Lean versus green: The impact of lean logistics on greenhouse gas emissions in consumer goods supply chains

Selection of outsourcing logistics providers in the context of low-carbon strategies

As more attention is given to climate change and sustainable development in China, enterprises start to care about carbon emissions related to their supply chains. One important issue faced by an enterprise is to select a logistics provider who can provide a high-quality service with low carbon levels. To solve this issue, this paper proposes a selection criterion from the perspective of low carbon levels based on previous studies. The selection criterion consists of comprehensive strength, financial status, market competitiveness, development potential and low carbon level. Next, this paper applies a combined method of information entropy and grey correlation vlsekriterijumska optimizacija i kompromisno resenje (VIKOR) model to evaluate the proposed selection criterion. Subsequently, this paper took company S and its four logistics providers as a case study to check the applicability of our proposed selection method and to illustrate how to use it. Sensitivity analysis and comparative analysis are also conducted. Related managerial insights are also proposed based on the evaluation results. One finding of this paper is to establish a decision-making framework to evaluate logistics suppliers under the new background of 'emission peak and carbon neutrality'.

How do we best synergize climate mitigation actions to co-benefit biodiversity?

A multitude of actions to protect, sustainably manage and restore natural and modified ecosystems can have co-benefits for both climate mitigation and biodiversity conservation. Reducing greenhouse emissions to limit warming to less than 1.5 or 2°C above preindustrial levels, as outlined in the Paris Agreement, can yield strong co-benefits for land, freshwater and marine biodiversity and reduce amplifying climate feedbacks from ecosystem changes. Not all climate mitigation strategies are equally effective at producing biodiversity co-benefits, some in fact are counterproductive. Moreover, social implications are often overlooked within the climate-biodiversity nexus. Protecting biodiverse and carbon-rich natural environments, ecological restoration of potentially biodiverse and carbon-rich habitats, the deliberate creation of novel habitats, taking into consideration a locally adapted and meaningful (i.e. full consequences considered) mix of these measures, can result in the most robust win-win solutions. These can be further enhanced by avoidance of narrow goals, taking long-term views and minimizing further losses of intact ecosystems. In this review paper, we first discuss various climate mitigation actions that evidence demonstrates can negatively impact biodiversity, resulting in unseen and unintended negative consequences. We then examine climate mitigation actions that co-deliver biodiversity and societal benefits. We give examples of these win-win solutions, categorized as 'protect, restore, manage and create', in different regions of the world that could be expanded, upscaled and used for further innovation.

Sustainable Inventory Management in Supply Chains: Trends and Further Research

This article presents an overview of the models applied to sustainable inventory management in supply chains and a roadmap for new research. It aims to address the lack of understanding of how sustainability is being incorporated into quantitative inventory management models in the supply chain context. The study is based on a classification of the reviewed literature according to the following criteria: supply chain structure, environmental approach, problem type, modeling, and solution approach. As a result, 36 articles were analyzed and classified. The main findings show that studies that incorporate social sustainability into inventory management along supply chains are lacking, while environmental studies are a growing research area. Uncertainty issues also need to be incorporated into sustainable inventory management models. Another important result of this study is the definition of a roadmap with trends and future research guidelines. The identified future research guidelines include incorporating decisions that can help to improve economic, environmental, and social sustainability. Thus, future studies should focus on both following quantitative models that incorporate inventory decisions integrally with transportation and location decisions, and more complex models, and employing new algorithms and heuristics to solve them.

Lean, sustainability and the triple bottom line performance: a systems perspective-based empirical examination

Purpose

This study draws on the systems perspective to study the individual and combined interaction effect of lean management (LM) and sustainability management (SM) on the organization's triple bottom line (TBL) performance.

Design/methodology/approach

The study employs structural equation modeling to test the proposed hypotheses using data from the sixth version of the International Manufacturing Strategy Survey (IMSS VI).

Findings

The study finds that LM is positively related to all dimensions of the TBL performance. In contrast, SM is positively related to social and environmental performance and negatively related to economic performance. Finally, by finding that the interaction between LM and (SM) is positive for social and environmental performance, this study not only confirms that LM is an enabler for sustainability, but it also supports that the two paradigms are mutually compatible and reinforcing.

Practical implications

The findings imply that practitioners pursuing both LM and SM should leverage their mutual positive effects and balance the unintended effects of implementing isolated bundles by implementing them together as a complete socio-technical system. Their combined impact on the TBL performance will outweigh the sum of their individual effects in the case of isolated implementations.

Originality/value

In contrast with the extant literature, this study proposes that LM and SM make parts of one system as opposed to one correlated with the other or having a positive causal effect on the other. Taking an integrated systems approach, the study empirically verifies the “mutual compatibility” of the lean and sustainability paradigms argument, with regard to their effect on the TBL performance.

Applying quality concepts to achieve environmental sustainability in the freight transport sector – reviewing process management and lean

Purpose

The purpose of this paper is to revisit lean manufacturing and process management to review how these have targeted environmental sustainability and determine whether these have the potential to achieve environmental sustainability in small- and medium-sized companies within the freight transport sector.

Design/methodology/approach

The methodology for this paper was divided into three steps. The first step involved a narrative literature review, including previously designed search strings. The second step involved a snowball approach, where the identification of new sources departed from previously selected articles. The third step included a completing narrative review to search for the most recent articles published related to the purpose. The analysis was based on the identification of benefits, challenges and the potential of lean and process management to deal with environmental demands among transport companies.

Findings

The findings suggest a potential of lean and process management for achieving environmental sustainability, if adapted appropriately. The potential is on the operative and strategic levels, respectively.

Research limitations/implications

This study included two of the concepts from the quality movement from a literature perspective. Hence, there is a need for research to evaluate these results empirically. Additionally, other aspects should be studied within the quality movement for achieving environmental sustainability.

Originality/value

This paper aims to be a basis and a path for further theoretical and empirical research for the quality movement to support environmental sustainability. This paper particularly aims to fill part of the gap in the literature on how the freight transport sector can enhance environmental sustainability in its operations.

The hidden side of sustainable operations and supply chain management: unanticipated outcomes, trade-offs and tensions

Purpose

The research is based on a critically analyzed literature review focused on the unanticipated outcomes, trade-offs and tensions of sustainable operations and supply chain management (OSCM), including the articles selected for this special issue.

Design/methodology/approach

The authors introduce the key concepts, issues and theoretical foundations of this special issue on “The hidden side of sustainable operations and supply chain management (OSCM): Unanticipated outcomes, trade-offs and tensions”. The authors explore these issues within this context, and how they may hinder the authors' transition to more sustainable practices.

Findings

The authors present an overview of unanticipated outcomes, trade-offs, tensions and influencing factors from the literature, and identify how such problems may emerge. The model addresses these problems by highlighting the crucial effect of the underlying state of knowledge on sustainable OSCM decision-making.

Research limitations/implications

The authors limited the literature review to journals that ranked 2 and above as defined by the Chartered Association of Business Schools Academic Journal Guide. The main implication for research is a call to focus attention on unanticipated outcomes as a starting point rather than only an afterthought. For practitioners, good intentions such as sustainability initiatives need careful consideration for potential unanticipated outcomes.

Originality/value

The study provides the first critical review of unanticipated outcomes, trade-offs and tensions in the sustainable OSCM discourse. While the literature review (including papers in this special issue) significantly contributes toward describing these issues, it is still unclear how such problems emerge. The model developed in this paper addresses this gap by highlighting the crucial effect of the underlying state of knowledge concerned with sustainable OSCM decision-making.

Lean Production implementation, Cloud-Supported Logistics and Supply Chain Integration: interrelationships and effects on business performance

Purpose

With support from the dynamic capabilities theory, this paper examines the role of Cloud Computing technology use in logistics (Cloud-Supported Logistics) and its effect on business results in Lean manufacturing management (Lean Production implementation) and Supply Chain Integration contexts.

Design/methodology/approach

Using the survey method, a random sample of 260 companies in intermediate positions in their supply chains was gathered from a population of 1,717 Spanish companies and used to test five hypotheses. The data were collected by telephone survey using a computerised system with a response rate of 15.6% (260 valid questionnaires). Structural equation modelling was used to test the five proposed hypotheses.

Findings

The findings indicate that Cloud-Supported Logistics use plays an important role in achieving better business results in Lean Production environments. Lean Production has been found to have both a direct effect and an even more powerful indirect effect on performance through the Cloud-Supported Logistics and Supply Chain Integration that these technologies produce. Supply Chain Integration is also found to have a mediating effect in the Cloud-Supported Logistics–performance relationship.

Originality/value

This study is valuable for academics and practitioners as it provides evidence of the relevant role played by Cloud-Supported Logistics in Lean Production implementation contexts. Cloud-Supported Logistics and Lean Production are strategically and operationally linked and their joint use results in Supply Chain Integration and better business performance.

The hidden side of sub-supplier firms' sustainability – an empirical analysis

Purpose

The purpose of this paper is to investigate how sub-suppliers decouple the implementation of sustainable supply management practices in supply chains, and what institutional logics permit these suppliers to do so.

Design/methodology/approach

Following a qualitative design, we conducted 23 in-depth semi-structured interviews with owners and managers of apparel sub-suppliers. To corroborate research findings, the views of owners and managers were triangulated by further interviewing 18 key representatives of wide-ranging institutional actors.

Findings

The findings suggest that owners and managers of sub-suppliers use two decoupling responses: (1) consensual strategy to compromise sustainability requirements (2) concealment strategy. In addition, this paper identifies multiple institutional types of conflicting logics: instrumental logic, legitimacy logic complexity and gaps in normative logic, which interplay amongst sub-suppliers whereby permit to decouple the implementation of supply management practices.

Research limitations/implications

While the current paper provides an early contribution from the perspectives of second-tier and third-tier suppliers, future research could be extended to include further upstream sub-suppliers and downstream tiers including the end consumers.

Practical implications

It is important for brand-owning retailers and first-tier suppliers to predict sub-suppliers' decoupling behaviour and conflicts for supply management practices implementation since they may present potential vulnerability for buyers and lead suppliers.

Originality/value

This study extends the application of institutional theory and contributes to the literature on extended suppliers' supply management practices in a developing country context, which is an under-researched area.

Climate Change Mitigation: Application of Management Production Philosophies for Energy Saving in Industrial Processes

Climate change is a fact. Global warming of the planet is a result of the emission of greenhouse gases into the atmosphere and the cause of serious sustainability issues. The objective of this article is to highlight the potential of the Six Sigma methodology to reduce energy consumption in the productive sphere, with consequential reductions in pollutant emissions. We present a systematic literature review that highlights the increasing interest from academics and practitioners in using quality management philosophies for addressing sustainability issues. From the analysis carried out, it is clear that Lean is being used in this regard but the potential of Six Sigma is not being exploited. Taking advantage of the best of both approaches (Lean Six Sigma) can contribute to reducing energy consumption in industrial processes and contribute to mitigating the impacts of those processes on climate change. Moreover, through keyword analysis, we found that the three dimensions of sustainability are currently gaining importance in the literature, when previously only the economic pillar was relevant. Finally, we raise some questions for reflection for academics but also for practitioners, as the problem is a global problem that should be faced by all the community.

Raut R, Narkhede BE. Analysing the 3PL service provider’s evaluation criteria through a sustainable approach

Purpose

The purpose of this paper is to identify and model the evaluation criteria for the selection of third-party logistics service provider (3PLSP) by an interpretive structural modelling (ISM) approach in the pharmaceutical sector.

Design/methodology/approach

Delphi technique was used for identifying the most significant criteria, and the ISM method was employed for developing the interrelationship among the criteria. Also, the critical criteria for having high influential power were identified by using the Matrice d’Impacts Croisés Multiplication Appliqués à un Classement analysis.

Findings

The most significant factors, namely, capability of robust supply network/distribution network, quality certification and health safety, service quality and environmental quality certifications, were found to have a high driving power, and these factors demand the maximum attention of the decision makers.

Research limitations/implications

As the ISM approach is a qualitative tool, the expert opinions were used for developing the structural model, and the judgments of the experts could be biased influencing the reliability of the model. The developed hierarchical concept is proposed to help the executives, decision and policy makers in formulating the strategies and the evaluation of sustainable 3PLSP.

Originality/value

It is an original research highlighting the association between the sustainable 3PLSP evaluation criteria by employing ISM tool in the pharmaceutical industry. This paper will guide the managers in understanding the importance of the evaluation criteria for the efficient selection of 3PLSP.

Lean and Green: practices, paradigms and future prospects

Purpose

The purpose of this paper is to present an overview of the conceptual framework related to the Lean and Green practices, paradigms, future prospects and problems, indicating points of convergence and divergence between them.

Design/methodology/approach

Based on this premise, through vast literature systematization, the authors sought to categorize studies in order to consolidate constructs, reinforcing aspects regarding the positive and negative approaches and pointing out the gaps in the current state of the art. Broad literature systematization was carried out; the authors found 107 articles published between 2014 and 2018, separated into 10 categories.

Findings

The main constructs confirmed are the positive approximation of the Lean and Green union, evidenced by studies premised on the independent variable category demonstrating that their union influences other environmental performance variables.

Research limitations/implications

The present research is a systematization of the literature, so its results have to be confirmed by other studies.

Practical implications

The study supports the Lean and Green theme, confirming converging issues between the two areas and launching new topics for future research.

Social implications

The study contributed to the environmental theme by confirming synergies of the Lean and Green union and presenting new research themes.

Originality/value

To assert that Lean and Green systems union is sustainable, with regard to the tripod of sustainability, more studies on the social category are necessary.

Interactions in sustainable supply chain management: a framework review

Purpose

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social performance and the level of sustainability, as suggested in the Carter and Rogers (2008) framework.

Design/methodology/approach

This paper conducts a systematic literature review based on the Tranfieldet al.(2003) method of the articles published in 13 major journals in the area of supply chain management between the years 2010 and 2016. Results were analyzed using an expert panel.

Findings

The area of research between environmental and social performance is sparse and relegated to empirical investigation. As an important area of interaction, this area needs more research to answer the how and why questions. The economic activity seems to be the persistent theme among the interactions.

Research limitations/implications

The literature on the “environmental performance and social performance (ES)” interactions is lacking in both theoretical and analytical content. Studies explaining the motivations, optimal levels and context that drive these interactions are needed. The extant research portrays economic performance as if it cannot be sacrificed for social welfare. This approach is not in line with the progressive view of sustainable supply chain management (SSCM) but instead the binary view with an economic emphasis.

Practical implications

To improve sustainability, organizations need the triple bottom line (TBL) framework that defines sustainability in isolation. However, they also need to understand how and why these interactions take place that drive sustainability in organizations.

Originality/value

By examining the literature specifically dedicated to the essential, interim, dyadic interactions, this study contributes to bridging the gap between stand-alone performance and the TBL that creates true sustainability. It also shows how the literature views the existence of sustainability is progressive, but many describe sustainability as binary. It is possible that economic sustainability is binary, and progressive characterizations of SSCM could be the reason behind the results favoring economic performance over environmental and social.

Integrating Simulation-Based Optimization for Lean Logistics: A Case Study

The present work aims at the comprehensive application of stochastic and optimization tools with the support of Information and Communication Technologies (ICT) through a case study in a logistics process for electronic goods; simulation and Response Surface Methodology (RSM) are applied for this purpose. The problem to be evaluated is to define an optimal distribution cost for products shipped to wholesale customers located in different cities in Mexico from a manufacturing plant in Tijuana, Mexico. The factors under study are the product allocation for each distribution center, finished good inventory level and on time deliveries, which are supposed to be significant to get the objective. The methodology applied for this problem considers the design of a discrete event simulation model to represent virtually the real life of logistics process, which is considered a complex system due to different activities are interrelated to carry it out. This model is used to execute the different experiments proposed by the RSM. The results obtained from simulation model were analyzed with the RSM to define the mathematical model that allows identifying the parameters of the factors in order to optimize the process. The findings prove how the ICT facilitate the application of stochastic tools with the purpose of process optimization.

Pallet Picking Strategy in Food Collecting Center

This study aims to analyze the optimal warehouse layout for agricultural and food collecting centers that help small–medium farms to trade in the short food supply chain, by choosing among longitudinal, transversal, and fishbone layout. The developed model allows for the identification of the warehouse ensuring the least impact through inbound material handling, under both an economic and an environmental perspective. The analysis was carried out by using an analytical model to minimize the travelling time of the goods from picking to delivery area. The model considers the different turnover index from which four hypotheses were formulated to implement the results. The Carbon Footprint (CF) and Management Costs (MCs) were calculated by the picking time performance. Findings: Results show that the optimal warehouse layout can be identified after a careful consideration of the turnover indexes. However, for seasonality, the optimal design might be missed across the seasons. Practical implications: the analysis hereby presented is related to those collecting centers aiming to gather conspicuous amounts of seasonal food.

A Systematic Literature Review for Better Understanding of Lean Driven Sustainability

Global trends and factors, such as the increased level of globalization, climate change, resource scarcity, and awareness of social and environmental responsibilities, as well as fiercer competition and lower profit margins in all industries, force organizations to act to retain, regain, or sustain their competitive advantages for long-term survival. These trends and factors are historically known to bring about innovations that drive the evolution of industries. Sustainability is considered to be such an innovation to achieve fiscally sound, environmentally conscious, and socially progressive organizations and supply chains. This study reviewed 477 past articles published in five major databases from 1990 to 2018. The purpose of the study was to assess the current state-of-the art in the subject of lean-driven sustainability. Based on the exhaustive descriptive and contextual analysis, synergies, divergences, and the extent of two-way permeability of lean and sustainability concepts from the perspective of intra- and inter-organizational operations were identified along with future research opportunities. Fundamental strengths and weaknesses of both concepts, existing strong synergies and untapped potential, along with their key contributors, the potential-use cases of lean tools to derive sustainable solutions are highlighted in this review.