Eco-efficiency in extended supply chains: A case study of furniture production

Published Date
May 2006, Vol.79(3):290–297, doi:10.1016/j.jenvman.2005.07.007

Author 

Ottar Michelsen ^,

Annik Magerholm Fet 

Alexander Dahlsrud 

Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, N-7491 Trondheim, Norway

Received 28 January 2004. Revised 10 June 2005. Accepted 26 July 2005. Available online 25 October 2005. 

Abstract

This paper presents a methodology about how eco-efficiency in extended supply chains (ESCs) can be understood and measured. The extended supply chain includes all processes in the life cycle of a product and the eco-efficiency is measured as the relative environmental and value performance in one ESC compared to other ESCs.

The paper is based on a case study of furniture production in Norway. Nine different environmental performance indicators are identified. These are based on suggestions from the World Business Council for Sustainable Development and additional indicators that are shown to have significant impacts in the life cycle of the products. Value performance is measured as inverse life cycle costs.

The eco-efficiency for six different chair models is calculated and the relative values are shown graphically in XY-diagrams. This provides information about the relative performance of the products, which is valuable in green procurement processes.

The same method is also used for analysing changes in eco-efficiency when possible alterations in the ESC are introduced. Here, it is shown that a small and realistic change of end-of-life treatment significantly changes the eco-efficiency of a product.

Keywords

Eco-efficiency

Environmental performance

Value performance

Extended supply chain

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