Developing Exxaro (Pty) Ltd sustainable supply chain strategy
Thesis (MBA)--Stellenbosch University, 2011.
This exercise aimed at developing a sustainable supply chain strategy that was adopted by Exxaro Resources (Pty) Ltd. The focus of the approach was to assess the status of Exxaro’s supply chain sustainability compared to that of competitors operating in South Africa and the supply chain dimensions applicable to Exxaro’s scope (i.e. green inventory management, green warehouse/storage management, sustainable procurement or sourcing, sustainable supplier management and sustainable transport/business travelling). The strategy framework used includes a review of supply chain sustainability relating to Exxaro and the requirements thereof, depicting gaps, recommended actions or initiatives to close the gaps, an implementation approach and a schedule. The strategy sets out to distinguish Exxaro in supply chain sustainable development through the setting of guidelines, reporting standards and commitments to economic, labour, human rights as well as social and environmental well-being. The approach envisages collaborating with suppliers and Exxaro’s sustainable development department to continuously improve and embed positive sustainability practices within Exxaro’s supply chain processes. This research report highlights the progress already made with high-level sustainable supply chain management implementation by selected Exxaro competitors, relevant schools of thought and theories with the emphasis on bringing a link to opportunities for Exxaro to progress into supply chain sustainability. The relationship between supply chain practices, environmental performance, social and economic impacts was studied. The mining sector, with its history of negative impacts on societies and the environment, is continuously challenged by the increasing emphasis to demonstrate ethical, social and environmental performance and accountability throughout its business practices. The use of Exxaro as a practical case study limits the extent to which the recommended strategy can be generalised to any mining environment or company. Findings mentioned may be subject to further research by augmenting the scope to include mines operating outside of South Africa or additional mining entities and theories. The approach of the research included empirical studies in the form of in-depth interviews and questionnaire surveys on various internal stakeholders. Some information was obtained from the annual reports of Exxaro and a selected number of South African mining companies that are mining similar products to Exxaro. The data was analysed using statistical methods for social sciences with both qualitative and quantitative evaluation methods.