Green Supply Chain Management
Green Supply Chain Management
MANAGEMENT
Prepared By
Pranoy Joseph
Introduction
Green Supply Chain Management integrates – environmental
concerns into supply chain management.
The main objective of this study s to corelate the term SCM with the
Green Supply Chain Management.
GSCM in the developed firms including all those innovations that are
relevant to environmental and social sustainability towards operation
management & SCM.
Background
Industrial Ecology :- a systematic organizing framework for the many facets of environmental
management. Industrial world as a natural system – a part of the local ecosystems and the global
biosphere offers a fundamental understanding of the value of modelling the industrial system on
ecosystems to achieve a sustainable environmental performance.
Area of Green Supply Chain Management
Design of product [Idea Screening, implementing etc.]
Production [Conversion of RM to FG as per defined/issued plan]
Material purchase [To plan, control and execute procurement of RM]
Packaging [Packaging of FG with defined criteria]
Warehousing [Storage for RM & FM]
Logistics and Reverse logistics [Transportation of RM & FM from
defined models]
What is Green SCM
Integrating environment thinking in to
supply chain management, including
product design, material sourcing and
selection, manufacturing processes,
delivery of the final product to the
consumers, and end of life management
of the product after its useful life.
Assessment of suppliers for the quality
and environmental compliance.
Need for Green SCM
To make product eco-friendly.
Increasing environmental awareness in stakeholders.
Evolving consumer and client demand.
Corporate social responsibility.
Increasing environmental constraints due to global warming.
Some GSCM Practices
A - Selection Criteria for suppliers/Vendors
Prequalification of supplier through VRF [Vendor Reg. Form].
Require or encourage environmental criteria for approved suppliers.
Require or encouraging suppliers to undertake independent
environmental certificate/Declaration.
Build environmental criteria into supplier contract condition.
Supplier base environmental performance management.
Supplier environmental audits and assessments.
Some GSCM Practices
B – Build Environmental consideration into product design
Jointly develop cleaner technology with suppliers.
Conduct life cycle analysis in cooperation with suppliers.
Engage suppliers in design for environment [DFE] product
innovation.
Reduce packaging waste at the customer /supplier interface.
Reuse/recycle material in cooperation with the supplier.
Give supplier an incentive to reduce the customers environmental
load.
Benefits of GSCM
Green supply chain benefits the enterprises in terms of cost reductions,
integrating suppliers in participative decision making process that
encourages environmental innovations.
Reducing operation cost.
Boosting brand images.
Reduction of waste.
Increases employee moral.
Sets positive public relations.
Increases profitability.
Thank You