Raw Material Management Strategies for Waste Reduction : A case study at a Swedish manufacturing SME

Abstract: Manufacturing companies have a tremendous environmental impact in terms of the way they manage raw materials. In addition, the amount of waste produced by industries continues to increase, which puts even more significant pressure on the environment. The purpose of this thesis was, therefore, to investigate raw material management and to identify strategies that are implemented in a supply chain in order to reduce waste. Then, an investigation of how these strategies are implemented in the product flow through the focal company, its suppliers, and customers was done.  The single case-study approach was selected to answer the research questions and fulfill the study's purpose. The data was collected through means of interviews and document studies. The theoretical framework presented multiple strategies that can be implemented in order to reduce waste. The butterfly diagram emphasizes waste reduction during different steps in the supply chain using the strategies included in the R approaches. These strategies can be implemented internally within an organization or externally with companies in a supply chain to reduce waste. From the findings and analysis, it was evident that all the companies in the supply chain work actively with sustainability across all parts of the triple bottom line. A product flow mapping was created to visualize the companies’ waste reduction strategies. Recycling was the primary strategy, followed by reducing through quality assurance and a make-to-order approach, then ordering materials close to the finished product dimensions. The companies work individually on sustainability to improve their sustainability practices and achieve sustainability goals. Though, they need to improve collaboration and transparency with the other companies in the supply chain. However, they share a similar view on sustainability, and they are working actively to improve their sustainability work. This has facilitated a sustainable supply chain despite the need for more active collaboration.