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    Greening The Supply Chain

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    rl magsino
    Green supply chain management integrates environmental considerations into all stages of the supply chain. It helps address issues like global warming, social responsibility, and evolving consumer demands. Benefits include cleaner operations, reduced emissions and distances, and reuse/recycling. Challenges include high initial costs and lack of customer buy-in. Key drivers are both internal factors like cost savings and external ones like regulations, customer standards, and societal pressures. Environmentally preferable purchasing and environmental management systems are important tools for greening the supply chain.

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    Greening The Supply Chain

    Uploaded by

    rl magsino
    817 views23 pages
    Green supply chain management integrates environmental considerations into all stages of the supply chain. It helps address issues like global warming, social responsibility, and evolving consumer demands. Benefits include cleaner operations, reduced emissions and distances, and reuse/recycling. Challenges include high initial costs and lack of customer buy-in. Key drivers are both internal factors like cost savings and external ones like regulations, customer standards, and societal pressures. Environmentally preferable purchasing and environmental management systems are important tools for greening the supply chain.

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    Greening the Supply Chain

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    Green supply chain management integrates environmental considerations into all stages of the supply chain. It helps address issues like global warming, social responsibility, and evolving consumer demands. Benefits include cleaner operations, reduced emissions and distances, and reuse/recycling. Challenges include high initial costs and lack of customer buy-in. Key drivers are both internal factors like cost savings and external ones like regulations, customer standards, and societal pressures. Environmentally preferable purchasing and environmental management systems are important tools for greening the supply chain.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    817 views23 pages

    Greening The Supply Chain

    Uploaded by

    rl magsino
    Green supply chain management integrates environmental considerations into all stages of the supply chain. It helps address issues like global warming, social responsibility, and evolving consumer demands. Benefits include cleaner operations, reduced emissions and distances, and reuse/recycling. Challenges include high initial costs and lack of customer buy-in. Key drivers are both internal factors like cost savings and external ones like regulations, customer standards, and societal pressures. Environmentally preferable purchasing and environmental management systems are important tools for greening the supply chain.

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    Chapter 4: GREENING THE SUPPLY

    CHAIN

    Garcia, Mark Reyes, Carolyn Anne


    Angelo Virtucio, Zoer
    Ilao, Paul Odiezzy Matthew
    Definition
     Green supply chain management can be
    defined as integrating environmental
    thinking into supply-chain management,
    including product design, material
    sourcing and selection, manufacturing
    processes, delivery of the final product as
    well as end-of-life management of the
    product after its useful life. (Hasan Ali Al-
    Zu’bi)
    Why there is need of
    Green Supply Chain
    Management?
     Increasing Environmental Constraints due to Global
    Warming
     Corporate Social Responsibility
     Beneficial for Organization
     Eco-friendly
     Increasing Environmental awareness in
    stakeholders
     Evolving Consumer and Client Demand
     Response to increasing fuel prices
    Benefits of Green Supply Chain
    1. Cleaner Materials Sourcing and Manufacturing
    2. Lower Transport Emissions
    3. Cleaner Warehouse Operations
    4. Consolidated Movement of Goods
    5. Reduction of Transit Distances
    6. Reduction of Volumes and Total Mass Shipped
    7. Reduction of Nodes and Legs for Transportation
    8. Reuse and Recycling
    The fundamental benefit of supply chain
    management has positive long term net impact on
    the financial performance of the organization.
    Major Challenges of
    Green Supply Chain
     Practicing green marketing initially is a costly affair.
     The customers may not believe in the effectiveness
    of firm’s green strategies.
     Initially the profits will be very low
     Many customers may not be willing to pay a higher
    price for green products
     The firms practicing Green SCM have to strive head
    in convincing the stakeholders and many a times
    there may be some who will simply may not believe
    and co-operate.
    Drivers of the Green
    Supply Chain
    Management
    Internal Factors

     Reduce cost waste


     Investor pressure
     Long term returns.
     Manage economic risk
     Improve quality and efficiencies.
     Employee involvement.
     Improve learning and innovations
    External Factors
    Law and Regulations:
    Regulations and legislations compliance
    Leverage government programs
    ISO 14000 certification

     Customer :
    Standards, demands and needs.
    Marketing Pressures
    Product differentiation
     Competition:
    Improve competitiveness
    Improve performance

     Society:
    Stakeholder encouragement
    Publicity and public pressure
    Reduce risk of consumer criticism
    Pressure by environmental advocacy groups
     Suppliers:
    Collaborate with suppliers
    Supply integration

     Other drivers :
    Strategy
    Energy and Resources
    Infrastructure and services
    Fair trade
    Climate
    Human Resource
    Environmental
    Preferable Purchasing
    Definition
     Environmentally preferable procurement
    (EPP) involves purchasing products or services
    that have a lesser or reduced effect on
    human health and the environment when
    compared with competing products or
    services that serve the same purpose.
     to reduce the environmental impact of their
    products by using EPP Resources to know
    what environmental questions to ask and the
    specifications to use.
    It considers the following:

     Isthe purchase necessary;


     Materials the products are made of;
     The conditions under which they have been
    made;
     Distance they have travelled;
     Product usage/consumption; and
     The method of disposal.
    Environmentally
    Preferable Purchasing Principles
     Opt for the highest quality you can afford, whether for
    furniture, uniforms or appliances; have them repaired or
    serviced when necessary—it’s generally more cost
    effective than replacement and reduces waste.

     Green products are also more environmentally sound


    with lower water and electricity consumption, green
    manufacturing processes etc.

     Avoid products containing toxic substances. Opt for


    non-harmful alternatives, including non-toxic, water-
    based, hypoallergenic and biodegradable cleaning
    products, zero VOC paints and chemical-free amenities.
     Choose certified organic or fair trade food and
    drink products, and cotton where possible.
     Unless they are biodegradable or can be recycled,
    they add to the accumulation of landfill so choose
    an alternative with a useful lifespan.
     Use products with less or recycled packaging. The
    trend now is to use less impressive, more humble,
    environmentally friendly packaging.
    Environmental
    Management Systems
    (EMS)
    Definition
     is a set of processes and practices that
    enable an organization to reduce its
    environmental impacts and increase its
    operating efficiency.

     The assumption is that this consistent review


    and evaluation will identify opportunities for
    improving and implementing the
    environmental performance of the
    organization.
    Basic Elements of an EMS
     Reviewing the organization's environmental goals;
     Analyzing its environmental impacts and legal
    requirements;
     Setting environmental objectives and targets to reduce
    environmental impacts and comply with legal
    requirements;
     Establishing programs to meet these objectives and
    targets;
     Monitoring and measuring progress in achieving the
    objectives;
     Ensuring employees' environmental awareness and
    competence; and,
     Reviewing progress of the EMS and making
    improvements.
    Costs and Benefits of an EMS

    Internal
     Staff/manager time (represents the bulk of
    EMS resources expended by most
    organizations)
     Other employee time

    External
     Potential consulting assistance
     Outside training of personnel
    Potential Benefits

     Improved environmental performance


     Enhanced compliance
     Pollution prevention
     Resource conservation
     New customers/market
     Increased efficiency/reduced costs
     Enhanced employee morale
     Enhanced image with public, regulators, lenders,
    investors
     Employee awareness of environmental issues and
    responsibilities

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