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