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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Questions