Logistics Planning and System Design

Log 490 Mod 5 Logistics Planning and System Design
Name:
Institution:
Course Title:
Instructor:
Date:
Is Subway’s effort aimed at “greening” the supply chain compatible with “bottom line” objectives? (Explain.)
Subway’s efforts aimed at “greening” the supply chain are indeed compatible with “bottom line” objectives in various aspects. First, it is worth noting that Subway decided to eliminate both inefficiency and waste from its system in four major areas: food safety, waste reduction, resource conservation and energy efficiency. In this regard, the company has reduced its carbon footprint significantly. This is a positive move towards reducing environmental pollution which can cause climate change and global warming. In the same line, the company has also reduced its energy consumption significantly. This means that less energy is consumed and thus fewer costs are incurred. The cost saving from energy consumption can be enjoyed by the company as profits.
In addition, the Subway also embraces corporate social responsibility. This will in turn enhance the company’s corporate image and consequently resulting in a large client base. This large client base coupled with the increasing customer awareness will facilitate the company to gain huge profits. The corporate social responsibility will ensure social sustainability which will in turn result in economic sustainability in terms of huge profits. Moreover, the company procures its products locally and this move is aimed at greening the supply chain while at the same time being compatible with the bottom line objectives. This is because procuring the products locally not only delivers the freshest goods to its clients but also needs less handling, and less transport. This is advantageous to the company in two aspects. One, less handling of the products means less costs and thus savings. Two, less transport implies lest costs and less energy consumptions. This is compatible to the bottom line.
Describe the major logistics strategies and tactics associated with Subway’s approach for aligning logistics operations with environmental initiatives.
Subway has utilized various logistics strategies and tactics in its approach for aligning logistics operations with environmental initiatives. First, the motto of the company, “Eat Fresh” is one of the strategies that the company has employed in its effort to align logistic operations with the environment. The motto requires the company to procure its products locally so that the customers can get the freshest products. This same strategy has enabled the company to save on energy consumption. In addition, the strategy will also help in cutting down its carbon fo...