Sustainable Supply Chain Management: A New Zealand Perspective

Transcription

1 Sustainable Supply Chain Management: A New Zealand Perspective PhD Project: Supervisor: Hendrik Reefke David Sundaram

2 Agenda What is the research about? Why is it worth researching? Interaction with YOU! What will be done? What will be achieved?

3 Business Pressures Employees Investors Active Ask for superior returns Mobility Scarcity of talent Customers Society Image can change quickly Public opinion also Partners Source: SAP AG Less loyal Price transparency Greater choice Your Company New competitors Mergers and Acquisitions

4 What is Sustainability? Economic + Environmental Social Problems? Economic Performance Economic + Social Environmental Costs? Sustainability Environmental Performance Social Performance Elkington, 1998, McIntyre, 2007, Kleindorfer, Singhal, & Van Wassenhove, 2005, Jayaraman, Klassen, & Linton, 2007, Lye, Lee, & Khoo, 2001, Zhu & Sarkis, 2006 Environmental + Social Business Survival?

5 Practical Motivation Why buy good X from far-away country Y when you could buy something similar that is produced locally and thus reduce your food miles? (NZIER, 2009) Given the potential economic impact of changes in buyers behaviour due to sustainability concerns, New Zealand exporters will need to continue to invest in demonstrating the sustainability of their products. (The National Business Review, 2009) Nearly 55% of New Zealand s merchandise exports are related to food and beverages. (Statistics New Zealand, 2008) Wal-Mart, the world's largest retailer, plans to demand that all its suppliers measure the environmental cost of their products so Wal-Mart can calculate and post an eco-rating for each item (NZ Herald, July 22, 2009)

6 Research Motivation Example: Fresh NZ Fish Export to US Fisheries Air Transport Consumer Road Transport Distributor E c o n o m i c a l E n v i r o n m e n t a l S o c i a l Skilling, 2007, The New Zealand Institute, 2007

7 Research Areas Sustainability in SCM SCM for Sustainable Operations SCM for Sustainable Products Sustainable Manufacturing Transportation & Distribution Waste Management Reverse Logistics Product Life Cycle Assessment Sustainable Product Design Re- Manufacturing Strategic Tactical Reduction Product Recovery Production Design for Disassembly Operational Integration of Product Design Reverse Networks Supply Network Planning Prevention Inspection and Handling Usage Design for Waste Minimisation Planning Production Planning Forward Networks Recycling Disposal Design for Recycling Scheduling Waste Reduction & Recycling Disposal Design for Regulations Execution Inventory Management Health Hazards Human Rights & Work Conditions (Seuring & Müller, 2008; Seuring, 2007; Srivastava, 2000; Carter and Rogers, 2008)

8 Research Areas Monitor Supply Chain Management Strategic Network Design Tactical Supply Network Planning Demand Planning Operational Scheduling Purchasing Production Planning & Detailed Scheduling Distribution Planning & Deployment Transportation Planning & Vehicle Scheduling BUY MAKE STORE MOVE SELL (SAP AG Supply Chain Management)

9 Research Problems Coordination of three dimensions How to measure performance levels Difficulty to identify boundaries Timeframe of observations Quantitative measures Economic focus Qualitative measures Method of measurement Different sectors / industries Different countries / cultures

10 CSCM Involvement What are sustainable SCs? What are the barriers? What are the enablers? What should be measured? How are these measures interrelated? Roadmap towards sustainable SCs

11 Delphi Study Round 1 Identify issues/aspects for SSCM in NZ: Pressures & Incentives Impact on/of SSCM Round 2 Evaluation: Ranking Comparison Round 3 Refinement Contrasting Explanations Further Interviews

12 Expected Artefacts 1. Dimensions Define each dimension in the SSC context 2. Models Build theoretical models of interaction 3. Measures Construct KPIs which measure performance levels 4. Instruments Build framework which can be used as a practical instrument 5. Prescription Develop applicable strategies which enable companies to evaluate and re-design their processes

13 Tiers: Raw Material Components and Parts Assembly and Final Production Consumers Intermediate Customers End-Customer Supply Chain Members P R O C E S S E S Sustainability Dimensions & Levels Dimensions: Economic, Social Environmental Levels: Ecological Individual Organizational Political-Economic Social-Cultural INPUTS SSCM Strategy OUTPUTS Distribution Network Configuration Inventory Control Supply Contracts Distribution Strategies Strategic Partnerships Outsourcing and Procurement Product Design Information Technology Customer Value Supply Chain Management F E E D B A C K Stakeholders Rule-Makers and Watchdogs Idea Generators and Opinion Leaders Business Partners and Competitors Consumers and Community Investors and Risk Assessors

14 Questions