Manas Graduate Seminar


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My final presentation based on a short piece of research I wrote regarding the Design and Management of Sustainable Supply Chains

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Manas Graduate Seminar

  1. 1. SUSTAINABLE SUPPLY CHAINS & COLLABORATIVE PLANNING <ul><li>Sustainable Development </li></ul><ul><li>Supply Chains </li></ul><ul><li>Sustainable Supply Chain Management </li></ul><ul><li>Collaborative Planning </li></ul><ul><li>Welsh Supply Chain Workshops </li></ul><ul><li>Stakeholder Management </li></ul><ul><li>Designing & Building Sustainable Supply Chains </li></ul>
  2. 2. SUSTAINABLE DEVELOPMENT <ul><li>Brundtland Report defines the term </li></ul><ul><li>‘ Sustainable’ may be explained, while the problem lies in the definition of ‘development’ </li></ul><ul><li>GDP, Poverty Alleviation, HDI </li></ul>1, 2
  3. 3. SUSTAINABLE DEVELOPMENT <ul><li>Unmitigated ‘Growth’ might be justified in the face of concepts such as substitution and advancements in technology 1 </li></ul>Sustainability: Behavior, Property Rights and Economic Growth. Jha, R. and Murthy K.V.B., 1999 <ul><li>Carbon capture and storage (CCS) </li></ul>World's largest carbon capture project in Weyburn, Saskatchewan might be leaking
  4. 4. SUPPLY CHAIN MANAGEMENT <ul><li>According to Handfield R.B. and Nichols E.L., (1999) ”the supply chain encompasses all activities associated with the flow and transformation of goods from raw materials stage (extraction), through to the end user, as well as the associated information flows. </li></ul>sustainable (?) competitive advantage” Material and information flow both up and down the supply chain. And, supply chain management (SCM) is the integration of these activities through improved supply chain relationships to achieve a..
  5. 5. ECONOMIC (VALUE) SUPPLY CHAIN MANAGEMENT <ul><li>Supply chain studies show that collaborative efforts in improving supply chain integration have historically been linked mostly with better profit margins, efficient procurement and distribution and other economic drivers. </li></ul>
  6. 6. SUSTAINABLE SUPPLY CHAIN MANAGEMENT <ul><li>1 “the management of material, information and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental and social, into account which are derived from customer and stakeholder requirements .” </li></ul>Collaborative Planning 1Seuring S. and Müller M., (2008) Environmental Economic Social
  7. 7. SUSTAINABILITY PROFILE <ul><li>Triple Bottom Line (TBL) approach attempted to capture the three dimensional nature of sustainability within the fields of corporate and management research. As Ljungberg (2005 cited Elkington 1997) explains, ‘‘. . .the term triple bottom line is used as a framework for measuring and reporting corporate performance against economic, social and environmental parameters’’. </li></ul>1 1 Webcast focused on understanding the business value and risks of sustainability reporting and will talk about the different channels companies are using today to report their sustainability performance.
  8. 8. ENVIRONMENTAL SUPPLY CHAINS <ul><li>Wegst U.G.K. and Ashby M.F., (2004) say that “most natural materials are sustainable, recyclable and, when disposal is necessary, biodegradable, making them a model for environmentally conscious engineering.” </li></ul><ul><li>Per capita expenditure of resources and carbon emissions in the manufacture of products today has risen exponentially with technological advancements as modern day products involve mixing of numerous raw materials and several sophisticated processes that impart embodied energy to the product. </li></ul><ul><li>Foam insulation often uses hazardous chemicals with high human toxicity, such as isocyanates,  benzene  and  toluene </li></ul><ul><li>Everything within and outside the supply chain is made sustainable, from processes to products. </li></ul><ul><li>The greening of supply chains can occur through two processes: ‘‘greening the supply process’’ and ‘‘product based green supply’’ (Bowen F.E., et al, 2001). </li></ul>
  9. 9. ENVIRONMENTAL SUPPLY CHAINS <ul><li>Add to that, the use of unsustainable modes of transport such as fossil fuel based road and air transport, as opposed to electric trains or water based transport systems and the footprint of a single product or material goes up significantly 2 . </li></ul>2 Refer “Materials selection and design for development of sustainable products”, Ljungberg L.Y., 2005, for a detailed discussion on the reasons that contribute to the unsustainability of products
  10. 10. ENVIRONMENTAL SUPPLY CHAINS <ul><li>The Environmental Preference Method (Anink D., et al, 1996) offers such a selection process based on the comparative economic and environmental benefits of building materials. In one such example it recommends the use of softwood timber frames over PVC or aluminium frames. The advantage of this method is that it allows for negotiation on the basis of economic viability. </li></ul>
  11. 11. SOCIAL SUPPLY CHAINS <ul><li>Social impact of the products and processes on the local populace. </li></ul><ul><li>Onsite construction requires local materials and skills procurement wherein lies the potential for local collaborative action as well. </li></ul><ul><li>Ethical treatment of the workforce from production to distribution </li></ul>
  12. 12. <ul><li>ECONOMIC </li></ul><ul><li>A supply chain that is efficient and manageable without imposing undue burden on any single stakeholder </li></ul><ul><li>A supply chain that raises the reputation of companies involved </li></ul><ul><li>A supply chain that is more responsive towards consumers and benefits from the latest in value chain research </li></ul><ul><li>A supply chain that minimizes waste </li></ul>3 “CPFR will force suppliers to innovate, building on strong one-to-one relationships that will drive smarter ways of doing things”: Attaran M. & Attaran S., 2007 DESIRABLE SUPPLY CHAINS ENVIRONMENTAL A supply chain that delivers with logistics that minimize use of non-renewable energy and cause minimum pollution . A supply chain that encourages use of green raw materials and production of sustainable products . A supply chain that minimizes harmful waste . <ul><li>SOCIAL </li></ul><ul><li>A supply chain that benefits the local communities and benefits the region </li></ul><ul><li>A supply chain that is ethical towards the treatment of its workforce </li></ul><ul><li>A supply chain that is agreeable to all stakeholders and is founded on principles of cooperation and consensus </li></ul>
  13. 13. THE ROLE OF COLLABORATIVE PLANNING <ul><li>According to Attaran M. & Attaran S., (2007) the “lack of collaborative planning has a significant impact on supply chain performance.” </li></ul><ul><li>“ (1) higher costs, (2) coordination effort and complexity, and (3) insufficient or missing communication in the supply chain.” (Seuring S. And Müller M., 2008) </li></ul>
  14. 14. THE ROLE OF COLLABORATIVE PLANNING <ul><li>With the globalisation of the building materials industry and competition, there has been a rise in the number companies involved in a single supply chain </li></ul><ul><li>This also prevents manufacturing companies to shift from an established supply chain in favour of more local suppliers </li></ul>
  15. 15. THE ROLE OF COLLABORATIVE PLANNING <ul><li>According to the study conducted by Seuring S. and Müller M., (2008), the ‘triggers for sustainable supply chain management’ are essentially three; </li></ul>1 government legislation, 2 customer awareness and 3 other stakeholders
  16. 16. WELSH SUPPLY CHAINS WORKSHOP <ul><li>The aim of the workshop was to bring together building materials suppliers, manufacturers, building skills providers, experts, quantity surveyors along with the landowner and the local authority to assess the current barriers in local supply chains. </li></ul><ul><li>Core team - St Modwen (developer), Persimmons (house builder), Prosurv (developer’s quantity surveyors), The Prince’s Foundation, Neath Port Talbot County Borough Council. </li></ul><ul><li>Specialists - Technical and industry experts on individual materials and skills. These individuals present a realistic view of the current situation regarding the material or skills under discussion. Sessions sometimes included presentations by these individuals. </li></ul><ul><li>Wider Participants - Suppliers, manufacturers and skills providers with a secondary stake in the development or even the region at large. In most cases, these would be local or regional, depending on the scope of the strategy. </li></ul>
  17. 25. THE ROLE OF COLLABORATIVE PLANNING – Legislation & Funding <ul><li>Government legislation might be a powerful tool for enforcing strict compliance with social and environmental norms, but the input of governmental bodies in the initiation and management of supply chains is also important </li></ul>
  18. 27. THE ROLE OF COLLABORATIVE PLANNING – Initiatives & Partnerships <ul><li>Actions identified through collaboration may then be split up into manageable units in the form of initiatives involving different groups or individuals. </li></ul><ul><li>It is therefore in the best interest of the long term programme to have a central body in the role of a manager. The role of the manager is to coordinate efforts in all directions including actions (initiatives & funding partnerships) and communication (internal and public). </li></ul>
  19. 29. THE ROLE OF COLLABORATIVE PLANNING - Communication <ul><li>As a way to maintain or boost a company’s reputation and prove its accountability, Corporate Social Responsibility (CSR) has emerged as a significant field of advancement in the direction of more sustainable businesses. </li></ul><ul><li>Communication with the consumers and the wider public in general is also critical in rallying support for sustainable initiatives. Particularly in the case of supply chain initiatives, informed consumers can help endorse or condemn proposals based on their merit. </li></ul>
  20. 30. THE ROLE OF COLLABORATIVE PLANNING - Communication <ul><li>Kitemarking or hallmarking is another effective tool for communicating the sustainability aspects of supply chains to a wider audience. Environmental hallmarking or industry accreditations also have an important role to play in raising the profile of companies and ensuring compliance. Although, current systems are mostly targeted at end products, companies and finished buildings 1 , the scope of this system might one day expand to include accreditation of entire supply chains. </li></ul>1 Some examples of this are: the Energy Star, the EU Sign, LEED and BREEAM certifications, etc. (Ljungberg L.Y,2005)
  22. 33. MONITOR AND EVALUATE <ul><li>Value Creation: It is the primary economic goal of the stakeholders involved and is therefore critical to keep the various businesses interested </li></ul><ul><li>Social Impact: This has a significant bearing on the local population and includes metrics on employment generation and the local multiplier among other things </li></ul><ul><li>Environmental Benefits: This is not only important to satisfy the sustainability agenda of the governemental and non governmental organisations, but also to secure or continue to recieve funding </li></ul>
  23. 34. TIMBER IN WALES <ul><li>St Modwen (key player) consider Ty Unnos ( Elements Europe - manufacturer ) modular system for application at either Coed Darcy or Swansea University Bay Campus. </li></ul><ul><li>St Modwen , The Foundation to approach Welsh manufacturers of windows and doors to assess pricing and supply capabilities; specifically the supply of high specification timber products. Possibility of ‘upskilling’ local joiners. </li></ul><ul><li>The Welsh Assembly Government (WAG) and Forestry Commission of Wales (FCW) will be approached for possible avenues of funding or subsidies. </li></ul><ul><li>Also, St Modwen have agreed to look into the possibility of coppicing woodland areas at Coed Darcy in collaboration with FCW </li></ul>
  24. 36. CONCLUSION <ul><li>Finally, this paper proposes a theoretical framework and methodology by which sustainable supply chains might be designed, devised and implemented in collaboration with stakeholders with varying stakes. And although the results of the workshop itself might prove to be less that transforming for South Wales, the most important contribution it made was the establishment of a precedent. </li></ul>