Natural Resource Scarcity
In their recently published JBL paper, A natural resource scarcity typology: Theoretical foundations and strategic implications for supply chain management, Bell et al. (2012) rightly note: “Scarcity of critical natural resources such as oil, water, food, and precious metals has the potential to greatly impact commercial activity as the twenty-first century progresses”. In deed, avoiding waste of resources has become a top priority for many supply chain practitioners. However, in view of the importance of the topic, it is baffling that supply chain management research has almost completely neglected resource scarcity. Our theories are concerned with resources (e.g., resource-based theory, resource-dependence theory), but resource scarcity does not really play a big role. Therefore, the article by Bell et al. is certainly a step in the right direction. The authors position natural resource scarcity as a supply chain risk factor, and prescribe strategies for its mitigation. Particularly, they offer a natural resource scarcity typology.
John E. Bell, Chad W. Autry, Diane A. Mollenkopf, & LaDonna M. Thornton (2012). A natural resource scarcity typology: Theoretical foundations and strategic implications for supply chain management Journal of Business Logistics, 33 (2), 158-166 DOI: 10.1111/j.0000-0000.2012.01048.x
The Truth about Electronic Supply Chains (part 2/2)
This video shows where the e-waste goes. (part 1/2)
The Truth about Electronic Supply Chains (part 1/2)
For a long time, SCM students were told that a supply chain “must ultimately be measured by its responsiveness to customers” and that a supply chain starts with raw materials and ends with a final product. But this is only half the truth. Indeed, a supply chain ends with waste and, thus, a supply chain must ultimately be understood as a closed-loop system. So far, the overemphasis on the customer has led to products that are fast-moving, barely repairable, and hardly recyclable. Computers are a typical example of planned obsolescence. So, what happens if the customer wants to get rid of his/her “old-fashioned” computer? It is complicated to recycle electronic waste properly. Therefore, e-waste, which contains valuable materials like gold, often ends up in incineration plants or, illegally, in Ghana, where it destroys both the people’s health and the environment. Producers are responsible for e-waste. Therefore, recycling needs to be considered when designing products and supply chains. What about cradle-to-cradle supply chains? (part 2/2)
CDP Supply Chain Report 2012
Supply chain thinking enables managers to understand that indirect greenhouse gas emissions (i.e., those from the supply chain) often represent the lion’s share of a company’s total emissions. The Carbon Disclosure Project (CDP) has now published its Supply Chain Report 2012. CDP Supply Chain members are about 50 companies who are requesting climate information from their suppliers. The report reveals that a majority of these companies reward “suppliers that employ good carbon-management practices” and that many of these companies will soon begin to deselect suppliers, if they don’t adopt such measures. Moreover, these companies increasingly factor climate change into the evaluation of suppliers. It has been found that many companies have benefited both from own emission reduction activities and from their supplier’s reduction activities. The report warns that suppliers will soon “see their business move to competitors that can provide better information and clearer evidence of change”, if they do not measure, quantify, and manage their greenhouse gas emissions.
The Underside of Supply Chains
The Story of Stuff by filmmaker Annie Leonard is a fact-filled look at the underside of production and consumption patterns.
Excellence in Supply Chain Sustainability
Sustainability is probably the most pressing issue in our research field, as it’s not the product itself, but its supply chain that has an impact on sustainability. The study Excellence in Supply Chain Sustainability by EBS Business School and Logica is aimed at investigating sustainability in today’s companies, determining its degree of implementation, and identifying driving and impeding factors. The authors find that companies who engage in pollution prevention activities in production and in sustainable development have a better economic performance than companies without this engagement. It is also found that sustainability is a high-priority objective in companies – pushed by both the management and customers. However, customers who are not willing to pay for it and a management that is not commited to it are strong barriers to sustainability. The authors also provide recommendations on how to become a sustainable company based on their survey data.
The Supply Chain of a Climate Neutral T-shirt
British model Lily Cole visited India with the Environmental Justice Foundation to follow the supply chain of a climate neutral t-shirt.
The “Rucksack” of a Supply Chain for Butter vs. Margarine
Even if it’s not always visible for us, products have much to carry. The following example is simple, nonetheless impressive: According to the book Pendos CO2-Zähler (in German), the production of 1 kg margarine causes only 1.35 kg in CO2 equivalents, whereas the same amount of butter causes 23.80 kg in CO2 equivalents. Seemingly substitutable products carry completely different amounts of CO2! However, margarine can be much worse than butter, if it is made from rainforest-killing palm oil rather than from sun flowers. Hence, it’s not the product itself, but its supply chain that has a negative impact on our environment. Interesting CO2 rucksacks have been revealed by the PCF Project. The final consumer is unable to buy sustainably, if he/she doesn’t know the underlying supply chain. An interesting solution has been implemented by the Swiss clothing manufacturer Switcher. Each garment bears its individual Respect Code which can be used by the customer to find online information about the social and ecological rucksack of that product.
