WoodCircus, Underpinning the vital role of the forest-based sector in the Circular Bioeconomy. D2.2 Resource Efficiency, Side Streams and Value Chain Analysis – WP2 Final Report

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Production planning and control of closed-loop supply chains

More and more supply chains emerge that include a return flow of materials. Many original equipment manufacturers are nowadays engaged in the remanufacturing business. In many process industries, production defectives and by-products are reworked. These closed-loop supply chains deserve special attention. Production planning and control in such hybrid systems is a real challenge, especially due to increased uncertainties. Even companies that are engaged in remanufacturing operations only, face more complicated planning situations than traditional manufacturing companies.We point out the main complicating characteristics in closed-loop systems with both remanufacturing and rework, and indicated the need for new or modified/extended production planning and control approaches. An overview of the existing scientific contributions is given. It appears that we only stand at the beginning of this line of research, and that many more contributions are needed and expected in the future.closed-loop supply chains;Production planning and control

Sustainable sourcing of strategic raw materials by integrating recycled materials

In this paper we investigate a manufacturer's sustainable sourcing strategy that includes recycled materials. To produce a short life-cycle electronic good, strategic raw materials can be bought from virgin material suppliers in advance of the season and via emergency shipments, as well as from a recycler. Hence, we take into account virgin and recycled materials from different sources simultaneously. Recycling makes it possible to integrate raw materials out of steadily increasing waste streams back into production processes. Considering stochastic prices for recycled materials, stochastic supply quantities from the recycler and stochastic demand as well as their potential dependencies, we develop a single-period inventory model to derive the order quantities for virgin and recycled raw materials to determine the related costs and to evaluate the effectiveness of the sourcing strategy. We provide managerial insights into the benefits of such a green sourcing approach with recycling and compare this strategy to standard sourcing without recycling. We conduct a full factorial design and a detailed numerical sensitivity analysis on the key input parameters to evaluate the cost savings potential. Furthermore, we consider the effects of correlations between the stochastic parameters. Green sourcing is especially beneficial in terms of cost savings for high demand variability, high prices of virgin raw material and low expected recycling prices as well as for increasing standard deviation of the recycling price. Besides these advantages it also contributes to environmental sustainability as, compared to sourcing without recycling, it reduces the total quantity ordered and, hence, emissions are reduced

Supply market uncertainty:exploring consequences and responses within sustainability transitions

Often it is commercial, not technological, factors which hinder the adoption of potentially valuable innovations. In energy policy, much attention is given to analysing and incentivising consumer demand for renewable energy, but new technologies may also need new supply markets, to provide products and services to build, operate and maintain the innovative technology. This paper addresses the impact of supply constraints on the long-term viability of sustainability related innovations, using the case of bioenergy from organic waste. Uncertainties in the pricing and availability of feedstock (i.e. waste) may generate market deadlock and deter potential investors. We draw on prior research to conceptualise the problem, and identify what steps might be taken to address it. We propose a research agenda aimed at purchasing and supply scholars and centred on the need to understand better the interplay between market evolution and supply uncertainty and 'market shaping' - how stakeholders can legitimately influence supply market evolution - to support the adoption of sustainability related innovation

An analysis of the state of green business in the South African retail sector

'Green' business is claimed by some South African retailers even though they lack well-founded and integrated sustainable, social, and environmental commitments. This is because no standards of greening exist for retail in South Africa. The purpose of this study is to explore, 'What constitutes green retail in the South African supermarket sector?' This required investigation into the sustainability of the companies' green business processes, social component of sustainability, and the existing state of the green retail sector. The five dominant supermarkets were selected to answer a questionnaire based on different environmental variables and principles. Interviewee responses were supplemented with publicly available company reports and these were then critiqued by allocating a level of commitment to sustainability of companies' green business processes, social considerations of sustainability, and establishing the current state of the green retail sector. Results show that within business processes, sustainable procurement is becoming increasingly accounted for through eco-labels and enterprise development programs. Distribution processes assist in verifying green claims and production. Various international and local sustainability programs are used to validate green efforts in the lack of national standards. Best practice frameworks are being utilised in the absence of local green standards and where limited, some are creating their own innovative solutions. Sustainability is a core focus at an executive level to some to ensure full integration of sustainability. Retailers may not necessarily pursue trends, but they have similar pressures that are often variably addressed. Although retailers' attempts to green their operations may not be standardised, the retail industry in South African has almost privatised sustainability and socio-economic development as they have superseded legislation to contribute to society and transform communities. It is an opportunity for retailers to take responsibility for their operations and in doing so create innovative solutions that address South Africa's environmental and social issues, in spite of the lack of green standards and governmental regulation, and in doing so become leadership companies that are accountable to their consumer base

Synergy between Green Supply Chain Management and Green Information Systems on Corporate Sustainability: An Informal Alignment Perspective

At the corporate level, green innovation is essential for environment protection and sustainable development. Green supply chain management (GSCM) and green information system (GIS) are two important pillars of green innovation. This study investigates the possible alignment between them in terms of the synergistic effect on corporate sustainability. Based on the task-technology fit model, GSCM and GIS can be viewed as the task- and technology-side endeavors. The extant conceptualization of the fit between a task and a technology assumes their interdependence, but efficiency-oriented GSCM and technology-driven GIS are relatively independent from each other as they can be carried out separately. Formed on the basis of spontaneous employee participation in both, their alignment is rather informal than formal. Unlike the regular task-technology fit from a top-down arrangement, such a bottom-up alignment is not the necessary condition for GSCM and GIS to take effects, but adds to their direct impacts on green innovation outcome in a one-plus-one-greater-than-two manner. Survey observations gathered from over 300 organizations in China confirm that the informal alignment between GSCM and GIS enhances economic, operational, environmental and social performances on top of their primary contributions. The findings regarding the synergy between GSCM and GIS on corporate sustainability provide researchers and practitioners helpful insights on how to optimize green innovation effectiveness