Novel measures for emission reduction in supply chains

Abstract

Purpose

The purpose of this paper is to look at how novel measures of supply chain performance can be used to identify unnecessary waste in terms of under-loaded vehicles and extended delivery times, along with their causes. In particular it focuses on problems that can be tackled without the need for capital expenditure. The measures go under the collective name of “turbulence”. This represents the chain deviating from its goals. Quantifying unnecessary waste then allows unnecessary carbon emissions to be estimated while pointing to what changes will have the biggest impact. The measures have been used by three companies and some early results are provided.

Design/methodology/approach

The approach was first to use evidence from the literature to show the value of having a new measure. Next the creation of one specific new measure, called relative turbulence, a relative measure for the more general concept of turbulence. Third testing it in the field with data from companies. Then showing how carbon emissions can be derived.

Findings

The first finding is that the analysis can pinpoint sources of unnecessary emissions. Second the results suggest excessive emissions arise both though poor planning and poor practice. Third that there is a need for two models – from the users’ viewpoint and the carriers’ viewpoint. Finally the approach can be used with field data that is currently available, thus avoiding expensive one-off studies.

Research limitations/implications

The main research implication is that entropic measures are useful and can provide fresh insights. Being generic they may be applicable in other contexts. However, they can be mathematically tricky to use.

Practical implications

The analysis has been tested in companies and findings are included in the paper. They provide an insight that is not available solely from current measures. Businesses cannot only measure emissions but start to pinpoint causes.

Originality/value

The main areas of original contributions are in the introduction of a new measure, based on entropic principles, particularly the one called relative turbulence. The second is juxtaposing this measure with standard measures to gain new insights. Finally the idea that supply networks can be built from, what is called the irreducible chain.

Citation

Frizelle, G. and Casali, I. (2014), "Novel measures for emission reduction in supply chains", International Journal of Productivity and Performance Management, Vol. 63 No. 4, pp. 406-420. https://doi.org/10.1108/IJPPM-03-2013-0045