Remanufacturing for the automotive aftermarket-strategic factors: literature review and future research needs

While the concepts of remanufacturing and reverse logistics are gaining popularity in practice, the available literature and theory on strategic decision making in these areas are limited. This paper is designed to address this gap, in particular, for the automotive industry aftermarket. In doing so, the authors reviewed literature pertaining to: customer demand(s), product design and development, cost-benefit analysis of reman, core (i.e., used product) supply management, reman competencies and skills, product life cycle strategies, reman and reverse logistics network design, relationships among key stakeholders, environmental considerations, regulations, and impact of emerging economies. The literature findings along with our experience in working with automotive reman products were used as inputs to guide the formulation of seven major propositions for the strategic factors in decision making within reman. The propositions were then tested through a case study. The case study reconfirmed many of the factors like product life cycle, regulations, etc. from the literature review and also identified new factors like OE customer requirements. Our results provide a foundation for further research for companies that deal with Original Equipment (OE) Sales, Original Equipment Service (OES), as well as Independent Aftermarket (IAM) business in the automotive industry.     

A study of the Environmental Management System implementation practices

This paper is based on a survey to analyze the current Environmental Management System (EMS), or Green Manufacturing (GM), practices in Hong Kong. The survey focuses, in particular, on the investigation of: (i) the critical factors that most companies have considered in implementing the GM or EMS; (ii) the benefits that the companies have targeted in implementing the GM/EMS; (ii) the business activities that the companies have carried out in striving for the targeted benefits; and (iv) the business benefits attainable in the implementation of the GM/EMS. The study results show that most of the companies used in the survey have a positive attitude towards the implementation of the GM/EMS. The majority of them also consider that GM/EMS can effectively strengthen their competitiveness in business.     

ISO 14001 certification in Brazil: motivations and benefits

Why do firms seek the ISO 14001 certification? This study presents a survey with 63 Brazilian companies from the chemical, mechanical and electronic industries. A Structural Equations Model (SEM) analyzed the relations between motivations and benefits related to the certification. An exploratory factor analysis identified four sources of motivation: reaction to pressures from the external stakeholders; proaction in expectation of future business concerns; legal concerns; and internal influences. Four dimensions characterized the benefits of an ISO 14001 certification: operational changes; financial impacts; relationship with business stakeholders (customers, competitors, suppliers); and relationship with societal stakeholders (government, society and NGOs). The motivations appear in two levels. Internal and legal motivations are the first level (antecedents), while reactive and proactive motivations are second level (consequents). Internal motivations explain reactive and proactive motivations and production benefits. Legal motivations explain proactive motivations, financial benefits, and benefits in relationships with societal stakeholders.     

Initiating automotive component reuse in Malaysia

As the production of local vehicles increases, the impact of end-of-life vehicles (ELVs) wastes to the environment will also increase. ELVs recovery including reuse, remanufacture, and recycle apparently become a strategy in solving this environmental problem. This study identifies the existing conditions of automotive reuse in Malaysia by conducting some interviews in selected local automotive and automotive component manufacturers. Results from the interviews indicated that reuse of automotive components in newly manufactured vehicles has never been practiced by the selected companies. However, there is interest among respondents in developing automotive components for after-market reuse. Some strategies were proposed in this study to initiate automotive components reuse in the local automotive manufacturers including the establishment of the end-of-life directive, enhance research and development on design for reuse and increase reusability and economic benefits of reuse.     

Fitting together the building blocks for sustainability: a revised model for integrating ecological,social, and financial factors into business decision-making

Companies committed to integrating sustainability concerns into product decisions are confronted with the daunting task of assessing hundreds, or thousands, of materials and goods. Further complicating efforts have been the rapid growth of environmental and social assessment principles, strategies, actions, and tools. The lack of clarity on how existing approaches are complementary or distinct has resulted in ambiguities about pathways forward for companies. This current state of the field highlights the need to draw out interconnections between the wide range of current work on integrating environmental and social issues into material, product, and other business decisions.This article—developed through collaboration among several environmental, social, and sustainability-oriented researchers and practitioners—addresses this need through building upon pre-existing work [J. Cleaner Prod. 10(3) (2002) 197; J. Cleaner Prod. 8(3) (2000) 243]. It proposes adaptations on a framework for organizing the assessment field, including development of exemplary sustainable product characteristics and their inclusion in a “strategic sustainable development” decision-making model and process [J. Cleaner Prod. 10(3) (2002) 197]. The article also argues for an expansion of analytical approaches within this previously developed framework in order to highlight social aspects of sustainability and landscape-level issues. Finally, the article puts these elements together to describe a pathway forward for companies. In the conclusion, areas for future research are highlighted.     

Is the Swedish environmental technology sector ‘green’?

The Environmental technology (ET) sector delivers environmentally preferably products. Little is known about whether companies in the ET sector set environmental objectives relating to their own production processes. This paper presents results from an online survey on environmental work in enterprises listed by the Swedish Environmental Technology Council (Swentec). The survey found that depending on the specific subsector, only between 21% and 45% of companies provide information about their environmental work on their website. This paper proposes environmental aspects of production and products as bases for corporate greening and for defining ‘green’ and ‘green-green’ business and identifies three main motivations for the companies within ET sector to operate as ‘green-green’ businesses: ‘competitive advantage’, ‘environmental responsibility’ and ‘environmental leadership’.     

Environmental management accounting in Lithuania: exploratory study of current practices,opportunities and strategic intents

There is a growing consensus among the Lithuanian policy makers, practitioners and industrialists that environmental policy must move from a reactive stance to a more proactive, sustainable development approach. As a result, many companies are increasingly interested in the application of economic incentives at least as supplements or reinforcements of environmental standards.The Institute of Environmental Engineering (EU Centre of Excellence in Sustainable Industrial Development (APINI – SID)) in 1992–2003 has been involved in introduction and implementation of preventive environmental strategy in industry in Lithuania and in other countries. In Lithuania, these efforts resulted in the implementation of more than 200 cleaner production innovations in more than 150 Lithuanian companies. It should be stressed that effective plant maintenance is becoming a higher priority to plant managers. It is important to ensure cost-savings, at all levels, that include maximizing productivity and implementing energy-saving approaches. Effective and efficient maintenance are not just desirable, but fundamental to profitable business operations. Therefore, central to the environmental view of sustainable development is the concept that economic and social systems are sub-systems of the global environment.APINI's experience shows that decision-makers at the company level often fail to recognize the economic values of natural resources as assets as well as the business and financial value of good environmental performance. Therefore, there is a need to upgrade the business decision-making process by including information on material flows and related costs to account for efforts of sustainable development [Staniskis JK, Stasiskiene Z. Promotion of cleaner production investments: international experience. Journal of Cleaner Production 2002;11(6):619–28. ISSN: 0959-6526, Elsevier Science]. Decisions are increasingly affected by environmental costs. Application of environmental management accounting (EMA), which integrates two of the main principles of sustainable development – environment and economics, can help to significantly improve corporate decision-making.EMA is becoming increasingly important not only for environmental management decisions and development of environmental management systems (EMS), but also for all types of routine management activities, such as product and process design, cost allocation and control, capital budgeting, purchasing, product pricing and performance evaluation.Companies, which use EMA as a part of integrated management system, are provided with accurate and comprehensive information for the measurement and reporting of environmental performance.This paper investigates the current state of EMA practices in Lithuanian SMEs that have already been or are being implementing EMS and which have implemented CP innovations. In this case, EMA is analysed as an innovative assessment and evaluation method of EMS and CP innovation's environmental impacts and economic benefits. It should be stressed, that there are obvious differences in case studies from different industries. However, review of the results shows that there are many similarities in what improvements can be suggested for environmentally concerned companies both in terms of environmentally sound operation and for reporting of environmental management accounting information.     

A method for sustainable product development based on a modular system of guiding questions

In this paper, we present a method for sustainable product development (MSPD) with the aim of integrating social and ecological aspects of sustainability with a strategic business perspective in product development. The method applies backcasting from basic principles for sustainability, which allows a strategic approach, and it includes a modular system of guiding questions that are derived by considering these principles and the product life cycle. Initial testing in Swedish companies indicates that the suggested MSPD promotes a ‘bird's eye’ perspective and encourages and aids development of products that support society's transformation towards sustainability. Furthermore, it is concluded that the modular system provides flexibility and user-friendliness.     

Eco-design in innovation driven companies: perception, predictions and the main drivers of integration. The Spanish example

This study attempts to contribute to the scarce knowledge on how eco-design, and to broad extent sustainability, is connected to innovation driven companies. In particular, this cross sectional research verifies i) perception and knowledge of eco-design of the professionals from innovation driven companies in Spain, ii) specific eco-design strategies towards sustainability that innovation driven companies are integrating in their strategic plans and their application in the supply chain and iii) the companies’ future predictions on innovation and eco-design linkage. The methodology of this paper is based on a survey, developed defining measurable proxies for both eco-design and innovation approaches and conducted on 10,000 multidisciplinary professionals from Spanish innovation driven companies. The study shows that sustainability is a cardinal driver for innovation and that responses have specificities regarding company size, activity or respondent position. Innovation and eco-design strategies for the future aim to use materials with a lower environmental impact and to develop new concepts.     

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.     

A tool to implement sustainable end-of-life strategies in the product development phase

Responding to constantly more demanding European legislation, notably for electrical and electronic equipment, worn-out vehicles or hazardous substances, manufacturers have to develop End of Life (EoL) strategies. The challenge today is to assess which “product EoL process” would be profitable for an enterprise given the business model in place. Most of the Original Equipment Manufacturers recycle or subcontract reverse logistic and EoL treatments. Recycling is currently the most common solution but it is far from meeting the goals of Sustainable Development. We believe that, integrating constraints from EoL strategies into the early phases of design is one important aspect that needs to be improved. We are currently combining this idea with principles from concurrent engineering to develop design aids which permits designers to compare their products to “Remanufacturable Product Profiles”. However, conscious those EoL solutions often involve several strategies; it is now envisaged to develop tools to help designers make optimal decisions while designing a product considering 3R strategies: Reuse, Remanufacture and Recycle. In this paper, our vision of why and how to integrate EoL strategies in the early design phases is presented, and what tools to apply 3R strategies are envisaged, considering the evolving architecture of the product, and the translation of transversal information into design criteria.     

Forest biorefineries - A business opportunity for the Finnish forest cluster

Bioenergy and biomass-based products offer the greatest new opportunities for diversifying business in the forest cluster. In particular, biorefineries, which can be integrated into the pulp and paper industry, seem to have immense future potential. This article aims to explore the biorefinery concept and related new products and business operations, as well as new business strategies and company models, which are part of the biorefinery value chain. These factors, which contribute to the establishment and success of forest biorefineries, were examined using internet survey responses and compared between Scandinavia, North America and South America. This article looks at the results of the survey - primarily from the Finnish perspective - to help identify competitive advantages upon which successful business operations in the Finnish forest cluster can be built.According to the survey, the outlooks for technical and raw material choices, as well as barriers to biorefinery diffusion, are very similar in all the studied areas. Biorefineries and related energy products are considered the way to sustainably guarantee the forest cluster’s success. An increase in the price of oil motivates the development of forest biorefineries and wood-based biofuels; however, it is obvious that there is a need to revaluate from a fresh perspective the utilisation of wood and the wood-refining chain in the forest cluster.The survey respondents consider wood-based biofuel and chemical production a serious business opportunity for the forest cluster. In Finland, there is a strong confidence in the production of biofuels. However, all the countries included in the study trust in their own national strengths and in their chance to be a leading actor in the forest biorefinery business worldwide. The forest biorefinery business seems to have market potential, and global competition can thus be expected.     

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.     

汽车产品回收利用技术及商业循环模式的实现

探讨了汽车产品回收利用技术实现的方案。实现汽车的全生命周期,需要经过汽车整车拆解、汽车零部件分类以及汽车零部件再制造或资源化回收这三大步骤,并对这三项内容加以具体阐述。结合现行报废汽车产业政策,提出了一种实现汽车产品回收的商业循环模式。说明了汽车产品回收再制造信息管理系统的重要性,并介绍了其六项功能。     

Investigating corporate social responsibility in supply chains: a SME perspective

This paper analyzes the practices adopted and difficulties experienced by Small and Medium-sized Enterprises (SMEs) to transfer socially responsible behaviors to suppliers that operate in developing countries. In particular, a multiple case study was conducted on five Italian socially responsible SMEs. It was found that companies use different strategies as well as diverse management systems and tools to address Corporate Social Responsibility (CSR) issues along their supply chains (SCs). The paper is innovative mainly since few are the existing studies that investigate the CSR practices adopted by SMEs in the SC. Furthermore, it is argued that our research can be helpful to SME managers willing to deal with CSR issues along their SCs, especially when developing countries are involved.     

Environmental reporting in a developing country: a case study on status and implementation in Malaysia

With the increase in awareness of environmental issues, the level of environmental disclosure and stakeholder demands for environmental information is increasing. New developments in the ISO 14000 standards also make it more evident that a company's environmental performance as well as its environmental reporting should be considered as strategic issues in business strategy. Especially for a developing country like Malaysia, many companies are under external pressures to improve their environmental performance.In this study, a review on the image and environmental disclosure, together with the challenges in environmental information management and a short case study are presented. Subsequently, the paper explores some of the strategic implications of environmental reporting as an important tool for improved environmental management.     

The drivers for contractors’ green innovation: an industry perspective

In the construction industry, contractors have been facing the challenge to meet the emerging needs related to the reduction of environmental impacts during the construction process. Generally, the commitment of efforts and resources from contractors to meet these needs is motivated by the influence exerted from environmental regulations and stakeholder demands. However, managerial environmental concerns and size of firms also account as key factors affecting the adoption of green construction practices. Therefore, the aim of this research is to identify those factors influencing contractors to adopt green construction practices by using data gathered from a survey. From the results, it has been found that managerial concern is the most important driver for the adoption of green practices. Significant relationships have also been found between government regulations and business size with the adoption of green construction practices. However, there is no significant evidence on the relationship among the adoption of green construction practices with perceived stakeholders’ pressures. The findings from this study are significant in the understanding on the factors of green construction management. This knowledge may contribute to better decision-making towards implementing green construction practices.     

Factors involved in the decision to decline prenatal screening with noninvasive prenatal testing (NIPT)

Objective

To investigate factors involved in the decision to decline prenatal screening with noninvasive prenatal testing (NIPT).

Method

A questionnaire study was conducted among 219 pregnant women in the Netherlands who had declined prenatal screening with NIPT (TRIDENT-2 study). Respondents were selectively recruited from three hospitals and 19 midwifery practices, primarily located in or near socioeconomically disadvantaged neighborhoods. 44.3% of the respondents were of non-Western ethnic origin and 64.4% were religious.

Results

Most respondents (77.2%) found the decision to decline NIPT easy to make, and 59.8% had already made the decision before information about NIPT was offered. These respondents were more often religious, multigravida, and had adequate health literacy. The main reasons to decline NIPT were “I would never terminate my pregnancy” (57.1%) and “every child is welcome” (56.2%). For 16.9% of respondents, the out-of-pocket costs (175 euros) played a role in the decision, and the women in this group were more often nonreligious, primigravida, and had inadequate health literacy.

Conclusion

The primary factors involved in the decision to decline NIPT were related to personal values and beliefs, consistent with autonomous choice. Out-of-pocket costs of NIPT hinder equal access for some pregnant women.     

Linkages between best practice in business and good environmental performance by companies

Is the adoption of currently accepted best practice in business associated with improved environmental performance by companies? What methods can be used to assess and compare the environmental practices and performance of different companies? In this pilot study, the business and environmental practices and performances of five companies in the metal working sector were examined and scored. The business practices and performances were assessed using the best practice model adopted in the Australian Manufacturers Council study (AMC, November 1994, Melbourne, 112pp.). The environmental practices and performance of the companies were assessed based on a five stage framework of business response to environmental issues presented here. A strong correlation was observed between environmental performance and business practices (correlation coefficient, r = 0.85, p < 0.05). The company closest to best practice had a strong focus on quality, efficiency and elimination of waste, well-developed strategy, good teamwork and a high level of commitment and also had the highest score for environmental performance. The company with poorest score for its business practices had the poorest environmental performance, with the remaining companies lying between on both scores. There was no significant correlation between business performance outcomes and environmental performance.     

A strategic decision framework for green supply chain management

The number of organizations contemplating the integration of environmental practices into their strategic plans and daily operations is continuously increasing. Numerous initiatives have provided incentives for organizations to become more environmentally benign. Some of these regulation driven programs are mandatory, but increasingly numerous voluntary environmental programs are also introduced by organizations. Organizations view many of these environmental programs, which may include technological and organizational development projects, as possible alternatives for gaining or maintaining a competitive advantage. One environmental program area that continues to gain in importance is one that focuses on the external relationships among organizations. To help evaluate alternatives that will effect this relationship we present a strategic decision framework that will aid managerial decision-making. This decision framework is based on literature and practice in the area of environmentally conscious business practices. The focus of this paper will be on the components and elements of green supply chain management and how they serve as a foundation for the decision framework. We shall explore the applicability of a dynamic non-linear multiattribute decision model, defined as the analytical network process, for decision making within the green supply chain. Issues facing the modeling approach are also discussed.