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Sustainable logistics management,
a business model approach




                                        Maria Björklund
                                   Logistics Management
               Department of Management and Engineering
                                     Linköping University
Sustainable logistics management, a business model approach

Results from two research project:
1. A roadmap to socially responsible supply chains
      2006-2009
      Financed by Vinnova


2. Competitive business models to meet future demands on
   sustainable logistics systems
      2008-2011
      Financed by Vinnova
      Research team: Mats Abrahamsson, Maria Huge Brodin, Maria
      Björklund, Cristina Maack, Uni Martinsen, Karin Isaksson




                                                                  2
Sustainable logistics management, a business model approach




                  Sustainable Development


         Government      Business      Civil Society

                          CSR




   People                Planet                        Profit

                                                                3
Sustainable logistics management, a business model approach

        Economy has always been the main driver in logistics research.
        In recent years the environmental dimension has also been focused.
        The social dimension is only covered to a very limited extent.




Journals    Marketing Accounting Production Puchasing                SCM   Logistics Transport   CSR   Ethics
     CSR*     175        180         42        21                     3       1          2        -       -
Logictics**     -         -           -         -                     -        -         -        9      19
*One major journal within CSR (Journal of Business Ethics)
**Six major logistic journals (IJPDLM, JBL, IJLM, TJ, IJPMM, JSCM)




                                                                                                        4
1. A roadmap to socially responsible supply chains

 CSR aspects studied




                                                     5
1. A roadmap to socially responsible supply chains


Main method:
      Survey study
         Logistics responsibility
         Large companies in Sweden
         Responses 103 of 450

Some findings:
   1. Most CSR-aspects are of relevance in a logistics setting
   2. Most logistics change influences the companies’ CSR.
   3. Differences can be found regarding which parts of the supply chain that
      are targeted and CSR strategies applied.




                                                                              6
1. A roadmap to socially responsible supply chains


  Economy


5,0

4,5

4,0

3,5

3,0

2,5                                                         relevance
                                                            influence
2,0

1,5

1,0

0,5

0,0
      costs   income   binding capital    market
                                         presence
                                                                           7
1. A roadmap to socially responsible supply chains


  Human rights


4,0

3,5

3,0

2,5

2,0                                                                   relevance
                                                                      influence
1,5

1,0

0,5

0,0
      purchasing   discrimination   child labor    forced labor
       routines                                                                           8
1. A roadmap to socially responsible supply chains


 Labor rights


Logistics change:

     Capacity                            Employment
     of facilities


                                       Labor/management
                                            relations

      Number
     of facilities
                                       Health and safety



                                         Training and
                                          education
  Supplier and
customer network
                                        Diversity and
                                       equal opportunity           9
1. A roadmap to socially responsible supply chains




Supplier                    Customer


Supplier   Company          Customer


Supplier                    Customer




                                                           10
2. Competitive business models to meet future demands on sustainable
logistics systems

     A business model approach
     A well designed business model…
         can support a company in reaching its sustainability targets.
         provides guidance of how a company should work to reach its strategic
         goals.


                                     Offering
                                  - Value Proposition
                               - Revenue mechanisms
                                 (Norman & Ramirez)



            Market
            Position
          -Target market                                Operative
      - Competitive strategy                            Platform
         - Value network
                                                        -Value chain
            (Porter I/O)
                                                          structure
                                                           (RBV)

                                                                [Kindström, 2005]   11
2. Competitive business models to meet future demands on sustainable logistics systems



   Methods this far
       Think tanks
       Literature reviews
       Case study

   Some findings:
    1. Difficulties in estimating the environmental impact from logistics.
    2. System limitations can influence both the environmental results and
       possibilities for action.




                                                                                  12
2. Competitive business models to meet future demands on sustainable logistics systems



Environmental performance measurement in logistics:
   Consider external stakeholders (e.g. government)
   Well defined goal and system limitations
   Link measurements between different managerial levels
   Lack in horizontal integration




                                                                                  13
2. Competitive business models to meet future demands on sustainable logistics systems



   System 2008



Returpack




 Brewery            Wholesaler                      Store               End
                                                                      consumer




                                                                                  14
2. Competitive business models to meet future demands on sustainable logistics systems



  System 2010?




                        Returpack               Storage




                                                                                  15
2. Competitive business models to meet future demands on sustainable logistics systems


   System 2010?




                        Returpack               Storage




                         Terminal
                           train




                                                                                  16
2. Competitive business models to meet future demands on sustainable logistics systems




                                                                                    Storage
                                                                 Returpack




      100%


                                                                        Total costs

                                                                        CO2 outlets




                       Sc 1          Sc 2         Sc 3           Sc 4




Clarifications: 2008 is used as a baseline (100%). Total costs includes costs for
transportation, storage, packages and handling.
                                                                                              17
18

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Session 37 Maria Björklund

  • 1. Sustainable logistics management, a business model approach Maria Björklund Logistics Management Department of Management and Engineering Linköping University
  • 2. Sustainable logistics management, a business model approach Results from two research project: 1. A roadmap to socially responsible supply chains 2006-2009 Financed by Vinnova 2. Competitive business models to meet future demands on sustainable logistics systems 2008-2011 Financed by Vinnova Research team: Mats Abrahamsson, Maria Huge Brodin, Maria Björklund, Cristina Maack, Uni Martinsen, Karin Isaksson 2
  • 3. Sustainable logistics management, a business model approach Sustainable Development Government Business Civil Society CSR People Planet Profit 3
  • 4. Sustainable logistics management, a business model approach Economy has always been the main driver in logistics research. In recent years the environmental dimension has also been focused. The social dimension is only covered to a very limited extent. Journals Marketing Accounting Production Puchasing SCM Logistics Transport CSR Ethics CSR* 175 180 42 21 3 1 2 - - Logictics** - - - - - - - 9 19 *One major journal within CSR (Journal of Business Ethics) **Six major logistic journals (IJPDLM, JBL, IJLM, TJ, IJPMM, JSCM) 4
  • 5. 1. A roadmap to socially responsible supply chains CSR aspects studied 5
  • 6. 1. A roadmap to socially responsible supply chains Main method: Survey study Logistics responsibility Large companies in Sweden Responses 103 of 450 Some findings: 1. Most CSR-aspects are of relevance in a logistics setting 2. Most logistics change influences the companies’ CSR. 3. Differences can be found regarding which parts of the supply chain that are targeted and CSR strategies applied. 6
  • 7. 1. A roadmap to socially responsible supply chains Economy 5,0 4,5 4,0 3,5 3,0 2,5 relevance influence 2,0 1,5 1,0 0,5 0,0 costs income binding capital market presence 7
  • 8. 1. A roadmap to socially responsible supply chains Human rights 4,0 3,5 3,0 2,5 2,0 relevance influence 1,5 1,0 0,5 0,0 purchasing discrimination child labor forced labor routines 8
  • 9. 1. A roadmap to socially responsible supply chains Labor rights Logistics change: Capacity Employment of facilities Labor/management relations Number of facilities Health and safety Training and education Supplier and customer network Diversity and equal opportunity 9
  • 10. 1. A roadmap to socially responsible supply chains Supplier Customer Supplier Company Customer Supplier Customer 10
  • 11. 2. Competitive business models to meet future demands on sustainable logistics systems A business model approach A well designed business model… can support a company in reaching its sustainability targets. provides guidance of how a company should work to reach its strategic goals. Offering - Value Proposition - Revenue mechanisms (Norman & Ramirez) Market Position -Target market Operative - Competitive strategy Platform - Value network -Value chain (Porter I/O) structure (RBV) [Kindström, 2005] 11
  • 12. 2. Competitive business models to meet future demands on sustainable logistics systems Methods this far Think tanks Literature reviews Case study Some findings: 1. Difficulties in estimating the environmental impact from logistics. 2. System limitations can influence both the environmental results and possibilities for action. 12
  • 13. 2. Competitive business models to meet future demands on sustainable logistics systems Environmental performance measurement in logistics: Consider external stakeholders (e.g. government) Well defined goal and system limitations Link measurements between different managerial levels Lack in horizontal integration 13
  • 14. 2. Competitive business models to meet future demands on sustainable logistics systems System 2008 Returpack Brewery Wholesaler Store End consumer 14
  • 15. 2. Competitive business models to meet future demands on sustainable logistics systems System 2010? Returpack Storage 15
  • 16. 2. Competitive business models to meet future demands on sustainable logistics systems System 2010? Returpack Storage Terminal train 16
  • 17. 2. Competitive business models to meet future demands on sustainable logistics systems Storage Returpack 100% Total costs CO2 outlets Sc 1 Sc 2 Sc 3 Sc 4 Clarifications: 2008 is used as a baseline (100%). Total costs includes costs for transportation, storage, packages and handling. 17
  • 18. 18