Oct 20, 2017 a green and sustainable supply chain integrates ecological factors and supply chain management principles to identify the environmental impact of an organizations supply chain processes. Green logistics has a lot of benefits and positive impact. The following factors play a significant role to drive green logistics. Green supply chain management challenges and opportunities. Supply chain in the environmental life cycle raw material extraction.
Before an organization can go green, it has to want to go green. As economies increasingly move towards embracing global supply chains there is a pressing need to pay attention to bringing down the environmental impact of these supply chains. Drivers and obstacles for creating sustainable supply. The book by emmett and sood 2010 is a very good example of this literature with. The concept of gscm is to integrate environmental thinking into supply chain management scm.
The business benefits of going green with your supply chain. In some ways, reverse logistics in the supply chain strategy is the prime green opportunity of an organization. A researcher studied green supply chain management, it includes pressure practice and performance within the chinese automobile industry in which they observed that on increasing. Pdf green supply chain management benefits challenges and. Best practices and future trends 3 suppliers to develop best practices that could be used with everybody else. Green supply chain management is defined as the process of. When optimized, supply chain management gets the right products in the hands of a companys top buyers at the appropriate time. The implementation of green supply chain management practices. An organization that has gone green is seen as a good corporate citizen. Best practices in green supply chain management final. The aim of this issues and literature related to green supply chain and understand its.
Pdf green supply chain management benefits challenges. These the advantages of implementing a gscm, section vi shows companies that now try to incorporate this strategy face a hard the flexibility of gscm to be. Ideally, a green supply chain has more longterm sustainabilty benefits and the focal point should be on how firms collectively contribute to environmental degradation both now and in future. What are the benefits of a supply chain management system. Maximizing benefits from a sustainable supply chain. Businesses are becoming aware of the importance of this integration to enable a sustainable business strategy. The use of plastics and bottle recycling came up by late 1990s. One such emerging alternative concept is that of green supply chain. Basic supply chain without strategies considered in the green scenario, instead those strategies are replaced by basic technology and operational practices. Sustainability efforts can span many areas of the supply chain. Green supply chain management, environmental collaboration. Aug 28, 2012 green logistics is quickly gaining prominence throughout the logistics and supply chain industry as protection of environment has appeared as one of the top rated objectives among the governing bodies all over the world.
Pdf green supply chain management benefits, challenges and. A green sustainable supply chain integrates ecological factors and supply chain management principles to identify the environmental impact of an organizations supply chain processes. Definition and scope of greening the supply chain initiatives the term greening the supply chain has emerged to describe a wide variety of actions that a growing number of companies chiefly western. This report highlights the importance of supply chain sustainability from a business perspective and discusses findings from recent surveys on the benefits and challenges of supply chain sustainability. Bsr maximizing benefits from a sustainable supply chain 1 introduction as demonstrated by recent company initiatives and industryled coalitions, corporate executives see substantial benefits to be gained from improving social and environmental impacts in their supply chains. Factors for implementing green supply chain management in the. Green operations in terms of reverse logistics was an important concept that came out of the green supply chain management concept. Organizations today not only view themselves as being able to afford investing resources in greening their operations but also see that these a green supply chain can truly benefit.
If you continue browsing the site, you agree to the use of cookies on this website. In recent years research in the area of green manufacturing has extended into green supply chain management. Definition and scope of greening the supply chain initiatives the term greening the supply chain has emerged to describe a wide variety of actions that a growing number of companies chiefly western companies are presently conducting to install greater performance rigor and operational control over their extended supply chains. Organizations today not only view themselves as being able to afford investing resources in greening their operations but also see that these a green supply chain can truly benefit both the environment and their bottom line. Several elements of achieving cost benefits are affected by cost reduction in material purchasing. Green supply chain initiatives are rapidly becoming high priorities for the society these days, as it reduces carbon footprint and becoming better stewards of the planets natural resources. The increased attention given to the topic of green supply chain management gscm warrants the writing of this paper. To survey current green activities in computer parts manufacturers in thailand, 11 manufacturers are case studies who provide indepth interview about green procurement, green manufacturing, green distribution, andor reverse logistics. Combined with the costeffectiveness benefits of scm, high revenue leads to strong profit as well. Supply chain in the environmental life cycle raw material extraction transport manufacturetransport retail consumer use transport disposal. The strategic approach of green supply chain involves complex longer term considerations involving not just industry but sustainable environment protection. For example, the quantified benefits of scm include lower supply chain costs, overall productivity, inventory reduction, forecast accuracy, delivery performance. The most obvious reason supply chain management is important is the environment.
Supply chain sustainability and the triple bottom line. Supply chain management keeps an eye on the flow of product, information and finance. Also, know some other benefits of a green supply chain that are crucial for companies to increase their brand value. Green supply chain management focuses on environmental aspects across every element of the supply chain. Also, know some other benefits of a green supply chain that are crucial for companies to increase their. Green logistics is quickly gaining prominence throughout the logistics and supply chain industry as protection of environment has appeared as one of the top rated objectives among the governing bodies all over the world. By reevaluating the companys supply chain, from purchasing, planning, and managing the use of materials to shipping and distributing final products, savings are often identified as a benefit of implementing green policies. Pdf on sep 21, 2017, nandini gajendrum and others published green supply chain management benefits, challenges and other related. Top benefits of a green supply chain by tom k thursday, 03 november 2016 published in blog the efficiency of your supply chain services is rooted in how well you streamline processes and balance costs. Implementing effective supply chain management using powerful scm solutions will allow businesses to optimize the three key flows in the supply chain. Only 18% of computers were recycled in 2007 but through reverse logistics, the environmental protection agency reports a marked rise to 40% recycled units in 20. It then focuses on smes in particular and how they may use the concept of supply chain sustainability to their competitive advantage.
Although this environmental issue has been realized very important for business, the introduction of green concept to supply chain management has only been developed recently. The carbon footprint a product makes during the manufacturing unit to the end user plays a critical role in making the supply chain environmentfriendly. This optimization allows for high levels of customer satisfaction, which contributes to strong revenue. Sustainable or green supply chain management scm has been an ever.
This includes product design, material sourcing and selection, the manufacturing process, delivery of the final product to consumers, and end of life product management. The pressure on logistics companies to embrace green processes has increased significantly in the last few years. The implementation of green supply chain management. Due to the impact of environmental issues, consumers will be asking the companies about how green is the manufacturing and supply chain of the products. If the suppliers needed help, walmart had energyefficiency. Five benefits of green procurement esourcing forum. This optimization allows for high levels of customer satisfaction, which. The concept of gscm is to integrate environmental thinking into supply chain. Gscm practices in order to generate competitive advantages and cope with. A green and sustainable supply chain integrates ecological factors and supply chain management principles to identify the environmental impact of an organizations supply chain.
Benefits of green supply chain management uk essays. Consumers become every day more aware of green issues, pollution, global warming and the impact of nonenvironmental production in nature. About this guide 1 sscl guide this guide is about sustainable supply chain logistics sclthat is, the planning, storage, transportation and reverse logistics processes involved in getting goods and. The reverse supply chain affects supply chain strategy in many ways. This is understandable, after all a supply chain is not the first thing people think about when looking for green approaches, nor is a sustainable supply chain going to make the most dramatic. The literature about environmentally conscious supply chain is very limited.
All it includes the steps product movement from supplier to manufacturer to wholesaler to retailer to consumer. Making green supply chain changes like switching to plastic pallet pooling, improving warehouse lighting, and adopting better recycling practices help improve supply chains from beginning to end. As such, gscm is important in influencing the total environment impact of any organizations involved in supply chain activities. A brief introduction to the problems facing green supply. What are the benefits of green supply chain management.
Green supply chain management benefits, challenges and other related concepts research pdf available september 2017 with 9,597 reads how we measure reads. The use of plastics and bottle recycling came up by late 1990s and early 2000. Waste management is another topic that came out of the green supply chain management literature. The current pressure of global competition demanding faster, reliable, flexible and cheaper products is prompting companies to adopt new strategies and improve their manufacturing system that is the reason why enterprises need to maintain its. Green supply chain management grscm aims to integrate environmental thinking into supply chain management. Companies can find cost savings by reducing the environmental impact of their business processes. Pdf on sep 21, 2017, nandini gajendrum and others published green supply chain management benefits, challenges and other related concepts find, read and cite all the research you need on.
Below are five benefits of becoming a green procurement organization. Mar 27, 2017 green logistics has a lot of benefits and positive impact. Current supply chain considering improvements already adopted green strategies. Jan 21, 2019 companies can find cost savings by reducing the environmental impact of their business processes. To evaluate green supply chain management, the questionnaire. Supply chain management scm is a continually evolving field, relying on breaking down internal and external organizational. The book by emmett and sood 2010 is a very good example of this literature with chapters and cases that discuss green product design, responsible resource use and reverse logistics. Green logistics is quickly gaining prominence throughout the logistics and supply chain industry as protection of environment has appeared as one of the top rated objectives among the. About this guide 1 sscl guide this guide is about sustainable supply chain logistics sclthat is, the planning, storage, transportation and reverse logistics processes involved in getting goods and services to the right place, at the right time and in the right condition.
Green supply chain practices and company performance. Timetoconsumer is a crucial indicator of product flow efficiency. Top benefits of a green supply chain lean supply solution. The current pressure of global competition demanding faster, reliable, flexible and cheaper products is prompting companies to adopt new strategies and improve their manufacturing system that is the. The implementation of green supply chain management practices in electronics industry ninlawan c. Most of this research addresses issues related to evaluating current or potential. This includes product design, material sourcing and selection, the manufacturing. Importance of green supply chain management westford. Before you make the switch renewables, download our full report and recommendations, using renewable energy to drive supply chain innovation, and then perform a careful upfront feasibility assessment, based on availability of resources and infrastructure, financial return, and secondary benefits such as reputation enhancement.
Before you make the switch renewables, download our full report and recommendations, using renewable energy to drive supply chain innovation, and then perform a careful upfront feasibility assessment. Complexities and advantages of a green supply chain. Green supply chain management integrates ecofriendly aspects into conventional supply chain management practices, in order to make the every activity of the value. Sandip kadam slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Apr 03, 2016 a researcher studied green supply chain management, it includes pressure practice and performance within the chinese automobile industry in which they observed that on increasing pressure from a variety of directions have caused the chinese automobile supply chain manages to initiate carrying out of green supply chain management gscm practices to improve both their economic and environment. Three reasons why green supply chain management is important. The business benefits of going green with your supply. Why green supply chain management is important igps.
Pdf green supply chain management is defined as the process of using environmentally. This increases its image in the eyes of the public. Only 18% of computers were recycled in 2007 but through reverse logistics, the. Nov 29, 2011 before an organization can go green, it has to want to go green. Renewable energy and the future of supply chain deloitte us. Supply chain management scm is a continually evolving field, relying on breaking down internal and external organizational barriers to gain efficiencies. Green supply chain management integrates ecofriendly aspects into conventional supply chain management practices, in order to make the every activity of the value chain. Mar 08, 2018 organizations today not only view themselves as being able to afford investing resources in greening their operations but also see that these a green supply chain can truly benefit both the environment and their bottom line. Apr 05, 2016 due to the impact of environmental issues, consumers will be asking the companies about how green is the manufacturing and supply chain of the products. Pdf green supply chain management benefits, challenges. Jul 06, 2015 in some ways, reverse logistics in the supply chain strategy is the prime green opportunity of an organization. By reevaluating the companys supply chain, from purchasing, planning, and managing the.
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