a project work in an aluminium project in ikea -- a project of aluminium category in ba03
DESCRIPTION
A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA -- A PROJECT OF ALUMINIUM CATEGORY IN BA03. PROJECT OWNER: Joakim Hammar Kent Larsson. Presenter: Ma Qiang. THANKS TO All trading offices: CN, TW, TK, SL, SE Colleagues in BA 03, Managers of the Project KTH professors and classmates. AGENDA. - PowerPoint PPT PresentationTRANSCRIPT
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A PROJECT WORK IN AN ALUMINIUM A PROJECT WORK IN AN ALUMINIUM PROJECT IN IKEA PROJECT IN IKEA
-- A PROJECT OF ALUMINIUM CATEGORY IN BA03
Presenter: Presenter: Ma Qiang
PROJECT OWNER:PROJECT OWNER:Joakim HammarKent Larsson
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THANKS TO
All trading offices:CN, TW, TK, SL, SE
Colleagues in BA 03, Managers of the Project
KTH professors and classmates
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AGENDAAGENDA Introduction Time plan & TBS PART I:
Value Chain Mapping PART II:
Quality BenchmarkingResults & Implications
Process & methodology Conclusion
Appendix
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INTRODUCTIONINTRODUCTION
BA03 & I.Comp; KTH, Industrial Economy Faculty
Reason: New metal, new field, growing business opportunities Insufficient knowledge & strategy Small player in big market Cost conscious of IKEA
Expectation Aluminum raw material (including scraps market)market
condition; global quality benchmark; Environment impact; value chain mapping
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INTRODUCTIONINTRODUCTION
Aluminium commodities, characteristics Future metal, infinite recycling loop Big varieties of alloy and functions; wide industrial
applications Raw material characteristics, An active scraps and recycling market
Research focus & assumptions Sliding doors & front doors (78% business) 20-80% rules Upper-stream part of the value chain part
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TASKS & TBS (Task breakdown structure)TASKS & TBS (Task breakdown structure)
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TIME PLANTIME PLAN
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PART I
VALUE CHAIN MAPPING:VALUE CHAIN MAPPING:
By exploiting the upstream try to create new business models, or in other ways create improvements in its value system.
EG. Getting closer to the suppliers, or let suppliers closer to sub-suppliers; creating new models
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PART I & III: FINDINGSPART I & III: FINDINGS
Countable world leading suppliers for raw material Possible to use recycled 6063, but few suppliers and
fewer examples so far in the market, like HYDRO Due to the same/similar cost between pure alloy and
scraps of good quality
Company Estimated market share
Alcoa 19.3%
UC Rusal 8.6%
BHP Billiton 7.3%
Rio Tinto [Confidential: 5% - 10%]
Alcan [Confidential: 5% - 10%]
Major competitors and estimated market shares: Bauxite market
Raw material Markets and big players
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Alumina MarketAlumina Market
Company Estimated market share
Alcoa 20.3%
UC Rusal 15.4%
Chalcoa 13%
Alcan [Confidential: 5% - 10%]
Rio Tinto [Confidential: 3% - 9%]
Company Market Purity share: Standard Market share: High Purity
Alcoa 11.0% 13.4%
Rio Tinto [Confidential: 2% - 5%] [Confidential: 15% - 20%]
Dubal 2.3% 12.9%
Alcan [Confidential: 10% - 15%] [Confidential: 4% - 8%]
UC Rusal 11.6% 2.8%
Primary Aluminium MarketPrimary Aluminium Market
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WORLD BAUXITEWORLD BAUXITE
Australia 38.2%, Guinea 12.25%, Brazil 9.32%, Jamaica 9.28%, India 5.59%, China 5.59%,
Venezuela 3.68%, Russia 3.18% and Kazakhstan 0.30%
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WORLD ALUMINIUM
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CHINA BAUXITE
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PRODUCTION COST STRUCTURE Critical part
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Part I & III: SUGGESTIONSPart I & III: SUGGESTIONS
China & Russia are the only exceptions who do not follow the LME index;
Usually slightly lower in China, follows SHNMPI Non-exportation restriction but might open next year Controllable Cost saving VS non-controllables
energy + transportation + material + labour Opportunities:
Factories closer to cheaper labour + Mine + rich Power Supply,SHANXI is of the most potential, Henan as well.
Risky to buy raw material by I-Comp (financial analysis, future market forecast, brief discussion in report)
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PART II
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PROCESS FLOW & METHODSPROCESS FLOW & METHODS
Future State with EHS Icon & Material Line
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*Reference: Qualitative Research Methods, (Yin, 2003)
Study Purpose ResearchQuestion
ResearchStrategy
concerningData Collection
Procedures
Phase I
EXPLORATORY:
to investigate little-understood phenomena
to identify/discoverimportant
to generatehypotheses forfurther research
What is happening inthis social program
What are the salientthemes, patterns, &categories in participants’meaning structures?
How are these patternslinked with one another (toprovide the broaderexplanations for what I'mtrying tounderstand)?
Case study Field study
Participantobservation
In-depthinterviewing
Eliteinterviewing
Phase II
EXPLANATORY:
to explain the forcescausing thephenomenon inquestion to identifyplausiblecausal networksshaping thisphenomenon
What events, beliefsattitudes, & polices areshaping this phenomenon?How do these forcesinteract to result in thisphenomenon?
Field study Case study Ethonograph
y
Participantobservation
In-depthinterviewing
Documentanalysis
Unobstrusivemeasures
Survey
Phase III
PREDICTIVE:
to predict theoutcome of thephenomenon
to forecast the events& behaviors resultingfrom the phenomenon
What will occur as aresult of this phenomenon?
Who will be affected(individuals, groups)?
In what ways?
Experiment Quasi-
experiment
Survey (largesample)
Kinesics/proxemics
Contentanalysis
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Questionnaire Questionnaire DesigningDesigning
Define Question Aims
Identify population and samples
Decide how to collect Replies
Design Questionnaire
Run a Pilot Survey
Carry out the main Survey
Analyze the Data
Population of
IKEA Alu
Sliding Door
Front Door
suppliers
West Europe
East Europe
Taiwan
China
East China
South China
SAPA
EMMI
FOUNDER
Jingcheng
Lishida
Huilong
worldtop
Pool of SamplesPool of Samples
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RESULTSRESULTSQuality Survey of Alloy Billet 6063
Error
CN TW EU E.EU CN (avrg) INTL avg
Question lishida worldtop jingcheng Founder SAPA EMMI EDI
concerning index general 5 4 4 5 5 4 4.3 4.50 5
chemical component 4 4 5 5 5 4 4.3 4.50 5
machinability 5 5 4 5 5 4 4.7 4.67 5
Percentage of recycled Al 4 1 4 4 5 3 3.0 3.50 5
anti-crossion performance 2 3 3 4 5 4 2.7 3.50 5
being 6063 or not? 3 5 4 4 5 4 4.0 4.17 5
T-value of process 2 3 4 5 3 4 3.0 3.50 5
Profile Tolerance Index Survey
CN TW EU E.EU CN Avrg Intl Avg ERROR
lishida worldtop jingcheng Founder SAPA EMMI EDI
wall thickness 4 1 5 3 5 4 3.3 3.67 5
cross-sectional dimensions 4 1 5 4 5 4 3.3 3.83 5
fixed length 2 1 3 3 5 3 2.0 2.83 5
straightnes 4 4 4 3 5 3 4.0 3.83 5
convexity & concavity 4 4 4 3 5 3 4.0 3.83 5
contour 4 4 4 3 5 3 4.0 3.83 5
twist 3 4 4 4 5 3 3.7 3.83 5
angularity 3 3 4 3 5 3 3.3 3.50 5
“corner & fillet radii 3 3 3 3 4 3 3.0 3.17 5
tensibility 5 4 3 3 1 3 4.0 3.17 5
tensile strength 5 4 3 4 5 4 4.0 4.17 5
HB/HV - hardness Vickers, approx. 5 4 5 3 5 3 4.7 4.17 5
anodizing layer thickness & tech 5 4 5 5 5 3 4.7 4.50 5
sealing techniques 5 4 5 5 5 2 4.7 4.33 5
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Worl dtop
4
4
513
5
3
concerni ng i ndex general chemi cal componentmachi nabi l i ty Percentage of recycl ed Alanti - crossi on performance bei ng 6063 or not?T-val ue of process
Lishida
5
4
54
2
32
Jingcheng
4
5
443
4
4
National Quality Performance Average
Regional Quality Performance Average
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Quality Benchmark Part B
Process technique specification Benchmark of Aluminium Alloy Profile (regional) survey result
CN average
6%6%
4%
8%
8%
8%
7%6%6%
8%
8%
8%
8%
9%
TW - Founder
8%8%
8%
6%
8%
6%8%8%
6%
6%
8%
6%
8%6%
EU - SAPA
7%7%
7%
7%
7%
7%7%7%
7%
7%
8%
7%
8%7%
E. EU - EMMI
5%9%
7%
9%
7%
5%7%9%
7%
5%
5%
7%
9%
9%
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RESULTS AND DISCUSSIONRESULTS AND DISCUSSION
Significance of the result New attempt in a new material field and a new domain for
IKEA A demonstration of global performance, also regional’s Clear comparison both in a national and regional level,
obvious difference in all levels Relevant reference regarding regional complains in the
future Better targeting the problems or weakness from each
supplier or each region A good sum of global perspective, good for over-all
improvement
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RESULTS AND DISCUSSIONRESULTS AND DISCUSSION
Why not using weighted average based upon the business volume by each regional supplier?
Technique Analysis 1. When using weighted average (average * % of business), the
results reprents the average quality performance in the global market; it only shows the current quality level on the market
2. When just using average, results reprents the average awareness of the techniques, the attitudes from quality managers, the decision by strategy makers, which gaves us better insights of the individual status, as well as the global performance average.
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RESULTS AND DISCUSSIONRESULTS AND DISCUSSION
Validation of the results To reduce subjectivity, suppliers interviewed &
surveyed including: current suppliers Former suppliers Future suppliers
Peer check (since all suppliers are independent to each other)
Expertise check
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RESEARCH STRATEGYRESEARCH STRATEGY
Qualitative research strategy• the characteristic of the project• the available resources• the target of the project• exploratory, explanatory, descriptive
Multimethod design• qualitative procedures combined with quantitative procedures• combination of different sampling methods and,• different validation methods
Qualitative sampling methods• maximum-variation sampling• criterion sampling• convenience sampling
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METHODOLOGY METHODOLOGY
Literature review Books, journals, EAA, website, publications, brochure etc.
Interview method In-depth interviewing Document studies Using questionnaire Limitation
Subjectivity of the data acquired; (by avoid interest-concerning questions) “wish TO BE” VS “what really IS” in the answer Language barrier (interviewees included: Slovenia, China, Taiwan,
Sweden, Turkey etc.) A new tempt; no-experienced; needs adding expertise and experiences
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Strength of interviewing Pro & cons of in-depth interviewing The nature of the population, sampling methods
argument How to make a good questionnaire
• Meeting objectives• Easy to understand & be answered• Precise information• Use open-ended questions to improve
Piloting the questionnaire (pre-testing before sending out)
METHOD ANALYSISMETHOD ANALYSIS
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PART IV ENVIRONMENTAL IMPACT
Impact categories Unit Methodology
Depletion of Abiotic Resources (ADP)
[kg Sb-Equiv.] CML2001
Acidification Potential (AP) [kg SO2-Equiv.] CML2001
Eutrophication Potential (EP) [kg Phosphate-Equiv.]
CML2001
Greenhouse Gas emission (GWP 100 years)
[kg CO2-Equiv.] CML2001
Ozone Layer Depletion Potential (ODP, steady state)
[kg R11-Equiv.] CML2001
Photo-oxidant Creation Potential (POCP)
[kg Ethene-Equiv.]
CML2001
Primary energy from renewable raw materials
[MJ] net cal. value
Primary energy from non-renewable resources
[MJ] net cal. value
Pre-defined set of environmental imp
act categories
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ENVIRONEMT METHODS
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Objective Methods
Phase I Get to know the business;
Value chain mapping; forming big picture
Meeting people of different
roles (trading, i-component,
Istras, TQE etc.)
Phase II Know more about the business details &
design methodology, sampling, survey
questions
Interviewing, literature review,
documents study, reference to
professors;
Phase III Validation; analysis; findings and its
application and prediction
Survey analysis; quantitative
method; statistic tool;
Efficiency Tool:
Project Management Tool: Setting Objective, TBS (Task Breakdown Structure), planning, effcient Meeting, project control etc.
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PHASE I EXAMPLE: Questions during Interview
Meeting Objective:
Purpose of initiating these questions is mostly to promote sharing relevant information, to improve
market reach, perfect environmental promises, quality benchmarking etc.
1. Visiting the production site of SAPA, get insight of IKEA aluminium product value
stream/chain maps (current and future map) and its implementation of lean manufacturing.
2. Insights of Aluminium Scraps (including both production scraps and directly purchased scraps)
purchasing strategy, cost influence, environmental impact.
3. Insights of environmental issue and its implementation in production and purchasing.
4. Insights of Production Quality standard adopted to IKEA products (families);
Insights of global aluminium markets, key suppliers, sub-suppliers for SAPA and the estimated
trend. (share this part of information with IKEA for better market reach)
Regarding Quality Standards, concerning aluminium parts and its raw material
1. What is the consideration of quality when selecting scraps or virgin raw material as ingot?
Quality and Price, how to position them and balance?
2. What is the benchmark for selecting right ingot from scraps? Are there documents or rules
following?
3. What are the methods used to control quality of ingot from recycled material? Examples;
techniques; methods; regulations; documents etc.
Regarding Environme ntal Issues:
1. What is the national emission limitation? Standardized? Some data? How to inspect? What’s
the difference between CN, NA and EU policies?
2. Measurement in production? How to inspect and control pollutions?
Regarding ways of trading:
1. What is the benchmark for choosing recycled alu for ingot? How much percent of recycled
materials are used? How to balance the recycled alu %? Major cost part in production and
where the competitive cost reduction lie? How is the competition in the market?
2. How to decide % of recycled alu?
3. What method used to set ingot price with sub-sup?
4. How to guarantee quality of ingots for extrusion and surface treatment?
5. How and where to practice environmental awareness with suppliers?
6. How to compare and eventually decide suppliers?
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Questions during Meeting with supplier in Shanghai
Questions to supplier, quality, sales and operation managers or the person who take charge:
Regarding ingot (for extrusion) market conditions:
1. Who (region and the company) are the main suppliers of ingot for extrusion in the market? How much difference between the
ingots made of virgin raw Alu and recycled Alu? What are the differences in Price? What factors may change the price (like
volume, global non-ferreous metal price, agreed conditions on contract etc.)
2. Which suppliers have been considered for supplying ingots? What are the selection criteria? How much percentage of recycled
Alu is considered and why is that?
3. What are the methods used to inspect and guarantee the quality of the ingots?
4. What are the capacity differences between companies and regions? What are the strategies used for choosing the right capacity
supplier?
5. Who are the major ingot suppliers (globally and) in China in different regions? Import and export? Who are the key players
(remelter like Hydro) who make extrusion ingot out of recycled material in the market? Do they export and import too?
6. What are the available laws, regulations and customs policy regarding trading virgin material, scraps?
Regarding Quality Standards, concerning aluminium parts and its raw material
1. What is the consideration of quality when selecting scraps or virgin raw material as ingot? Quality and Price, how to position
them and balance?
2. What is the benchmark for selecting right ingot from scraps? Are there documents or rules following?
3. What are the methods used to control quality of ingot from recycled material? Examples; techniques; methods; regulations;
documents etc.
Meeting Objectives:
Most of the topics will be concentrated on the former part of the supply chain, before production.
More strategy and technique-orientated questions; any supporting data and documents during and
after the meeting will be very much appreciated!
1. To get a clear picture of the market condition of the ingot supplier, virgin raw materials and
recycled material
2. How the suppliers are trading ingot today in terms of quality, costs and way of trading
(purchasing strategies, methods, rules and environmental awareness etc.)
3. To get a clear idea of how the suppliers select ingot-suppliers based upon the quality standard.
4. How much environmental issue are considered and taken into production?
PHASE II EG.
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PROCESS & ACTIVITIESPROCESS & ACTIVITIES
ACTIVITIES & COUNTRY Project I Project II A
Macro
P II B
Quality micro
Total
Document studies Yes yes yes
Site visit (E.U.) 3 3 3 3
Site visit (C.N., TW) 5 8 5 8
Face2face interview (SE, CN) 20 28 28 28
Telephone interview
(SE, CN, TK, SL, TW, US etc)
5 8 2 8
Indepth interview (SE, CN, TW) 4 8 8 10
Survey revision n/a 6 8 10
Pilotting Survey (CN, TW) n/a 3 3 3
Data External validity n/a 2 4 4
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The sampling statistics:Validation
Suvery Sent Survey Collected
maximum-variation sampling 6 (CN:2 + Rest) 6
criterion sampling 10 7
convenience sampling 7 5
TOTAL 10 7 (1 potential + 1 former)
Population {CN: 5; W. EU. 1; E. EU. 2; TW: 1} Total: 9
SAMPLING STATISTICSSAMPLING STATISTICS
ValidationValidation
Survey Sent Survey Collected
Former supplier1 1
Current suppliers7 7 (1 abandoned)
Potential suppliers2 1
Peer supplier check3 2
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CONCLUSIONCONCLUSION
Value chain mapping as a tool (business strategy and technique)
Important communication skills Difference in theory and reality, ideal situation can only get
closer.. Qualitative methods for carrying out exploratory and
explanatory research Quality benchmarking model designing attempt in a global
context Quantified methods combining qualitative study can help to
achieve objectivity
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AppendixAppendix
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Questions during Meeting with supplier in Shanghai
Regarding Quality Standards, concerning aluminium parts and its raw material
1. What is the consideration of quality when selecting scraps or virgin raw material as ingot?
Quality and Price, how to position them and balance?
2. What is the benchmark for selecting right ingot from scraps? Are there documents or rules
following?
3. What are the methods used to control quality of ingot from recycled material? Examples;
techniques; methods; regulations; documents etc.
Regarding Environme ntal Issues:
1. What is the national emission limitation? Standardized? Some data? How to inspect? What’s
the difference between CN, NA and EU policies?
2. Measurement in production? How to inspect and control pollutions?
Regarding ways of trading:
1. What is the benchmark for choosing recycled alu for ingot? How much percent of recycled
materials are used? How to balance the recycled alu %? Major cost part in production and
where the competitive cost reduction lie? How is the competition in the market?
2. How to decide % of recycled alu?
3. What method used to set ingot price with sub-sup?
4. How to guarantee quality of ingots for extrusion and surface treatment?
5. How and where to practice environmental awareness with suppliers?
6. How to compare and eventually decide suppliers?
Meeting Objectives:
Most of the topics will be concentrated on the former part of the supply chain, before production.
More strategy and technique-orientated questions; any supporting data and documents during and
after the meeting will be very much appreciated!
1. To get a clear picture of the market condition of the ingot supplier, virgin raw materials and
recycled material
2. How the suppliers are trading ingot today in terms of quality, costs and way of trading
(purchasing strategies, methods, rules and environmental awareness etc.)
3. To get a clear idea of how the suppliers select ingot-suppliers based upon the quality standard.
4. How much environmental issue are considered and taken into production?
INTERVIEW QUESTION
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Objective:
Being the investigator from purchasing department, insight knowledge in quality, market
condition, environmental impact, regarding virgin raw aluminium material (before ingot) against
recycled materials is carried out.
Issue Target Question Focus
Quality standards (only concerning virgin raw material and Alu scraps)
Virgin raw material VS Scraps Purchasing manager
Quality manager
What is the consideration of quality when
selecting scraps or virgin raw material as ingot?
Quality and Price, how to position them and
balance?
What is the benchmark for
selecting right ingot from scraps?
Purchasing manager
Quality manager
Are there documents or rules following?
What are the methods used to
control quality of ingot from
recycled material?
Purchasing manager
Quality manager
Examples; techniques; methods; regulations;
documents etc.
Environmental Issues (only concerning virgin raw material and Alu scraps)
Environmental consideration Operation Mng.
Technician; Sales;
Purchasing Mng.
排放标准;数据;审核办法;审核结果;排放欧洲标准,国际标准等Policy, rule
Environment awareness practice Operation Mng.
Technician; Sales;
Purchasing Mng.
排放标准;生产监控方式;数据;措施In production, design, rule
Environment improvement Operation Mng.
Technician; Sales;
Purchasing Mng.
审核办法;审核结果;排放欧洲标准,国际标准等Data, comparison etc
Ways of trading
What and how to buy regarding
quality?
Purchasing Mng.
Quality Mng.
What is the benchmark for choosing recycled alu
for ingot? How much percent of recycled
materials are used?
What and how to buy regarding
costs?
Purchasing Mng
Operation Mng
How to balance the recycled alu %? Major cost
part in production and where the competitive cost
reduction lie? How is the competition in the
market?
What is the ways of trading by
suppliers?
Purchasing manager
Quality manager
How to decide % of recycled alu?
What method used to set ingot price with sub-sup?
How to guarantee quality of ingots for extrusion
and surface treatment?
How and where to practice environmental
awareness with suppliers?
How to compare and eventually decide suppliers?
INDEPTH INTERVIEW QUESTIONSTERVIEWQUESTIONS
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Questions?