HAN SOLAR
Company Overview According to the European Photovoltaic Industry Association, Photovoltaic panels could provide almost a quarter o the !orld"s required electricity #y the year $%$%& 'y $%($, solar panel manuacturing !as gro!ing at a rapid pace& As manuacturing processes #ecame more sophisticated and competition increased, panels continued to #e made in greater quantities and lo!er prices& Han Solar, a San )rancisco #ased company #ene*tted rom this gro!th and rom the support o the government programs& Increasing !orld population resulting in increased demand or electricity com#ined !ith the act that governments around the !orld continued to implement ne! regulatory policies to support consumption o solar energy and the production o solar energy systems, made Han Solar, !ith its thriving photovoltaic panel +P- #usiness, seem timely& Ho!ever, as re.ected in its thriving solar panel #usiness recently, the company"s pro*ts had started to drop& At *rst, the company"s managers thought that the economy !as to #lame& 'ut, ater seeing that their competitors !ere still gro!ing, they #egan to question their theory& Eventually, ater analysis, the Han Solar team determined that the decrease in pro*ts might #e due to the company"s lac/ o ocus on the environment& Other competitors claimed that their panels !ere manuactured and distri#uted through conscious green processes& 'ut Han Solar had no immediate ans!er to these claims& Previously, the company had positioned itsel as one o the least e0pensive solar panels& 'ut, as competition increased, this #ecame less compelling to consumers& 1hus, company management reali2ed that they had to come up !ith a ne! strategy or the company& 1hey decided to increase ocus on the environment so that they could position their company more positively to consumers& It !as ound that the emission o car#on dio0ide occurred mostly during the manuacturing process, not during the use phase& 1he manuacturing process o photovoltaic panels involved nine ma3or operations4 (& $& 5& 7& :& ;& <& =&
Silica E0traction and Re*ning Silica into Silicon 1ransormation o mg6Si to sog6Si 8asting and 9aer Production 8hemical Attac/ N6*lm )ormation Application o electric contacts Passivation and AR8
>& Panel Assem#ly
Do you think Han Solar's green SCM strategy will help it overcome its current slump? What could be other possible impacts o sustainability e!orts o this "rm? Solution4 a#& Han Solar in its early years !as a#le to leverage on the act that they !ere one o the least e0pensive producers o solar panels& Ho!ever, it seems that over a period o time customer preerence moved to!ards environment riendly products, !hich not only harms the environment #ut also have manuacturing processes that emit very lo! greenhouse gas emissions& 1his is evident rom the act that despite economy going do!n, !hich they thought !as the reason or #ad perormance, their competitors !ere doing really !ell in solar panel #usiness and they !ere essentially #randing themselves as environment riendly& So Han Solar decided to ormulate a supply chain ?anagement strategy to reduce green house gas emissions !herever possi#le #y analy2ing ?anuacturing and distri#ution process& So our vie! is that S8? strategy !ill de*nitely help them the company reali2e the gains ho!ever Han solar should try to provide the environment riendly products at a cost as lo! as possi#le& b#& Other possi#le impact o S8? strategy could #e economic and social impacts& $conomic4 8hange in process o manuacturing or method o delivery might actually reduce the overall cost and hence help ma/e the company pro*ta#le& Also, government might come up !ith certain schemes to incentivi2e such companies !ith lo! @H@ emissions& Social4 As a part o S8? strategy, those process !ill #e ollo!ed !hich leads to less @reenhouse @as Emissions !hich !ill lead to #etter saety and health or employees& ?oreover, Employees !ill #e more satis*ed !ith the !or/ since their contri#ution to the @reen house gas emission !ill go do!n&
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What is the carbon ootprint o the manuacturing process? Solution% ?anuacturing Location 8hina
1otal Energy Required (<=&:
8ar#on )ootprint +g/9h-$ <==
1otal 8ar#on )ootprint +Bg/9h(7%&;:
@ermany ?e0ico +Avg&?e0ico +N9CSA
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What is the carbon ootprint o each distribution network? Solution% Route Details ?e0ico68aliornia 8hina68aliornia 8hina68aliornia 8hina6?e0ico6 8aliornia 8hina6?e0ico6 8aliornia @ermany6Ne! Fersey6 8aliornia @ermany6Ne! Fersey6 8aliornia @ermany6 8aliornia
Distance +Bm$%% ($%%% ($$
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What could be the possible network alternatives to supply photovoltaic panels to Caliornia& considering other actors like costs and transportation leadtime? Solution%
Route Details
?e0ico6 8aliornia 8hina6 8aliornia 8hina6
8ar#on ootprint 1ransport +Bg6 8O$eq-
8ar#on )ootprint ?anuacturi ng +Bg/9h-$
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8aliornia 8hina6 ?e0ico6 8aliornia 8hina6 ?e0ico6 8aliornia @ermany6 Ne! Fersey6 8aliornia @ermany6 Ne! Fersey6 8aliornia @ermany6 8aliornia
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What should Han solar do in the short term? Solution% 'ased on our analysis o 1otal 8ar#on )ootprint, transportation cost lead6time, ?e0ico6N9 is the #est6*t region or manuacturing o solar panel parts& Han solar should slo!ly start shiting solar panel manuacturing to ?e0ico6N9, !hich has the least 18), transportation cost lead6time& It should start rom 1ransorming mg6Si to sog6Si, !hich consumes highest energy and then process o converting Silica to Silicon !hich has second highest energy requirement& 'y doing that, Han solar !ill #e in position o repositioning itsel as a green company !hile maintain the lo! cost advantage&
