Analysis of the sustainable management of the supply chain and innovation in a textile company in Vale dos Sinos

Herzer, Eduardo; Schreiber, Dusan

doi:10.5902/1983465973676

person Eduardo Herzer

Definition of research problem · Development of hypotheses or research questions (empirical studies) · Development of theoretical propositions (theoretical work) · Theoretical foundation / Literature review · Definition of methodological procedures · Data collection · Analysis and interpretation of data · Critical revision of the manuscript · Manuscript writing

schoolUniversidade Feevale, Novo Hamburgo, RS, Brazil

0000-0003-1564-1444

person Dusan Schreiber

Definition of research problem · Development of hypotheses or research questions (empirical studies) · Development of theoretical propositions (theoretical work) · Theoretical foundation / Literature review · Definition of methodological procedures · Analysis and interpretation of data · Critical revision of the manuscript · Manuscript writing

schoolUniversidade Feevale, Novo Hamburgo, RS, Brazil

0000-0003-4258-4780

emailE-mail: duduherzer@hotmail.com

emailE-mail: dusan@feevale.br

Authors

1 – Eduardo Herzer

Institution: University of Feevale Novo Hamburgo, Rio Grande do Sul, Brazil Master's Degree in Environmental Quality from Universidade Feevale

2 – Dusan Schreiber

Institution: University of Feevale Novo Hamburgo, Rio Grande do Sul, Brazil Doctor Administration from UFRGS

Conflict of Interest

The authors have stated that there is no conflict of interest.

Copyrights

ReA/UFSM owns the copyright to this content.

Plagiarism Check

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Edited by

Jordana Marques Kneipp

Types of Innovation	Concept
Product	means introduction of a new or significantly improved good or service about its characteristics or intended uses.
Process	is the implementation of a new or significantly improved production or distribution method.
Marketing	implementing a new marketing method with significant changes in product design or packaging, product positioning, promotion or pricing.
Organizational	A set of new organizational methods in the company's business practices, its workplace or its external relations.

Analysis Dimensions	Analysis Category	Practices/ Variables
Sustainable management practices in the supply chain	Practices carried out in the company’s internal environment	Proactive commitment regarding sustainable management practices
		Integration of sustainable development into the decision-making process
		Practices of Total Quality Management, Lean Production, among others.
		Similarities of criteria adopted by the company and its partners (suppliers and customers)
		Certification of processes or products
		Traceability of the practices in supply chain
		Assessment strategies and periodicity
		Analysis of the components that make up supply chain
	External practices involving suppliers	Selection, criteria and development of suppliers
		Risk analysis of supply sources
		Purchasing decisions (total cost or prices)
		Strengthen sustainability in the local chain
	External practices involving clients	Process of commercialization, projects and brands
		Development practices, use, reuse, recycling and disposal of products
		Customer awards and certificates
Innovation	Innovation in process	Research and Development
		New products and services
		Patents, certifications and trademarks
		Work methods and processes
		Waste reduction
		Management of variable costs related to production processes and distribution logistics
		Agility of logistics and distribution processes
	Capacity for innovation	Human Capital a) Availability b) Learning and training
		Market a) Future demand b) Available technology
		Infrastructure

Sustainable management practices in the supply chain
Practices/ Variable	Answer
Proactive commitment regarding sustainable management practices	The company seeks to comply with the legislation and environmental requirements of customers, in addition to its new strategic planning, including sustainability as priority in the year 2021. Sustainability issues are one of the topics discussed at all monthly meeting
Integration of sustainable development into the decision-making process	Nowadays these issues are being considered by director´s board and beside this was observed that sustainability represents a mandatory topic in the decisions process
Practices or systems of Total Quality Management, Lean Production, etc.	The company has a quality management system implemented and intends soon obtain certification ISO 9001. Internal records showed up that company worked hard, in past, to consolidate lean production practices and production cleaner
Similarity of criteria adopted by the company to its partners (suppliers and customers)	The company has been constantly aligning itself with its customers, as most of them are requiring improvement in technical terms of product requirements and orders. During year 2021 most of suppliers implemented a qualification system, aligned with socio-environmental issues (Operating License, employee care, etc.)
Certification of processes or products	Currently, the company has a Sustainable certification for its process, granted by an external audit firm
Practices traceability in chain	The company has implemented the Information System, that track all invoices and material movements
Assessment strategies and periodicity	A system dedicated to this purpose is being elaborated; in year 2022 company will begin to work following a framework with sustainability management indicators with a periodic evaluation system.
Analysis of the components that make up supply chain	Formally, company doesn´t have sustainability indicators about performance of customers and suppliers, to avoid conflict and hamper commercial strategies of the company

Practices involving suppliers
Practices/ Variable	Answer
Selection, criteria and development of suppliers	We have a set of rules that supplier must read, sign and follow … auditing service contact suppliers verify accomplishment of the norms, to ensure commitment to sustainability requirements.
Risk analysis of supply sources	Today, the assessment of these risks is carried out in a meeting when data provided by tool powered by AI
Purchasing decisions (total cost or prices)	Basically, we evaluate the price, market availability, national and international, product quality and delivery time, in addition to buying only from suppliers engaged with socio-environmental responsibility.
Strengthen sustainability in the local chain	A small part of the raw material is national, but to encourage the national chain, we are developing a product with 100% national and sustainable products

External practices involving clients
Practices/ Variable	Answer
Commercialization of processes, projects and brands	Today we are developing and consolidating the company’s first line of sustainable products, that will be offered first to the existing customer base and later to potential customers.
Development practices, use, reuse, recycling and disposal of products	We currently do not have reverse logistics programs, as our product is used together with other materials in shoes, bags and belts. We also use recycled materials in the production process and dispose of waste correctly and legally.
Customer awards and certificates	We have already won product and innovation awards at footwear sector fairs

Process innovation
Practices/ Variable	Answer
Research and Development	We have a sector with two people dedicated to R&D activities, in addition to two consultants providing support in design and technology
New products and services	We currently develop products by internal initiative and by market demand, in which they are always developed with a focus on meeting customer demands.
Patents, certifications and trademarks	We currently have no patents, just a brand
Work methods and processes	We are currently structuring an innovation program in the company; routine management occurs with little incentive for innovation yet.
waste reduction	These are actions discussed in the areas and dealt with by them, but which do not follow a formal process
Management of variable costs related to production processes and distribution logistics	There are indicators in the BSC about these costs, so the industry and logistics area evaluate them monthly. There are ongoing initiatives to reduce the consumption of raw materials.
Agility of logistics and distribution processes	We distribute via CIF and FOB freight. Indicators demonstrate efficiency and effectiveness in meeting customer demands. We have a satisfaction rate above the market average today.

Capacity for innovation
Practices/ Variable	Answer
Human Capital a) Availability b) Learning and training	a) We look for people in the market according to the need, but preferably we provide internal human resources. b) We train as necessary, today we do not have a formalized training program.
Market a) Future demand b) Available technology	A) We have a forecast based on consumption and we are improving it to expand and involve more than it already is in the purchase process, such as commercial, purchasing, PCP and finance B) We currently have basic technology, but we are modernizing some things like IT and some ways of making a product.
Infrastructure	We have good infrastructure and good logistical access. High expenditures are not necessary because the Company is in an excellent location next to a highway that facilitates the flow of products.

Analysis of the sustainable management of the supply chain and innovation in a textile company in Vale dos Sinos

Análise da gestão sustentável da cadeia de suprimentos e da inovação em uma empresa têxtil do Vale dos Sinos