Sustainability as a Source of Conflict in the Supply Chain


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Sustainability as a Source of Conflict in the Supply Chain

  1. 1. Sustainability as source of conflict in the supply chain<br />Presented by: <br /> Ibrahim Alharrasi<br />Undergraduate student<br /> Maritime Logistics Management (MLM)<br /> Australian Maritime College (AMC)<br /> University of Tasmania (UTAS)<br />
  2. 2. Presentation overview<br />Sustainable development<br />Conflicts in the supply chain (4 Cs)<br />Costs <br />Compliance with regulations <br />Competitiveness<br />Coordination<br />
  3. 3. Sustainable development<br />Brundtland Commission Report (1987)<br /> “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.<br />
  4. 4. Sustainable development<br />Call for sustainable development<br />Climate change<br />Greenhouse gases emissions (e.g. CO2 & CH4)<br />Waste<br />
  5. 5. Sustainable development<br />Call for going green in the supply chain (SC) is pressured from<br />Internal factors (competitiveness, awareness)<br />External factors (stakeholders, public, regulations)<br />Benefits for going green:<br />Less costs (e.g. HP reduces costs of six million pounds)<br />Reduce waste<br />Benefit the environment (e.g. HP reduces greenhouse gases emissions 20%)<br />Publicity<br />Innovations introductions (environmental friendly paints, Packaging, ballast water management)<br />
  6. 6. Conflicts in the supply chain (4 Cs)<br />Four main conflicts (4 Cs):<br />Compliance with regulations and rules<br />Costs <br />Competitiveness<br />Coordination<br />
  7. 7. Conflicts in the supply chain (4 Cs)<br />Compliance with regulations and rules<br />Organisations required to comply with rules<br />Effectiveness of rules<br />Adding fees and taxes<br />Tragedy of common<br />
  8. 8. Conflicts in the supply chain (4 Cs)<br />Costs<br />Costs associated:<br />Technology;<br />Production and<br />Administrative<br />Inefficiencies<br />Balance between costs and benefits<br />
  9. 9. Conflicts in the supply chain (4 Cs)<br />Competitiveness<br />Competitive advantage<br />(e.g. outsourcing)<br />Quality<br />Customers willingness<br />(e.g. super cars, public transportations)<br />Distribution of costs within the supply chain<br />
  10. 10. Conflicts in the supply chain (4 Cs)<br />Coordination<br />Lack of coordination<br />Organisational <br />Supply chain<br />Stakeholders<br />Uncertainty<br />Immature ecological system<br />Dynamic of supply chain<br />
  11. 11. Conclusion<br />Green supply chain is important step that companies should take<br />In the future, every company should develop its own plans<br />However there are some difficulties to go green<br />4 Cs<br />Compliance with regulations and rules<br />Cost<br />Competitiveness<br />Coordination<br />RESULTS OF GOING GREEN<br />
  12. 12. References<br />Berger, G., Flynn, A., Hines, F., Johns, R. 2001, Ecological Modernization as a Basis for Environmental Policy: Current Environmental Discourse and Policy and the Implications on Environmental Supply Chain Management, The European Journal of Social Sciences, Vol. 14 Iss. 1, pp. 55-72.<br /> <br />Bernhut, S. 2009, Corporate climate change, CA Magazine, Vol. 142, Iss. 1, pp. 20-26.<br /> <br />Cunningham, I. 2008, Time to go green in the supply chain, Logistics & Transport Focus, Vol. 10, Iss. 4, pp.60-61.<br /> <br />Davies, J., Hochman, S. 2007, The greening of the supply chain, Supply Chain Management Review, Vol. 11, Iss. 5, pp. 13-14.<br /> <br />Dibenedetto, B. 2007, The color of money, Journal of Commerce, Vol. 8, Iss. 25,pp. 32-36.<br /> <br />Financial Management 2007, Time to act on climate change, financial Management. viwed 28 October 2009, <br /> <><br /> <br />Field, A. 2008, What is your green strategy, Treasury & Risk, pp. 40-44.<br /> <br />Forman, M., Jørgensen, M. 2004, Greener Management International, Iss 45, pp. 43-62.<br />
  13. 13. Any questions??!<br />Thank You<br />