Special thanks to all who organized this event. Professors Kovacs, Solitander, Haavisto, and Spens.

Transcription

1 Joseph Sarkis

2 Special thanks to all who organized this event. Professors Kovacs, Solitander, Haavisto, and Spens.

3 1. What is GSCM? 2. Why Do it? Practice 3. Research Theory A Boundaries and Flows Framework Theories Modeling Future Directions? 3

4 A term that gained popularity in the 1990 s. Operations Management + Purchasing + Logistics + Marketing Four Different Managerial Disciplines/Fields brought together. Part of distinction derived from strategy with Porter s Value Chain Porter, Michael E., Competitive Advantage: Creating and Sustaining Superior Performance (1980 s) 4

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6 The primary value chain activities are: Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods. Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them. These primary activities are supported by: The infrastructure of the firm: organizational structure, control systems, company culture, etc. Human resource management: employee recruiting, hiring, training, development, and compensation. Technology development: technologies to support value-creating activities. Procurement: purchasing inputs such as materials, supplies, and equipment. 6

7 Inbound Logistics Transportation Material handling Material storage Communications Testing Information systems Outbound Logistics Transportation Material handling Packaging Communications Information systems Service Testing Communications Information systems Operations Process Materials Machine tools Material handling Packaging Maintenance Testing Building design & operation Information systems Marketing & Sales Media Audio/video Communications Information systems 7

8 Supply Chain Management The supply chain encompasses all activities associated with the flow and transformation of goods from raw materials (extraction), through the end user, as well as associated information flows. Material and information flow both up and down the supply chain. Handfield and Nichols (1999)

9 Suppliers Supplier Relationships Organizational Processes Customer Relationships Customers Continuous Improvement Loops Traditional Framework of Components of Strategic Supply Chain.

10 Supply Chain Management is one level of analysis. Systems at many Levels Industry Supply Chains Enterprises Activities 10

11 Corporate Environmental Management Meeting Environmental laws and regulations ISO (environmental management systems) Life Cycle Analysis Design for the Environment Liabilities and Safety Waste Management Carbon footprints

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13 Now the Greening of the Supply Chain Green supply refers to the way in which innovations in supply chain management and industrial purchasing may be considered in the context of the environment (Green et al., ). Environmental supply chain management consists of the purchasing function s involvement in activities that include reduction, recycling, reuse and the substitution of materials. (Narasimhan & Carter, 1998, 6). The practice of monitoring and improving environmental performance in the supply chain (Godfrey, 1998, 244).

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15 External Transportation Selection Vendors Vendor/Supplier Management Cleaner Production Research: Research: Environmental Management Systems (ISO 14000) and Source Energy Energy Energy Vendor Selection (3PL Reduction Logistics Providers) Selection of Environmentally Conscious Business Vendor Competition Energy Related Practices/Technology (Game Theory) Distribution Research: Closed-Loop and Manufacturing, Logistics Research: Design/Marketing Substitution Policies Demanufacturing, Research: Location Analysis, Internal Transportation, Source Reduction Selection Criteria Development Inventory Management, Materials Real Movement Options Environmental for Project Performance Selection Measurement in Warehousing Transportation GHG Trading Systems/Benchmarking Organizational Learning and Green Scheme Inventory Packaging Sustainable Supply Chain Performance Environmental Consumers Performance of Environmental/Risk Logistics and Planning Management Policies Management Fabrication Benchmarking Environmental Process and Technology Selection and Energy Process Production Efficiencies Storage Performance E-Logistics Selection (Re's/Energy and the Natural Technology) Storage Distribution, Scale Research on GSCM Barriers (What to Environmentally makes up Conscious Manufacturing Forward Environment Logistics GSCM) Selection Design Activity of Selection Renewable Based Waste Environmental (LEED) Management Assembly Energy Reverse Research: and Logistics Cost Management Research: Systems Products Management Demanufacturing of Waste and Efficiency Electronics - Wales (SMEs industry differences and Outbound program Production relationships) Reverse Logistics and Logistics Sustainability Raw and Virgin Material New Components and Parts Recycled, Reused Material and Parts Product/Process Design Engineering Purchasing, Materials Management, Inbound Logistics Waste Waste Waste Marketing Selection of Waste Reverse Management Logistics Project Selection Approaches (DEA) Drivers for Reverse Logistics Adoption USE Energy Disposal Reusable, Remanufacturable, Recyclable Materials and Components Reverse Logistics Waste 15

16 What are some issues? Energy Energy Energy Selection External Transportation Raw and Virgin Material Internal Transportation Inventory Management Closed-Loop Manufacturing, Demanufacturing, Source Reduction TQEM Fabrication Location Analysis, Inventory Management, Warehousing Transportation Packaging Customer Relationships Green Marketing Product Stewardship Disposal Vendors New Components and Parts Storag e Storag e Distribution, Forward Logistics USE Recycled, Reused Material and Parts Purchasing, Materials Management, Inbound Logistics Assembly Production Outbound Logistics Energy Product/Process Design Waste Waste Waste Reusable, Remanufacturable, Recyclable Materials and Components Engineering Marketing Reverse Logistics Waste

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18 Economic benefits from increased efficiency. By reducing wastes, companies decrease handling expenses, fines, and even costly inputs. Supplier's cost savings may be passed along to buyer companies. GM reduced disposal costs by $12 million by establishing a reusable-container program with suppliers; Commonwealth Edison saved $25 million through moreeffective resource management. Servicizing Charging customer per service instead of by product/material. (e.g. Dupont and Ford; instead of gallons of paint number of cars painted).

19 Revenue Generation New sources of revenue can come from material or product that was disposed Examples Industrial symbiosis waste steam, waste ash, sold to companies in an industrial park. TerraCycle s Scotch Tape Brigade has started collecting empty Scotch tape dispensers and will send them to 3M to be used as tape dispensers again

20 The license (right) to operate Restriction on Hazardous Substances (RoHS) law, enacted in 2006 in the European Union; (also) South Korea, Turkey, China and Japan. That law restricts the use of six toxic materials, including two brominated chemicals. Apple and Sony Ericsson in particular have reformulated product lines (and their supply chains) to restrict or eliminate entirely the use of bromine and chlorine in products. Apple now has a number of polyvinyl chloride-free (PVC) and brominated flame retardant-free (BFR) product lines, including iphones, ipods and a number of the company's computers.

21 Supply Chain Resilience You want to make sure your supplies are available Walmart and its sustainable seafood program Need a consistent supply of seafood. Overfishing can cause scarcity. Sustainable practices can guarantee steady supply of seafood

22 Image and Reputation Walmart is getting bad press because of many social issues from child labor to discrimination to improper overtime policies Sustainability of its supply chain is core to building its socially conscious image.

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24 How has the field evolved? Anecdotal evidence and getting buy-in Studies focused on particular area (purchasing, logistics, ECM) Integrative, broader studies of practice and management have went further with more general supply chain issues Now study is finding out what works and what doesn t Now sustainability is in mix 24

25 Organizational Research and Modeling Research Development A framework Some theories Some methods to apply Some questions that may need resolving from a research perspective 25

26 What motivates GSCM? What is being adopted? What are implications of GSCM adoption? Financial Environmental Operational Industry differences in adoption? 26

27 Pressures Motivators Determinant santecedent s -Regulations (Coercive) -Competition (Mimetic) -Customers (Normative) GSCM Practices -Internal -External -Technological -Behavioral -Organizational Performance Results -Economic -Operational -Environmental -Social What Characteristics Mediate or Moderate these relationships? Resources, Projects, Programs, Structures, Governance, Beliefs, Philosophies, Technology, Industry, etc. 27

28 What type of theories may be used and tested? Institutional theory Resource Based View theory Resource Dependency theory Signalling theory Congruence theory Agency theory Agenda Setting theory Social Network theory Transaction Cost Economics Diffusion of Innovation Ecological Modernization Coordination Theory Population Ecology 28

29 Decision Making and Planning How do organizations make decisions and assessments to incorporate GSCM (or its elements)? Cost-Benefit Tangible-Intangible Strategic-Operational Multiple parties Stage of development 29

30 Designing How do you design a GSCM network Who should be involved, where do you draw a boundary What factors and parameters are of importance Business, environmental, regulatory What practices are needed-not needed What resources (technological, people, economic) 30

31 Implementing Project Management tools Introducing practices (incremental, full, pilot) 31

32 Maintaining and Auditing Performance Measurement Continuous Improvement Sensitivity Analysis and Scenarios Mid-Course Corrections 32

33 What types of tools are involved? Economic based tools (e.g. timing, pricing, optimization) Multiattribute Decision Making Mathematical Programming (DEA) Decision Theory-Analysis Game Theoretic Systems Dynamics LCA-Simulation Material Flow Analysis Rough Set theory applications 33

34 Boundaries Political Flows Informational Flows Materials Service Legal Organizational Proximal Materials Service Financial Technological Financial Information Waste Cultural Temporal Economic Information Waste Do you agree with the various boundaries and flows? What additional ones may exist, that are not considered?

35 Individual Group/ Team Function/ Department Organization Sub-Micro Micro Meso Supply Chain Industry Global Industrial Networks Macro Supra- Macro Layers and Boundaries

36 Holistic/Systemic versus Reductionist Role of Technology (e-commerce) Role of Regulations and Policy (WEEE/ROHS/Trading) Role of Resources (Transportation type) Globalization Risk and Security 36

37 What does the future hold? Networks Operations theory Linkages with Industrial Ecology Technology Climate Change Carbon Footprints Sustainability New theories.???