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Green Supply Chain Management Essay

4001 words - 17 pages

Green Supply Chain Management : Logistics and Distribution

Prabhakar Ravishankar

White Paper

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Current Industry Scenario 3.1 3.2 Inbound Operation Outbound Operation

4. Problem Statement & Solution 4.1.1 Connectors 4.1.2 Consolidators 4.1.3 Planners 5. Use Case Scenario 5.1 5.2 Calculation method - Present Scenario Calculation - Daily Planned Schedule

6. Benefits 7. Conclusion 8. References 9. About the Author

1. Introduction
In early environmental management frameworks, operating managers were involved at the organizational level. Specialized organizational units had the responsibility for ensuring environmental excellence in product development, process design, operations, logistics, marketing, regulatory compliance, and waste management. In recent times, Green Supply Chain Management (Green SCM) is gaining significance among manufacturers due to the following reasons:
Ÿ Diminishing raw materials Ÿ Deterioration of environment Ÿ Overflowing waste lands Ÿ Increasing levels of pollution

In today’s competitive world, it is not only about being environment friendly but also about better business sense and profits. The Supply Chain System (SCM) includes purchasing, inbound logistics, production, distribution (outbound logistics and marketing), and reverse logistics. The first three categories are part of the well-known value chain concepts. The last functional element, reverse logistics is one of the most recent areas of focus in the supply chain.

1.1. Overview
Confronted with global resource exhaustion and increasing environmental deterioration, enterprises cannot ignore environmental issues in today’s business. Economic globalization and pressure from the public, laws, and environmental standards are forcing and driving enterprises to improve their environmental performance as well. Green SCM is getting more attention as a sustainable development mode for modern enterprises and is increasingly a part of Corporate Social Responsibility (CSR) initiatives.

Green Supply Chain Management I White Paper I 4

2. Why a Green Supply Chain Matters?
Government regulations and customer demands are making environmental responsibility an increasingly important factor in everything from materials procurement to distribution. Many companies share the current widespread concerns for the health of the planet. Hardly few of them, unfortunately, have successfully translated those concerns into action by adopting environmentally sustainable, green supply chain practices. Businesses worldwide continue to use toxic chemicals, wasteful packaging, and transportation practices that produce clouds of gases that may contribute to global warming. However, from materials acquisition and manufacturing to packaging, logistics, and distribution, every stage of the supply chain offers opportunities to reduce waste and pollution.

Environmental Life Cycle
Water Energy Water Energy

Inputs

Stage
Concept Design Raw Retail/ Material Transport Manufacture Transport Consumer Transport Extraction Use Disposal

Impacts
Air Water Waste Air Water...

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