ISO 14001 in environmental supply chain practices

This paper focuses on the role of ISO 14001 in environmental supply management practices in Swedish companies. It discusses the existing and potential role of ISO 14001 for three key operational tasks of environmental supply chain management: to communicate the requirements to the supplier, to motivate and enable the supplier, and to verify that the supplier follows the requirements. The study used three different research methods: interviews with environmental managers, focus group discussions and a survey of two multinational companies and their operating units in several countries.It concludes that cooperation between the purchasing and environmental functions within a company is frequently not sufficiently achieved in implementation of ISO 14001; this makes the communication of customer requirements to suppliers less efficient. Building close relationships with suppliers is important to overcome initial difficulties, but this often conflicts with having a large supplier base. For the supplier to have an ISO 14001 certificate is seldom an absolute requirement, however, preference is often given to such suppliers. The value of the ISO 14001 certificate, as a proof of environmental performance, is a combination of the supplier's environmental ambitions, the advancement of supply chain practices of the customer and the ambitions of the certification bodies. Supplier audits are not commonly used as they are resource-consuming. Monitoring and verification approaches need further development.     

Incorporating sustainability into supply management in the automotive industry – the case of the Volkswagen AG

Companies are perceived as important actors in the drive for sustainability. Linked to this, and in response to increasing demands from various stakeholder groups, companies start to look at their supply chain to enhance their overall sustainability profile. Two major triggers can be identified: (1) focal companies are held responsible for environmental and social problems caused by their suppliers, which become more and more important as (2) an increasing share of value is created at the supplier level. In response to such demands, companies have to find ways to incorporate environmental and social aspects into their supply (chain) management. Therefore, environmental and social standards are integrated into supply management by amending the purchasing processes. This paper presents one approach to integrate social and environmental standards into supply policy and supply management at the Volkswagen AG, a focal company of the automobile industry. Therefore, required changes of the sourcing and supply structures were identified during an action research project, and possible options adaptable for company internal integration are shown.     

Green supplier development: analytical evaluation using rough set theory

Suppliers' development is a critical function within supply chain management. Green supplier development is also necessary for effective green supply chain management. Interestingly, there is a gap in the research on how an organization can effectively manage supplier development programs, and specifically green supplier development. The use of formal models to aid green supplier development management is virtually non-existent. This paper aims to fill this gap by introducing a formal model using rough set theory to investigate the relationships between organizational attributes, supplier development program involvement attributes, and performance outcomes. The performance outcomes focus on environmental and business dimensions. The rough set methodology utilizes an ‘incomplete’ information approach which is more realistic in some data poor environments. A multistage rough set methodology is detailed through an illustrative application. The methodology generates decision rules relating the various attributes to the performance outcomes. Included in the discussion are insights into how these rules for individual and aggregated performance (environmental, business, and joint performance) may be evaluated. Practical and research implications of this work are detailed in the paper.     

Implementing service-based chemical procurement: lessons and results

Chemical use reduction is strongly desirable for environmental and public welfare reasons, and is a critical element of moving towards more sustainable consumption in the business-to-business economy. However, the fundamental economic relationship between chemical supplier and chemical customer creates supply side incentives for increased chemical use. Chemical management services (CMS) is a business model that aligns economic incentives in the chemical supplier–customer relationship towards reduced chemical use by making chemical services rather than chemical volume the basis of supplier compensation. CMS thus ‘servicizes’ the chemical supply chain and is a Product Service System with significant potential environmental benefits. CMS enjoys high penetration in the US auto and semiconductor sectors, and is emergent in other sectors. The paper synthesizes lessons learned from hands-on work with 15 chemical-using firms over 5 years in all aspects of CMS program implementation. Key points are that poor cost accounting and chemical information management form significant barriers to making, understanding and evaluating the CMS business case. The details of contractual compensation mechanisms are critical to achieving in practice the potential environmental benefits of the CMS model.     

Linking supply chain strength to sustainable development: a country-level analysis

Several global corporations have been severely criticized by different lobbying groups for the impact of their operations on the natural environment and on the local communities. Because corporate operations cannot be studied in isolation but rather as a part of a large network often referred to as a supply chain, this paper investigates the potential link between supply chain characteristics and sustainable development at the country level. In particular, the linkage between supply chain strength, generally defined as the number and quality of the suppliers and customers in a country, and the three dimensions of sustainable development namely environmental performance, corporate environmental practices, and social sustainability is assessed. Using archival data from The Global Competitiveness Report (2004–2005) and the 2005 Environmental Sustainability Index, a statistical assessment of the linkage was conducted. The results indicate that supply chain strength is positively linked to all three dimensions of sustainable development.     

Influences, practices and opportunities for environmental supply chain management in Nova Scotia SMEs

Executives are increasingly paying attention to the importance of supply chain management [Lambert DM, Cooper MC. Issues in supply chain management. Industrial Marketing Management 2000;29(1):65–83; Hagelaar GJLF, van der Vorst JGAJ. Environmental supply chain management: using life cycle assessment to structure supply chains. International Food and Agribusiness Management Review 2002;4:399–412]. The management of the supply chain can be a central aspect of a company's competitive advantage [Preuss L. Rhetoric and reality of corporate greening: a view from the supply chain management function. Business Strategy and the Environment 2005;14:123–139]. SCM also offers considerable opportunities to reduce a company's environmental impact. The supply chains of three small and medium enterprises (SMEs) operating in the Burnside Industrial Park in Nova Scotia, Canada were investigated to explore the opportunities to improve environmental performance of SMEs linked in supply chains. This study confirmed that time and, to a lesser degree, financial resources to address solid waste and energy issues are the greatest limiting factors. Small suppliers, and even to a certain degree medium-sized enterprises, have difficulties in allocating resources to initiatives that are not viewed as directly related to their core function, namely manufacturing the product or providing the service. This study clearly demonstrated that opportunities exist to reduce greenhouse gas emissions and solid waste. Although, the benefits that would be gained from the implementation of any of the individual actions in the supply chains explored in this study are individually small, the cumulative benefits that could be achieved among supply chains and within industrial parks are substantial, given the number of small- and medium-sized enterprises.     

A recursive ecological indicator system for the supply chain of a company

This paper proposes the concept of cumulative eco-intensity with which environmental or sustainability indicators are related to the added value of economic activities. The intensities are passed on recursively from supplier to supplier and thus make it possible to include upstream and downstream effects along the supply and waste disposal chain. The process is applied to whole companies and (by contrast with LCA) not to individual products. At comparatively low expenditure for the individual companies, it allows vertical comparisons along the value-adding chain and horizontal comparisons among companies or production locations. This provides a decision-making aid for a company seeking to fulfil its ecological or sustainability responsibility in the entire production and supply chains.     

Environmental principles applicable to supply chains design and operation

In this paper we deal with the problem of identifying environmental principles for the design and operation of supply chains. The operations that are included in supply chains are briefly described along with the approaches that are applied in order to improve their environmental performance. A background of environmental principles for achieving eco-efficiency and building of environmentally friendly organizational systems is presented and emphasis is put on the application of such principles “from cradle to grave”. Then, environmental principles applicable to particular objects of logistics networks planning are identified and commented upon. In addition, selective case studies from the literature, which show the applicability of the formulated principles and their relevance to practice, are discussed. The paper concludes with some remarks regarding the benefits for companies and societies, in general, that occur as a result of the application of the formulated principles.     

Green project partnership in the supply chain: the case of the package printing industry

By interacting with their suppliers and their customers, manufacturing organizations can potentially develop and implement more effective solutions to environmental challenges they are facing. This paper explores the outcome, in terms of operational performance, of green project partnership in the supply chain. Green project partnership, defined here as the degree of interaction between organizations in the supply chain regarding pollution prevention, can take place upstream with the suppliers and downstream with the customers. Using the data from a survey of the Canadian and United States package printing industry, the linkage between green project partnership and five performance indicators was tested. The results indicate that green project partnership with customers was positively linked to quality, flexibility and environmental performance while partnership with suppliers was associated with better delivery performance.     

Environmental evaluation of localising production as a strategy for sustainable development: a case study of two consumer goods in Jamaica

The objective of this study was to compare the life-cycle environmental impacts of changed production structures for two consumer goods (high-density polyethylene (HDPE) shopping bags and beds) in Jamaica. A scenario technique was used to construct three alternative production structures for each product; each scenario reflecting an increase in local production in Jamaica which depended on an increased supply of input materials which may be sourced: (1) externally from overseas suppliers, (2) from post-consumer recycling, and (3) locally on the island of Jamaica. These three constructed scenarios were then compared to the existing supply chain or reference scenarios of the products. The results showed that for both case products the recycling scenario was most preferable for localising production, resulting in the lowest environmental impact. This was because the production of raw materials accounted for the largest effect on total environmental impact. As such, the most immediate environmental improvements were realised by lowering the production of virgin materials.     

New concepts in product use for sustainable consumption

The paper presents the main results of a recent study on sustainable use of products. It reveals that strategies of use intensification and useful life extension are environmentally beneficial. Moreover, analysis of household washing and winter sports illustrated that successful implementation of sustainable use patterns occurs as a shift of use regimes. Such regimes are the result of a complex interplay of supply and demand side factors, relationship among actors, technical trajectories, organisational structures etc. One decisive factor is the presence of strategic players, so called “change agents”. In addition, four user types have been identified in a representative survey (“ownership-oriented”, “open-minded”, “consumption-oriented”, “low interest”) to which use intensification and useful life extension can be targeted.     

From a literature review to a conceptual framework for sustainable supply chain management

Academic and corporate interest in sustainable supply chain management has risen considerably in recent years. This can be seen by the number of papers published and in particular by journal special issues. To establish the field further, the purpose of this paper is twofold. First, it offers a literature review on sustainable supply chain management taking 191 papers published from 1994 to 2007 into account. Second, it offers a conceptual framework to summarize the research in this field comprising three parts. As starting point related triggers are identified. This allows putting forward two distinct strategies: (1) supplier management for risks and performance, and (2) supply chain management for sustainable products. It is evident that research is still dominated by green/environmental issues. Social aspects and also the integration of the three dimensions of sustainability are still rare.Both practitioners in companies and academics might find the review useful, as it outlines major lines of research in the field. Further, it discusses specific features of sustainable supply chains as well as limitations of existing research; this should stimulate further research.     

Improving enterprise competitive advantage with industrial symbiosis: case study of a smeltery in China

Industrial symbiosis, a subfield of industrial ecology, focuses on transforming the waste of one firm into the valuable input of another, which improves the competitive advantages of supply chain by reducing production cost and improving environmental performance. Considering the specific situation where there are so many state-owned big company groups in China, this paper utilizes the ideas of constructing an industrial symbiosis among different firms, and does a case study on applying the concept into the inner relationships' reconstruction among different production systems in a big state-owned smeltery in South-west China. Three kinds of approaches are explored: 1) recycling and reusing the release; 2) concentrating and abstracting metals from the residues; 3) extending the product chain for value-added products. The results show that it can effectively improve the competitive advantage of the enterprise in terms of decreasing production cost and improving environmental performance.     

Integration of artificial neural network and MADA methods for green supplier selection

In recent years, with the raising of awareness in environmental protection and sustainable development in enterprises, the green issue has become more and more critical in supply chain management. This study intends to develop a green supplier selection model which integrates artificial neural network (ANN) and two multi-attribute decision analysis (MADA) methods: data envelopment analysis (DEA) and analytic network process (ANP). It is called ANN–MADA hybrid method. ANN–MADA hybrid method considers both practicality in traditional supplier selection criteria and environmental regulations. It also overcomes traditional DEA drawbacks, limitations of data accuracy and decision-making units (DMUs) amounts constraint. The model evaluation results of an international well-known camera manufacturer indicate that the ANN–MADA hybrid method outperforms two other hybrid methods, ANN–DEA and ANP–DEA. It was also discovered that ANN–MADA has better power of discrimination and noise-insensitivity in evaluating green suppliers’ performances.     

Integrating carbon footprint into supply chain management: the case of Hyundai Motor Company (HMC) in the automobile industry

The purpose of this paper is to improve our understanding of carbon footprint within the context of automobile supply chain management. The case study approach is employed as a research method. Primary data were collected through site visits and extensive interviews with HMC’s corporate and plant management. First, identification and measurement of direct and indirect carbon footprint is critical for mitigating supply chain risks. Second, setting the system boundary of measurement is another important issue to integrate the issue of carbon footprint into supply chain management. Third, developing a map of product carbon footprint facilitates identification and measurement of carbon emissions across the supply chain. Companies today operate in a carbon-constrained world. In particular, the automobile industry is under pressure to take a close look at its product carbon footprint. Managing the downstream consequences of the use of its products and inputs from upstream suppliers is critical for developing carbon risk-mitigated supply chain management. This paper is of benefit to academics and managers by providing a new way to integrate carbon emissions in supply chain management. Since climate change and carbon footprint present challenges to many industries, increasing our understanding of how to integrate carbon footprint in supply chain management is necessary, but has seen little research in the automobile industry.     

Better regulation by new governance hybrids? Governance models and the reform of European chemicals policy

The EU is presently in a transition phase from environmental policy-making by law towards other governance approaches based upon networking, voluntary commitments, benchmarking and other forms of “soft law”. Those new governance approaches often claim to lead to “better regulation”, while adopting a more consensus-oriented and participatory style, taking economic aspects more seriously into account, allowing for more flexibility and autonomy for the private sector and Member States alike, mobilising a broader knowledge base or adopting more integrated and holistic approaches than previous sectoralised and compartmentalised policies.While the limitations of traditional regulatory approaches are widely accepted and cited, it is far from evident, that “new modes of governance” have greater capacity to solve problems than the old ones. There is an argument, that “better regulation” might by synonymous to a withdrawal and weakening of the regulatory state and hence effectively of the aspirations and objectives of environmental policies.An interesting case for an approach, combining the strengths of the old and the new approaches is the ongoing reform of chemicals policies. While some observers claim, that the proposed directive, “REACH” might belong to the outdated category of overcomplex and bureaucratic regulation, a closer look shows that there are many new forms of governance in REACH. This mixture or old and new may open a more realistic and promising perspective on the reform of European policy-making.In our paper we assess the effects and the interplay of the combination of different modes of governance using the example of REACH. We are particularly concerned with the question in how far the representation of interests may change when new modes of governance are introduced.     

Life cycle assessment of spray dried soluble coffee and comparison with alternatives (drip filter and capsule espresso)

This paper aims to evaluate the environmental burdens associated with spray dried soluble coffee over its entire life cycle and compare it with drip filter coffee and capsule espresso coffee. It particularly aims to identify critical environmental issues and responsibilities along the whole life cycle chain of spray dried coffee. This life cycle assessment (LCA) specifically uses foreground data obtained directly from coffee manufacturers and suppliers. Aside from energy consumption and greenhouse gases emissions, water footprint is also studied in detail, including regionalization of water impacts based on the ecological scarcity method 2006. Other impact categories are screened using the IMPACT 2002+ impact assessment method.The overall LCA results for a 1 dl cup of spray dried soluble coffee amounts approximately to 1 MJ of primary non-renewable energy consumption, to emissions of 0.07 kg of CO_2-eq, and between 3 and 10 l of non-turbined water use, depending on whether or not the coffee cultivation is irrigated and wet treated. When considering turbined water, use can be up to 400 l of water per cup. Pouch – and to a lesser extent metal can packaging alternatives – show lower environmental burdens than glass or sticks.On average, about one half of the environmental footprint occurs at a life cycle stage under the control of the coffee producer or its suppliers (i.e., during cultivation, treatment, processing, packaging up to distribution, along with advertising) and the other half at a stage controlled by the user (shopping, appliances manufacturing, use and waste disposal). Key environmental parameters of spray dried soluble coffee are the amount of extra water boiled and the efficiency of cup cleaning during use phase, whether the coffee is irrigated or not, as well as the type and amount of fertilizer used in the coffee field. The packaging contributes to 10% of the overall life cycle impacts.Compared to other coffee alternatives, spray dried soluble coffee uses less energy and has a lower environmental footprint than capsule espresso coffee or drip filter coffee, the latter having the highest environmental impacts on a per cup basis. This study shows that a broad LCA approach is needed to help industry to minimize the environmental burdens directly related to their products. Including all processes of the entire system is necessary i) to get a comprehensive environmental footprint of the product system with respect to sustainable production and consumption, ii) to share stakeholders responsibility along the entire product life cycle, and iii) to avoid problem shifting between different life cycle stages.     

The measurement of corporate environmental performance and its application to the analysis of efficiency in oil industry

This paper addresses a measurement of corporate environmental performance, and its application to the analysis of efficiency in the petroleum firms. In order to measure firms' environmental performance, we suggest a framework called “Gscore” that consists of five categories, namely general environmental management (GEM), input, process, output, and outcome. Gscore is a proxy measure of corporate environmental performance based on voluntary environment, health, and safety (EHS) report and is calculated by aggregating the points of the above five-categories. We apply our measurement framework to the data of 39 firms' voluntary EHS reports which are available on the internet. Ten of them, on which efficiency analysis was conducted with Gscore, assets, employee, and profits, are in petroleum and refining industry. According to our results: (1) a gap is found between rhetoric and practical environmental management stemming from calculating the relation between GEM and data part in 39 EHS reports. (2) On the whole, EHS reports of petroleum firms have something in common, but there are significant differences in the type and amounts of disclosed data among the EHS reports. (3) From the results of efficiency analysis, it is found that the number of employee exerts a considerable influence on determining the relative efficiency of petroleum firms, then Gscore, profits, and assets in sequence. Furthermore, Exxon, Ashland, Phillips Petroleum, and ARCO are shown to be efficient among 10 petroleum firms.     

ECO-design of reuse and recycling networks by multi-objective optimization

An ECO-optimized reuse of process liquors addresses the financial gain and the effective use of resources. In processes that have a potential for process liquor recovery, the minimization of both economic and environmental burdens can be realised by an ECO-optimal design of reuse and recycling network (RRN).In this paper, a procedure for synthesizing such an RRN for a metal finishing process is investigated. The simultaneous analysis of environmental impact sensitivity (SAEIS) based on a superstructure approach, combined with multi-objective optimization is performed by mixed-integer nonlinear programming (MINLP). This allows an “eco–eco” trade-off i.e. total annualized cost and environmental impacts are minimized simultaneously. By varying the weighting factor, different RRN alternatives were generated. A replacement of the standard and closed-loop system by these solutions, even for the environmentally friendliest case, yielded a reasonable cost saving on raw material's inputs.     

Adapting importation policy to global commodity markets: implications of rice import allocation in Singapore

Structural changes in the global commodity markets have particularly serious implications to the food security of import-dependent countries. Adapting importation policy to that global change is essential given that many commodities are imported to fulfill domestic demand. Using Singapore as a case study, this paper examines rice (Oryza) import allocation for seeking adaptive measures, which have broad implications to import-dependent countries. Its quarterly trade data (between 1999 and 2008) have been analyzed using an almost ideal demand system (AIDS) model. Our findings in respect to expenditure elasticity reveal that Singapore will continue its importation from its current range of suppliers, and add new import sources, fulfilling its national diversification strategy. New sources that located in different regions will also strengthen Singapore’s regional diversification strategy. Both national and regional diversification strategies enable any country to tap into associative import sources when unfavorable events deplete supply from a normally preferred supplier. In addition, the results in respect to own-price elasticity suggest that Thailand is Singapore’s primary preferred source while other exporters are secondary suppliers. Supported by the outputs of cross-price elasticity, secondary sources are substitutable. Within a diversified import portfolio, their competitive relationship gives an import-dependent country a strategic position to hedge against price manipulation and escalation, and to substitute expensive suppliers with cheaper alternatives. For these reasons, an import diversification policy is recommended both as an adaptive measure in response to the global change in commodity markets and, at the same time, as a mean for sustaining food security in import-dependent countries.