Ecosystem Interactions Class Discussion Presentation in Blue Green Lined Styl...
Sept 26 2013 arif green supply chain
1. Thank you for joining the Embry-Riddle
Aeronautical University Webinar!
“Green Supply Chain and Its Impact”
The Webinar will begin
at 12:15 p.m. Pacific Time
(2:15 Central/3:15 p.m. Eastern)
2. Today’s Agenda
• Introductions
• Presentation by Dr. Mohammed Arif
• Questions and Answers
• Embry-Riddle MS Logistics & Supply Chain
Management (Dr. Aman Gupta)
3. Dr. Mohammed Arif
• Adjunct Professor in Department of Management
Sciences, College of Business, Embry-Riddle
Aeronautical University Worldwide
• Earned a Ph.D. in Industrial Engineering from
University of Central Florida
• Noted expert who lives in Great Britain but works
closely with industry worldwide on sustainability
and green supply chains
• Author of more than 80 scholarly articles and a
book.
4. What is the “Green
Supply Chain” and
what is its impact?
• Prof. Mohammed Arif
• Adjunct Professor in the Department of Management
Sciences
• College of Business
• Embry-Riddle Aeronautical University Worldwide,
9. Since the Rio Summit in 1992, the corporate response to
environmental issues has consistently extended beyond
reactive in the form of complying with increasingly stringent
environmental regulations to proactive initiatives by some
world class companies (Sarkis, 2006).
Current research indicates that the business and financial
performance of companies may depend directly on socially
and environmentally responsible business practices.
Thus, companies are under increasing competitive and other
pressures to continuously search for new ideas and methods
allowing them to achieve and/or maintain environmental
sustainability.
Greening the supply chain is one such innovative idea that is
fast gaining attention in the industry.
10. DEVELOPMENT OF GREEN
SUPPLY CHAIN
Organizations have responded to these challenge by implementing a
number of programs (Humphreys et al. 2006).
First, introduction of end-of-pipe initiatives aimed at reducing
emissions, waste and energy consumption (Hunt and Auster 1990).
Second, Introduction of clean technologies along with programs for
reducing the environmental impact of key steps in the production
process (Welford and Gouldson 1993).
At the beginning of the 1990s, enterprises changed their operating
procedures and introduced eco-auditing frameworks for modifying
products and services (Franke 1995).
Organizations are facing a fourth phase in which environmentally
conscious firms, mainly large companies, are developing
environmental programs aimed at organizing their supply chains
(Gupta 1995; Sarkis 2003).
11. First Phase
Introduction of end of pipe solutions
Second Phase
Introduction of clean technologies
Third Phase
Introduction of Eco auditing framework
Fourth Phase
Introduction of Green supply chain
12. • Green supply chain management (GSCM) has become a focus
of research over the last decade.
• The research in green supply chain management addresses a
variety of issues ranging from organizational research and
practice in green supply chain management to prescriptive
models for evaluation of green supply chain management
practices and technology. Yet, the corporate and environmental
manufacturing issues in developing countries have not been as
well investigated (Zhu and Sarkis, 2006).
13. DEFINITION OF GREEN SUPPLY
CHAIN MANAGEMENT
According to Handfield and Nicholas (2005), supply chain
encompasses all activities associated with the flow and
transformation of goods from raw material stage
(extraction), through to the end user, as well as the
associated information flows. Material and information flow
both up and down the supply chain.
Srivastava, (2007) define GSCM as “integrating
environmental thinking into supply-chain management,
including product design, material sourcing and selection,
manufacturing processes, delivery of the final product to
the consumers as well as end-of-life management of the
product after its useful life.”
14. Main Drivers Behind
Greening of the Supply Chain (1)
1. Regulatory pressure
2. Competitive advantage
3. Enhanced brand image
4. Cost reduction / Profit
5. Push from the top management
6. Customer Pressure
7. Improve firm performance
8. Scarcity of natural resources
9. High energy costs
15. Main Drivers Behind
Greening of the Supply Chain (2)
1. Consumers’ environmental awareness
2. Environmental partnership with suppliers leads to
innovations
3. Global concern for environment
4. Pressure of lobby group
5. Incentives from Customers and Governments
6. Quality improvement
7. Export countries’ environmental regulations
8. Firm’s environmental mission
9. High cost for disposal of hazardous materials
10.Social commitment
16. Main Barriers to
Greening of the Supply Chain
1. Lack of information / Lack of training
2. Too complex to implement
3. Low return on investment
4. Not our responsibility to deal with environmental issues (attitude)
5. High costs of Environmental Programs
6. Poor supplier commitment
7. Industry specific barriers
8. Pressure for lower price due to increased competition
9. Lack of management commitment
10.Lack of buyer awareness
11.Lack of supplier awareness
12.Lack of company-wide environmental standards or auditing
programs
13.Environmental regulation
14.Corruption/Bureaucracy
17. Green Supply Chain Practices
• Green Purchasing
• Green Design
• Green Production
• Green Management
• Green Logistics
• Green Marketing
18. Green Purchasing Practices (1)
1. Work with suppliers to establish their own EMS (Environmental Management
System)
2. Purchase products that have environmentally friendly attribute (recyclable
content, non toxic etc.)
3. Working with suppliers to reduce environmental impacts through changes in
product design and material use
4. Auditing suppliers to evaluate their environmental performance
5. Encouraging suppliers to have ISO14000 certification
6. Evaluating suppliers’ supplier environment friendly practice
7. Organizing workshop/ seminars for suppliers on environmental awareness
8. Bringing together suppliers in the same industry to share their expertise and
problems
19. Green Purchasing Practices (2)
1. Choice of suppliers by environment criteria
2. Sharing technical expertise with suppliers on pollution
prevention
3. Participating in the design of products for disassembly
4. Participating in the design of products for recycling or reuse
5. Ensuring supplier to commit to waste reduction goal
6. Use of lifecycle analysis to evaluate the environmental
friendliness of products and packaging
7. Recognition and awards for environment friendly suppliers
20. Green Design Practices
1. Substitution of environmentally questionable
materials
2. Design of products to reduce consumption of
energy
3. Design of products to reduce emission
4. Design of products for reuse, recycle, recovery of
material, and disassembly of component parts
5. Using life cycle analysis
6. Design for reduced waste generation / material
consumption
21. Green Production Practices
1. Modify processes to reduce solid waste
2. Modify processes to reduce liquid waste
3. Modify processes to reduce emission
4. Use of cleaner technology to save energy, waste
etc.
5. Recycling of your waste
6. Inter departmental cooperation for environmental
improvements
7. Production planning and control focused on
reducing waste and optimizing materials
exploitation
22. Green Management Practices
1. ISO 14000 certification
2. Inter departmental cooperation for environmental
improvements
3. Environmental compliance and auditing programs
4. Environmental policy
5. Environmental training and awareness program for
employees
6. Public disclosure of environmental record
7. Reward and incentives for environmental initiatives
taken by employees
8. Commitment from top management
23. Green Logistics Practices
1.Use of reverse logistics
2.Use of environment friendly
transportation
3.Shipments consolidation
4.Using nearby supply source
5.Use of standardized reusable
container / packaging
24. Green Marketing Practices
1. Using environmental friendly packaging
2. Taking back packaging
3. Purchase recycled packaging
4. Recovery of the company’s end-of-life products
5. Eco-Labeling of products
25. Firm performance
1. Environmental compliance improvement
2. Reduce environmental discharge (pollution, emission)
3. Decrease in consumption of hazardous material
4. Reduction in waste
5. Improved Recycling
6. Reduction in frequency of environmental accidents
7. Improvement in environmental quality of products / processes
8. Productivity improvement
9. Cost savings
10. Increased energy efficiency
11.Investment recovery (sale) of excess inventories/materials
12. Increased Market share
13. Increased Profit margin
14.Improve brand image
26. Internal driver
Factor Analysis-Green Drivers
Improve firm performance
Environmental partnership with suppliers leads to innovations
Firm’s environmental mission
Quality improvement
Push from the top management
Market
Competitors’ action
Enhanced brand image
Customer pressure
Consumers’ environmental awareness
27. Social
Factor Analysis-Green Drivers Contd.
Scarcity of natural resources
Social commitment
Global concern for environment
Economic
High energy costs
Cost of environmental friendly packaging and goods
High cost for disposal of hazardous materials
Incentives from Customers and Governments
Regulatory
Regulatory pressure
Export countries’ environmental regulations
Pressure of lobby group
28. Factor Analysis- Green Barriers
Internal
Lack of information / Lack of training
Not our responsibility to deal with environmental issues
(attitude)
Lack of company-wide environmental standards or
auditing programs
Low return on investment
Lack of management commitment
High costs of Environmental Programs
29. Factor Analysis- Green Barriers Contd.
External
Lack of supplier awareness
Industry specific barriers
Pressure for lower price due to increased competition
Lack of buyer awareness
Poor supplier commitment (unwilling to exchange
information)
Regulatory
Too complex to implement
Loose Central environmental regulation
Loose state environmental regulation
Corruption/Bureaucracy
30. Monitoring of supplier
Factor Analysis- Green Purchasing
Choice of suppliers by environment criteria
Evaluating suppliers’ supplier environment friendly
practice
Purchase products that have environmentally friendly
attribute (recyclable content, non toxic etc.)
Auditing suppliers to evaluate their environmental
performance
Recognition and awards for environment friendly
suppliers
Encouraging suppliers to have ISO14000 certification
31. Factor Analysis- Green Purchasing Contd.
Collaboration with supplier
Bringing together suppliers in the same industry to share their
expertise and problems
Sharing technical expertise with suppliers on pollution
prevention
Work with suppliers to establish their own EMS (Environmental
Management System)
Ensuring supplier to commit to waste reduction goal
Organizing workshop/ seminars for suppliers on environmental
awareness
32. Factor Analysis- Green Purchasing Contd.
Participation in design
Working with suppliers to reduce environmental impacts
through changes in product design and material use
Participating in the design of products for reuse and
recycle
Participating in the design of products for disassembly
Use of lifecycle analysis to evaluate the environmental
friendliness of products and packaging
33. Design for environment
Factor Analysis- Green Design
Design of products to reduce consumption of energy
Substitution of environmentally questionable materials
Design for reduced waste generation / material
consumption
Design of products to reduce emission
Design for end
of life
Design of products for reuse, recycle, recovery of
material, and disassembly of component parts
Using life cycle analysis
34. Production planning
Factor Analysis- Green Production
Inter departmental cooperation for environmental
improvements
Production planning and control focused on reducing waste
and optimizing materials exploitation
Recycling of your waste
Use of cleaner technology to save energy, waste etc.
Production
processes
Modify processes to reduce liquid waste
Modify processes to reduce solid waste
Modify processes to reduce emission
35. Factor Analysis- Green Management
Management commitment
towards environment
Reward and incentives for employees
Public disclosure of environmental record
Inter departmental cooperation for environmental
improvements
Environmental training and awareness program for
employees
Commitment from top management
Environmental
management
system
ISO 14000 certification
Environmental compliance and auditing programs
36. Factor Analysis- Green Logistics
Use of standardize reusable container / packaging
Shipments consolidation
Use of environmental friendly transportation
Using nearby supply source
Use of reverse logistics
37. Factor Analysis Green Marketing
Purchase recycled packaging
Taking back packaging
Recovery of the company’s end-of-life products
Using environmental friendly packaging
Eco-Labeling of products
38. Environmental performance
Factor Analysis- Green Performance
Decrease in consumption of hazardous material
Reduction in waste
Reduce environmental discharge(pollution, emission)
Environmental compliance improvement
Reduction in frequency of environmental accidents
Improved Recycling
Improvement in environmental quality of products / processes
41. Impact of Green Drivers on
Green purchasing practices
H 1: green drivers positively affect green purchasing practices.
H1a: green drivers positively affect monitoring of supplier
practices.
H1b: green drivers positively affect collaboration with supplier
practices.
H1c: green drivers positively affect participation with supplier for
design practices.
42. Regression Equations
Monitoring of supplier = 1.427 + .284(regulation) + .189(Market)
Collaboration with supplier = 1.233 + .333(Internal) + .303(Social)
Participation with supplier in design = 1.070 + .354 (Market)
+.354 (Economic)
43. Impact of Green Drivers
on Green design practices
H2: green drivers positively affect green design
practices.
H 2a: green drivers positively affect design for
environment practices.
H2b: green drivers positively affect design for end of
life practices.
44. Regression Equations
Design for environment = -.258 + .659 (Regulatory)
-.310 (Economic) + .793 (Market)
Design for end of life =.420 -.275 (Economic) +
.442 (Internal) + .697 (Market)
45. Impact of Green Drivers on
Green production practices
H3: green drivers positively affect green production
practices.
H 3a: green drivers positively affect production planning
practices.
H3b: green drivers positively affect production processes
practices.
46. Regression Equations
Production planning = -1.334 + .192 (Regulatory) + .685 (Economic)
+ .435 (Internal)
Production process = .127 + .444 (Social) + .009 (Economic)
+ .430 (internal)
47. Impact of Green Drivers on
Green management practices
H4: green drivers positively affect green management
practices.
H4a: green drivers positively affect management
commitment towards environment practices.
H4b: green drivers positively affect environmental
management system practices.
54. Impact of green purchasing practices
on green performance
H7: green purchasing practices positively affect firm performance.
H7a: green purchasing practices positively affect environmental performance.
H7b: green purchasing practices positively affect competitive performance.
H7c: green purchasing practices positively affect economic performance.
55. Regression Equation
Environmental performance = -0.452 + .367 (Monitoring of supplier)
+ .331 (Collaboration with supplier) + .343 (Participation in design)
Competitive performance = 0.437 + .246 (Monitoring of supplier)
+ .138 (Collaboration with supplier) + .257 (Participation in design)
Economic performance = 1.111 + .649 (Collaboration with
supplier)
56. Impact of green design practices
on green performance
H8: green design practices positively affect firm performance.
H8a: green design practices positively affect environmental performance.
H8b: green design practices positively affect competitive performance.
H8c: green design practices positively affect economic performance.
57. Regression Equation
Environmental performance = 1.084 +.158 (design for environment)
+ .766 (design for end of life)
Competitive performance = 0.825 + .221 ( design for environment)
+ .329 ( design for end of life)
Economic performance = 2.098 -.181 (design for environment)
+ .685 (design for end of life)
58. Impact of green production practices
on green performance
H9: green production practices positively affect firm performance.
H9a: green production practices positively affect environmental
performance.
H9b: green production practices positively affect competitive performance.
H9c: green production practices positively affect economic performance.
62. Impact of green logistics practices
on green performance
H11: green logistics practices positively affect firm performance
63. Impact of green marketing practices
on green performance
H12: green marketing practices positively affect firm performance
64. CONCLUSION
Through this research green drivers, barriers, green supply chain practices and firm
performance measures are identified and their interaction is examined.
Since most of the small and medium size firms are reactive in their approach
towards greening of their supply chain except for the large firms who have resources
to take proactive green measures.
Understanding the influence of these drivers on green supply chain practices will be
promoted through out the organisation and will help in the development of more
environment friendly practices in other functions.
The identified green drivers are applicable to all types of organizations, irrespective
of the size, sector or ownership. Following of these factors will make the green
supply chain implementation process faster, smoother, effective and sustainable in
organizations by reducing the number of impediments expected or experienced by
them
66. 66
Master of Science
in
LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
Dr. Aman Gupta
67. 67
MS in Logistics and Supply Chain
Management
The Master of Science in Logistics and Supply Chain Management is a
36 or 39 credit hour program that has been designed for the students
who are interested in the fields of logistics and supply chain
management.
Developed to provide students with the knowledge they need
to be competitive in both the public and private sector.
Addresses the full spectrum of global logistics and supply
chain management knowledge needs.
Includes a mandatory graduate capstone portfolio course.
68. 68
Curriculum (Core and Elective Courses), Effective January 1, 2013
Core Course Title General Track CTL Track
1 LGMT 536 Purchasing for Logistics and Supply Chain Managers Core Core
2 MGMT 524 Management Science Core Core
3 LGMT 636 Transportation Management Core Core
4 LGMT 682 Integrated Logistics Management Core Core
5 LGMT 685 Global Logistics and Supply Chain Management Core Core
6 LGMT 683 Supply Chain Management Core Core
7 LGMT 691 Logistics and Supply Chain Management Capstone Core Core
8 MGMT 651 Production and Procurement in the Aviation and Aerospace Industry Core Core
Elective Course Title
1 MBAA 517 Managerial Accounting for Decision Making Elective Core
2 MGMT 533 Federal Regulations, Ethics and the Legal System Elective NA
3 MBAA 522 Business Research Methods Elective NA
4 MGMT 535 Theory and Application of Managerial Communications Elective NA
5 TMGT 605 Organizational Theory in a Technical Environment Elective NA
6 MBAA 518 Managerial Finance Elective Core
7 MGMT 671 Entrepreneurship and Leadership Elective NA
8 MGMT 672 Planning and Execution of Strategy Elective NA
9 MBAA 604 International Business Administration Elective Core
10 MBAA 523 Advanced Aviation Economics Elective Core
11 MGMT 673 Global Economic Analysis Elective Core
12 MGMT 642 Air Carrier, Passenger and Cargo Management Elective NA
13 MGMT 643 Labor Issues in Air Transportation Elective NA
14 MBAA 521 Global Information and Technology Management Elective NA
15 MBAA 514 Strategic Marketing Management in Aviation Elective NA
16 MGMT 532 Philosophy, Principles and Practices in Management of Quality Elective NA
17 TMGT 555 Applied Regression Analysis Elective NA
18 MGMT 652 Concepts and Practices of Project Management Elective NA
24 39
12 0
Core Credits
Elective Credits
Total Degree Requirements 36 39
Note: Description of the above courses can be found in the ERAU – WW course
catalog available at:
http://worldwide.erau.edu/degrees/catalog/index.html
69. 69
Electives include:
• Finance
• Accounting
• Project Management
• Economics
• International Business
• Leadership
• Organizational Theory
• Quality
• Research Methods
• More……
70. 70
Curriculum (Cont.) – CTL Track
The MSLSCM program is an approved blanket waiver program by the
American Society of Transportation and Logistics (AST&L). Total of
28 schools are approved blanket waiver schools.
Certified in Transportation and Logistics (CTL) professional
certification.
72. Upcoming Fall 2013 Webinars
• Oct. 8, Daniel Benny: “General Aviation Security”
• Oct. 22, Ed Knab: “Supply Chain Trends for 2014”
• Nov. 12, Scott Burgess: “Alpha and Omega: Program
Outcomes to the Capstone”
• Nov. 26, Constantine Koursaris: “Promoting U.S.
Exports and Commercial Involvement”
73. Todays Presentation:
Dr. Mohammed Arif
mohamma2@erau.edu
~~~
For questions about the webinar series:
Bill Gibbs, Webinar Series Coordinator
bill.gibbs@erau.edu
