Barriers to Change in Manufacturing Supply

Abstract

This book started out by arguing that industry is contributing to environmental degradation, and therefore has a duty to address environmental problems. Such an argument is buttressed by the often proactive stance of environmental policies and the promising advance of environmental management standards in large manufacturing companies. However, the progress that supply chain management has made in terms of environmental protection is, generally speaking, not encouraging. A gap emerges between the corporate rhetoric regarding the importance of environmental protection and its often marginal role in supplier selection and evaluation. Many supply chain managers show some awareness of the environment, yet of the issues perceived as problematic for their supply chains the two issues listed most often — packaging and waste — have only a marginal effect on the environmental performance of the supply chain as a whole. Where environmental initiatives are undertaken, motives for such measures are dominated by legal compliance, cost savings and quality improvements. Most managers are satisfied with a supplier performance that merely meets the threshold of current environmental requirements. A more comprehensive approach towards an ongoing commitment is rare.

‘Purchasing is a performance-driven function; we have to add value in what we buy.’

Head of procurement, paper-making group