Abstract

This paper explores the performance of a novel capability assessment tool, developed to identify capability gaps and associated training and development requirements across the supply chain for environmentally-sustainable manufacturing. The tool was developed to assess 170 capabilities that have been clustered with respect to key areas of concern such as managing energy, water, material resources, carbon emissions and waste as well as environmental management practices for sustainability. Two independent expert teams used the tool to assess a sample group of five first and second tier sports apparel and footwear suppliers within the supply chain of a global sporting goods manufacturer in Asia. The paper addresses the reliability and robustness of the developed assessment method by formulating the expected links between the assessment results. The management practices of the participating suppliers were shown to be closely connected to their performance in managing their resources and emissions. The companies’ initiatives in implementing energy efficiency measures were found to be generally related to their performance in carbon emissions management. The suppliers were also asked to undertake a self-assessment by using a short questionnaire. The large gap between the comprehensive assessment and these in-house self-assessments revealed the suppliers’ misconceptions about their capabilities.

Highlights

  • Industrial economics are increasingly dominated by major concerns about environmental factors, most notably climate change, the shortage of non-renewable energy sources, water and raw material supplies, and commodity price increases [1]

  • This framework, which is primarily concerned with formulating critical sustainable manufacturing competencies, was used to establish a metrics assessment tool to evaluate capabilities relating to environmental sustainability at manufacturing level in order to identify capability gaps, improvement strategies, and training needs to achieve a set of environmental targets, i.e., reduction of energy and water usage, as well as the reduction of waste and emissions generation

  • One should be skeptical about the reliability of the assessment tool if the results show that a supplier with poor performance in capabilities relating to ―improved management practices‖ has obtained a high score in that relating to resource efficiency and emission reduction

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Summary

Introduction

Industrial economics are increasingly dominated by major concerns about environmental factors, most notably climate change, the shortage of non-renewable energy sources, water and raw material supplies, and commodity price increases [1]. In an earlier article published by the authors [26], the development and implementation of a new sustainable manufacturing capability framework for an existing supply chain within the sports apparel and footwear industries was described in detail This framework, which is primarily concerned with formulating critical sustainable manufacturing competencies, was used to establish a metrics assessment tool to evaluate capabilities relating to environmental sustainability at manufacturing level in order to identify capability gaps, improvement strategies, and training needs to achieve a set of environmental targets, i.e., reduction of energy and water usage, as well as the reduction of waste and emissions generation. The overall score of a cluster was calculated by following the procedure illustrated in Figure 2 and using the following equation: A c

NA n 1 m 1
Capability Assessment and Gap Analysis Results
Implement industrial clustering and resource pooling
Sensitivity Analysis
Supplier Self-Assessment
Connection between Three Groups of Clusters
Integration of Energy Efficiency and Carbon Emission Clusters
Conclusion
31. DEEWR Training packages codes
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