Sustainable Supply Chain Management: A New Zealand Perspective
PhD Project: Hendrik Reefke
Supervisor: David Sundaram
Agenda
What is the research about?
Why is it worth researching?
Interaction with YOU!
What will be done?
What will be achieved?
Partners
Society
Employees
Investors
Customers
Your Company
Active
Ask for superior returns
Image can change
quickly
Public opinion also
New competitors
Mergers and Acquisitions
Less loyal
Price transparency
Greater choice
Mobility
Scarcity of talent
Business Pressures
Source: SAP AG
Economic Performance
Sustain-ability
Economic + Social
Environmental Costs?
Economic + Environmental Social Problems?
Environmental + Social Business Survival?
What is Sustainability?
Elkington, 1998, McIntyre, 2007, Kleindorfer, Singhal, & Van Wassenhove, 2005 , Jayaraman, Klassen, & Linton, 2007, Lye, Lee, & Khoo, 2001, Zhu & Sarkis, 2006
Environmental Performance
Social Performance
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)
Research Motivation
Example: Fresh NZ Fish Export to US
Fisheries Air Transport
Consumer
DistributorRoadTransport
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Skilling, 2007 , The New Zealand Institute, 2007
Sustainability in SCM
SCM for Sustainable Operations
Sustainable Manufacturing
Re-Manufacturing
Integration of Product Design
Production Planning
Waste Reduction & Recycling
Inventory Management
Human Rights & Work Conditions
Transportation & Distribution
Strategic
Reverse Networks
Forward Networks
Operational
Planning
Scheduling
Execution
Tactical
Supply Network Planning
Waste Management
Reduction
Prevention
Recycling
Disposal
Reverse Logistics
Product Recovery
Inspection and Handling
SCM for Sustainable
Products
Product Life Cycle
Assessment
Production
Usage
Disposal
Sustainable Product Design
Design for Disassembly
Design for Waste Minimisation
Design for Recycling
Design for Regulations
Health Hazards
(Seuring & Müller, 2008; Seuring, 2007; Srivastava, 2000; Carter and Rogers, 2008)
Research Areas
Research Areas
Monitor
Strategic
Tactical
Operational
Scheduling
Supply Chain Management
Network Design
Supply Network Planning
Purchasing
Production
Planning
&
Detailed
Scheduling
Distribution
Planning
&
Deployment
Transportation
Planning
&
Vehicle
Scheduling
Demand
Planning
SELLBUY MAKE MOVESTORE
(SAP AG – Supply Chain Management)
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
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
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
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
•Rule-Makers and Watchdogs
•Idea Generators and Opinion Leaders
•Business Partners and Competitors
•Consumers and Community
•Investors and Risk Assessors
•Distribution Network Configuration
•Inventory Control
•Supply Contracts
•Distribution Strategies
•Strategic Partnerships
•Outsourcing and Procurement
•Product Design
•Information Technology
•Customer Value
•Dimensions:
•Economic, SocialEnvironmental
•Levels:
•Ecological
•Individual
•Organizational
•Political-Economic
•Social-Cultural
•Tiers:
•Raw Material
•Components and Parts
•Assembly and Final Production
•Consumers
•Intermediate Customers
•End-Customer
Supply Chain Members
Sustainability Dimensions
& Levels
StakeholdersSupply Chain Management
SSCM
StrategyINPUTS OUTPUTS
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