Green Supply Chain Management
In Automotive Production
Stephanie C. Soutier
College of Charleston
Abstract
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
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Keywords: green supply chain, automotive sustainability, global impact
Green Supply Chain Management
In Efficient Business Practices
The automotive industry changed the way that Americans purchased products when cars became an affordable luxury in the early 19th century. Not only did cars drastically reduce travel in daily life, they provided a gateway of possibilities for expanding business beyond carriage or foot travel. Due to the mass production assembly line strategy implemented by Henry Ford, cars could be produced quickly and efficiently. This dramatic shift in production dropped prices to the affordable level for the average American, which led to the establishment of buying on credit. The automotive industry provides economic growth and convenience in America and throughout the world – but this amenity comes at a great price to the environment. Throughout the entire life cycle of an automobile, carbon emissions and waste are produced. Although most believe that automobiles creates only carbon emissions when in use, the process begins negatively contributing to the environment long before and long after the life of the car. Additionally, the understanding and research related to carbon emissions from the use of gasoline-powered cars has provided consumers with an awareness of their effect on the environment. For some, this realization has prompted conservatory measures in vehicle use, utilizing public
The first way the automobile has changed American society is by creating more jobs. The automobile created jobs in fast food, city/highway construction, state patrol/police, convenience stores, gas stations and auto shops.1 Mechanics were beginning to earn a living fixing the inevitable problems.2 Also oil and steel were two well-established industries that received a serious boost by the demand for automobiles, which created tens of thousands of jobs.3 The steel industry and machine tool makers flourished as the automotive industry required ever increasing supplies and components for the engines, chassis and other metal fixtures of the cars.4 Other than the basics, every car needed a battery, head lights, interior upholstery and paint, which created new side businesses.5 The trucking industry sustained a period of growth as more good were shipped via truck.6 Experts estimate that by about 1980, two
The dependency on transportation in today’s society is quite remarkable. There are many forms that people take advantage of everyday including: planes, trains, and automobiles. Unfortunately, these diverse varieties of transportation do not run on imagination. For automotive vehicles, the most prevalent material used to operate are fossil fuels. There is a popular concern with the abundant reliance on these fossil fuels, which are a nonrenewable resource. The controversial usage has opened the discussion to alternative opportunities for fuel sources that, potentially, can replace the current fossil fuel being used in automotive vehicles. When considering the current market of cars, many have complaints in gas powered automobiles. There are many problems, commonly discussed, with emissions. Cars have a tendency to be harmful to the environment, and expensive to use frequently. This is where the alternatively powered cars are introduced into the conversation. There are multiple vehicles that can replace the prevalently operated, gas powered cars. However, alternatively powered vehicles must be considered in the same aspects a consumer would think about when buying a normal car. The buyer of automobiles, in the current market, look at the necessities that come with the maintenance and upkeep the car requires. Price, maintenance costs, insurance, incentives, and quality of life are
The rise of green products and the want of consumers to become more environmentally friendly has been increasing. In 10 Green Marketing Milestones, the reading mentioned how the “rise of the Toyota Prius: It may not have saved the world, but at 1 million cumulative vehicle sales the Prius became the predominant fuel-efficient hybrid vehicle” (Neff 2). This is an example of how companies are actually wanting to go green in order to make more profit and rise above their competitors. Going off the Prius example, it was also mentioned how Hummer cars, which use an excess amount of fuel, sales have plummeted. This was because this model no longer appealed to the consumers and General Motor’s had to discontinue the model and even went bankrupt. This sale tactic works and is so successful because the consumer’s mindset have evolved to seek things that are better for the environment. Many would prefer Toyota over General Motor because of their company’s reputation with being green. Although this might not work for all companies, but for some, they have become more successful than their competitors by going green and so, convincing more and more to
Every day, millions of Americans turn on the engines of their cars and drive to school or work. What these people do not realize is that the vehicles they operate greatly pollute the planet. According to the Environmental Protection Agency’s recent website post, “Environmental Impacts from Automobiles”,
Cars consist of being the number one way of travel throughout the United States. We rely on them to transport us to work, activities and necessary destinations. With this constant use of vehicles, it has had a negative impact on the environment. Although cars were invented almost a century ago to make life easier with getting around, car pollution has been our number one source of air pollution and has significantly impacted our environment due to how accessible they are. Arising problems such as air pollution, global warming, and health issues of americans, we have to come to the understanding that our environment is at risk if the amount of car pollution continues to increase.
Cars and truck account for 20% of all U.S. global warming emissions, where more than 24 pounds per gallon of carbon dioxide and other global warming gases come right out of the car’s tailpipe (“Union of Concerned scientists”). This frightening statistic is part of the reason why the federal government has put in place many policies and incentives such as the Clean Air Act, The National Program for greenhouse gas emissions, Catalytic Converter Federal Laws, and incentives of $12,000 in California to get people to upgrade to more fuel-efficient cars. With such programs and incentives put in places, it is also important that car companies such as Toyota and Ford also take action to further cut pollution rates. They have done so by
As we have seen an increase in awareness around sustainability and climate change, with the help of Al Gore’s Inconvenient Truth documentary in 2006, we see organizations moving towards mitigating the effects of climate change in various ways (Al Gore, n.d). As this corporate social responsibility has become more prevalent, organizations are now pushing their green agenda by publishing sustainability reports, doing mass marketing and implementing sustainable business practices to portray the image that they too are working towards protecting the earth’s natural environment all the while focusing on their underlying goal of selling their products and
Climate change and transportation play a big role and it is important to be concerned for our future generations. The use of gasoline cars is a major producer in carbon dioxide emissions, although they are not entirely responsible for it—they play a role in it. Other form of transportations like buses and taxis also contribute to carbon dioxide emissions. The total amount of carbon dioxide emissions from an average car is seventy six percent which comes from usage of a vehicle containing gasoline. Efficiency has increased by twenty percent in regards to electric motors, especially when it comes to their wheels using no power when the car is at rest. Car ownership will increase and with this, improvements in technology could be a vital
One of the largest car manufacturers in the world is located in Japan which is Toyota. Toyota’s employees believe in the high technology and innovation to provide their products to their customers. However, they should invest more money and their attention more to manufacturing more of the eco-friendly cars ("Business Overview", 2011).
Akio Toyoda, the founder of the car company Toyota Incorporated, once said “Automobiles are the pinnacle of human transportation. The percentage of families across the world who own cars have reached new heights in the past decade. Multiple families now have an easier form of transportation than walking or taking an overcrowded bus. For that reason, I am happy with what I do.” Akio Toyoda is right for saying so. The usage of automobiles increases by 150% since the past decade as more consumers look towards faster and cheaper methods of transportation. The increase in usage brings many concerns to well-minded citizens, specifically concerns regarding the environment and the conservation of energy. In order to tackle the problem locally, multiple
When making an analysis on why more companies are going green and to what are the benefits, the first argument that comes to mind are the government requirements that are now being required. Corporations are made to pass certain certifications to ensure that they are being environmentally responsible. A key industry that has been hit hard by such requirements is the automotive industry. The government in an effort to reduce the exhaust and evaporative gases that automobiles emit, have handed down regulations that must be implemented within a certain time frame. One program that the government came out with is called Light-Duty Vehicle Greenhouse Gas Emissions Standards Program. This program gave new standards for vehicles that are manufactured
Environmental concerns have been raised from time to time because of the dependency on the gasoline-fueled engine as the chief auto powertrain technology. This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for
“Automobiles have a large impact on the quality of our environment and public health. Automobile use affects virtually every aspect of environmental quality - including noise levels, air quality, water pollution, and urban sprawl. Ninety percent of the environmental impact of automobiles occurs through the operation of the cars: about 10 percent from the production, raw materials and disposal of
Many of the issues facing America’s manufacturers are being increasingly solved by technological advances. The automotive industry is currently experiencing a technological expansion in alternative energy sources. The need for alternative energy sources is being pushed by consumers and the government. Consumers have become more environmentally aware and conscious about their carbon footprint. Additionally, economic conditions and rising gas prices have put pressure on manufacturers to increase gas mileage. In Kansas, gas prices were consistently above three dollars a gallon from 2010 to the end of 2014 (kcgasprices.com).
Despite the numerous ways in which sustainable supply chain management helps operations, there are internal and external limitations to the technique. The first of such internal limitations is cost, which is an impediment for small and medium business to integrate sustainable activities (Alzawawi, n.d., p. 4). Without adequate funding, an organization is unable to implement and conduct all operations in a sustainable manner. Another limitation is a deficiency in understanding sustainable practices and the benefits therefrom (Alzawawi, n.d., p. 4). As such, an organization is incapable of undertaking sustainable activities when decision makers lack the knowledge required to implement changes.