GREEN SUPPLY CHAIN

M NAZMUS SAKIB ID#113-0419-060Musabbirul Islam ID# 113 0074 560SHARMIN JAHAN ID# 113 0229 560

GREEN SUPPLY CHAIN MANAGEMENT (GSCM)

Process of using environment friendly inputs

Transforming these inputs into outputs that can be reclaimed and re-used at the end of their lifecycle

Creating a sustainable supply chain

THE FRAMEWORK

COMPETITIVE ADVANTAGE

Unfriendly environmental Costs

By Product Cost

Waste Disposal

Other Environmental Costs

Storage Costs

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COMPETITIVE ADVANTAGE

EXAMPLES

Dell saves over $20mn annually by supply chain and packaging improvements

Texas Instruments reduced packaging by $8mn (20% annual savings) each year through

source reduction

Recycling

use of reusable packaging systems

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EXAMPLES

Pepsi-Cola saved $44mn switching from corrugated to reusable plastic

shipping containers

GM reduced its disposal costs by $12 million establishing a reusable container program with its

suppliers.

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Creating a green supply chain

Many organizations have introduced ‘greening’ requirements

purchasing clauses, targets, practices, and technologies

Automotive firms frequently require suppliers to certify to ISO

14001 (Toyota and Ford)

Starbucks Coffee as well as Ben and Jerry’s require raw

material suppliers to meet guidelines for sustainable farming

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Creating a green supply chain

Many organizations require

suppliers avoid specific materials such as chemicals that

may be deemed hazardous to the environment (DuPont,

Seventh Generation, and organic supply chains)

Many firms invest in recycling systems intended to retrieve

waste or used product from customers (Kodak, Hewlett

Packard, and Fuji-Xerox).

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Drivers for GSCM

Rising energy costs

Global concerns about green house gases

Climate change

Regulations like RoHS, EPA And others

Technology innovations

Increased public awareness of environmental issues

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Challenges in Adopting a GSCM

Lack of information about the green supply chain best practices

Lack of integration of IT system

Uncertainty and competition in market

Lack of government initiatives system for GSCM practitioners

High Cost of implementation for GSCM

Supplier’s flexibility to change towards GSCM

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Concept of Green Productivity

Green Productivity is the integration of two important developmental strategies

Productivity improvementEnvironmental protection

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Green Productivity

Green Productivity is a strategy for enhancing productivity and

environmental performance for overall socio-economic

development

By applying appropriate techniques

Technologies

management systems

to produce environmentally compatible goods and services.

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GP and SCM

These have synergies and help firms to enhance their productivity & quality

improve the environmental performance

GP improves environmental performance by First reducing the waste at the source

Then reusing, recovering, and recycling waste

Any residual waste will be treated by the End Of the Pipe (EOP)

system

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GP and SCM

GP enhances productivity and quality of products

and services

GP improves the profitability of the organizations

creates an advantage on competitiveness by reducing the

cost of production and operation

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Green the exterior & roof of

the building minimize heating and cooling

needs by 25% or more

Increase supply chain visibility

to better control of inventory

reduce • over-ordering

• warehouse space required

• need to expedite shipments

Some green initiatives

Consider telecommuting

Deploy a viable Transportation Management System

Optimize the transportation of goods

Automate more you automate —the more

efficient it becomes

Reward eco-friendly behaviour

Some others…

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Operational cost savings due to reduced waste

Compliance penalty reductions

Reduced health and safety costs

Lower labour costs

Reduced water, energy, fuel and transportation costs

Rewards

Conclusion

Green & Productive initiatives -if properly managed

enable organizations to be responsible corporate citizens

deliver higher profitability and competitive advantage

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