Decarbonization of Freight Transport at a Manufacturing Company : A Case Study of the International Manufacturer Rosemount Tank Radar AB

Abstract: International manufacturing companies are shipping goods worldwide, resulting in interorganizational freight transportation where customers, suppliers, and logistics partners are involved in the transportation processes. This interorganizational nature of freight transport emissions has made them difficult to address, as they can be seen as not being connected to only one single company’s decisions. With the relevancy, consciousness, and interest of going greener being on the rise on a global level, many studies have made a call for a wider perspective on how manufacturing companies can work with reducing Carbon Dioxide (CO2) emissions from transport related to their business. This thesis addresses that call, and the research purpose of this thesis is to explore how a manufacturing company can achieve continuous and controlled reduction of CO2 emissions from freight transport. This study develops a framework in support of decarbonizing freight transport at a manufacturing company, through the adapting of Green Supply Chain Management (GSCM) activities, enabled by Strategy and Management Control Systems (MCSs). In sum, it is explored how a manufacturing company can adapt GSCM activities for decarbonization of freight transport as part of a decarbonization strategy, that is implemented and sustained within the company through MCSs. This master thesis studies the case company Rosemount Tank Radar AB, a Sweden-based manufacturer of measurement instrumentation with high levels of export. To find the relevant strategy and management control concepts and theories, a literature study was first conducted. Based on this literature study, a case study of the company was then performed. Following the case study, case findings were analyzed and related to the concepts and theories found in the literature study, leading to the final framework. The framework constitutes the overall conclusion, and a mapping of the analysis on how manufacturing companies can reduce their CO2 emissions from freight transport through the approach based on GSCM, decarbonization strategy, and MCSs. The framework gathers identified decarbonization strategy scopes for greener transports found within the research field of GSCM and the case study. These decarbonization strategy scopes are then set in relation to the identified strategy and control management concepts and tools, that support efficient and tangible implementation of the decarbonization strategy. On a practical level, the framework developed in this thesis is suggested to bring a foundation for discussions among supply chain managers at manufacturing companies that are looking to define or redefine their decarbonization strategy in order make their freight transport greener. As the case study findings of this master thesis also proposes, greener supply chain transport practices can lead to cost savings and better customer experiences, in addition to reducing CO2 emissions.