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Green Supply Chain

Management

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What is Supply Chain

management? Supply chain management (SCM) is the

oversight of materials, information, and

finances as they move in a process fromsupplier to manufacturer to wholesaler toretailer to consumer.

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What Is Green Supply Chain

ManagementIntegrating environment thinking intosupply chain management, includingproduct design, material sourcing andselection, manufacturing processes,delivery of the final product to the

consumers, and end-of-life managementof the product after its useful life".

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Benefits Of Green SCM

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Improvements By Green SCM

Improves operations by employing an environmental solution

Improves Agility: Green supply chain management helpmitigate risks and speed innovations

Increases Adaptability: Green supply chain analysis oftenleads to innovative processes and continuous improvements

Promotes Alignment: involves negotiating policies with

suppliers and customers, which results in better alignment ofbusiness processes and principles.

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Success stories

Texas Instruments: saves 8million dollars every year byreducing its transit packagingbudget for its semiconductor

business through sourcereduction recycling and use ofreusable packaging systems.

Commonwealth Edison:Produced $50 million in financial

benefits from managingmaterials and equipments with

Life Cycle Management

Approach.

Pepsi/Coke: Saved $44 millionby switching from corrugated to

reusable plastic shippingcontainers for 1litre and 20ounce bottles ,conserving 196million pounds of corrugated

material.

Dow Corning: Saved $2.3

million by using reconditionedsteel steel drums in 1995.Alsoconserved 7.8 million pounds of

steels.

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Pollution Prevention Hierarchy

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Why there is need for Green SCM?

Increasing Environmental Constraints due toGlobal Warming

Corporate Social Responsibility

Beneficial for Organization Eco-friendly

Increasing Environmental awareness in

stakeholders Evolving Consumer and Client Demand

Response to increasing fuel prices

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Areas to Green the Supply Chain

Designing Of Products

Production

Material Purchase Packaging

Warehousing

Logistics & Reverse Logistics

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Designing Of Products

An eco friendly design approach leads

1] Less material usage

2] Minimum Operations

3] Proper use of Computational fluid dynamics

tools can used to reduce the exhaust emissionsat designing level

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Purchase

Implementing Green purchasing policies

Technical support to vendors to reducethe emissions

Guidelines for usage of less hazardousmaterials

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Production

Achieving Economies of scale inproduction

Lean manufacturing approach Fuel efficient tools and machines

Selecting less carbon intensive energy

sources

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Packaging

Mercury free

Non toxic (minimize toxicity)

PVC or DEHP free Recyclability

Hazardous waste considerations

Durability/Reusability Energy efficient

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Logistics

Optimized Truck loads

Direct shipment to the customer(Dellmodel)

Routing of distribution

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Summary

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Other Initiatives

Eco labeling: Labeling that identifiesproducts that meet certain environmental

criteria LEED (Leadership in Energy and

Environmental Design): Design and

Construction practices that significantlyreduces or eliminate negative impact ofbuilding on environment

Green sourcing: Sustainable procurement

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Intention to become Carbon

Neutral

Blackwell Publishing

Dell

DHL

TESCO

Travelocity Marks and Spencer