Low carbon supply chain with energy consumption constraints: case studies from China’s textile industry and simple analytical model

2017 ◽  
Vol 22 (3) ◽  
pp. 258-269 ◽  
Author(s):  
Bin Shen ◽  
Xuemei Ding ◽  
Lizhu Chen ◽  
Hau Ling Chan

Purpose This paper aims to discuss the low carbon supply chain practices in China’s textile industry. To curb greenhouse gas emissions, the Chinese government has launched restrict regulatory system and imposed the energy consumption constraint in the textile industry to guarantee the achievability of low carbon economy. The authors aim to examine how the energy consumption constraint affects the optimal decisions of the supply chain members and address the supply chain coordination issue. Design/methodology/approach The authors conduct two case studies from Chinese textile companies and examine the impact of energy consumption constraints on their production and operations management. Based on the real industrial practices, the authors then develop a simple analytical model for a low carbon supply chain in which it consists of one single retailer and one single manufacturer, and the manufacturer determines the choice of clean technology for energy efficiency improvement and emission reduction. Findings From the case studies, the authors find that the textile companies develop clean technologies to reduce carbon emission in production process under the energy consumption enforcement. In this analytical model, the authors derive the optimal decisions of the supply chain members and reveal that supply chain coordination can be achieved if the manufacturer properly sets the reservation wholesale price (WS) despite the production capacity can fulfill partial market demand under a WS (or cost sharing) contract. The authors also find that the cost-sharing contract may induce the manufacturer to increase the investment of clean technology and reduce the optimal WS. Originality/value This paper discusses low carbon supply chain practices in China’s textile industry and contributes toward green supply chain development. Managerial implications are identified, which are beneficial to the entire textile industry in the developing countries.

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.


2019 ◽  
Vol 30 (1) ◽  
pp. 146-179 ◽  
Author(s):  
Sudhir Ambekar ◽  
Anand Prakash ◽  
Vishal Singh Patyal

Purpose The purpose of this paper is to propose a low carbon culture (LCC) adoption model for gaining the right carbon capabilities by integrating the dimensions of flexibility or control and external or internal of competing values framework (CVF) with that of level of carbon emission (LCE). Design/methodology/approach This study reviewed literature related to low carbon supply chain, CVF and carbon capabilities to synthesize currently available frameworks for assessing culture and carbon-related insights. Based on these insights, this study proposes the carbon culture adoption model and presents some research propositions. Findings This study has extended categorization of culture suggested in CVF from four categories to eight distinct categories by adding “LCE” as a third dimension. The new categories of carbon culture are: “Red,” “Antagonist,” “Obligatory,” “Early Adopter,” “Follower,” “Transitive,” “Pragmatist” and “Green.” This categorization of organizations would help in selecting appropriate low carbon practices (LCPs). Research limitations/implications This study presents purely conceptual framework with some research propositions which needs to be empirically tested. Practical implications Organizations can formulate right policies for low carbon capabilities based on the LCC of their supply chain. Originality/value With increasing awareness about environment across stakeholders, organizations around the world are under pressure to reduce their carbon footprints. The extent of reduction in carbon footprints depends on the right capabilities across the supply chain which in turn depends on selection of the right combination of LCPs based on the supply chain culture.


2018 ◽  
Vol 29 (2) ◽  
pp. 398-428 ◽  
Author(s):  
Chiranjit Das ◽  
Sanjay Jharkharia

Purpose The purpose of this paper is to review the relevant literature on low carbon supply chain management (LCSCM) and classify it on contextual base. It also aims at identifying key decision-making issues in LCSCM. This paper also highlights some of the future challenges and scope of research in this domain. Design/methodology/approach A content analysis is carried out by systematically collecting the literature from major academic sources over a period of 18 years (2000-2017), identifying structural dimensions and classifying it on contextual base. Findings There is an increasing trend of research on LCSCM, but this research is still in a nascent stage. All supply chain functions such as supplier selection, inventory planning, network design and logistic decisions have been redefined by integrating emissions-related issues. Research limitations/implications Limitation of this study is inherent in its unit of analysis. Only peer-reviewed journal articles published in English language have been considered in this study. Practical implications Findings of prior studies on low carbon inventory control, transportation planning, facility allocation, location selection and supply chain coordination have been highlighted in this study. This will help supply chain practitioners in decision making. Originality/value Though there are an increasing number of studies about carbon emission-related issues in supply chain management, the present literature lacks to provide a review of the overarching publications. This paper addresses this gap by providing a comprehensive review of literature on emissions-related issues in supply chain management.


2020 ◽  
Vol 40 (9) ◽  
pp. 1367-1395
Author(s):  
Xiaohong Liu ◽  
Cheng Qian ◽  
Shenghui Wang

PurposeThis paper draws on the perspective of social networks to examine when 3PLs initiate low-carbon supply chain integration (LCSCI) in decarbonising supply chains.Design/methodology/approachA questionnaire survey was conducted on a sample of 348 Chinese 3PLs. Stepwise regression was adopted to analyse the data.FindingsIt is found that LCSCI has a positive effect on firm performance. From the social network perspective, a larger scope of outsourcing increases 3PLs' embeddedness, which increases their chance of success in initiating LCSCI, especially for 3PLs with higher decarbonisation capabilities. Interestingly, although the pressure from government regulation can also motivate LCSCI, it is less effective for 3PLs with higher decarbonisation capabilities because they can be too embedded in the network to freely adapt to regulations.Research limitations/implicationsThis study has investigated 3PL-initiated LCSCI only from the view of 3PLs. A dyadic approach which includes the perception of customers would be desirable.Practical implicationsThe results highlight the critical role of 3PLs as supply chain orchestrators in decarbonising supply chains, and the effectiveness of LCSCI as a competitive strategy of 3PLs. Coercive pressures from government regulations are not constraints but resources for 3PLs in initiating LCSCI, especially in markets where the 3PLs have insufficient decarbonisation capabilities.Originality/valueThis study contributes to theories on 3PLs' interorganizational low-carbon initiatives, LCSCI, and the paradox of social networks in supply chains.


2019 ◽  
Vol 8 (1) ◽  
pp. 2-25 ◽  
Author(s):  
Chiranjit Das ◽  
Sanjay Jharkharia

PurposeThe purpose of this paper is to empirically examine the relationships between low carbon supply chain practices and their relationships with environmental sustainability (ES) and the economic performances (EP) of firms. The study also includes an examination of the low carbon supply chain practices that are utilized by Indian manufacturing firms.Design/methodology/approachThrough a questionnaire-based survey, the data received from 83 Indian manufacturing firms was analyzed using a variance-based structural equation modeling technique to test the proposed hypotheses.FindingsThe study indicates that carbon governance is a strategic imperative for the adoption of low carbon supply chain practices. Similarly, low carbon product and process design (LCPPD), manufacturing and logistics lead to improved ES. In addition, low carbon purchasing is positively related to the adoption of LCPPD, manufacturing and logistics. No significant relationship was found between the adoption of low carbon supply chain practices and the EP of a firm.Practical implicationsThe findings of this study may assist manufacturing managers in prioritizing operational practices for the reduction of emissions.Originality/valueThis study provides two major contributions to green supply chain management. First, it provides comprehensive empirical evidence on low carbon supply chain practices that are being followed by Indian manufacturing firms. Second, this study also empirically validated a structural model of low carbon supply chain practices.


2017 ◽  
Vol 22 (3) ◽  
pp. 237-257 ◽  
Author(s):  
Chunguang Bai ◽  
Joseph Sarkis ◽  
Yijie Dou

Purpose This paper aims to introduce a joint DEMATEL and NK methodology to develop a process model for introducing and implementing relational supply chain practices for low-carbon supply chains. Using this process model as a guide, insights into specific practices and how to implement these relational practices to achieve competitive advantage across organizations are introduced. Design/methodology/approach Low-carbon cooperation practices framework based on the relational view is developed. A methodology based on DEMATEL and the NK model is used to construct a sequential process model for introducing and implementing these relational practices. Empirical data from three manufacturing organizations in China are utilized to validate the model. Findings Initial results provide a sequence of relational practices for guiding those organizations and their suppliers for healthy and low-carbon development. Interdependencies between relational practices are analyzed and evaluated from four aspects. Insights into the broader application of the methodology and initial results from both a research and managerial perspective are presented, especially with consideration of the China, an emerging economy, context. Research limitations/implications The methodology remains relatively abstract in nature, yet the tool can provide very useful interpretations and information for both researchers and practitioners. Practical implications This paper stipulates that in addition to internal operational practices, the relational practices between buyer and supplier may be equally important to achieve a low-carbon outcome, especially in supply chain setting. This paper also shows that not only the relational practice itself but also the implementation sequence of the relational practices can relate to performance. According to the authors’ initial results, organizations in this study should first develop product development cooperation, then exchange carbon knowledge and implement effective governance and last build a trust relationship with its suppliers for low-carbon cooperation. Originality/value This is one of the few approaches that directly evaluates and identifies the interdependencies among relational practices and to construct a process model for introducing and implementing low-carbon supply chain cooperation. It is also the first time that the NK model has been integrated with DEMATEL. Focusing on Chinese supply chain carbon emissions concerns is also a unique perspective.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The increasing relevance of culture to supply chain management is indicated by the number and scope of studies that currently exist. However, significant shortcomings prevail that might be addressed by the development of an appropriate framework able to measure interaction between individual, organizational and network cultural levels. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


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