Final Assessment

Name: Massab Ahmed Abbasi

ID: 1735193

Course Code & Name: BA 5432 – GSCM

Instructors Name: M. Jiyad Shaikh

Dated 09 September 2020

Question # 1:
You are hired as Chief Sustainability officer at KIA Lucky motors and your given the target to craft the
company’s sustainability roadmap as per below targets.

- Contingent valuation method (CVM)

- Hedonic pricing method (HPM)
- Material intensity per service unit (MIPS)
- Life cycle assessment (LCA)
- Sustainability reporting guidelines (SRG)
- Eco-efficiency analysis (ECOEFA)

Explain with examples all aforementioned points along with key strategy devised for each part to
ensure GSM implementation.

Contingent valuation method:

Contingent valuation is a method for estimating the value of benefits that do not have an established
monetary value. It utilizes surveys that ask people how much they would be willing to pay for specific
benefits. Conduct a survey to understand, how much of the community is concern about the
environment and climate change and willing to shift to toward vehicle that are environmental friendly
but have an extra add cost to it for example electric / hybrid vehicles. Although electric vehicle carries
less amount of mechanical component which would require minimum maintenance compare to
combustion engine.

Hedonic pricing method

Hedonic Pricing Method the amount a customer is willing to pay for a specific features that is being
offer in a product or service. Example Fuel efficient vehicle at an affordable price.

Material intensity per service unit

Using estimated amount of material require to produce products, processes and service. Using require
amount of material in order to minimize waste material or over using any material throughout the
production cycle. Example excluding plastic wrapping on vehicle settings.

Life cycle assessment

Life cycle assessment is assessing the whole life of a product from raw material to when finish good is
dispose of after it life has ended. Example to minimize the carbon foot print and save extra material
beaning used in production.

Sustainability reporting guidelines

Uniform reporting mechanism that make certain quality and applicability of sustainability reports.
Example sustainability reporting which is published on annual report give overview of the
achievements that it has made to efficient process that shows sustainability of the organization.

Eco-efficiency analysis

Allocates values for environmental and financial performance to each substitute to reduce them
comparable and plot an eco-efficiency portfolio and index chart.

Transporting vehicle in an eco-efficient manner that reduce the carbon footprint in regard to CO2
emissions.
Question # 2:
Reckitt & Benckiser is a fast-moving consumer goods (FMCG) company and planning to transform its
business from traditional procurement to green procurement. Share a step wise plan for this
transformation which you can suggest as a consultant.

(Not more than 200 words for Q2) (Total 07 marks)

First most important part of switching from traditional to Green procurement, is to have a plan, vision
and that which is aligned with other stake holder.

Step wise plan to move the business procurement from traditional to Green procurement. Analysis
the raw material being use for manufacturing, vendor selection criteria that is aligned with the Green
procurement. Reduce the amount of extra material being used in finishing of the product, in a way
that customer still buy the product and the profit margin is also achieved. The process of Green
procurement should not harm the environment from the raw material from finished good and after it
is being deposed of by consumer. Ideal solution would be to offer consumer discounts when they
return used bottle of RB cleaning product line. These bottle use bottle can be filled again or send back
to the supplier for recycling and reusing. This will reduce many carbon footprint, the bottle will not be
trashed but will be reused or remoulded as a new bottle. The drop off and collection points of the
bottle can be the distributer / wholesaler. This will not only have a positive impact the portfolio of the
organization but also a Green impart on the product image.

Question # 3:
You are working as Sustainability director at PEPSI Pakistan and your core job is to transform
conventional supply chain to green and sustainable supply chain. Discuss with examples
transformational plan along with the environmental footprints calculation and reduction plan in every
domain. Also share reverse logistics strategy for green supply chain implementation. Production is
critical for environmental sustainability challenges of current century.

(Not more than 250 words for Q3) (Total 10 marks)

In order to prosper is Green and sustainable supply chain the organization should think
outside the box and ultimately this will lead to designs that have no secondary data to back
by. Only count on quantitative data to assist the design making.
Pepsi to take essential steps to sustainably the source 01 Hundred percent of the palm oil and
sugar cane it buys.
Secondly increase the use of Glass bottle for all units in as they can be refill these bottle and
reuse them. This will reduce the use of plastic bottle which main component is fossil fuel and
has a small life span.
With the help of R&D and Chemical lab, Pepsi to focus on fountain Machines that are able to
provide the same taste as the bottle Pepsi does. This will reduce the carbon footprint in
regards to transportation cost, easily accessible of the product without the hassle of
refrigerator having a positive impact on less use of electricity to cool the drinks.
Selection criteria of distributer to be made on the facts the vehicle line up to have maximum
of 02 years of used life not more, hybrid vehicle to be 25% of the line-up. With the capability
of having efficient transportation rout for collection and distribution of all Pepsi products.

Question # 4:
List down all green practices used in transportation and distribution and how it impacts on following
aspects

a) Total energy consumption

b) Greenhouse gasses (GHG) emissions
c) Carbon footprint reduction

(Not more than 100 words for each part a, b and c) (Total 06 marks)

Total energy consumption:

The amount of energy used to transport goods from point A to point B, and make use when it return
from point B to Point A it is loaded in order to fully consume full energy.

Greenhouse gasses emissions

It is estimated the most of the Greenhouse gas is caused by Road transportation alone and rest by
sea, air and train combine is 20% of transportation.

Carbon footprint reduction.

In order to reduce the carbon foot print, full utilization of resources should be made possible in
order to reduce the carbon footprint.

Question # 5:
You are hired by Unilever Pakistan to revamp their packaging from conventional to “Green
Packaging”. Share your roadmap for following targets set by company for implementation by exit
2021.

- Post-consumer recycled bottles (PCR)

- Recyclable packaging
- Hazardous and carcinogenic packaging elimination
- Laminates recycling
- Packaging rationalization.

Assume hypothetical numbers where necessary.

(Not more than 120 words for each part) (Total 06 marks)

Post-consumer recycled bottles (PCR)

Make all plastic packaging reusable, compostable or recyclable by the year end 2021, starting with
shampoo bottle and taking one product at a time to convert all the bottle to recyclable.
Recyclable packaging

Plastic is an integral part of our society can’t live without it. Environment has no space for plastic
where as it have significance important to the economy. Plastic with the composition to recyclable,
reusable and even poses the ability to be compostable.

Hazardous and carcinogenic packaging elimination

Shift the products that have hazardous and or carcinogenic packing to packaging that efficient to the
Green supply chain model. Stating will lotions fairness creams.

Laminates recycling

Use of aluminium for laminate packing which will allow the laminates packing to be recycled. Shampoo
sachet are wildly used in Asian countries, with litter awareness in regards to recycling process and
analysis the outcome before implementing on the all the product line up by the conclusion of 2021.

Packaging rationalization

Packaging rationalization from Unilever perspective, would be to have same stander packing allows to
benefit from economies of scale. By producing larger numbers of a smaller range of boxes, cartons or
cases, the unit cost can be reduced. Same packing material won’t require additional space and
allowing to manage small inventory that will same time and space.