractors who act cruelly and/or endanger the life and/or
the welfare of animals.
4.we direct our research and development towards reducing the
environmental impact caused by the production/use/end of life of our
articles or we create new eco-friendly products; through investment in
research and development and through collaboration with the supply chain
and/or research organisations, we promote the use of materials from
sustainable sources, or materials whose production/extraction/ processing
has a reduced impact on biodiversity, ecosystems, climate change and soil
conservation.
Q4) how IT help to achieve logistical objective?
Streamlining—Communicate and collaborate more effectively with suppliers
worldwide.
Analyzing —Analyze your supply chain and manufacturing options and choose
the plan that makes best use of your assets.
Synchronizing—Synchronize the flow of your batch production by managing
the capacity of vessels, tanks, and lines-and the flow between them.
Communicating—Improve your communication and collaboration with
suppliers worldwide.
Designing—Create the optimal supply chain network and adapt the network to
keep pace with changes in your business.
Transforming—Transform processes inside the warehouse and across the
supply chain to meet demands for new efficiencies.
Understanding—Get a better understanding of your warehouse labor activities
and implement the changes you need to optimize worker performance.
Maximizing—Maximize warehouse profits by using advanced costing, billing,
and invoicing capabilities.
Optimizing—Optimize your day-to-day fleet performance to reduce costs and
improve customer satisfaction.
