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Achieving Sustainability through Poultry Supply Chain
Poultry industries are becoming more approachable to the economic, social and environment issues for the society and its people. Now days, industrialists are using supply chain concepts more efficiently to reach such credentials. The poultry industry in Bangladesh, which is the main focus in this research paper, covers a long forward and reverse supply chain along with dealing various kinds of stakeholders. The focal perception is that these chains may able to exploit advantages in attaining economic, social and environmental benefits by utilizing mainstream products and waste resources. The objectives of this paper are to review related literature and develop a supply chain model for the poultry industry. Later, the model tested using real data of a poultry case industry to reveal the benefits of supply chain over society, economy and the environment. Keywords: Economic, Social, environment, Reverse Supply Chain, Poultry
Supply chains and sustainability are intricately related matters in the business dome. Environment, society, and economic performance are related to sustainability (Elkington 2004). Industries are under tremendous pressure by stakeholders regarding sustainability practices. Society wants to see that industries are concerned with and invest money from their profits to preserve the interest of surrounded people for the sake of economic, social and environmental improvement. Bangladesh is developing countries having huge population, poverty and environmental problems. Poultry farmers do not have adequate technical knowledge on maintaining sustainable operation, which may add values for the society. It is an obvious challenge to incorporate sustainability concepts in existing industrial operation to get benefited to the society. A significant research gap in this area exists as researchers have done only a few related works. This gap has motivated an approach of empirical testing of a model that considers both reverse supply chains and environmental issues of the existing poultry industry in Bangladesh.
Research Gap and Justification
This study takes both a theoretical and a practical focus within the poultry industry of Bangladesh. The study utilizes existing knowledge in the field of supply chain and enhances and augments this knowledge by implementing sustainability issues. Countries like Bangladesh struggle to operate their livestock businesses with zero environmental hazards. Moreover, they have long experience of economic and social instability especially in employment, education and industrialization. Strong awareness is budding in favour of implementing sustainability and waste management through 3R (reuse, recycle, reduce) (Srinivas 2007) at the industry level. Lack of scientific knowledge on waste management results in tons of poultry wastages being discarded in the lowlands, rivers and vacant lands.
dismantle and reuse. Research Design This study covers a literature review on sustainability. forward and reverses supply chain and the Bangladesh poultry industry. empirical epistemology and quantitative methodology based on real supply chain cases of poultry processes. Sustainability focuses on ecological issues in conjunction with implied SHAMSUDDOHA 2 . The total respondents included the top eight executives from reputed poultry industries in Bangladesh. Design science is concerned with "devising artefacts to attain goals” (Simon. Both primary and secondary information have been used in this study. Here. A substantial research justification exists in the implementation of a proper supply chain framework to this particular industry operation. and Jayaraman 2007. On the other hand. conference papers. The concept of ‘3R’ also refers reduces. use. which has gained intense recognition. carriers. “The supply chain term is increasingly used by logistics professionals that encompass every effort involved in producing and delivering a final product. 2006b). Significant Literature Diverse definitions offered in existing supply chain literature. The respondents were nominated based on their widespread understanding and experience. referral journals. food crises and drastic climate changes (Shamsuddoha. Primary information was collected in November 2011 mainly through in-depth interviews with the sample respondents from the poultry case industry. Prahinski. reuse and recycle in an operation. an artefact means designing and developing soft or hard objects that can meet specific purposes and goals (Venable. this study observes the implications and benefits of various inputs in this industry rather experimenting in the real life. triple bottom line. The simulation package SIMUL8 (version 17) was used to build and conduct trivial analyses of existing poultry processes in order to investigate the research objectives. Moreover. economic and environment issues). third-party companies. A simulation package was used as a tool to analyse poultry processes in order to investigate the research objectives. Supply chain also links the partners in one string including internal departments and the external partners and this includes suppliers. Klassen. These ideas are applied to the entire lifecycle of products and services from design and extraction of raw materials. This research used in-depth interviews and observations to gain insights and develop a sustainable environment friendly poultry supply chain model. This study adopted a positivist ontology. Gungor and Gupta 1999). 1969). manufacture. Lummus and Vokurka 1999. from the supplier’s supplier to the customer’s customer” (Quinn 1997). DSR is based on “build and evaluate” an artefact of a model (March & Smith. and disposal (Srinivas 2007. 2011). 1995). social and environmental impacts in Bangladesh society. The proposed simulation model will be able to examine economic. limited land resources. The design science methodology was chosen for this study. product end-of-life. This research proposes a simulation based model for the poultry industry which includes the concept of reverse and forward supply chains along with sustainability (Social. and Klassen 2007. Prahinski and Kocabasoglu 2006). statistical yearbooks and company record and reports. environment issues are increasingly important because of population pressures. 2006a. to transport. Kocabasoglu. As a result. and recovery processes at end-of-life (Linton. 3R. Secondary information was collected from various books. the most acceptable sentiment of sustainability is ‘meeting the needs of the present without compromising the ability of future generations to meet their needs’ (WCED 1987).
there are numerous large companies applying reverse supply chain concepts in considering environment. Internationally. Poultry is also one of the alternative income generating activity for the rural poor people in Bangladesh (Shamsuddoha and Sohel 2004). Bangladesh Poultry and Sustainability As an important sub-sector of livestock production. resilience and efficiency are described as environmental. the forward supply chain (FSC) can create a smooth distribution channel that accommodates new employments and economic benefits for society. economic and environment) but not in an organized way (Shamsuddoha 2010). the researcher focused on the total poultry operation and split it up into three phases similar to sustainability concept as described above. a fundamental part of animal production. The reverse supply chain is similarly related to the concept of recycle. a number of private parent stock and breeder farms shifted their operations to produce commercial day-old broiler and layer chicks (Reneta 2005). Lots of poultry owners practice the triple bottom line framework of sustainability (social. Bangladesh poultry industry does not maintain a structured sustainable operation based on the triple bottom line of social. customer satisfaction and so forth. Poultry rearing is dominated by backyard local chickens (Desi or local). charcoal. Bangladesh has a long history of poultry rearing under traditional backyard farming practices (Reneta 2005). To achieve these three factor successes in the poultry industry in Bangladesh. Thousands of poultry farms have grown up through private ownership without getting adequate scientific knowledge on it. By reusing poultry wastage. literatures pertaining to supply chain and sustainability along with poultry industry are relatively scarce in the livestock sector in Bangladesh. economic and social factors that underpin sustainability (Peacocka and Shermanb 2010). Both the concepts can be used for economic sustainability. employment generation. In the early nineties. These practices are not always non-profit oriented. and protein supply. However. Corporate personnel are under pressure to follow dynamic supply chains concepts that addresses social and environmental concerns (Klassen and Vachon 2003). there are few opportunities for product retrieval. pillows. This industry does significantly contribute to society in terms of economic. acknowledgment of social and economic concerns (Jennings 1995). is committed to supplying the nation with a cheap source of good quality nutritious animal protein in terms of meat and eggs (Shamsuddoha 2010). This kind of wastage conversion will help to maintain a sustainable environment SHAMSUDDOHA 3 . industries can make valuable products like fertilizers. Yet again. there are immense opportunities to reuse or recycle poultry wastage. biogas. economic and environment dimensions. and bakery items. In the poultry industry. Poultry plays a key role in the country’s economy through its direct and indirect involvement for about 73% of people living in rural areas. survival. which mostly live through a natural scavenger system (Nielsen 2007). However. as most chicken products are perishable (Shamsuddoha 2011b). return or reconditioning in the usual sense. reuse and reduce (3R) and can be applied to utilize industrial wastes. Sustainability must be implemented with the existing farm operation to achieve actual sustainable growth in their production and operation. In contrast. the poultry industry of Bangladesh plays a significant role in economic growth and employment creation (Shamsuddoha and Sohel 2008). The key literatures show that number of studies conducted in the field of supply chains. The poultry industry.
Various bi-products can be made from poultry wastages for home and industry use that is socially. Figure one in appendix shows three different wings of conventional. Poultry owners are currently integrating foreign technology and breed in their commercial farms and this has the potential to make the industry more profitable and sustainable. These concepts are being implemented due to sustainability concern. economically and environmentally viable within the Bangladesh context. There are still huge opportunities to utilize poultry wastages. This aspect of waste conversions helps to maintain sustainable an environment in a profitable way (Shamsuddoha 2011a. empowering rural women. feathers can be used as raw materials for the bed industry. This is the how employment and other socio-economic benefits can be achieved based on the volume of bird transacted or reared. which was modeled using Simul8 – a simulation-modeling package. broken and rejected eggs and intestines are available. Industrialist can simulate the SHAMSUDDOHA 4 . sustainability. The participating farms adopt a range of environmental practices that help the poultry farm remain free from diseases and allows it to achieve economic and environmental benefits through creating by-products from wastes (Shamsuddoha 2011a). and middlemen of processed and mature birds. eliminating poverty. This approach has the potential of creating new windows of opportunities and creates small and medium enterprises that will contribute towards more employment opportunities (Shamsuddoha 2011b). triple bottom line. customer satisfaction and government pressure (Shamsuddoha 2011b). Among those. forward and reverse supply chain in their existing operation. poultry litter can be used for artificial charcoal. The researchers developed a simulation-based model that accommodates forward and reverse supply chain in light of sustainability and triple bottom line theory. The simulation model is efficient enough to evaluate the volume of wastes that can be used as the input of by-products. bio gas. The reverse supply chain components consists of managing poultry wastes as it is evident that different poultry wastes including litter. 2011d). as there are currently not many farmers capitalizing on waste management practices. All these areas have great potential to meet social. FSC and RSC have not received proper attention by the poultry stakeholders. economic and environmental aspects that will make the industry and society more sustainable (Shamsuddoha 2011c). enhancing nutritional needs. providing food and protein security (Shamsuddoha 2011b). generating income through making byproducts from poultry wastage. feed waste. environmental recovery. Poultry rearing along with forward and reverse supply chain and sustainability concepts can play a significant role in keeping the environment intact. Sustainable Forward and Reverse Supply Chain in the Poultry Industry Industries are now structuring different supply chain model to accommodate sustainability. The forward supply chain component of this simulation model consists of distributor. Until now. fertilizer. (Shamsuddoha 2011a). broken eggs and intestines can be used for the bakery and fish industry respectively (Shamsuddoha 2011a). and fish feed. feathers. 3R. The Mainstream component includes the general supply chain of the poultry industry that starts from parent (mother of chicks) and ends up with the finished product of meat and eggs. Environment. farmers. forward and reverse supply chain in the case industry.
and work exit. minimum and maximum queue time. Entrepreneurs or decision makers in using the information can easily find out where to tune their industry by using the virtual model. The simulation model provides many indicators in the KPI zone such as waiting. Real Life Model in Simulation Environment The researchers collected historic data from case farm and gave provided input to the different objects or artifacts. queue. In this paper. broken and damaged eggs and culled birds. trials run etc. There are 80 incubators available to hatch these eggs by rotation. DOC becomes mature chickens. Different trial runs give different results with variations that might be useful for the decision makers. Within the process. All these maintained an individual supply chain to produce different by-products. monetary unit and individual measurement unit initially. work. The model simulated for a week and units are measured based on throughput. money and other resources. DOC supplied to the distributors to distribute in different division of Dhaka. three and five trial and the average of all results. Note that this model also can able to calculate carbon emission by power consumption and so forth. There are various ways to compare and contrast the objects/artifacts results and these include graphs. reuse and reduce the various poultry wastes. which is ready for supply to the open market and further processing industry. This kind of model run does not require real life experiments. working. Rajshahi and Khulna. Biogas. This model runs through five random trials and table one in appendix represents one. broiler. Chittagong. It is noted that researchers avoid actual travel time. These farmers rear to grow up the day old chicks (DOC). different distributions in various work centers like parents. farmers and other processing centers to gain a better understanding of potential outcomes and to gain insight with respect to potential opportunities. artificial charcoal and fertilizer generates from litter. it assesses the number of employment generation and unit of various by-products. completed jobs. distributors. Numbers of sub-distributors are employing under each distributor house and each sub-distributor has attached with bunch of ultimate farmers. random runs. the researchers included only a few of them. After 25-35 days. Reject eggs. Different technologies and methods are using to recycle. culled birds and litter are generating after a certain interval in the process. The model was run through entering number of eggs as throughput and broiler chicken as output. work center. Such artifacts designed as work entry. standard deviation. There are so many KPIs in the result area of simul8 package. a parent is used as work entry that produces on an average of 140. The participant farms procure and process several by-products of poultry litter. feather. SHAMSUDDOHA 5 . block and stop percentages of an object. Day old broiler chicks are called day old chicks (DOC). blocked jobs etc. These eggs go directly to the queue for hatch in a hatchery. average queue time. hatchery.000-hatcheable eggs/week. In this model. pie charts. Twenty-one days are needed to hatch eggs that then produce broiler chicks. Slight variation can sometime save time.
Future research could be extended to test the entire process model to understand the workings of the total industry operation and its optimality.1 4 392704 1.54 78. various experiments can be done in the virtual model to find out required and optimum output. this kind of simulation model can able to simulate any kind of operation by giving proper data input.57 0.00511 99.93606 26170 33455 140030 137636 1572 3 0. Table 1: KPI’s of Different Objects of Poultry Model Simulation Object Broiler Distribution Performance Measure Waiting % Working % Completed Jobs Waiting % Working % Completed Jobs Items Entered Average queue Size Maximum queue St Dev Items Entered Items Entered Items Entered Items Entered Average St Dev.29 80390.57 393000 1. It is extremely important for the farmers to know what dimensions and impacts are laying on their operations. environment protection and its sustainability.6 95% 0.30 2171.78 137702. The study did an initial investigation by using a small sample of historic data.51 78.995 139919 21.0047 99.995 140104 21.858 140122.32 0.61 110128.38 393112.46 78. These outputs will definitely consider social.87 8424.49225 533055.00547 99.93296 25984 33361 140070 137631 1617 5 0.55 21.71 0.00464 99. economic and environmental impacts over both society and industry.4892 532496 5471.4 2 391933 1. Items Entered Completed Job Number Entered Completed Jobs Completed Job Run 1 0.9 1. Looking at the process as suggested in this study not only utilizes poultry wastes but also helps to achieve sustainability.63 110062 108760 80398.15 5560. economic and environment. 4 21.48 109859 108572 79833.53 110000 108679 80102 392526 1.48789 531899 5488 2152 8376 2492.995 139969.4 33528. Thus. Further Direction and Conclusions The concepts of forward and reverse supply chain are related to social benefits.6 2481.4 8324.994 139966 21. As a result.41 78. This model was developed based on three aspects of social.49126 532808 5423 2177 8330 2479.85 108786.94371 26132 33671 139999 137497 1599 Average 0.01 1665.45 2522.14 0.58 110082 108724 80115.58 6 Chicks Distributors Queue for Broiler Queue for Broiler Distribution Queue of Bird Feather Queue of Poultry Litter Queue of Reject Eggs Queue of Un-hatched eggs and Culled Chicks Restaurants Parent Hatchery Employments SHAMSUDDOHA .996 140091.94143 26096.8 2150.2 140058 137615 1588.36 78.95257 26222.020 33687.4923 532919 5392 2142 8215 2454 0.00388 99.
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