The Green Supply Chain Management

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

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

Environmentally friendly production is when natural resources are conserved and aren’t exploited. The benefits to this type of production is lower costs (reduce, reuse, recycle), attract new customers as being environmentally friendly makes a business/country stand out from the rest, and there is improved sustainability. There are various methods to be applied to the production of goods and services in order for it to become more beneficial to the environment.

In recent years, when the concept of sustainability is raising up, there is high percentage of customers who aware about the green products (Rather & Rajendran 2014), they do not only consider about the product or

One positive implication capitalism has to the natural environment is industrial ecology, a system of chain production and consumption, serving to the lowest environmental impacts in a most environmentally sustainable economy as the main goal of operation (Richards & Pearson, 1998). The Companies in a like to operate in such way because of four major reasons. The most important factor is known as the corporate well-being, for it is determined by higher profits and growth provided by innovations in an industry. Profits are increased from recognizing the production ineffiency costs that comes from wasted inputs and energy losses; this allowing cost savings to increase and ineffiency to decrease. compliance with cleaner technology alternatives such as ones that produce less waste and less energy will provide long term savings which are both beneficial to the environment and the business at hand. A real world example freight company changes their salvaged driving equipment to hybrid vehicles. Money is temporarily lost, but the gasoline and maintenances cost savings will compensate in a long run period of time.

Kaplan and Norton (2006) define strategic alignment as the internal consistency of the activ- ities that implement the different attributes of strategy. Environmental sustainability drives firms to not only develop corporate environmental proactively but also to move toward green/sustainable supply chain management (Aragon-Correa and Rubio-Lo´ pez, 2007; Seuring and M¨ uller, 2008). Monczka and Petersen (2012) suggest that environmentally sustainable supply chain management is an integrated strategy which must align closely with and support business strategy in response to a changing marketplace. When alignment is lacking, Monczka and Petersen (2012) mention that supply management cannot sup- port the business in response to socioeconomic pressures. Thus, firms must align their SC and CE strategies in order to boost the overall firm performance. So it is very important for firms to understand their strategies, and the co-relationship between corporate strategy and the supply chain strategy, what sort of resource and capabilities and how to develop the capabilities to help achieving the strategy, and what are the effects of the strategies to both sides, and what is the influence means to the alignment of these two strategies?

The processes involved in the supply chain are very critical to the business organization. It is therefore very central and critical for the organization to make sure that it is operating or running a supply chain process that is very practical, efficient and sustainable as well as those that are simple to implement in terms of the operational costs. Sustainability means that the company is operating on renewable resources, no environmental pollution, generates products that meet the needs of the customer among others. As such the company or the business entity is in a position to operate in a way that is beneficial to itself, to the environment and to the society within which it operates (Cooper 14). There are three major

SCM is embedded and influences all facets of business operations. More precise, SCM is the proactive management of logistics, product development, sourcing, production, business processes, information systems, and business finances as they transition though the many facets of the supply chain-from raw materials to consumer (APICS Supply Chain Council, 2014). Also, its emphasis is to sustain its competitive advantage through the maximization of customer value. Competitive advantage sustainability is only feasible through a conscious effort by all stakeholders within the supply chain to

Leading companies understand that they have a role to play throughout the lifecycle of their products and services. Supply chain sustainability management is the key to maintain the integrity of a brand, ensuring business continuity and managing operational costs. Supply Chain Sustainability (SCS) is widely accepted as the management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services. And the main objective of SCS is to create, protect and grow long-term environmental, social and economic value for all stakeholders involved in bringing products and services to

Purpose – The authors perform a large-scale literature review and use conceptual theory building to introduce the concept of sustainability to the field of supply chain management and demonstrate the relationships among environmental, social, and economic performance within a supply chain management context. Design/methodology/approach – Conceptual theory building is used to develop a framework and propositions

Abstract Consideration is given to the convergence of supply chains and sustainability. In doing so, the focus on environmental management and operations is moved from local optimization

study in sustainable collection in the supply chain process in the fast fashion segment of fashion industry; a case study based approach focusing on H&M and its main competitors.

This Piece of Essay will show in depth that what is meant by “Sustainable Supply Chain Management” and its relation to Malaysian Palm Oil industry. The use of Supply chain management in Malaysian palm oil industry and diverse areas will be discussed. Further discussing what businesses and managers should consider utilising Malaysian palm oil like the challenges and downstream issues. This will be linked with different perspective like diverse workforce, issues of social responsibility and challenges of leadership. Then further discussing ethical responsibilities of consumers of palm oil industries.

‘EcoVadis’ established a business model that has the objective of ‘becoming a trusted partner of procurement organizations aiming at implementing sustainable supply management practices’. In doing so, EcoVadis confidently established its competitive advantage by uniting the broad social concern (and hence value placed upon) sustainability in all aspects of supply chains with rapidly evolving consumer and industry demands. EcoVadis was co-founded by Pierre-François Thaler, an electrical engineer with experience in purchasing. The firm provides a particular service that allows large organisations to assess the environmental and social performance of their suppliers. This supply chain analysis, verification and certification service, is the product that EcoVadis sells.

As is known from the surroundings we live, there are an increasing number of factories and manufacturing industries all around the world, which facilitate our daily life on one hand and pollute the environment around us on the other. Countries, especially some industrialized ones cannot develop their economy at the cost of making the surroundings contaminated. Many a company, such as Black and Decker producing such products as power tools, kitchen appliances as well as lawn and garden equipment, pursues a policy of sustainable development or ecological sustainability. It refers to the endurance of systems and processes in ecology, covering four interconnected domains: ecology, economics, politics and culture. J Klewitz, EG Hansen (2014) said, “Sustainability-oriented innovation (SOIs) is the integration of ecological and social aspects into products, processes, and organizational structures.”