Energy efficiency and greenhouse gas emissions of different supply chains: a comparison of French, UK and Belgian cases

Freight transportation system is critical to economic activity but it carries significant environmental costs, notably GHG emissions and climate change : energy use and corresponding CO2 emissions is increasing faster in freight transport than in other sectors and this increase is primarily the result of increased trade. This paper compares the transport activities, associated energy consumption and CO2 emissions of different supply chains for a range of products in three countries: Belgium, France and United Kingdom. Among the products considered are furniture and fruits & vegetables. For each of these products, different supply chains, involving more or less transport activity and associated energy consumption are analysed in each country. The comparison highlights some of the main factors that influence GHG emissions for different supply chains and illustrates how they vary according to product and country of final distribution. In more detail, the paper addresses the main differences between the supply chains of these products namely, the origin of their sourcing, the logistical organisation between production and retail and different types of retail outlet. The origin of the sourcing impact is mainly related to distance. The impact of the logistical organisation between raw material and retail on GHG emissions is linked to the mode and vehicle choice and to the load factor. As for retail, the consumer trip emissions, between his home and the retail outlet, are also an important part of the whole supply chain emissions. It is worthwhile to notice that our goal in this project is to consider the whole supply chain, from production to consumption. Therefore a particular focus is put on the mobility behaviours of consumers purchasing the studied products during their shopping and dropping back home activities related to these products. Especially a web based survey has been conducted and the gathered results offer an opportunity for drawing a more detailed picture of the associated CO2 emissions. This paper uses the results of an ongoing research on supply chain energy efficiency, funded by ADEME (the French Energy Agency) through the French program on transport research (PREDIT). This research is based on a comprehensive review of the various approaches to quantifying the environmental impacts of supply chains together with data collection from a range of organisations including manufacturers, retailers and transport companies. We will first present the developed methodologies, then the results corresponding to each studied product will be described. A discussion of the potential application of the research approach to the wider debate about the environmental impact of freight transport and the scope for GHG emissions reduction targets to be achieved will be included.

Logistics management and costs of biomass fuel supply

Discusses part of a project conducted by the authors into the logistics planning and management and costs of supplying biomass fuels to biomass-fired power stations in the UK. Defines biomass fuels and the reasons for the growth in interest in their use for electricity generation. The activities and parties involved in the biomass fuel supply chain are discussed together with the management of the chain in order to achieve smooth and consistent flow of biomass fuel to power stations. Explains the approach used to modelling the delivered costs of biomass fuels for four types of biomass fuel included in the project: forest fuel, short rotation coppice, straw and miscanthus. Comments are given on the environmental impacts of the fuel supply chains. The results indicate that straw supply systems are capable of producing the lowest delivered costs of the four fuels studied. Short rotation coppice and miscanthus, two new energy crops, are likely to have the highest delivered costs at present. This is due to the cost of growing these fuels and the financial incentives required by farmers to persuade them to grow these crops. Logistics costs (i.e. transport, storage and handling) are shown to represent a significant proportion of total delivered cost in biomass supply. Careful supply chain planning and logistics management will be of central importance to the success of the biomass industry.

A method for analysing operational complexity in supply chains

This paper proposes a method for analysing the operational complexity in supply chains by using an entropic measure based on information theory. The proposed approach estimates the operational complexity at each stage of the supply chain and analyses the changes between stages. In this paper a stage is identified by the exchange of data and/or material. Through analysis the method identifies the stages where the operational complexity is both generated and propagated (exported, imported, generated or absorbed). Central to the method is the identification of a reference point within the supply chain. This is where the operational complexity is at a local minimum along the data transfer stages. Such a point can be thought of as a ‘sink’ for turbulence generated in the supply chain. Where it exists, it has the merit of stabilising the supply chain by attenuating uncertainty. However, the location of the reference point is also a matter of choice. If the preferred location is other than the current one, this is a trigger for management action. The analysis can help decide appropriate remedial action. More generally, the approach can assist logistics management by highlighting problem areas. An industrial application is presented to demonstrate the applicability of the method.

Partner selection in green supply chains using PSO - a practical approach

Partner selection is crucial to green supply chain management as the focal firm is responsible for the environmental performance of the whole supply chain. The construction of appropriate selection criteria is an essential, but often neglected pre-requisite in the partner selection process. This paper proposes a three-stage model that combines Dempster-Shafer belief acceptability theory and particle swarm optimization technique for the first time in this application. This enables optimization of both effectiveness, in its consideration of the inter-dependence of a broad range of quantitative and qualitative selection criteria, and efficiency in its use of scarce resources during the criteria construction process to be achieved simultaneously. This also enables both operational and strategic attributes can be selected at different levels of hierarchy criteria in different decision-making environments. The practical efficacy of the model is demonstrated by an application in Company ABC, a large Chinese electronic equipment and instrument manufacturer.

Strategic supply lead time management. Case Nokia Networks, Hardware Services

Teollisuuden palveluiden on huomattu olevan potentiaalinen lisätulojen lähde. Teollisuuden palveluiden dynaamisessa maailmassa räätälöinti ja kyky toimia nopeasti ovat kriittisiä asiakastyytyväisyyden ja kilpailuedun luomisprosessin osia. Toimitusketjussa käytetyn ajan lyhentämisellä voidaan saavuttaa sekä paremmat vasteajat, että alhaisemmat kokonaiskustannukset. Tutkielman tavoitteena on kuvata teollisuuden palveluiden dynaamista ympäristöä: asiakastarvetta, sekä mahdollisuuksia kaventaa pyydetyn ja saavutetun toimitusajan välistä eroa. Tämä toteutetaan pääosin strategisen toimitusajan hallinnan keinoin. Langattomien tietoliikenneverkkojen operaattorit haluavat vähentää ydinosaamiseensa kuulumatomiin toimintoihin, kuten ylläpitoon sitoutuneita pääomia. Tutkielman case osiossa varaosapalvelujen toimitusketjun kysyntä-, materiaali- ja informaatiovirtoja analysoidaan niin kvalitatiivisten haastatteluiden, sisäisten dokumenttien, kuin kvantitatiivisten tilastollisten menetelmienkin avulla. Löydöksiä peilataan vallitsevaa toimitusketjun ja ajanhallinnan paradigmaa vasten. Tulokset osoittavat, että vahvan palvelukulttuurin omaksuminen ja kokonaisvaltainen toimitusketjun tehokkuuden mittaaminen ovat ajanhallinnan lähtökohtia teollisuuden palveluissa.

Happy growers! Relationship quality in the German organic apple chain

Relational factors between supply chain actors have been acknowledged to contribute significantly to competitiveness. With the example of the German market for organic apples the suitability of the concept of the Relational View for explaining competitiveness was investigated. Structured interviews were conducted with selected actors of the supply chain. Actors at all levels of the supply chain proved to be highly committed and described their business relations as satisfying and trustful. Strong vertical and horizontal collaboration was found. Thus, the Relational View proved to be highly suitable to explain competitiveness in the market for organic apples.

The Complexity of Safety Stock Placement in General-Network Supply Chains

We consider the optimization problem of safety stock placement in a supply chain, as formulated in [1]. We prove that this problem is NP-Hard for supply chains modeled as general acyclic networks. Thus, we do not expect to find a polynomial-time algorithm for safety stock placement for a general-network supply chain.

Evaluating the likelihood of the adoption of an animal welfare assessment system in European agri-food supply chains

Purpose – The purpose of this paper is to analyse the likelihood of adoption of a recently designed Welfare Assessment System in agri-food supply chains and the factors affecting the adoption decision. The application is carried out for pig and poultry chains. Design/methodology/approach – This research consisted of two main components: interviews with retailers in pig and poultry supply chains in eight different EU countries to explore their perceptions towards the adoption possibilities of the welfare assessment system; and a conjoint analysis designed to evaluate the perceived adoption likelihood of the assessment system by different Standards Formulating Organisations (SFOs). Findings – Stakeholders were found to be especially concerned about the costs of implementation of the system and how it could, or should, be merged with existing assurance schemes. Another conclusion of the study is that the presence of a strong third independent party supporting the implementation of the welfare assessment system would be the most important influence on the decision whether, or not, to adopt it. Originality/value – This research evaluates the adoption possibilities of a novel Welfare Assessment System and presents the views of different supply chain stakeholders on an adoption of such a system. The main factors affecting the adoption decision are identified and analysed. Contrary to expectations, the costs of adoption of a new welfare assessment system were not considered to be the most important factor affecting the decision of supply chain stakeholders about the adoption of this new welfare system.

The economic theory of international supply chains: a systems view

This paper offers an integrated analysis of out-sourcing, off-shoring and foreign direct investment within a systems view of international business. This view takes the supply chain rather than the firm as the basic unit of analysis. It argues that competition in the global economy selects supply chains that maximise the joint profit of all the firms in the chain. The systems view is compared with the firm-centred view commonly used in strategy literature. The paper shows that a firm’s strategy must be embedded within an efficient supply chain strategy, and that this strategy must be negotiated with, rather than imposed upon, other firms. The paper analyses the conditions under which various supply chain strategies - and by implication various firm-level strategies - are efficient. Only by adopting a systems view of supply chains is it possible to determine which firm-level strategies will succeed in a volatile global economy.

Economic analysis of international supply chains: an internalization perspective

Offshoring and outsourcing in global value chains have been extensively analyzed from a strategic management perspective (Gereffi & Li, 2012; Gereffi, Humphrey & Sturgeon, 2005; Mudambi & Venzin, 2010). This paper examines these issues from an internalization theory perspective by summarizing the contribution of internalization theory to supply chain analysis; considering how a division of labor is coordinated and comparing coordination by management with coordination by the market; and discussing the formal models of supply chains developed by economists. Supply chain researchers possessing an interest in economic principles and good mathematical skills can make an important contribution to internalization theory, and it is hoped that this paper will encourage them to do so.

Segmenting the Italian coffee market: marketing opportunities for economic agents working along the international coffee chain

Globalization, either directly or indirectly (e.g. through structural adjustment reforms), has called for profound changes in the previously existing institutional order. Some changes adversely impacted the production and market environment of many coffee producers in developing countries resulting in more risky and less remunerative coffee transactions. This paper focuses on customization of a tropical commodity, fair-trade coffee, as an approach to mitigating the effects of worsened market conditions for small-scale coffee producers in less developed countries. fair-trade labeling is viewed as a form of “de-commodification” of coffee through product differentiation on ethical grounds. This is significant not only as a solution to the market failure caused by pervasive information asymmetries along the supply chain, but also as a means of revitalizing the agricultural-commodity-based trade of less developed countries (LDCs) that has been languishing under globalization. More specifically, fair-trade is an example of how the same strategy adopted by developed countries’ producers/ processors (i.e. the sequence product differentiation - institutional certification - advertisement) can be used by LDC producers to increase the reputation content of their outputs by transforming them from mere commodities into “decommodified” (i.e. customized and more reputed) goods. The resulting segmentation of the world coffee market makes possible to meet the demand by consumers with preference for this “(ethically) customized” coffee and to transfer a share of the accruing economic rents backward to the Fair-trade coffee producers in LDCs. It should however be stressed that this outcome cannot be taken for granted since investments are needed to promote the required institutional innovations. In Italy FTC is a niche market with very few private brands selling this product. However, an increase of FTC market share could be a big commercial opportunity for farmers in LDCs and other economic agents involved along the international coffee chain. Hence, this research explores consumers’ knowledge of labels promoting quality products, consumption coffee habits, brand loyalty, willingness to pay and market segmentation according to the heterogeneity of preferences for coffee products. The latter was assessed developing a D-efficient design where stimuli refinement was tested during two focus groups.

Towards conceptualizing reverse service supply chains

Purpose – Recognizing the heterogeneity of services, this paper aims to clarify the characteristics of forward and the corresponding reverse supply chains of different services. Design/methodology/approach – The paper develops a two-dimensional typology matrix, representing four main clusters of services according to the degree of input standardization and the degree of output tangibility. Based on this matrix, this paper develops a typology and parsimonious conceptual models illustrating the characteristics of forward and the corresponding reverse supply chains of each cluster of services. Findings – The four main clusters of service supply chains have different characteristics. This provides the basis for the identification, presentation and explanation of the different characteristics of their corresponding reverse service supply chains. Research limitations/implications – The findings of this research can help future researchers to analyse, map and model forward and reverse service supply chains, and to identify potential research gaps in the area. Practical/implications – The findings of the research can help managers of service firms to gain better visibility of their forward and reverse supply chains, and refine their business models to help extend their reverse/closed-loop activities. Furthermore, the findings can help managers to better optimize their service operations to reduce service gaps and potentially secure new value-adding opportunities. Originality/value – This paper is the first, to the authors ' knowledge, to conceptualize the basic structure of the forward and reverse service supply chains while dealing with the high level of heterogeneity of services.

Creating buyer-supplier commitment in food supply chains at the base of the pyramid

Esta pesquisa analisa o papel dos aspectos relacionais tais como confiança, comprometimento, interdependência e uso de poder âmbito das estratégias de negócios inclusivos que envolvem pequenos agricultores nas cadeias de valor de multinacionais dos agronegócios no Brasil. Os negócios inclusivos de abastecimento direto por empresas com pequenos agricultores em países em desenvolvimento têm sido reconhecidos como uma abordagem economicamente viavél e promissora para criar impacto social e melhorar as condições de vida de produtores rurais da "base da pirâmide", ao mesmo tempo permitindo que as empresas reforçar as suas posições nos mercados locais e adquirir matérias primas de qualidade a custos mais baixos. Estudos sobre este tema focam amplamente sobre as vantagens comerciais e competitivas que as empresas derivam do abastecimento direito com pequenos fornecedores, apresentando modelos de cadeia de valor customizados e ajustados estratégias globais de negócios, no entanto ainda há pouco conhecimento teoricamente fundamentado sobre os desafios organizacionais e relacionais da relação entre o comprador multinacional e o fornecedor de baixa renda. Além disso, pouco foco tem-se prestado sobre como assimetrias entre multinacionais e produtores de baixa renda, em questão de poder, dependência e de valores pode afetar a evolução dessas relações de negócios. O objetivo do estudo foi descrever os fatores que permitem a esses parceiros assimétricos de construir relacionamentos comerciais de longo prazo e mutuamente benéficos. A metodologia da teoria fundamentada foi usada e foi particularmente adequada para examinar as relações entre comprador e fornecedor e para recolher experiências de campo em três setores principais dominados pela agricultura familiar no Brasil, ou seja laticínios, avi-suinocultura e produção hortícola. Os principais conceitos teóricos da área de Relationship Marketing foram usados para apoiar os resultados da pesquisa de campo. A principal conclusão desta pesquisa é a importância de ir além da construção de confiança na estratégia de gestão do relacionamento entre comprador e fornecedor e de criar parcerias diádicas baseadas na interdependência mútua, a fim de reduzir as assimetrias e melhorar o comprometimento entre a empresa e o pequeno agricultor.

Natural disasters and their impacts on supply chains

This research aimed to understand how Brazilian organizations, located in areas affected by natural disasters were impacted in their operations and the impacts to their whole supply chain. Based on documentary analysis, the study identified the major events that happened in Brazil between 2003 and 2012 and the most affected supply chains, as well as key players during the disaster and the greatest impacts on economic activities. The results suggest that natural disasters are still not considered in the risk management by companies, despite the effects on their activities