Making resources work more efficiently – the importance of supply chain partnerships

Abstract State and federal governments in Australia have implemented a range of assistance programs for manufacturing industries to become more resource efficient and reduce waste. While many of these programs focus on Cleaner Production at single sites, an increasing number of assistance programs are offered across supply chains. Sustainability Victoria, a Victorian government authority, supports projects that focus on resource efficiencies across supply chains in key industry sectors. In this study, tools were adapted and utilised to identify efficiency potentials and losses across supply chains in the timber furniture manufacturing and the food industry sector. In this respect, waste generation and value loss due to inefficient use of critical materials within the processes were estimated from purchase and waste handling data. Primary companies were chosen to undertake efficiency trials that could demonstrate value gain across the supply chain. This study describes the realisation of greater efficiencies in material usage when engaging proactively with supply chain partners immediately adjacent to the primary company. Demonstration trials confirmed that through a more integrated approach among supply chain partners the potential in using materials more efficiently and design processes can lead to enhanced productivity without compromising environmental burden. Hence, the study describes targeted resource efficiency, recycling and process optimisation opportunities as identified in the supply chain trials on timber furniture manufacturing and food industries.