Green Supply Chain Management Strategies
Added on 2020-02-05
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Literature review
Table of ContentsLITERATURE REVIEW....................................................................................................................................3Green Procurement’s relevance with the organizations........................................................................3Definition of Green Procurement...........................................................................................................4Green Supply Chain Management..........................................................................................................6Green procurement in selected environment policy framework...........................................................7Globalization theory...............................................................................................................................9Implementing a green procurement program......................................................................................10Impact of the green procurement on the performance of organization..............................................11Strategy of green procurement............................................................................................................14Bodies who can implement green procurement strategies................................................................15Challenges green procurement............................................................................................................15Advantage and disadvantage of Green Procurement...........................................................................16Benefits of from the Green Procurement.............................................................................................20
INTRODUCTIONIn the present era, every firm desires to develop its different image in the market so as maximummarket share and profitability can earn. Green procurement is a kind of strategy by whichcompany can develop its won brand image in the market and attract the customer in largecontext. Green procurement mean buying products and services that cause minimal adverseenvironmental impacts. It aids in human health and environmental concern into the search forhigh quality product and services at the competitive prices. The following report included asystematic literature review along with various themes which can aid learner in gaining effectiveunderstandings about green procurement.LITERATURE REVIEWGreen Procurement’s relevance with the organizationsIn past years the strategies for making the better purchasing is applied by theorganizations so effectively. For these organizations is being focused on the activities relatedwith their core operations. The non-core activities are adopted for the outsourcing of theproducts. This approach is being helpful to shift the major components of the manufacturingoperations outside to the organization and then the natural environment can have the impact ofthe contribution of functions which are involved in the purchasing of goods. For thisorganization being familiar to the suppliers as they must maintain the environmental factors forcoordinating the chain of activities. The opportunity is provided to the organization as openly asthey can integrate the aspects which are related to the environment and such aspects are involvedinto all the processes and operations of the company (Blome and et.al., 2014). The impacts fromthe environment which affect the actions of business can be reduced by this process. The powerof purchasing being so broad than any other function of corporate world. The green andenvironmental purchasing makes a valuable effect as it is helpful in the reduction of the source ofwaste by the possible instrument. The process is so active in promoting the recycling of thewastage and makes benefit through the environment. It also helps to integrate variousenvironmental aspects which leads to the decision making process of organization. According tothe green purchasing also concerned with the responsibilities of the higher authority of theorganization related to environment as they have to cooperate with it because the chain of supply
can have impact on itself. Suppose an organization has applied the green purchasing in theirsystem, it means the supply chain which is associated by the leading companies may have greatereffect and it makes influence on their suppliers. The whole process in which the environmentalresponsibilities are increases will increase the activities related to the environment of the othercompanies within their supply chain. The company’s supply chain get influenced with thoseactivities as they have to supply the required stuffs on the fixed time and also the quality of theproduct should be matched with the market requirement. Green purchasing is being so beneficialfor the organizations and their suppliers in last few years (Testa and et.al., 2016). Due to theeffectiveness of the environmental aspects, the operations has been modified for giving betteroutcome to the organization.Definition of Green ProcurementThe Green Procurement can be defined in various term as so many authors have providedtheir words on the Green Procurement. In various terminology can be used in the differentperception of different authors. The example of terminology can be seen as environmentalprocurement or purchasing. There is no one who have gave their deep opinion on the specifiednotion of the “greenness” related to the suppliers of the organization. Under the consideration ofintegrated aspects of environments into the purchasing policies, programs and various actions.The Green purchasing or environmental purchasing consists functions of purchasing in activitiesfor managing the supply chain, life-cycle analysis and environment design which providing thefacility of recycling, reuse and reduction of resources(Butt and et.al., 2015). As per theevaluation there is one more holistic definition that can be stated as Environmental purchasingfor an individual firm is the set of purchasing policies held, actions taken, and relationshipsformed in response to concerns associated with the natural environment. These concern relate tothe acquisition of raw materials, including supplier selection, evaluation and development,suppliers operation, in-bound distribution, packaging, recycling, reuse, resource reduction andfinal disposal of the firm’s product. According to the view of Dubey, Bag, Ali and Venkatesh, (2013) Green procurement is astrategy of the organization by which it can able to develop its own brand in the market andattract the large numbers of customer. In this strategy company is going to introduce sucheffective product and services which is related to the environment friendly. Green procurement isthe best strategy to develop the best brand image in the market. In a simple word it can be said
that green procurement is a adoption of ecologically responsible practices in business activitiesused to meet needs for material, good, utilities and services. On the other hand in the opinion of() green procurement mean buying products and services that cause minimal adverseenvironmental impacts. It aids in human health and environmental concern into the search forhigh quality product and services at the competitive prices. In a simple word it can be said thatthose products and services which have very less or none environmental negative impact that isknown as the green procurement. Every firm required to sue this strategy of green procurementso as it can able to bring some healthy and positive message for the society. While any firm dealswith the green procurement strategy then it can able to develop its positive and effective image inthe market. In addition to this it is a medium to introduce the organization brand in the marketand attract the large number of customer attraction. As per the view of Kozik, (2015) in the greenprocurement strategy, the product life cycle and its ecologic impact through production ,operation, maintenance and disposal are all considered in green procurement. In every stage ofthe product life cycle like production, operation, maintenance and disposal, company needs toconsider in the green procurement. In addition to this, in the supply chain management of thegreen product and services, reexamine delivery methods, products, packaging and measurementsystem has been also included.
There is one more definition which is given by the Appolloni, A. and et.al, 2014according to which the Green procurement is as helpful as the technical issues like recycling andLCA can be narrow down. Generally people can adopt any of these definitions for simplify theirobservation but most of the chosen the Dou, Y. and et.al., 2014definition, because it can emergenew themes as it is expressed so simply and has less specified information. In this definition thegeneralized view is shown as the basic aspects which can make impact on the operations relatedto environment are covered. Green procurement has been defined as per its basic property. Green Supply Chain ManagementThe supply chain management is a concept on which very few researcher have made theiropinion as the abundant literature based on green management, in which the various aspects andfacts are evaluated and the review is depended on these factors. In past few years the interest hasgrown up so some of area should go for the research. The factors which are so essential for theresearch on green supply chain management, can be seen such as considerations and evidenceswhich are related to the green procurement are not that much developed. This research is done onthe basis of various conceptual papers as the identification. There are some predicted surveysunder which so many facts are discussed about the green supply chain management. It can bereferred as the basic idea for getting the deep knowledge about such topic. The organization mustknow about this concept under which the environment purchasing which can be also named asgreen purchasing in which the environmental aspects can make impacts on the chain of supplierand ultimately the quality and delivery of good will be on time. Suppliers will realize theirresponsibilities related to the organization. As per the view of Agyepong and Nhamo, (2015) in the present time, environment impact of theproduct and services can be influenced in several ways. Today the most of the product andservices are designed and produced in the linear value chain rather than in a circular value chainthat could ensure reuse and recycling of resources. According to Mosgaard, M.A., 2015 thedevotion of literature review is based on the green procurement, in which the several commonthemes are synthesized by which is found in the stream of literature. Also the theoreticaldirections can be proposed by it for further research in future on the environmental purchasing.The review is all based on the previous practices and conducting another review regarding the
new themes and practices that have emerged on this topic. There is another review that is basedon the sustainable supply chain management, the conceptual framework is designed tounderstand the green purchasing, but there is very small brief of GP in that review. There is morereview given by a research in which the relation between the environmental, social and economicperformance with the supply chain management has been focused and the whole demonstrationis based on that concept. But on the other hand in this review there are no conversation about theother aspects of green procurement or the environment procurement. The 9 broad organizationaltheories are taken as the base for a review and those theories are related with the specialemphasis on the investigation of the adoption, diffusion and outcomes of green supplymanagement practices(Shen and et.al., 2017). The whole study is about the comprehensive viewof that literature in the context of green procurement. The conceptual framework in which theresearch is mentioned and the major common themes also the number of research directions forfuture research are also proposed in this literature review.
Green procurement in selected environment policy frameworkIn this phenomenon the policy of environmental purchasing is defined under thesupervision of various factors. The policy have the discussion about benefit that is environmentalor socioeconomic and the benefits comes from the purchasing of product. The policy covers 9countries under it such as USA, Canada, Finland, Norway, Sweden, Australia, China, Brazil andMexico, these country’s organization can make their operations according to the greenprocurement policy. The countries which are working under the green procurement policy canwork with the context of solid legal basis, in such the utilization by public organizations isrequired. The public sector organizations are using the LCC for getting the benefit and costs ofgreen procurement policy. There is no analysis introduced by any kind of organization in whichthe accompanying analysis of the impacts is done in this review. The impacts are basically seenon the competitiveness of industry or the suppliers of that business sector. There are somesections that as to be covered in the study of Green procurement for each country. Such as policyframework, programs, sectors and products, the relative principles, practices of theenvironmental policies, the various standards, metrics, indicators and some other data about theorganizations and the suppliers. Also the lesson and practices which are done with the bestlearning strategies is so important in green procurement policy(Hu and et.al., 2015). The wholestudy is containing so many section do matter for the execution of this study and through theseall sections the study will reach to its end. As per the view of Hu, Rao, Zheng and Huang,(2015) The Green Procurement can be defined in various term as so many authors have providedtheir words on the Green Procurement. In various terminology can be used in the differentperception of different authors. The example of terminology can be seen as environmentalprocurement or purchasing. There is no one who have gave their deep opinion on the specifiednotion of the “greenness” related to the suppliers of the organization.
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