1 Low Carbon and Green Supply Chain Feasibility Study of WiLCO Logistics and Supply Chain Management (LSCM) Research Group, Management School, The University of Sheffield SEAMS-WiLCO The European Centre for Total Quality Management, School of Management, University of Bradford

2 Project Team Sheffield Prof SC Lenny Koh Prof John Cullen SEAMS Dr Mark Engelhardt Mark Turner Dave Smith Bradford Dr Kay Hooi Alan Keoy Prof. Mohamed Zairi

3 Project Description Time: 1 August – 31 August 2008 Total project value: £10092

4 Project Background The proposed project explores how the University of Sheffield can benefit through using the WiLCO software in modelling ‘Low Carbon and Green Supply Chains“. SEAMS believe the benefits in using WiLCO will be; to speed up the production of results, use of the latest life cycle modelling techniques from other industries, use of optimisation techniques in determining the best strategies for ‘Low Carbon and Green’ supply chains.

5 SEAMS Background SEAMS deliver its WiLCO software and associated consultancy services into organisations to improve their decision making. Using an organisation’s data, analysis is undertaken to build a model within the WiLCO technology. WiLCO then optimises this model to identify the best strategies to deliver the maximum return to an organisation’s stakeholders. For SEAMS clients in the water market, this means optimising investment in the assets (water pipes) to deliver customer service at least whole life cost.

6 WiLCO Background The modelling framework within WiLCO provides an ideal structure to model a product’s full life cycle. It provides a framework to capture the key performance aspects of supply chains; the costs incurred; account for the energy and carbon footprint. Furthermore, WiLCO can be used to explore the alternative strategies. Ultimately, these strategies can be optimised to identify the least cost strategy to meet defined performance and environmental standards.

7 Aim and Objectives The scope of the project is to explore how the capabilities of this modelling framework can be used by LSCM in supply chains. The problem of modelling the full supply chain, the energy and carbon audit will be defined mathematically. A prototype configuration of the WiLCO modelling framework will then be documented. This will enable the data required to also be defined. The benefits of using WiLCO can then be fully identified and assessed against alternative supply chain modelling software.

What Knowledge has been Transferred ? CSR and modelling Low carbon and green supply chain WiLCO

Operational CF Assessment (direct energy Metric) Raw Material Supplier Transportation CF Analysis Purchased electricity CF Analysis Fuel Consumption facilities CF Analysis Component Supplier Transportation CF Analysis Purchased electricity CF Analysis Fuel Consumption facilities CF Analysis Manufacturer Transportation CF Analysis Purchased electricity CF Analysis Fuel Consumption facilities CF Analysis Distributor Transportation CF Analysis Purchased electricity CF Analysis Fuel Consumption facilities CF Analysis Retailer Transportation CF Analysis Purchased electricity CF Analysis Fuel Consumption facilities CF Analysis

Generic CF Framework Development Measuring an organisation/supply chain carbon footprint consists of four steps

Pilot WiLCO LCGSC Mapping Step 1: Mapping: Define Supply Chain boundary

Step 2: Identifying: Data inputting Raw Material Supplier Component Supplier ManufacturerDistribution /Warehouse Retailer Transportation CF Analysis (Metric ton CO2) ModeRoad Rail Distance (mile) Fuel TypeGasolineDieselGasoline Energy Used (kg CO2 / GJ) Emission Factor (kg CO2 per GJ) ModeRailAir Distance (mile) Fuel TypeGasoline Energy Used (kg CO2 / GJ) Emission Factor (kg CO2 per GJ)

Step 3 Evaluating: Tracking, calculating and analyzing

Level 2: Details of CO2 Emissions by each Vehicle in the Supply Chain

Interventions: CO2 Emission Interventions Which ModeRoad Rail Fuel TypeDieselGasolineDiesel Energy Used (kg CO2 / GJ) Emission Factor (kg CO2 per GJ)

Intervention: Cost associated with fuel changes

17 Deliverables and Output A prototype model within WiLCO Published a book on Low Carbon and Green Supply Chain (ISBN: ) A paper accepted for International Conference on Supply Chain Management and Information Systems (SCMIS2008), December, India. Working on a journal paper based on this project.

18 Continuation Yorkshire Forward Centre for Low Carbon Futures (CLCF) Further enhancement and commercial exploitation Research enhancement

19 Critical Success Factors for KT Project 1.Who is on the driving seat/Strong leadership 2.A well defined project 3.A strong team 4.Careful selection of RA 5.Strong partnership 6.Clear understanding on roles/expectations and contributions 7.Energy and focus 8.“Deliver” mindset 9.Constant reviewing and tracking 10.Continuation and sustainability

Contact Professor SC Lenny Koh Chair in Operations Management Director of Logistics and Supply Chain Management (LSCM) Research Group The University of Sheffield Management School 9 Mappin Street Sheffield S1 4 DT UK Tel: +44 (0) Fax: +44 (0)