Abstract
The impacts of high technology industries have been growing increasingly to technological innovations and global economic developments, while the concerns in sustainability are calling for facilitating green materials and cleaner production in the industrial value chains. Today’s manufacturing companies are not striving for individual capacities but for the effective working with green supply chains. However, in addition to environmental and social objectives, cost and economic feasibility has become one of the most critical success factors for improving supply chain management with green component procurement collaboration, especially for the electronics OEM (original equipment manufacturing) companies whose procurement costs often make up a very high proportion of final product prices. This paper presents a case study from the systems perspective by using System Dynamics simulation analysis and statistical validations with empirical data. Empirical data were collected from Taiwanese manufacturing chains—among the world’s largest manufacturing clusters of high technology components and products—and their global green suppliers to examine the benefits of green component procurement collaborations in terms of shared costs and improved shipping time performance. Two different supply chain collaboration models, from multi-layer ceramic capacitor (MLCC) and universal serial bus 3.0 (USB 3.0) cable procurements, were benchmarked and statistically validated. The results suggest that the practices of collaborative planning for procurement quantity and accurate fulfillment by suppliers are significantly related to cost effectiveness and shipping time efficiency. Although the price negotiation of upstream raw materials for the collaborative suppliers has no statistically significant benefit to the shipping time efficiency, the shared cost reduction of component procurement is significantly positive for supply chain collaboration among green manufacturers. Managerial implications toward sustainable supply chain management were also discussed.
Highlights
The high technology industry has been one of the fastest growing industries in the world that increasingly lead to technological innovations and global economic developments, while there are concerns in sustainability of the industrial energy consumption and CO2 emissions [1]
For multi-layer ceramic capacitor (MLCC), the component collaborative management was focused on the procurement quantity and the forecast accuracy; the component prices of suppliers were compared with the component prices of the supplier who was introducing collaborative management
A case study from the systems perspective is conducted with empirical data collected from Taiwanese manufacturing chains and their global green suppliers to examine the effectiveness of green component procurement collaborations in terms of shared costs and improved shipping time
Summary
The high technology industry has been one of the fastest growing industries in the world that increasingly lead to technological innovations and global economic developments, while there are concerns in sustainability of the industrial energy consumption and CO2 emissions [1]. To satisfy higher industry and sustainability standards in the globally competitive environment, today’s manufacturing companies are not striving for individual capacities but for the efficiency of the entire green supply chain management (GSCM). Previous studies consistently proposed the significant role of GSCM in sustainable development for industrial supply chain management practices [3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20]. Well-known high-tech companies such as IBM, Apple, and Hewlett-Packard have transformed their regulatory compliance approach into a green-integrated approach [26]
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