Production NW - Business analysis
Understanding the complex flows of materials, energy and value through the supply chain
Supply chain framework
The overall business benchmarking framework contains four types of influence:
- Direct influence - e.g. where a factory makes cement
- Indirect upstream - e.g. where a housebuilder uses the cement to build houses
- Indirect downstream - e.g. where the houses then consume large amounts of energy
- Induced - e.g. where an estate agent helps to sell houses which have used the cement
These can be applied to different stages in the resource flow cycle, (each one of which can be very complex):
- Extraction - e.g. cement for the houses is extracted
- Production - e.g. the materials are produced and houses are built
- Consumption - e.g. the houses are purchased
- Operation - e.g. the houses then use energy supplied from elsewhere, cleaned, maintained and so on
- End-fate - e.g. the houses are demolished and the material goes elsewhere
Targets for these can be drawn wherever possible from scientific evidence, social welfare or political priorities. The eco-footprint is one universal measure which represents to some degree each of these.
