Logistics Planning and System Design for Subway

Logistics Planning and System Design
Name:
Institution:
Course:
Tutor:
Date:
Logistics Planning and System Design
Is Subway's effort aimed at "greening" the supply chain compatible with "bottom line" objectives? Explain
Yes. Indeed, Subway's strategic logistics planning efforts in "greening" the supply chain are compatible with the "bottom line" objectives. With this regard, the company decided to do away with inefficiency and waste in several areas: waste reduction; energy efficiency; food safety and resource conservation (Fitzgerald, Tim & Elizabeth, 2009). For instance, by focusing on green transportation and logistics strategy, the company has been able to reduce its carbon emission significantly over the past three years. This has been achieved through a number of efforts that have been made by the company. Firstly, in accordance to the motto of the company, "Eat Fresh", the company procures its raw materials from local suppliers. This is advantageous to the company in that it reduces transportation costs, reduces handling procedures, and hence reduces energy consumption (Fitzgerald, Tim &Elizabeth, 2009).
Moreover, procuring materials from local supplies not only reduces transportation costs but also provide its customers with freshest products. Thus, this is one way of attracting and retaining a large client base and consequently achieving its "bottom line" objective: making more profit. According to Fitzgerald, Tim and Elizabeth (2009), the company had traditionally focused on its corporate responsibility and increasing customer awareness, all of which are aimed at increasing the client base and consequently the profit margin. On its broader green logistics in its supply chain, the company intends to more suppliers to be situate their plants locally. Localizing the supplier base will result to the company's reduced transportation costs, energy consumption and consequently a reduction on its carbon emissions. According to Fitzgerald, Tim & Elizabeth (2009), localizing the supplier base is one of the company's long-term objectives of reducing green house gas emissions by 25 percent. This is due to the fact that once the suppliers are localized; they will cause less carbon emissions during the shipping process.
Describe the major logistics strategies and tactics associated with Subway's approach for aligning logistics operations with environmental initiatives.
Subway has employed a number of logistics tactics and strategies aimed at aligning logistics operations with environmental initiatives. Fitzgerald, Tim and Elizabeth (2009), informs that the green logistics tactics and strategies that Subway has employed are in its best practices: improving asset utilization, reducing mileage, and optimizing service levels. For instance, on reducing miles, Subway focused on its purchasing and logistics due to the fact that the company outsou...