Green Supply Chain Management Is A Solid Means For Accomplishing The Eco Management

Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand

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

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

In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.

Transforming a supply chain into a sustainable network is not an easy thing to do. Amongst the existing obstacles that Johnson (2004) gives us is the considerable size of this network: all along the differents ranks of suppliers that constitute the upstream of the chain, it is very hard to track the original source of the material and to broadcast best practices all accross that path. Furthermore, the lack of legal framework for labor conditions and environment preservation in developing countries makes it the more difficult to enforce

Arraigning main activities of supply chains; Borade, A, Bonsad SV (2008) exploring the domain of supply chain management. Environmental ethics for sustainable supply Beamon, Benita M., 2005. chain management. SC network configuration for Product Beamon, Benita M. and Farnandes recovery ,2004

This paper investigates the impact of green supply chain management on industry, consumer perception and environment. Through research into multiple companies and case studies, a distorted perception among large corporations shows a historic struggle to find a balance between profit and sustainability. However, the potential long-term effects of the lack of environmental courtesy cannot be undone and therefore must be carefully engineered. Multi-billion dollar automotive corporations such as Hyundai and Toyota will be discussed and studied in depth to conclude the innovative changes

GREEN PROCUREMENTS AND MANAGERIAL DECISION MAKING IN SUPPLY CHAIN ENVIRONMENTS: A REVIEW OF NEWCASTLE UNIVERSITY APPROACH

The increase in the level of consumption of material and energy by economic growth leads to environmental issues and problems of resources depletion. Organisations has become increasingly notable to balance the economic and environmental performance due to pressure of competition and community . A new concept of environmental friendliness, also known as sustainable supply chain or green supply chain is now trending in various organisations involved in supply chain business. The green supply chain management is the process of combination of environment protection and day to day supply chain management, including its different parts like material sourcing, designing of product, selection of material, manufacturing process and

manufacturers have to go beyond the boundary of their companies to implement green supply chain management (GSCM), that is, integrating environmental struggle into their SCM (Zhu et al., 2007). Leading firms in developed countries such as Japan are always proactive to environmental requirements, implementing inventive GSCM practices before and beyond regulatory requirements (Hosogai et al., 2009). For example, leading Japanese manufacturers implement GSCM at a upper level than Chinese manufacturers, and therefore bring more enactment improvement, especially for economic performance

For some countries like Vietnam, the definition of supply chain management is still not that well-known enough to apply. Some administrators have just been familiar with the term “logistics” and applied them for all the goods flows. However, supply chain system includes product development, manufacturing, purchasing, inventory, goods distribution and logistics activities. In other words, logistics is just a component of the supply chain. Ganeshan and Harrison (1995) defined that a process from purchasing raw materials, converting them to finished goods and distributing them customers. It is used in both service and manufacturing organizations. For example, a customer goes to Citymart to buy G7 3-in-1 coffee. The supply chain will start from the demand of this customer. Since Citymart has stored a certain amount of this type of coffee to supply, which may be provided from another merchant or directly from

Reverse logistics (RL) is defined by Rogers 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”. (1) This reverse flow of materials has proven to be worthy of its own field of research. Logistics firms have failed to be able to efficiently and cost effectively move this material through existing networks. Third party logistics firms (3PL) have even been created to specialize in this emerging multi-billon dollar market. A question that arises is why it has taken so long for companies to develop this logistics setup? David Poitevint, manager of marketing research and analysis at GATX Logistics, asserts that, "Reverse logistics has been overlooked because everyone was so concerned with the inbound movement of material, inbound management, and controlling their suppliers from the front end of the supply chain.” (2)

In a different perspective, Bloemhof-Ruwaard and Salomon (1997) and Fleischmann et al. (2000) attribute differences between reverse supply chains primarily to the form of the reprocessing process. The authors then distinguish three supply chain types, namely remanufacturing, recycling and direct reuse supply chains. Fleischmann (2003) refines this classification by including ownership of recovery process (OEMs versus third parties) and recovery drivers (economic versus legislative) as additional explanatory variables. Based on this analysis, the paper suggests distinguishing the following five supply chain

Supply chain management is one of the important competitive approaches for the organization today. The issue of having green supply chain management is vital for successful implementation of the industrial ecosystem and industrial ecology. This therefore, gives organizations number of reason for implantation of green supply chain policies. The reasons may range from active and proactive strategies of the business to competitive strategies of the business. From environmental and organizations perspective, it is imperative that organizations have proper understanding of exactly what is expected of them and what is happening in this field. It is

Dukovska-Popovska I., Bertoni M., Hvolby H, Turner P. and Steger-Jensen K. (2011) “Sustainable Supply Chain Management”, Information Resource Management Association (ed.), Green technologies; concepts, methodologies, tools and applications, Information Science Reference, Portland, pp. 136-152