An Integrated Approach to Evaluating and Strategic Planning of Green Supply Chain: Application to an Automation Controller Manufacturer

Xian Yan

Abstract

The objective of supply chain sustainability is to create, protect and grow long term environmental, social and economic value for all stakeholders. Companies which make their supply chains more economically inclusive can support further economic development. Therefore, supply chain sustainability plays an important role in company's long-term growth. In order to achieve sustainability in supply chain, green supply chain management practices become a part of company's policy. They are increasingly turning into a major strategic thrust in organizations. The goal of this thesis is to develop an Integrated Approach Model to evaluate the green supply chain performance of organizations. In the Integrated Approach Model, Analytic Hierarchy Process (AHP) is used to measure the Green Supply Chain performance across upstream supply chain, internal operations and downstream customers. A set of criteria are obtained through literature review. By using ranking method, a Green Supply Chain Performance index will be computed to assess the performance level of the organization. Quality Function Deployment (QFD) is applied to develop green transformation action plans. Then, Cost-Effectiveness evaluation is performed to determine the most appropriate green transformation plan in a systematic manner. Therefore, the Integrated Approach proposed in this Thesis not only evaluates the performance of green supply chains, it further explores the options to strategically aid organizations to continuously improve their supply chain to excel. A case study will be used to illustrate the application of the Integrated Approach.