CARBON EMISSIONS

The Impact of Carbon Emissions on Manufacturing Operation, Cost and Profit by Focusing on Product Life Cycle Analysis

Abstract

In this study we try to explore the impact of carbon emissions in a holistic context. The main focus of the research is on manufacturing operation and its relation with Wal-Mart logistics management. The research also analyzes many aspects of integrated logistics management and tries to gauge its effect on Wal-Mart. Finally the research describes various factors which are responsible for carbon emissions on manufacturing operation, cost and profit product life cycle analysis and tries to describe the overall effect of integrated logistics management on Wal-Mart.

Table of Contents

Abstractii

Chapter 1: Introduction1

Chapter 2: Methodology5

Research Design5

Literature Search5

Keywords6

Chapter 3: Analysis7

Rationale for the choice of the changes/adjustments7

New Proposed System8

A typology for sustainable operations management11

Cost / Benefit Analysis of the Proposed New System13

Chapter 4: Conclusion16

Chapter 5: Recommendation19

References20

Chapter 1: Introduction

The Wal-Mart logistics system delivers results that have catapulted the retail giant to the top revenue earning company in 2007. (Chase, 2009: 1037-1050) They are the first retailer to place first in sales in the Fortune 500 rank, surpassing energy giants: Exxon Mobil and Chevron; and manufacturer: General Motors. Wal-Mart's growth is based on a business model founded on logistic excellence--and logistics are important. "Getting the supply chain right is no longer just an exciting opportunity. It's a survival skill," (Taylor). Jay Fitzsimons, Wal-Mart senior vice president and treasurer says, "The misconception is that we are in the retail business, but in reality we are in the distribution business. It's Wal-Mart job to bring product from the dock to the customer's trunk in as little as 72 hours" (Bender, 2006: 354-366)

One could argue that the power of Wal-Mart grows from its ability to control suppliers through huge purchasing power. This is true. Wal-Mart is in the position to tell manufacturers what to produce, when, and at what price. The retail industry is semimonopsonistic because of Wal-Mart--meaning the market situation is such that products several sellers is sought by only one buyer (Bonacich and Willson). "In the retail and consumer market, the supreme being known as Wal-Mart now calls the supply chain shots." (Johnson) Yet, size is not the advantage used by Wal-Mart during its initial growth. An examination of several successful logistics componants reveal principles that Wal-Mart has executed consistantly throughout their growth that can be adopted by smaller competators. (Corbett, 2006: 5-22)

There is also a growing trend among manufacturers to focus on the business side of carbon management. For example, an interest in performance management systems focused on sustainability, including carbon management, to identify carbon indicators that correlate with business performance factors, such as: profitability, sales, customer retention and satisfaction, and brand image. (Gonzalez-Benito, 2010:87-102)

The carbon management market offers a number of prospects for software and services vendors, particularly in manufacturing, the largest industry sector overall. Most of the requirement is for assistance in putting programs in place to manage and reduce an organization's GHG emissions. (Lovins, 2008: 15-39)

Pike Research is forecasting an increase in demand in the coming years, ...