Analysing the impact of restructuring transportation,production and distribution on costs and environment – a case from the Thai Rubber industry

Transportation and distribution are key elements to successful supply chains, however there is some disagreement regarding the impact of distribution and transportation restructuring on costs and the environment. This paper explores the use of an optimisation model of Thailand’s rubber industry supply chain, to assess the impact of distribution and transportation on costs and greenhouse gas emissions. It has previously been observed that there is a positive correlation between transportation cost reduction and environmental impact, nevertheless the correlation is not clearly established when the distribution system is restructured. This paper is divided into two parts: the first part examines the impact of transportation service capacity on distribution decisions; the second part of the paper aims to examine the impact of restructuring the distribution network considering multi-modal options on cost and greenhouse gas emissions. For both parts a scenario analysis is utilised in conjunction with an optimisation model to derive the best possible answer in terms of costs and GHG emissions. In this paper, the results obtained indicate that the impact on cost minimisation from the increase in rail freight service capacity is marginal, while the impact on GHG emission minimisation is more significant. In terms of short-sea shipping prices and service capacity, the scenario analysis shows a slight positive impact on cost minimisation but no positive or negative impact on GHG emission minimisation. Results also confirm that in terms of economic advantages, distribution network restructuring provides greater benefit to the industry than does capacity development for the transportation service.     

Do firm characteristics affect environmental sustainability? A literature review-based assessment

Combating environmental pollution and climate change mandates strong commitment and participation of all firms across sectors. However, the environmental conduct of firms is seen to vary as per their characteristics, especially their size, ownership, and age. Current understanding of these characteristics' influence on environmental sustainability is limited, fragmented, and scattered across the literature, which this study seeks to improve and contribute to. Based on a rigorous screening of the last 25 years' literature (1996–2020), the study develops a comprehensive understanding of firm characteristics' implications for environmental sustainability, namely, environmental practices implementation, environmental drivers, environmental barriers, and associated (environmental, cost/economic, operational, and organizational) performance implications. Several meaningful and generalizable trends, conflicts, and consensus, or lack thereof, are revealed. For instance, the extent of environmental practices' implementation can be seen to be greater at large firms' (vis-à-vis small ones) and at foreign firms' (vis-à-vis local ones), though not much difference is seen between old and new firms. Also, several metafactors such as resources availability, innovation propensity, and bureaucracy and organizational inertia are identified that explain the differential influence of firm characteristics on environmental sustainability and dispel erroneous stereotypes. Finally, gaps in the literature offering avenues for future research are highlighted along with implications for research, theory, and practice. Results are expected to help policymakers and practitioners develop policies/interventions that ensure all firms, irrespective of their characteristics contribute to environmental sustainability. A comprehensive review of this kind has not been previously undertaken and constitutes the novelty of this work.