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Sustainability as a Source of Conflict in the Supply Chain
1. Sustainability as source of conflict in the supply chain Presented by: Ibrahim Alharrasi Undergraduate student Maritime Logistics Management (MLM) Australian Maritime College (AMC) University of Tasmania (UTAS)
2. Presentation overview Sustainable development Conflicts in the supply chain (4 Cs) Costs Compliance with regulations Competitiveness Coordination
3. 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”.
4. Sustainable development Call for sustainable development Climate change Greenhouse gases emissions (e.g. CO2 & CH4) Waste
5. 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)
6. Conflicts in the supply chain (4 Cs) Four main conflicts (4 Cs): Compliance with regulations and rules Costs Competitiveness Coordination
7. 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
8. Conflicts in the supply chain (4 Cs) Costs Costs associated: Technology; Production and Administrative Inefficiencies Balance between costs and benefits
9. 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
10. Conflicts in the supply chain (4 Cs) Coordination Lack of coordination Organisational Supply chain Stakeholders Uncertainty Immature ecological system Dynamic of supply chain
11. 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
12. 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.