Thus the production phase has a critical role in ensuring that: products/services produced by an organization are environmentally-friendly in nature; prevention of pollution at source is achieved through the production process; cleaner production practices are adopted; closed loop manufacturing (reverse logistics) is incorporated to the fullest extent possible, so that wastes generated are processed and recycled back into the production phase; re-use and recycling of materials is maximized; material usage is reduced; the recyclable content of a product is increased; the production processes are optimized so that generation of waste, both hazardous or otherwise, is minimized; and products are redesigned (design for the environment) so that the adverse environmental impacts of a particular product are minimized.
In this study all of these considerations are encapsulated in eight variables that measure the greening of the production phase:
(1) environmentally-friendly raw materials;
(2) substitution of environmentally questionable materials;
(3) taking environmental criteria into consideration;
(4) environmental design considerations;
(5) optimization of process to reduce solid waste and emissions;
(6) use of cleaner technology processes to make savings in energy, water, and waste;
(7) internal recycling of materials within the production phase; and
(8) incorporating environmental total quality management principles such as worker empowerment.
Greening the outbound function
On the outbound side of the green supply chain, green marketing, environment-friendly packaging, and environment-friendly distribution, are all initiatives that might improve the environmental performance of an organization and its supply chain (Rao, 2003; Sarkis, 1999). Management of wastes in the outbound function such as reverse logistics and waste exchange can lead to cost savings and enhanced competitiveness (Rao, 2003). Many of these initiatives involve compromises between various logistics functions and environmental consideration in order to improve the environmental performance of an organization (Wu and Dunn, 1995).
Currently, most products in the market come in a form of packaging that prevents the product from damage and makes the product easy to handle. The use of packaging whether, it is made of glass, metal, paper or plastic, contributes heavily to the solid waste stream. In order to address these environmental impacts of packaging, many countries now have programs and legislation that aims to minimize the amount of packaging that enters the waste stream, such as the Packaging Directive in the EU. Recycling and re-use are key strategies that are adopted and several organizations in South East Asia actively participate in packaging reduction programs. For instance, Amway (Thailand) delivers its detergent and other house cleaning products to customers in plastic containers. After their use, these plastic containers are collected by the Amway sales force, brought back to the company and recycled. The empty paper cartons in which the suppliers deliver the raw materials to the company are given back to the suppliers for re-use (Rao, 2001).