Reverse Supply Chain and Carbon Footprint - Research Paper Example

Reverse supply chain and carbon footprint Name Date: Professor: Content page Executive summary……………………………………………………………………….. 3 Introduction…………………………………………………………………………………3 Aims and objectives of the research…………………………………………………….....4 Plan of the report…………………………………………………………………………...4 Summary of the literature – basic summary of the chosen articles……………………..4 Management of the carbon footprint as a corporate social responsibility………………11 The closed loop system in the management of the carbon foot prints………………….12 Role of Remanufacturing …………………………………………………………………13 Findings…………………………………………………………………………………….14 Implications of the findings………………………………………………………………..14 Conclusion…………………………………………………………………………………..15 Future direction……………………………………………………………………………17 References………………………………………………………………………………….18 Executive summary The paper aims to critically analyze the relationship between the reverse supply chain and the carbon footprints following the dangers they pose to the environment and the entire ecosystem. The emissions that are emitted to the environment during production, distribution and consumption are harmful to the human race. Companies are therefore under obligation to move away from the traditional approach of being concerned with only profits and output. They are required to adopt modalities that embrace the minimization of effects that emanate from the consumption of their products. Producers have to realign their supply chain activities to comply with environmental concerns. This conceptual paper employs the desktop research technique by reviewing the literature from the journals that analyses the reverse supply chain and the carbon footprints. The findings reveal the need for the firms to adopt appropriate measures to minimize the dangerous emissions by bringing on board clear end of life policies for their products. Introduction Reverse supply chain (RSC) commences when the lifespan of a product terminates or when its usefulness ceases. RSC evaluates the possible usefulness that can be drawn from a product that has otherwise outlived its usefulness (Golinska 2014). It deals with the recollection of products at the point after the end user and bringing them back to be remanufactured or disassembled and finally back to the forward chain (Parry et al 2007). This introduces a closed loop model such that losses are minimized. This follows the fact that what could have been discarded at the terminal of a forward chain is brought back into active use. RSC provide ways of a used product’s recycling remanufacture or reuse (Carter and Ellram 1998). The intention is to regain value in a product whose original lifespan has ceased and faces imminent disposal or destruction. RSC seeks to revamp the product in totality or its components as well as the materials that were used to develop the product (Zhang 1997).Most of the procurement activities emits loads of carbon. This menace can be controlled through remanufacturing activities which decreases this cost of carbon emission as well as the overall carbon foot print within the supply chain (Amy 2010). Aims and objectives of the research The research aims at establishing the relationship between the RSC and the carbon footprint. The paper endeavors to establish what leads to emission of carbon during the forward and reverse supply chains and how this can be controlled during the RSC process. The plan of the report The report targets to explore the connectivity between RSC and carbon footprints. The analysis is based on the review of literature that has been developed by scholars in the field. The literatures being reviewed are drawn majorly from academic journals that have been published by various scholars in the field in various journals. Findings from four major journals will be summarized while the others will be referred to come up with the relevant literature for this work. Conclusion will be drawn based on the findings from the relevant journals. Grouping of related facts from the other literature and their subsequent discussion will be done. The findings will be analyzed to establish both their theoretical and practical implications. Summary of the literature – basic summary of the chosen articles Junfeng et al (2013), product modularity and its implications for the Reverse Supply Chain The models that have been developed to study reverse supply chains, are deemed to have followed the very traditional means. Their concern has addressed the issues of the correct models to use for the analysis like the use of linear programming techniques as well as mix integer techniques (Krikke et al 2003). Some others have adopted the models on the basis of branch and bound heuristic algorithms (Barros et al 1998 and Marks 1969). These models were expanded to take care of cost cutting measures. The major failure that they all exhibited was the fact that they did not take cognizance of the effects on the environment that is inherent in the supply chains. This has been commonplace with most models of production guidelines. The major emphasis is on the gains at the expense of the environmental degradation that inevitably comes up in the process of production. Lifecycle analysis therefore takes the centre stage with the end of life considerations for the products. This article emphasize that at the point of designing the architecture of a product, modularity has to be considered and it has to take care of the significant potential impacts of the product and its components in entirety throughout the product life. The concept of modularity stresses consolidation of component parts in to groups so as to be able to realize objectives like easy to assemble, cost efficiency and energy efficiency. The article reveals that Li et al 2008 abstracted the idea in to three stages which are interlinked, the first relates to the aggregate value. At the second stage Li subdivides this into four sub categories: disassembly, reuse, material selection and ability to be serviced. The underlying idea in this article is to maximize the interaction between components through adopting a matrix that relates the various interfaces’ connectivity. This article critically analyzes carbon foot prints through two modularity methodologies, the DA and MC based modularization. The analysis is conducted using a refrigerator for both environmental impacts on energy waste and carbon footprint. They can play a major role ensuring that the products are assembled for remanufacturing. Proper management of the two interlinked processes should lead to coming up with the necessary approaches that are beneficial both economically and environmentally to the components of the reverse supply chain (Junfeng et al 2013). Raymond, et al Supply Chain Sustainability: Business Processes for the Carbon Footprint This paper targeted defining the business processes that are critical in the establishment of the methodology for calculating the carbon dioxide equivalent footprint in the entire supply chain of a food production process ranging from the field to the table. It is the belief of Raymond et al that these business processes translate directly to other industries in their endeavor to measure the parameters that sustain their supply chains. This topic of sustainability and global warming has prompted the need to immediately attend to the matters of rules and regulations that combat the carbon footprint. A collaborative approach was carried out to define the processes in the supply chain and subsequently a methodology was developed to measure the carbon footprint of the processes. The research then moved to integrate the methodology into the usage of the enterprise software to automate the modalities for the calculation of the carbon footprint for the supply chain of a product. The major focus of this study was on the trend that was emerging across the industries to study, track and ultimately manage the entire process of the supply chain. A retailer based in the UK called Tesco they state revealed their operations plan to enact carbon labels on all its food lines. Tesco intended to use the methodology of life cycle analysis which involved the adoption of inserting a green house gas cost on all the stages of a product from farm to plate. It is their recommendation that the largest sources of carbon emissions be targeted first and also very cost effectively. Hertwich and Peters (2009), they state emphasize the fact that the emissions from the supply chains are detrimental to human health and need to be addressed. Organizations are obliged to ascertain the carbon foot prints of their production and logistical processes and identify the possible remedial measures that counter them. The reduction of the carbon footprints can be facilitated through communication of the sustainability criteria of products through conference papers and events. Controlled carbon footprints emission can be an asset in the elimination of excessive costs that are incurred by the production units. Carbon footprints they assert that do not culminate at the level of the plate but proceed even in higher magnitudes after the plate in forms of disposal. Alternative sources of foods that do not or emit low levels of carbon should be used in large scale as this will promote a green environment. Sundarakani, et al 2008, 'Measuring carbon footprints across the supply chain' The research takes into account some operational as well as tactful strategies to alleviate the problem of carbon emission across the supply chain. On the basis of vivid comprehension of the green supply chain, Sundaraki et al (2008) investigated the flux of heat and wastages of carbon across the supply chain. According to them, the heat drivers that were identified included the transportation mode, policies of inventory, structural network, policies of trade, the density of the users, congestion in traffic and the technology being used. The research proposed the use of a mathematical model to measure the carbon foot print inherent in the supply chain. The heat links which are developed to enhance visibility are normalized by a three tier temperature state coding. The links are distinguished as follows; green to represent acceptable carbon emissions, amber for borderline carbon emissions and lastly red as a representative of unacceptable rate of emission. Sundaraki and his colleagues came up with some strategies that could combat the menace of carbon emissions, they suggested that designers be innovative, proper choice of the suppliers was a key step in curbing the emissions. They also envisaged comprehensive reduce reuse and recycle policies at the level of consumption. A communal approach to curb carbon emissions that fosters awareness among consumers against carbon was proposed. Sensitivity analysis when conducted evaluates the value and importance of the closed loop network in terms of its economic and environmental feasibility. It is believed that the solution lies with the closed loop system in which both forward and reverse supply chains operate as if delinked from each other yet are interconnected. What is indisputable is the fact that, the terminal products of the forward supply chain are the raw materials in use in the reverse supply process and are further pushed back in the forward supply chain. Kumar and Tiwari (2013) they say introduced a new dimension to the idea of a closed loop system by considering the risks associated with the system. They analyze the procedures in two ways: first when the retailers act independent of the Distribution Centers and secondly when they act together with the DCs. In the former process they establish high risk in the distribution process. As opposed to the latter the risks inherent are spread between the distribution centers and the retailers. Laroque et al, (2012) Proceedings of the 2012 Winter Simulation Conference In their study, they examined a forklift break system located in Sweden for its carbon footprint and the tradeoffs associated with it. It was a closed loop supply chain that comprised of the forward chain starting from the production of steel to the phase of the usage and terminating with the recycling of the used breaks as raw material at the plant. Their model scrutinizes the flow of the iron from the iron ore through to the point when it gets reused as a raw material after the disassembly. The volumes of the flows for the product are compared with logistic flows to establish the impact that is associated with the logistic activities. The assumption in this model by Laroque et al (2012) is that there exists equality between the production and logistic transfer batches in terms of their monthly volumes at each of the proceeding stages. Tendencies that encourage remanufacture at the end of life level of products should be put in place. If all producers and consumers of products a like embrace these modalities of remanufacture then the management of the carbon foot prints will not be anything to worry. Companies that produce products should not only be concerned with cost cutting measures in the design of their production techniques, but also be concerned in the architectural design of the products mind to come up with the products which have very minimal carbon in their emission. This will ensure that the cost of recycling the products after the end of life will equally be cost effective. The control of carbon and evaluation of the entire carbon footprint across the supply chain (both forward and reverse) is a key challenge to most organizations. Producers should therefore rigorously analyze the impact that is to the environment due to the emissions of the carbon foot prints Demand signal which is made up of the replacement component of the forklifts being retired after the completion of their useful life is the driving force. They analyze the emissions; energy used both at production and storage inventory levels. In their model emissions and energy consumption in logistics are modeled. The world resource institute (WRI) and the world business council for sustainable development have developed Green house effect protocols that cater for these emissions which include the carbon footprint. Cyrus et al (2013). Elements of Green Supply Chain Management This article highlights the major concepts that play a significant role in the green supply chain. Emissions of the green house effect among other factors have compelled industries to realign their focus in order to attain maximum resource use. According to Cyrus et al, firms need to implement green supply chain elements continuously so as to attain reliability in the supply chain process. The findings assert that firms need to enhance the practices of the green supply chain in their operations. The incorporation of the green supply chain management in to the supply chain both in the forward and reverse chains is tailored towards ensuring diminished effects of carbon foot print. The activities of green supply are linked to the four pillars of the traditional supply chain (Emmet and Sood, 2010). Green procurement is a remedy to an environmentally sensitive and economically concerned business enterprise. It is a concept that leads to acquisition and utilization of the facilities that are not detrimental to the environment (Salam, 2008). Zsidisin and Hendrick (1998) in a multinational investigation came up with the key factors in green purchasing to include the provision of design specification to the suppliers as well as carrying out of proper environmental impacts audit. This would by extension include the major tenets of a well schemed supply chain with measures to control the level of carbon footprint. The environmental damage that is the product of emissions in the entire process can be managed by a system that is continually monitoring the carbon foot prints throughout the product life. It is imperative to come up with regulatory steps that spell clearly the mitigation measures in both the reverse and forward chains. The companies that are known to combine the reduce, reuse recycle norm together with the supply chain wisdom of managing costs and weeding away inefficiencies have developed reverse chains that are environmentally friendly Management of the carbon footprint as a corporate social responsibility Carbon footprint management has formed a substantial component of the corporate social responsibility. The processes that are undertaken to eliminate the outflow of carbon footprints into the environment play a significant role in ensuring that the neighborhoods are a safe haven to inhabit. Mathews et al (2008) highlight the significance of establishing the level of the carbon footprint in the life cycle and also across the supply chain. The supply chain objectives have undergone paradigm shift from the gainful techniques like cost minimization and profit maximization to reduction of carbon emissions, improvement of service levels, alleviation of risk and creation of value in the entire process of production. It therefore calls upon the production units to work in very pragmatic ways to be felt within the communities’ that they serve and from whom they receive support. Managers are hence required to redesign their networks to include social corporate responsibilities in their master plans (Sundaraki et al). CSR has numerous merits among them is the integration of the host community as a whole into participative decision making processes. This has the advantage of promoting cohesion in approaches of issues including the development of formidable force in combating the carbon footprints. This will enhance the sharing of the environmental burden of resolving the challenges of the supply chain. This can lead to concerted responsibility in mitigating the menace of the reduction of carbon emissions (Hoffman, 2007). The closed loop system in the management of the carbon foot prints. The system that stipulates the measure to regulate the activities that regulate the entire process (both forward and reverse supply chain) is referred to as the closed loop system. It traces the product life right from the extraction from its natural setting through to the level of consumption. And also follows the end of life up to the point when the product is recycled for use as the raw material in another forward supply chain. Chung et al (2011) developed a heuristic model as a means to minimize the environmental impact imminent in the reverse supply chain. In the endeavor to bring to force an efficient system in the management of the carbon foot prints, producers and consumers need to comprehend the fact that the end of life policies of the products involves both of the parties. The consumers in their predisposition as the end users need to comprehend the responsibility that they own the capacity to play in the entire process. Sensitivity analysis when conducted evaluates the value and importance of the closed loop network in terms of its economic and environmental feasibility. It is believed that the solution lies with the closed loop system in which both forward and reverse supply chains operate as if delinked from each other yet are interconnected. What is indisputable is the fact that, the terminal products of the forward supply chain are the raw materials in use in the reverse supply process and are further pushed back in the forward supply chain. Strategies to mitigate carbon emissions The emission of carbon and its associated dangerous gases throughout the production and utilization stages can be alleviated by employing a series of precautionary steps. Sundarakani et al (2008) proposes being innovative at the architectural design levels. This can lead to coming up with measures that conceal the loopholes which could be enacted at this initial stage. They also propose selection of product distributors with dependable logistics. Comprehensive and applicable green supply and purchasing policies can help alleviate the excessive emission of carbons. Strict legislation should be enacted on policies that maintain healthy environmental regulations on shipment and transportation on the roads. Regulation of admissible carbon levels during the level of manufacturing. Another strategy would be to leverage green innovation at logistics services. Reducing inventory and increasing visibility at distribution level would also be a measure to reckon with in mitigating the toxic emissions. Adoption of green packaging would be an ideal strategy in combating the emission. The implementation of the reuse, reduce, recycle policy at consumption stage and by creating awareness among consumers against carbon will definitely be remedial measures (Lamming and Hampson 1996). Role of Remanufacturing Remanufacture is commonplace in the field of electronics. This is propelled by the sky rocketing growth of high technology gadgets. The perpetually changing technology has left top selling gadgets degenerated to being obsolete soon after their manufacture. This has left the manufacturers with loads of unwanted products. In 2007, Samsung launched its programme of direct recycling (Amy 2010). By 2010, the company had recycled about 14 million pounds of waste. The company has opened drop off locations in about fifty states where consumers drop the unwanted electronics which include non Samsung products. Apart from keeping environment cleaner the refurbishment programme has also set standard for manufacturer responsibility in the industry. Repair of damaged products and reusing the materials from goods which are obsolete is green and has proved a cost effective way of doing business (Amy 2010). Refurbished items may not generate the optimal market value for the product; it generates revenue which brings down the costs of operation. Findings The architectural design should be such that the various modules that make up the product should be easy to disassemble in the event of end of use or fault that requires recycling. Another finding stressed the need for very comprehensive reduce, reuse, recycle policies for the end of life of products. The integrated logistics that merges forward and reverse supply chain policies was found to be ideal. It was also established that reliability in the supply chain is achievable through the proper adoption of the green supply chain elements. The closed loop system of the supply chain is ideal for realizing proper disposal policies of the products. Distributors with very dependable logistics are significant in eliminating the emission of the carbon footprints. Remanufacture which leads to development of refurbished products reduces the cost of production for the industries and to customers who can acquire goods at relatively low costs. Being mindful of the welfare of the communities and customers has compelled the producers to embrace strategies that in effect aid in the management of the emissions. Implications of the findings The findings from the literature reviews appear to have divergent approaches to the subject matter of the reverse supply chain. However, they converge on the fact that there is need to control the carbon footprints which are detrimental to the environment as well the human race. Carbon footprints which are emitted destabilize ecological balances (Zhang et al 1997). Jungfen et al stresses the check on the architectural design of the products to come up with products that are environmentally friendly. They propose the use of modularity technique in the design of the products. In their approach manufacturers are encouraged to design products in a way that its components can be detached from each other. This has the merit of easy disassembly in the event that the end of life is reached or when it requires repair. To the environment, it has the merit of minimal carbon footprints emission because products do not reach end of life as a whole, but partially. Integrated logistics when adopted by the producers will have a twofold advantage; the emissions will be controlled before the product is used and after it is used. This integration will also provide well articulated return logistics after the end of use which would minimize the dangerous emissions into the environment. Engaging dependable distributors who own reliable facilities in their fleet will definitely lead to the reduction of carbon footprints because they employ means that have minimized emissions. Refurbishment has led to minimal disposal at the end of life of products. These products which are either used partially or wholly have led to reduced disposals and subsequently lesser negative environmental impact. The return to the producer channels has provided employment to those who are engaged in the collection of the parts or products to be returned. Conclusion The means to achieving the best of the carbon free or carbon controlled systems lie in the use of well focused forward looking ideas on the use of environmentally well managed manufacturing, transportation and distribution processes. However most of the production units find a stable approach in the use of the reverse supply approaches. This is achievable through active involvement of the reverse logistics modalities like returns management, repair of products and refurbishment; recycling of both the products and their components while not forgetting the proper disposal of unwanted products that have reached their end of lifetime. These activities if carried out will see the companies realize massive reduction on their costs and the enjoyment of longer shelf life. When companies reduce the redundant and avoidable return processes, they will in turn reduce the amount of carbon that is emitted to the environment hence improve the quality of air. Repairs and refurbishing elongate product life, therefore the companies which adopt these techniques are likely to take long before they produce new products and in this delay to produce new products spare the environment of the emissions that emanate from the manufacture of new products. There is need for concerted effort among individuals, firms and organizations in the area of healthy supply chains. Healthy supply chains are those that take care of the possible leakages of carbon into the environment in both the directions of the supply chain (Parry et al 2007). Carbon emissions are available in a supply chain right from the processing of raw materials to the level of consumption of the finished products. Measures that take care of the carbon foot print need to be an all society concern. Procedures that minimize or provide healthy modalities of the entire production process right from production to the final consumer should be a priority for all (Amy 2007). Future direction Although studies have been conducted that cater for the inclusion of end of life policies in the life of products. The outcomes are complex and require application of mathematical models for the ease of implementation by the managers. Future research should prioritize this search for a simplistic model. These models should be customized in their design for ease of comprehension by the various chain managers. The models are supposed to be able to provide near optimal profits while at the same time taking care of the environmental impact assessment Information technology experts should be able to develop internet based user interactive support software packages that include lots of concepts. It should be able to support mathematical models that include the tools for estimation and periodical variations. Being easy to determine the disposition variables for particular chains should be an added advantage in the model to be researched on or enacted. References 1. 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