WHAT IS GREEN SUPPLY CHAIN MANAGEMENT “Integrating environment thinking into 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".
IMPROVEMENTS BY GREEN SCM Improves operations by employing an environmental solution Improves Agility: Green supply chain management help mitigate risks and speed innovations Increases Adaptability: Green supply chain analysis often leads to innovative processes and continuous improvements Promotes Alignment: involves negotiating policies with suppliers and customers, which results in better alignment of business processes and principles.
POLLUTION PREVENTION HIERARCHY
WHAT IS GREEN SUPPLY CHAIN MANAGEMENT? GSCM can be defined as “integrating environmental thinking into supply chain management, including product design, material sourcing and selection, manufacturing process, delivery of the final product to the consumer as well as end-of-life management of the product after its useful life”. Question really is what is supply chain management? Green = natural environment (may = money too). GSCM = green purchasing + green manufacturing/materials management + green distribution/marketing + reverse logistics
MAJOR CHALLENGES Practicing green marketing initially is a costly affair. Green SCM encourages green products/services, green technology, green power/energy; a lot of money has to be spent on R&D programs The customers may not believe in the effectiveness of firm’s green strategies. The firm therefore should ensure that they convince the customer about their green initiatives, this can be done by implementing Eco-labelling schemes offer its “approval” to “environmentally less harmless” products and have been very popular in Japan and Europe. Initially the profits will be very low since renewable and recyclable products and green technologies and more expensive. Green SCM will be successful only in long run. Many customers may not be willing to pay a higher price for green products which may affect the profitability of the company. 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.
GREEN PURCHASING Environmentally preferable purchasing (EPP) or green purchasing is process of selection and acquisition of product and services which minimise negative impact over the life cycle of manufacturing, transportation, use and recycling.
GREEN MANUFACTURING In Green manufacturing, manufacturing equipment is made to be fast, reliable, and energy efficient. Green manufacturing can benefit your manufacturing company in many ways. Not only it will benefit the environment, but it will impact your consumer, the shareholders, and the company perception in the market.
ENVIRONMENTAL PERFORMANCE INDEX (EPI) It measures the effectiveness of national environmental protection efforts . EPI indicators focus on measurable outcomes such as emissions or deforestation rates rather than policy inputs, such as program budget expenditures. India Ranks at 125 of 2012 Environmental Performance Index, which is worst rank. CURRENT RANK – 144 (out of 178 countries)