A Methodology for Planning Sustainable Supply Chain Initiatives

Abstract

Pressure towards sustainable development from customers and regulators is changing the way companies deal with their supply chain network. Sustainability practices are not limited to the company level. They now involve suppliers, customers, government, society and other stakeholders that impact and are impacted by firms’ actions to improve economic, environmental and social responsibility. Corporations, however, seem not to be fully prepared for planning their initiatives from a holistic perspective, which integrates all value-chain players. There is a need for practical managerial frameworks, tools and analysis that support decision making. This doctoral thesis presents a methodology for planning sustainable supply chain initiatives consisting of three scopes, each with its appropriate mechanism and background theory. The first scope called “Acting In” aims to structure organizational practices and help identify opportunities for internal collaboration among corporate business units and departments. The “Framework for Managing Sustainable Supply Chain Practices” is applicable to different industries worldwide and comprises 21 categories of practices. It was developed using data from a systematic literature review, refined with practitioners’ insights. “Acting Out”, the second scope of the methodology aims to compare practices from 32 recognized sustainability leaders from five different industries: basic materials and energy, industrial materials, automotive and commercial vehicles, consumer goods and transportation and logistics services. For these purposes, a “Benchmarks Practices Bank” was built which supported four comparative analyses for identifying industry collaboration opportunities: by groups of practices; by industry using a qualitative approach: by industry using a quantitative statistical approach; and by country. The third scope of the methodology “Acting Beyond” aims to support the definition and management of a portfolio of sustainable supply chain practices for use during collaboration between partners from a shared value chain. The “Practices Portfolio Planning Matrix” consists of the axes “efforts” and “impacts”, while the size of the bubbles corresponds to the level of the initiatives’ implementation. Each of the four quadrants of the matrix has its own specific characteristics and initiatives are recommended to be implemented: through intra-corporate collaboration; through shared-value-chain collaboration; in combination with others and after a specific analysis as they require high efforts but offer low impacts to the company. Results from the tests in Brazil validated the matrix and allowed the identification of interesting learning opportunities from the perspective of national culture. Furthermore, based on findings from scope two and three of the methodology, categories of initiatives which have a high potential for collaborations are presented and discussed further. The proposed methodology in the current dissertation significantly supports supply chain practitioners and researchers interested in sustainability practices. The mechanisms developed support decision makers in planning sustainability initiatives and visualizing collaboration opportunities within the corporation, the industry and through the shared value chain. As companies become more global, supply chain becomes more complex and risks, costs and social-environmental impacts become higher. A systematic and holistic approach to supply chain relations provide insights for developing more sustainable solutions according to each partner’s strength and improvement areas. The contribution of this work support organizations in addressing current challenges. Some of the findings presented in this document have already been reviewed and published in international conferences and journals.

Alternate abstract:

In der folgenden Doktorarbeit wird eine Methodologie zur Planung von Nachhaltigkeitsinitiativen im Bereich Supply Chain entwickelt, die aus drei Haupthandlungsfeldern besteht und für welche jeweils der theoretische Hintergrund, sowie geeignete Mechanismen aufgezeigt werden. Der erste Bereich, das sog. „Acting In“, strukturiert organisatorische Tätigkeiten und integriert diese in einen Rahmen, dem „Framework for Managing Sustainable Supply Chain Practices“. Der zweite Bereich - „Acting Out“ - vergleicht verschiedene Verfahren von 32 anerkannten, im Bereich Nachhaltigkeit führenden Unternehmen mit Hilfe der Datenbank “Benchmarks Practices Bank”. „Acting Beyond“ - der dritte Bereich - hilft dabei ein Portfolio mit nachhaltigen Maßnahmen im Supply Chain Bereich zu definieren. Hierfür wird die “Practices Portfolio Planning Matrix” eingeführt, welche gleichzeitig interessante Möglichkeiten zum Wissensaustausch zwischen Deutschland und Brasilien aufzeigt. Die erarbeitete Methodik ist sowohl für die Forschung, als auch für die Anwender im Supply Chain Bereich von großer Bedeutung. Die hier entwickelten Mechanismen unterstützen die Entscheider in den Unternehmen bei der Planung von Nachhaltigkeitsinitiativen im Supply Chain Bereich und verdeutlichen Kooperationsmöglichkeiten auf verschiedenen Ebenen: innerbetrieblich, auf derselben Wertschöpfungsstufe und über die gesamte Wertschöpfungskette hinweg. Da die Unternehmen immer globaler agieren, werden die Herausforderungen größer. Daher kann eine systematischere, ganzheitlichere Herangehensweise ein Ansatz sein, wenn es um die Entwicklung von innovativen Lösungen geht.