M
ANAGEMENT
There is an increasing recognition that organisations must address the issue of sustainability in their operations. Different definitions for sustainability are presented in Chapter 2. The term “sustainability” has been interpreted in a variety of ways, ranging from an inter-generational philosophical position to a multi-dimensional term for business management. The most recent definitions agree in the adopting of a triple bottom approach: economic, environmental, and social. In the previous chapter, according to the main intent of this research, the intersection between environmental and economic sustainability, defined eco-efficiency by Graedel and Allenby (2009), has been deepened. In addition, the relationship between eco-efficiency and product life cycle has been discussed, and the parallelism between product life cycle and supply chain management introduced. In this chapter, the concepts of Green Supply Chain Management and Sustainable Supply Chain Management are presented. Particularly, the meaning of Green Supply Chain Management is investigated through an extended literature review. Finally, the main topics in Green Supply Chain, which are faced in the research presented in this thesis, are integrated in a research framework. Ecodesign, Design for Environment, Green Design, Green Logistics, Green Operations, and Reverse Logistics are presented and organised as components of Green Supply Chain Management.
3.1 FROM SUSTAINABLE SUPPLY CHAIN
MANAGEMENT TO GREEN SUPPLY CHAIN
MANAGEMENT
Supply chain contemplates the product from initial processing of raw materials to distribution to the user, and then, if the loop is closed, from collection to the reintroduction in a new supply chain. A focus on supply chains is a step toward the wider adoption and development of sustainability. The topic of sustainability in the context of Supply Chain Management (SCM) has been discussed using a number of terms in the literature. Sustainability and SCM are two concepts that have created many debates over the last decade (Seuring and Müller, 2008). The two terms used that most closely link sustainability and SCM concepts are Green Supply Chain Management (GSCM) and Sustainable Supply Chain Management (SSCM) (Ashby et al., 2012). Ahi and Searcy (2013) propose a survey on the published definitions for GSCM and SSCM.
3.1.1 Definitions for Sustainable Supply Chain Management
Table 3.1.1 reports some definitions for SSCM
Source Definition
Carter and Rogers (2008)
The strategic, transparent integration and achievement of an organisation’s social, environmental, and economic goals in the systemic coordination of key inter-organisational business processes for improving the long-term economic performance of the individual company and its supply chains.
Seuring and Müller (2008)
The management of material, information and capital flows as well as cooperation among companies along the supply chain while taking goals from all three dimensions of sustainable development, i.e., economic, environmental and social, into account which are derived from customer and stakeholder requirements.
Seuring (2008)
The integration of sustainable development and supply chain management [in which] by merging these two concepts, environmental and social aspects along the supply chain have to be taken into account, thereby avoiding related problems, but also looking at more sustainable products and processes.
Ciliberti et al. (2008)
The management of supply chains where all the three dimensions of sustainability, namely the economic, environmental, and social ones, are taken into account.
Haake and Seuring (2009)
The set of supply chain management policies held, actions taken, and relationships formed in response to concerns related to the natural environment and social issues with regard to the design, acquisition,
There is full agreement on the multi-dimensionality of sustainability. All definitions explicitly take into account the three pillars of sustainability. On the other hand, with reference to the meaning of supply chain management different versions are proposed: from the integration and achievement of goals, to the management of material information, capital flows and cooperation, to the set of policies held, actions taken and relationships formed with regard to the design, acquisition, production, distribution, use, reuse, and disposal of goods and services. We consider this last, from Haake and Seuring (2009), the most comprehensive definition for SSCM.
3.1.2 Definitions for Green Supply Chain Management and main topics
Table 3.1.2 reports a list of definitions for GSCM
Source Definition
Handfield et al. (1997)
Application of environmental management principles to the entire set of activities across the whole customer order cycle, including design, procurement, manufacturing and assembly, packaging, logistics, and distribution.
Zhu et al. (2005)
An important new archetype for enterprises to achieve profit and market share objectives by lowering their environmental risks and impacts while raising their ecological efficiency.
Hervani et al. (2005)
Green Purchasing + Green Manufacturing/Materials Management + Green Distribution/Marketing + Reverse Logistics
Wee et al. (2011)
Integration of environment considerations into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the greening products.
Gnoni et al. (2011)
An approach that aims to integrate environmental issues into SC management procedure starting from product design, and continuing through material sourcing and selection, manufacturing processes, the final product delivery and end-of-life management.
Srivastava (2007)
Integrating environmental thinking into supply-chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life.
Table 3.1.2 - Definitions for Green Supply Chain Management
The definitions for GSCM are more focused than those for SSCM are, and have a greater emphasis on the topic of environmental sustainability. Though some definitions of SSCM show considerable overlap with definitions of GSCM, it is clear that SSCM is essentially an extension of GSCM.
Zhu et al. (2005) mention the achieving of profit while raising eco-efficiency as the main goal of GSCM. Different from the case of SSCM, for GSCM there is large agreement on the extension of SCM activities, with a few differences. Handfield et al. (1997) consider the product life cycle from design to distribution
to customer, Wee et al. (2011) include also reverse logistics, as well as Hervani et al. (2005) who, however, do not consider product design.
The most comprehensive definitions are given by Gnoni et al. (2011) and Srivastava (2007), who consider GSCM as the integration of SCM activities from product design to end-of-life management of the product after its useful life. According to this point of view, product life cycle, from cradle to gate, is the subject of all activities of GSCM, so that there is a full matching between the two concepts. Figure 3.1.1 shows a schematic representation of product life cycle and at the same time, its integration in the supply chain activities. Blue arrows represent the flow of product life cycle: from the extraction of raw materials, through their transformation in feedstock, the manufacturing and assembly of the final product, its distribution and use and, finally, the collection and the end-of-life management. In green the reverse logistics of the product after the end of its useful life and its reintegration in the life cycle of a new product, in a closed loop supply chain. In yellow, the energy flow absorbed by the product during the life cycle and, in red, the waste flow of waste generated along the steps of the supply chain. Above all, we consider the GSCM as the combined action of product design and process design, according to the definitions given by Rosen and Kishawy (2012).
Product design involves the design of a product having regard for every effect that the selection of materials, shape, physical characteristics, function, durability and handleability, has downstream, on the following life cycle steps, and upstream, when the life cycle start from the scraps of a previous product life. Operation design, also referred as process design, involves every single choice and evaluation of alternatives about the selection and definition of how to perform, ceteris paribus, a certain service; e.g., the selection of the packaging, the design of a delivery process, the distribution network design, the selection of a process for waste classification, the energy source selection, the strategy for reverse logistics, the policy for component remanufacturing. Product design and process design reciprocally influence each other and affect every single step of product life cycle and product supply chain. For this reason, we consider the GSCM as the combination of product design and process design along the whole product/service life cycle from a closed loop perspective. Such a definition matches with the meaning expressed by Srivastava (2007). Srivastava proposes a classification of current problem contexts in GSCM, i.e. importance of GSCM, Green Design, and Green Operations, and articulates these main topics in classes of subtopics. Figure 3.1.2 represents GSCM topic hierarchy. The topics on which this research focuses on are highlighted by red boxes.