sustainability as a source of conflict in the supply chain
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Sustainability as source of conflict in the supply chain
Presented by:
Ibrahim AlharrasiUndergraduate studentMaritime Logistics Management (MLM)Australian Maritime College (AMC)University of Tasmania (UTAS)
Presentation overview
Sustainable development Conflicts in the supply chain (4 Cs)
Costs Compliance with regulations CompetitivenessCoordination
Sustainable development
Brundtland Commission Report (1987)
“development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Sustainable development
Call for sustainable development
Climate change Greenhouse gases emissions (e.g. CO2 & CH4) Waste
Sustainable development
Call for going green in the supply chain (SC) is pressured from
Internal factors (competitiveness, awareness) External factors (stakeholders, public, regulations)
Benefits for going green: Less costs (e.g. HP reduces costs of six million pounds) Reduce waste Benefit the environment (e.g. HP reduces greenhouse gases emissions 20%) Publicity Innovations introductions (environmental friendly paints, Packaging, ballast
water management)
Conflicts in the supply chain (4 Cs)
Four main conflicts (4 Cs):
Compliance with regulations and rules
Costs
Competitiveness
Coordination
Conflicts in the supply chain (4 Cs)
Compliance with regulations and rules
Organisations required to comply with rules
Effectiveness of rules
Adding fees and taxes
Tragedy of common
Conflicts in the supply chain (4 Cs)
Costs Costs associated:
Technology; Production and Administrative
Inefficiencies Balance between costs and benefits
Conflicts in the supply chain (4 Cs)
Competitiveness
Competitive advantage• (e.g. outsourcing)
Quality Customers willingness
• (e.g. super cars, public transportations) Distribution of costs within the supply chain
Conflicts in the supply chain (4 Cs)
Coordination Lack of coordination
Organisational Supply chain Stakeholders
Uncertainty Immature ecological system Dynamic of supply chain
Conclusion
Green supply chain is important step that companies should take
In the future, every company should develop its own plans However there are some difficulties to go green
4 Cs• Compliance with regulations and rules• Cost• Competitiveness• Coordination
RESULTS OF GOING GREEN
References
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.
Bernhut, S. 2009, Corporate climate change, CA Magazine, Vol. 142, Iss. 1, pp. 20-26. Cunningham, I. 2008, Time to go green in the supply chain, Logistics & Transport Focus, Vol. 10, Iss. 4,
pp.60-61. Davies, J., Hochman, S. 2007, The greening of the supply chain, Supply Chain Management Review, Vol.
11, Iss. 5, pp. 13-14. Dibenedetto, B. 2007, The color of money, Journal of Commerce, Vol. 8, Iss. 25,pp. 32-36. Financial Management 2007, Time to act on climate change, financial Management. viwed 28 October
2009, <http://web.ebscohost.com.ezproxy.utas.edu.au/ehost/detail?vid=5&hid=5&sid=42681ea4-c280-448d-8d5f-8738c2fd6cec%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=32617472>
Field, A. 2008, What is your green strategy, Treasury & Risk, pp. 40-44. Forman, M., Jørgensen, M. 2004, Greener Management International, Iss 45, pp. 43-62.
ANY QUESTIONS??!
Thank You