Sustainability as source of conflict in the supply chain Presented by: Ibrahim Alharrasi Undergraduate student Maritime Logistics Management (MLM) Australian Maritime College (AMC) University of Tasmania (UTAS)
Presentation overview Sustainable development Conflicts in the supply chain (4 Cs) Costs Compliance with regulations Competitiveness Coordination
Sustainable development Brundtland Commission Report (1987) “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Sustainable development Call for sustainable development Climate change Greenhouse gases emissions (e.g. CO2 & CH4) Waste
Sustainable development Call for going green in the supply chain (SC) is pressured from Internal factors (competitiveness, awareness) External factors (stakeholders, public, regulations) Benefits for going green: Less costs (e.g. HP reduces costs of six million pounds) Reduce waste Benefit the environment (e.g. HP reduces greenhouse gases emissions 20%) Publicity Innovations introductions (environmental friendly paints, Packaging, ballast water management)
Conflicts in the supply chain (4 Cs) Four main conflicts (4 Cs): Compliance with regulations and rules Costs Competitiveness Coordination
Conflicts in the supply chain (4 Cs) Compliance with regulations and rules Organisations required to comply with rules Effectiveness of rules Adding fees and taxes Tragedy of common
Conflicts in the supply chain (4 Cs) Costs Costs associated: Technology; Production and Administrative Inefficiencies Balance between costs and benefits
Conflicts in the supply chain (4 Cs) Competitiveness Competitive advantage (e.g. outsourcing) Quality Customers willingness (e.g. super cars, public transportations) Distribution of costs within the supply chain
Conflicts in the supply chain (4 Cs) Coordination Lack of coordination Organisational Supply chain Stakeholders Uncertainty Immature ecological system Dynamic of supply chain
Conclusion Green supply chain is important step that companies should take In the future, every company should develop its own plans However there are some difficulties to go green 4 Cs Compliance with regulations and rules Cost Competitiveness Coordination RESULTS OF GOING GREEN
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