Green SCM

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GSCM is integrating environmental thinking into supply-chain management, including product design, material sourcing and selection, manufacturing

processes, delivery of the final product to the consumers as well as end-of-life management of the product after its useful life (Samir.K.Srivastava)

Drivers
GSCM is rooted from CSR concept
Two main drivers of GSCM:

1. External drivers: pressures from outsiders to the company to implement GSCM (government, NGOs, or consumers) 2. Internal drivers: companys motives to implement GSCM, (need to have efficient SCM or attract green consumers)

Perspectives of GSCM
Green has been categorized into 3 different

perceptions

Scientific green Government green

Customer green

Benefits of GSCM
Different roles of supply chain including environment

and society can be expressed in terms of different categories,


Material
Immaterial Emotion

Practices of GSCM
Two practices of GSCM: 1. Green design: systematic environmental consideration

in the product design


2. Green operations: relate to all aspects related to the

SCM operations

Green Design
Environmentally conscious design (ECD) aims to

develop an understanding of how design decisions affect a products environmental compatibility


Life-cycle assessment/analysis (LCA) is a process for

assessing and evaluating the environmental, occupational health and resource-related consequences of a product through all phases of its life

Green Operations
Three types of green operations:
1. Manufacturing and re-manufacturing 1. Reverse logistics and network design 1. Waste management

Green Manufacturing and Re-manufacturing


Green manufacturing is reducing the ecological burden by

using appropriate material and technologies


Remanufacturing is recycling-integrated manufacturing Recycling is performed to retrieve the material content of

used and non-functioning products


Current example is in automobiles and consumer

electronics industry

Green Manufacturing and Re-manufacturing

Reverse Logistics and Network Design


Reverse logistics (RL) as the process of planning,

implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal Collection is the first stage in the recovery process, followed by sorting of used products Redesigning logistics networks to accommodate product returns and remanufacturing and re-use is important to minimize the operations cost

Waste Management
Waste management is the reduction of hazardous

waste which is generated (during production and operations) or subsequently treated, stored or disposed
The source-reduction/pollution-prevention concept

aims to prevent the creation of waste rather than managing it after it is generated

Implementation of GSCM
Product Life Cycle Integration Using Tools - GreenSCOR

Product Life-Cycle Integration

GreenSCOR Tool

GreenSCOR Tool

Application of GSCM
Some examples of GSCM in automobile industry include

Ford Motor Companys requirement for all suppliers to certify to the ISO14001; While others (e..g., Toyota, BMW) required the inclusion of supplier activities in statements of environmental responsibility; This report present the application of GSCM from Ford, BMW, Toyota, and BYD;

Conclusion
GSCM is rooted from CSR concept
Two drivers are force company to apply GSCM:

external and internal


GSCM practices consist of green design and green

operations

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