Green Supply Chain Management Strategies and Practices

This presentation discusses the process of flow of products in supply chain management, with a focus on green supply chain management. It covers drivers, strategies, and practices for adopting green supply chain management, as well as the advantages and barriers to implementation. The presentation also includes effective steps for greener supply chain processes and references for further reading.

Integrated Business Management
Project
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 The process of flow of products from
manufacturing unit to the end-customers
 Movement and storage of raw materials,
inventory management and then delivering
process from point of origin to point of
consumption
 Organization focuses on maximizing customer
value and sustainability
 Both the physical and information flow is
occurred in supply chain management
Supply Chain Management

Drivers for the Green Supply Chain Management
 External Drivers
 Government
 political bodies
 NGOs
 Consumers
 Internal Drivers
 Employees
 Stakeholders
Green Supply Chain Management

Selection of the Product
Organizations are liable to create such products that are safe to use and
create less pollution
Process and production
Automobile company need to adopt the lean manufacturing and also
recycle the scrap material to develop new automobile parts
Reverse logistics Design
Reverse logistic deign refers to the scenario where should be effectively
used for re-use after consumption recycle, remanufacture and
redistribution
Electric cars
An organization need to save natural resources for the next generation by
diminishing the use of such resources
Strategies for green supply chain
management

Australian Design Rules (ADRs)
Motor Vehicle Standards Act 1989
Australian Transport Advisory Council (ATAC)
Vehicle safety standards
Strategic Vehicle Safety and Environment Group
(SVSEG)
Australian Motor Vehicle Certification Board (AMVCB)
Rule from Australian government for design
the cars

 Reducing waste in the manufacturing process
Reason for adopting green supply chain
management

 Pollution Control
Reason for adopting green supply chain
management

Green Design
 Life Cycle Assessment (LCA)
Technique to evaluate the environmental impact
 Environmentally Conscious Design (ECD)
Develops the understanding regarding alignment of the environmental
compatibility with the design decisions of the process
Green Operation
 Manufacturing and re-manufacturing
Process of re-manufacturing signifies recycling- integrated manufacturing and
the process of recycling signifies to the process of retrieving used and non-
functional material content
Reverse logistics
First process is to recover the used good and then sorted these products into
different categories
Waste management
Reduction of the hazardous waste during the production and operation
while treating the products, storing the same and disposal of the products
is the part of the waste management.
Green Supply Chain Practices

Risk based strategies
 Emphasized on purchasing contracts and
environment regulatory requirements
 USA- Clean Air Act, Energy Policy and Conservation Act
and Energy Independence and Security Act (EISA)
 UK-Environment Act 1995, Clean Air Act 1993,
Environmental Protection Act 1990, Public Health (Ireland)
Act 1878 and Pollution Prevention and Control Act 1999
 Australia- Motor Vehicle Standards Act 1989, Protection
of the Environment Operations Act 1997 and Protection of
the Environment Operations (Noise Control) Regulation
2017
Green Supply Chain Management
Strategies

Efficiency based strategies
Automobile industry should focuses quality standard for obtaining
green supply chain management
Certification like IATF 16949
Innovation based strategies
 Comprehensive product life cycle management during the design
stages, innovation based strategies is focused
Closed loop based strategies
 Focuses on reverse logistics for:
 Component are in working orders sold
 When component like engines, starters and alternators are
refurbished before sale
 Material are re-claimed due to shredding or rushing
Green Supply Chain Management
Strategies

 Re-design the products
 Re-configure the manufacturing
 Select ethical suppliers
 Reducing the distance of the manufacturing
factories
 Shrinking packaging
Effective steps for greener supply chain process

Economic benefits
Reduction in waste products results in decrease in
handling expense of the raw material
Innovation can provide competitive advantage
Development of the electric cars is a greatest
invention that runs on the electric energy and thus
saves the natural resources
Improved Public Image
If a company produces products that are efficient for
the environment and its climate, consumers also
prefer to get associated with those companies
Advantage of Green Supply Chain
Management

 Commitment from top management
 Adoption of reverse logistics practices
 Market demand
 Training and skill development program
 Resistance to change and adoption of innovation
 Effective Environment Performance Metrics
Barrier in green supply chain management

 Chan, F.T., Chan, H.K. and Jain, V., 2012. A framework of reverse logistics for the
automobile industry. International journal of production research, 50(5), pp.1318-
1331.
 Chan, R.Y., He, H., Chan, H.K. and Wang, W.Y., 2012. Environmental orientation
and corporate performance: The mediation mechanism of green supply chain
management and moderating effect of competitive intensity. Industrial Marketing
Management, 41(4), pp.621-630.
 De Santiago, J., Bernhoff, H., Ekergård, B., Eriksson, S., Ferhatovic, S., Waters, R.
and Leijon, M., 2012. Electrical motor drivelines in commercial all-electric
vehicles: A review. IEEE Transactions on vehicular technology, 61(2), pp.475-484.
 Dyckhoff, H., Lackes, R. and Reese, J. eds., 2013. Supply chain management and
reverse logistics. Springer Science & Business Media.
 Green Jr, K.W., Zelbst, P.J., Meacham, J. and Bhadauria, V.S., 2012. Green supply
chain management practices: impact on performance. Supply Chain
Management: An International Journal, 17(3), pp.290-305.
 Guang Shi, V., Lenny Koh, S.C., Baldwin, J. and Cucchiella, F., 2012. Natural
resource based green supply chain management. Supply Chain Management: An
International Journal, 17(1), pp.54-67.
Reference List

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