Sustainable Supply Chain Solutions – A Case Study Regarding Modifications of an Existing Spare Part Distribution System

Abstract: The main purpose of the thesis is to provide Syncron with guidelines regarding how to modify their software for logistic planning in order to meet future customer needs. Furthermore, the thesis serves as input to the research project supported by NGIL, named Design and Control of Sustainable Supply Chains. Problem Formulation: Transport costs have not been a significant cost driver in the past, which is why little effort has been spent on optimizing this area. With the predictions regarding new conditions within the transport industry, this will most likely change. To stay competitive, companies might have to focus a lot more on creating sustainable and cost efficient supply chains; sustainable in the sense that logistics are performed in an environmental and competitive way and are well adjusted to the optimal design of the inventory structure. With this in mind, the problem formulation has converged into: What upcoming legislations and other transport related obstacles will have impact on the design of the supply chain? How can Lantmännen Maskin’s supply chain be adapted to the changes in transport related regulations in the sense that it is optimized with respect to environmental as well as economical aspects? With respect to Lantmännen Maskin, what additional costs are associated to new legislations and how much can these costs be reduced, by modifying the supply chain? Methodology: Both quantitative and qualitative data were used in the thesis. Data was collected from primary sources such as, email correspondence with authorities, interviews and a questionnaire, while secondary data was mainly gathered from government publications and other literature. Initially, a comprehensive theoretical framework, Part 1, was built using an analytical approach. Subsequently, a case study, presented in Part 2, was performed with a systems approach in order to obtain material on which to conduct an analysis. The analysis ends in conclusions and recommendations to concerned parties. Theoretical Framework: Part 1 consists of an extensive theoretical base where present and future environmental regulations, such as taxes and fees, have been investigated and discussed. The theoretical framework is completed by a short theory section in the beginning of Part 2. This section