One approach to incorporate environmental sustainability in organisations is the implementation of Life Cycle Management (LCM). LCM is a comprehensive and integrated approach for measuring and managing environmental impacts. Successful sector-wide uptake of LCM has the potential to enable the environmental impacts associated with an industry sector to be efficiently measured and managed in a continual improvement process. There is an opportunity for the New Zealand primary sector to strengthen its competitiveness in the global market place by demonstrating the environmental credentials of its products and supporting the country's "green and clean" image. Previous research has identified the barriers and enablers to successful LCM uptake by New Zealand primary sector Small and Medium sized Enterprises (SMEs) in a sector-based context. This paper builds on that foundation and presents a Life Cycle Management Uptake Evaluation Framework (LUEF) that allows both individual organisations and industry sectors to identify the key factors affecting successful LCM uptake and assess their level of maturity for each factor. The key factors used in this study are structure, culture, resource availability, LCM strategy, knowledge, market requirements and communication. The study employed a qualitative methodology and used face-to-face interviews with different stakeholders in the value chain for the New Zealand kiwifruit sector to inform the development of the framework. In the framework, each factor is represented as a maturity scale to allow organisations as well as industry sectors to assess their position on the scale. This will help them to create a baseline assessment, both for themselves as an organisation, as well as on an industry sector level. The baseline assessment will allow them to identify areas for improvements, which can be tracked over time by checking the progress on the scales in the individual areas. It can also be used as a communication tool for stakeholders in the supply chain (e.g., growers, post-harvest operators and staff from industry boards). These stakeholders can use the tool to measure and compare performance, including evaluating their own performance against the industry average, as well as performance of the industry sector over time. This is useful to engage these stakeholders and demonstrate that changes (such as reducing carbon footprints) have a positive impact and lead to progress (as well as highlighting any actions that need to be reviewed and adjusted).
Abstract:One approach to incorporate sustainability in organisations is the implementation of life cycle management (LCM). LCM involves sharing responsibility for addressing environmental impacts across the entire supply chain of products and services, extending from raw material extraction to end-of-life of the product. The New Zealand primary sector relies heavily on natural resources and provides about 70% of the country's export revenue. Most companies in primary industry sectors in New Zealand are small and medium-sized enterprises (SMEs). Successful sector-wide uptake of LCM can potentially facilitate effective measurement and management of environmental impacts caused by this sector. The aim of this research was to identify the barriers and enablers to successful LCM uptake by New Zealand primary sector SMEs within a sector-based context. An extensive review of the literature was undertaken in the areas of change management for SMEs and supply chain management. The main factors influencing successful LCM uptake include owner/manager influence, environmental culture, resource availability, future orientation, knowledge of environmental issues, market requirements, geographical separation of production and consumption, awareness of own environmental issues and communication/information sharing. This paper forms the basis for future research and development of tools for the effective implementation of sector based approaches to LCM in the primary industry. The results of this research include a capability maturity model and the development of a cloud based platform for collaboration and communication around LCM.Keywords: life cycle management (LCM); sector-based approach (SBA); sustainability; agriculture; small and medium sized enterprise (SME); supply chain management (SCM)
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