Risk Management in Sustainable Supply Chain

Growing awareness in corporate responsibility and issues related to sustainability is seen to increase innovativeness in a company as well as in its supply chain. The stakeholders’ awareness on sustainability has increased, and they demand the companies to identify sustainability risks and adapt procedures for mitigating them. The purpose of this thesis is to examine how risks are managed in sustainable supply chain. Definition of sustainability risks and risk management procedures construct the framework of the study. It is done through an empirical study conducted on 95 Finnish companies operating in the manufacturing industry. The data is acquired via an online questionnaire. The research has been conducted as a quantitative study utilizing the methods of statistical analysis, such as correlation analysis and factor analysis. The essential results of this thesis are identified risk-procedure connections, and the importance of different risks and procedures in the respondent companies.

Tilaus-toimitusketjun toimivuus kiinteistö- ja aluepalveluissa kaupunkikonsernin näkökulmasta

Imatralla tilaaja-tuottaja-malliin liittyvä nykyinen sopimusohjausmalli otettiin käyttöön teknisellä toimialalla marraskuussa 2014, jolloin kiinteistö- ja aluepalveluiden tuottamiseen perustettiin oma yhtiö. Tilaaminen ja tuottaminen muodostaa tilaus-toimitusketjun. Tämän työn tarkoituksena oli saada tietoa nykyisen kiinteistö- ja aluepalveluiden tilaus-toimitusketjun toimivuudesta sekä vahvuuksista ja puutteista. Työn teoriaosassa perehdyttiin strategiaprosessiin kunnissa, tilaaja-tuottaja-toimintatapaan sekä yhtiöittämiseen ja tuloksellisuuteen. Käytännön tietoa tilaus-toimitusketjusta saatiin strukturoidulla haastattelulla. Haastattelu jaettiin strategiseen, sopimusohjaustasoon sekä operatiiviseen tasoon. Haastateltavina oli toimitusketjun eri osapuolia. Työn tuloksena voidaan todeta, että strategian täytäntöönpanossa on vielä tekemistä, etenkin operatiivisella puolella. Sopimusohjausmalliin oltiin tyytyväisiä vaikka myös siitä löytyi vielä kehitettävää. Operatiivisella tasolla toiminnan tehokkuus on noussut verrattuna entiseen malliin, tehokkuutta voidaan kuitenkin vielä monin keinoin nostaa. Yleisesti nähtiin, että koko tilaus-toimitusketjun toiminta on tehostunut ja selkiytynyt.

Sustainable sourcing in global supply network: assessment of geographic challenges and management methods Case: Stora Enso

The purpose of this work was to describe and compare sourcing practices and challenges in different geographies, to discuss possible options to advance sustainability of global sourcing, and to provide examples to answer why sourcing driven by sustainability principles is so challenging to implement. The focus was on comparison between Europe & Asia & South-America from the perspective of sustainability adoption. By analyzing sourcing practices of the case company it was possible to describe main differences and challenges of each continent, available sourcing options, supplier relationships and ways to foster positive chance. In this qualitative case study gathered theoretical material was compared to extensive sourcing practices of case company in a vast supplier network. Sourcing specialist were interviewed and information provided by them analyzed in order to see how different research results and theories are reflecting reality and to find answers to proposed research questions.

Improving business processes in a globally dispersed make-to-order supply chain. Case study on outbound logistics in a Multinational Corporation

The purpose of this thesis is to find out how outbound logistics process can be improved by reducing unnecessary waste in a globally dispersed make-to-order (MTO) supply chain. The research problem was addressed by a multinational corporation that aims to find a solution for reducing unnecessary waste in their outbound logistics process. The focus is on customized products that are delivered via sea transportation. Theoretical framework for improving outbound logistics processes in globally dispersed MTO supply chain was created based on business process management, Porter’s value chain theory, value stream mapping and current reality tree. The empirical research was conducted by using constructive approach due to its ability to research a practical problem and to improve the existing practices. The data was collected from ten semi-structured interviews and three non-participant observations. By analysing the data and applying the theoretical framework, five types of waste were detected in the process that were seen to derive from six root causes. Practical solution was constructed to reduce the waste in the process by combining the existing literature with the ideas raising from empirical data. The results of this thesis suggest that a MNC with a globally dispersed MTO supply chain can improve its outbound logistics process by applying activities that enhance internal and external integration, collaboration and coordination, and increase predictability of the process. This research has practical relevance both for the case company as well as for other MNCs with globally dispersed MTO supply chains that aim to improve their outbound logistics processes. This research contributes to the BPM and CRA research by providing an evidence for their applicability in the new context.

Benefits of a low-cost one-phase current distortion detection device in appliance supply in low-voltage residential networks

In this bachelor’s thesis are examined the benefits of current distortion detection device application in customer premises low voltage networks. The purpose of this study was to find out if there are benefits for measuring current distortion in low-voltage residential networks. Concluding into who can benefit from measuring the power quality. The research focuses on benefits based on the standardization in Europe and United States of America. In this research, were also given examples of appliances in which current distortion detection device could be used. Along with possible illustration of user interface for the device. The research was conducted as an analysis of the benefits of current distortion detection device in residential low voltage networks. The research was based on literature review. The study was divided to three sections. The first explain the reasons for benefitting from usage of the device and the second portrays the low-cost device, which could detect one-phase current distortion, in theory. The last section discuss of the benefits of usage of current distortion detection device while focusing on the beneficiaries. Based on the result of this research, there are benefits from usage to the current distortion detection device. The main benefitting party of the current distortion detection device was found to be manufactures, as they are held responsible of limiting the current distortion on behalf of consumers. Manufactures could adjust equipment to respond better to the distortion by having access to on-going current distortion in network. The other benefitting party are system operators, who would better locate distortion issues in low-voltage residential network to start prevention of long-term problems caused by current distortion early on.

Developing Supply Chain Process Management and Measurement in Global Manufacturing Company

The objective of this research is to create a current state analysis of pulp supply chain processes from production planning to deliveries to customers. A cross-functional flowchart is being used to model these processes. These models help finding key performance indicators (KPIs) which enable examinations of the supply chain efficiency. Supply chain measures in different processes reveal the changes need processes that affect the whole supply chain and its efficiency and competitiveness. Structure of pulp supply chain differs from most of the other supply chains. The fact that there are big volumes of bulk products, small product variations and supply forecasts are made for the year ahead make the difference. This factor brings different benefits but also challenges when developing supply chain. This thesis divides pulp supply chain in three different main categories: production planning, warehousing and transportation. It provides tools for estimating the functionality of supply chain as well as developing the efficiency for different functions of supply chain. By having a better understanding of supply chain processes and measurement the whole supply chain structure can be developed significantly.

Reuse of electric vehicle battery in uninterruptible power supply

Tässä diplomityössä tarkasteltiin Nissan Leaf -sähköauton käytetyn litiumakun soveltuvuutta UPS-varavirtalaitteen energialähteeksi. Kun akku on heikentynyt niin ettei sen kapasiteetti enää ole riittävä autokäyttöön, sitä voidaan kuitenkin vielä hyödyntää muissa sovelluksissa, kuten UPS-laitteessa. Työ sai alkunsa osana GreenDataNet-projektia, jossa pyritään kehittämään datakeskuksiin ympäristöä vähemmän kuormittavia ratkaisuja käyttämällä uusiutuvia energialähteitä, akkujen uusiokäytöllä, sekä energianhallinnan optimoinnilla. Työssä käytiin läpi akun ja sen ohjausjärjestelmän ominaisuuksia, kerrottiin UPS:in ohjelmistoon tehdyistä muutoksista sekä esitettiin testitulokset. Lopputuloksena todettiin akun sopivan muuten hyvin UPS-käyttöön, mutta vaadittu päivittäinen kennojännitteiden tasaus ja sen aiheuttama katkos energian saatavuuteen heikentää UPSin käyttövarmuutta kuorman suojauksessa. Lopussa esitettiin muutamia ehdotuksia tämän ongelman korjaamiseksi.

Offshoring and outsourcing under demand uncertainty -a supply chain management analysis

Outsourcing and offshoring or any combinations of these have not just become a popular phenomenon, but are viewed as one of the most important management strategies due to the new possibilities from globalization. They have been seen as a possibility to save costs and improve customer service. Executing offshoring and offshore outsourcing successfully can be more complex than initially expected. Potential cost savings resulting from of offshoring and offshore outsourcing are often based on lower manufacturing costs. However, these benefits might be conflicted by a more complex supply chain with service level challenges that can respectively increase costs. Therefore analyzing the total cost effects of offshoring and outsourcing is necessary. The aim of this Master´s Thesis was to to construct a total cost model using academic literature to calculate the total costs and analyze the reasonability of offshoring and offshore outsourcing production of a case company compared to insourcing production. The research data was mainly quantitative and collected mainly from the case company past sales and production records. In addition management level interviews from the case company were conducted. The information from these interviews was used for the qualification of the necessary quantitative data and adding supportive information that could not be gathered from the quantitative data. Both data collection and analysis were guided by a theoretical frame of reference that was based on academic literature concerning offshoring and outsourcing, statistical calculation of demand and total costs. The results confirm the theories that offshoring and offshore outsourcing would reduce total costs as both offshoring and offshore outsourcing options result in lower total annual costs than insourcing mainly due to lower manufacturing costs. However, increased demand uncertainty would make the alternative of offshore outsourcing more risky and difficult to manage. Therefore when assessing the overall impact of the alternatives, offshoring is the most preferable option. As the main cost savings in offshore outsourcing came from lower manufacturing costs, more specifically labour costs, the logistics costs in this case company did not have an essential effect in total costs. The management should therefore pay attention initially to manufacturing costs and then logistics costs when choosing the best production sourcing option for the company.

Yritysvastuu osuuskaupan toimitusketjussa –Tapaustutkimus

Tämän tutkimuksen tavoitteena oli tarkastella, minkälainen merkitys yritysvastuulla on osuuskaupan toimitusketjussa. Case-yritykseksi valittiin Etelä-Karjalan osuuskauppa, joka on S-ryhmän yksi alueosuuskaupoista. Tutkimusmenetelmänä käytettiin puolistrukturoitua haastattelua, joka suoritettiin case-yrityksen paikallisille tavarantoimittajille joko puhelimitse tai sähköpostitse. Lisäksi analysoitiin S-ryhmän vuoden 2014 vastuuraportti, johon Etelä-Karjalan osuuskaupan yritysvastuuohjelma perustuu. Haastatteluihin pyydetyistä viidestä tavarantoimittajasta vain kaksi suostui haastateltavaksi. Yritysvastuuraportin analyysin perusteella S-ryhmä ja sen alueosuuskaupat pitävät toimitusketjun vastuullisuutta erittäin tärkeänä. Raportissa korostetaan tavarantoimittajan edellyttämistä rehelliseen ja vastuulliseen toimintaan sekä toimitusketjun tarkkaa tuntemista, jotta vastuullisuuden tasoa voidaan kehittää yhteisvoimin. Tavarantoimittajien haastattelujen perusteella toimittajayrityksissä harjoitetaan yritysvastuutoimintaa, mutta ei kuitenkaan tarkkaan tiedetä termin sisältöä, vaan toimitaan omien eettisten arvojen ja taloudellisten intressien perusteella. Molemmat haastateltavat totesivat, ettei osuuskauppa edellyttänyt tiettyä yritysvastuun tasoa, eikä varmentanut toimittajan vastuullisuutta. Tämän pienimuotoisen tapaustutkimuksen perusteella voi todeta, ettei Etelä-Karjalan osuuskauppa ole huomioinut yritysvastuuta tavarantoimitussopimuksia laatiessaan. Kyse voi olla joko siitä, ettei alueosuuskauppaa ole sitoutettu S-ryhmän vastuuohjelmaan tarpeeksi hyvin, tai että vastuuraportissa mainitut asiat huomioidaan vain globaaleissa toimitusketjuissa.