Sustainable Supply Chain Management: A New Zealand Perspective PhD - - PowerPoint PPT Presentation

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 Distributor Road Transport

E n v i r

• n

m e n t a l E c

• n
• m

i c a l S

• c

i a l

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 SELL BUY MAKE MOVE STORE

(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, Social

Environmental

• 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 Stakeholders Supply Chain Management SSCM Strategy

INPUTS

OUTPUTS F E E D B A C K P R O C E S S E S

Questions