Analyzing the environmental impact of transportation in reengineered supply chains: A case study of a leather upholstery company

This paper examines the impact of process disaggregation and specialization on the environmental performance of the supply chain of a leather upholstery company. An enterprise input–output model that relates geographical information with production processes and transportation routes is developed. The current and a reengineered supply chain of a leather upholstery company are compared under different spatial configurations. The reengineered chain results in more adverse environmental impacts although financially better for the company in part because traffic almost doubles in the reengineered system.

Research highlights► The paper looks at the trade-offs that exist between improving the narrow, financial economic efficiency of a supply chain and the environmental costs of such actions. ► A case study of a large Italian leather upholstery company that although reengineering its supply chain results in more adverse environmental impacts although it is financially better for the company in part because traffic almost doubles in the reengineered system.