Case: The Green Team Overview Your Subs of Naperville, Illinois is attempting to become more environmentally friendly. They hope to qualify for government tax credits rewarding environmentally conscious companies. At present, the company has daily deliveries to their retail stores to ensure their products are fresh. Carry out food purchases by their customers are normally done in plastic containers and bags. Food related products are purchased from large distributors and producers who are generally located long distances from their stores.
The core of their distribution system is never being out of stock of an item. The CEO, Jean Berliner, is aware of the emphasis by the federal governments to reward environmentally conscious companies with tax credits, especially in environmentally troubles cities. She has planned for a pilot program to be started in the Midwest. To implement this plan she has appointed Lauren Weber, director of sustainability, to head what she refers to as the “Green Team”. The Green Team consists of Tracy Shannon, principal with SCAR, LLC, and Emily Here, director of reduce and social responsibility for Your Subs.
In order not Just to pay lip service to a sustainability action program, the team has decided to meet the Green Standard for Fast Food Chains. The have come up with several initiatives in order to get the ball rolling: Procure produce locally Bake bread on site Reduce miles the inbound products are shipped Collaborate with suppliers to reduce packaging and transport miles Re-evaluate inventory strategies Use of local grown produce helps to sustain local businesses and farmers.
It will educe the company’s expenditures by reducing fuel cost in regards to long distant deliveries. Reduction of fuel will also reduce air pollution due to truck emissions. Baking bread on site reduces supply deliveries and allows better tracking of inventory. It will ensure quality control. Reducing the miles of inbound products are shipped saves the company money on freight charges. Switching to recyclable packing is better for the environment. They can reduce amount of produce in stock without sacrificing supply on demand.
Use of local producers leaves the business open to local changes in weather, items which are seasonal only, and fewer options in the event of catastrophic disruptions in the training of staff members, diverting them from assigned Jobs and increasing the cost of labor per store. Using local distributors may cost more than using national firms who are able to provide services in volume for a discount and could reduce the number of deliveries per day among other options. Using recyclable materials for packaging may increase costs if the materials chosen are more expensive.
Using local producers of produce may subject the business to unforeseen weather notations, crop failures, or other catastrophes. To bolster these measures, The Green Team may consider the following: A contingency plan to obtain produce from other sources in the event of catastrophe. Day old bread could be donated to local shelters, food pantries, etc. They can go organic, reducing the incidence of pesticides in the growing process and the environment. Utensils and paper goods can be made from recyclable materials. A recycling program within the stores with recycling bins available for the customers and the employees.
Case Questions 1. You have been asked by the Green Team to critique their pilot program, pointing out strengths and weaknesses as well as the addition of the new initiatives for them to consider. Using local produce helps to maintain Jobs for local farmers and producers. It creates a stronger feel of community resulting in greater brand loyalty. It reduces exhaust emissions and results in savings for the company. Baking bread on-site helps to reduce supply deliveries and allows greater tracking and control of this portion of the inventory. It also ensures greater quality control by avian access to the ingredients.
The production of fresh bread can also contribute to customer loyalty. Reducing the amount of miles needed for deliveries will save the company on freight charges. It will also reduce emissions from vehicle exhaust, helping the ecology. Reducing packaging, with recyclable or reusable bags for carrying out purchases, and bio-degradable packaging for inventory storage and purchased items. Reducing the amount of items in stock can allow the business to continue the supply on demand strategy since additional produce can be delivered in short order wrought local suppliers.
The use of locally supplied produce can, however, result in leaving the business open to supply disruption due to severe weather, seasonal produce items, and crop damage or total failure. On-site baking of bread does require the hiring of skilled bakers who can keep up qualify for food preparation. Contracting with local distributors may cost the company more than using national firms, as the national carriers are often able to provide discounts for volume users of their services. It could also result in a decrease of the number of deliveries ere day and the times of deliveries available without incurring extra fees.
Recyclable items used for packaging could also increase business costs if the materials chosen are more expensive than those currently being used. If customers demand a variety of packaging items to choose from, Your might have to order, have shipped, and store several different types of packaging materials. Inventory tracking and could be negatively affected by utilization of local suppliers only. A variety of factors, such as crop failures, emergency weather conditions, and death or illness in the families of smaller suppliers, among others, could Jeopardize the supply on demand strategy.
Other suggestions to those offered by the Green Team include a plan to supplement the local suppliers in the supply chain in the event of a catastrophe by using a few long-distance suppliers and distributors; this would keep the stores from being out of stock when the produce is needed without becoming overstocked. The stores could provide day-old bread and produce to local shelters and food pantries. This would help the environment and the community at the same time.
By so doing, discarded food does not end up in a landfill, which helps the environment, and gives access to food to people who may be homeless or in a food desert with no grocery store within walking distance. And by going organic, pesticides which may end up in our water resources are eliminated; farmers who grow organically are supported. Paper items and utensils can be made from recyclable materials, and recycling bins can be made available in each store, available to the employees and to the customers. These measures would contribute to waste in landfills and a cleaner environment.