Green Supply Chain Management

Businesses who participate in environmentally friendly practices will become more profitable. There are difficulties and costs that a business will face and profit takes time but is proven to positively impact a business. “The reluctance to address the forces that are polluting the planet always comes down to money (Smith, “6 Reasons Nations Don't Go Green.”). Implementing environmentally friendly practices within a company “will win them customers, and increase profits” (McDonald, “Why Do (or Don’t) Companies Go Green?”). Many global companies today carry out environmental management tools to adapt to environmentally friendly practices, which helps gain customers, and in turn becomes more profitable. In this paper, I will go into further detail explaining why businesses should be more environmentally friendly, the benefits to be gained, costs that come with being environmentally friendly, and management ways that help a company become environmentally friendly.

Our environmental policy already commits us to working with our suppliers, contractors and partners to minimise our environmental impact and to encourage ecologically sustainable and, where possible, local sourcing of products and services

ASDA are also helping their suppliers to improve their environmental impact through their ‘ASDA Sustain & Save Exchange’, and they are building a world class supplier base that sets the standard in terms of sustainability. The ASDA Sustain & Save Exchange’ is an online tool supported by live events, which is free for suppliers. This tool gives suppliers ideas and information which enables them to share best practice and identify opportunities for increasing resource efficiency. Their suppliers have made improvements in new and more efficient cold stores, tapping transformers to reduce energy use, to new LED lighting projects. ASDA (2015).

The industry can be very susceptible to environmental issues together with other manufacturers. With the advent of campaigns toward saving the environment and “going green”, the society is now more concerned with how the industry’s wastes and other by-products are being managed. Using recycled materials and recycling one’s wastes can affect the industry’s over-all image as an environmental advocate.

This incorporates producing their own energy at our stores and offices, lessening GHG discharges and making their private trucks more proficient. Because of developing customer interest for earth mindful items, Walmart started a Sustainable Product Index program in mid-2009 with the objective of looking at its supply chains and making a file that will rank items on different measures of ecological effect. An introductory supplier evaluation has been finished and a Sustainability Index Consortium is presently at work constructing the devices and social event the information important to make a last item level sustainability file. Whenever complete, such a list will permit customers and makers to effectively pick from the items and production methods, separately, that outcome in less effects to the earth.

Cooperated with partners and leaders in the field of supply chains and transport, the World Economic Forum’s Global Agenda Council on the Future of Logistics and Transportation started to conduct research on the supply chain. The report “Beyond Supply Chains Empowering Responsible Value Chains” analyses the impact that supply chain practices has brought to business, society and environment, and explores the issue how shared value can be made through better supply chain decisions. The report identifies “a set of 31 proven supply chain practices which provide companies with a blueprint of where they can gain both commercial and socio-environmental advantage (both environment and local economic development)—driving a triple advantage” (). In addition, the report “provides a framework for evaluating the potential value at stake behind each of these practices, and an implementation framework for

In the San Diego distribution center (DC) information flow example, dealers not being notified automatically of order status would be classified as

Sustainable Supply Chain – working with and influencing suppliers to manage and reduce the environmental and social impacts of their operations and of the products and services they provide to Telstra.

This is because by improving communications and developing a better understanding of the supply chain, it is possible for tremendous positive environmental effect to be achieved. There is also a potential for an opportunity to discover other ways of producing sustainable products through cheaper and environment-friendly materials further reducing environmental

However, in Global Supply Chain Management, there is also a need to protect the environment, although for more selfish reasons. Businesses need to be environmentally friendly because people around the world are catching onto the fad of “going green” and want products and companies that boast that. By having sustainable product development and sustainable transportation methods, business are both protecting the environment and attracting more consumers. This is an interesting point because one would not think that a book about best business practices would attract a business towards being more environmentally friendly, but the book is clear that that is what is

Most of the decisions made by the Green Team seem to result in lower costs for the company. Their decisions of acquiring produce locally, baking bread on site, and working with suppliers to reduce transit time can significantly reduce transportation costs. Also, their decision to re-evaluate inventory strategies can result in lower inventory carrying costs if they are capable

being more sustainable and profitable are present at each stage of supply chain, including material

The company requires a minimum ranking of 2C for a supplier to maintain its active status. To ensure that suppliers comply with the SOE, an internal monitoring program was initiated and SOE audits of suppliers around the world were conducted by regionally located. Suppliers are being evaluated for compliance with the SOE and action plans developed with individual suppliers to improve conditions has teamed up with Business for Social Responsibility, a non-profit organization which promotes corporate citizenship, to train monitors and suppliers' representatives. In addition, a manual on health, safety and environmental issues has been developed which will help to make the SOE effective in

It focuses on the development of supply chains that have minimal footprint on the environment. Buyers have the responsibility of choosing suppliers that conduct environmental ethics and are environmentally conscious. (C Sisco, 2010)

In comparison, GSCM is green, integrated and ecologically optimized and takes into consideration the human toxicological effects as well. Companies considered ecological requirements as the most important criteria for products and production, to ensure economic profitability and sustainability. Here are the five characteristics of traditional and green supply chain management. The first characteristic is objective and values, Traditional SCM is economic but in Green SCM still have economic but will add-on ecological. Then ecological optimization in Traditional SCM is integrated approach high but Green SCM is ecological impacts. On supplier selection criteria, Traditional SCM is price switching supplier short term relations but to the Green SCM it is a long term relations ecological aspects. The cost prices is low of Traditional SCM and high of Green SCM. The last characteristic is speed and flexibility which is high in Traditional SCM and low in Green SCM. (Ashish J. and Hari,