Integrated Business Management Project

This project discusses the drivers, strategies and benefits of green supply chain management in the automobile industry. It also highlights the rules from the Australian government for designing cars. The drivers for GSCM are external and internal. The strategies for GSCM include product selection, process and production, reverse logistics design and electric cars. The benefits of GSCM are resource and money efficiency and competitive advantage.

Running head: INTEGRATED BUSINESS MANAGEMENT PROJECT
Integrated Business Management Project
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Name of the University
Author Note

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Table of Contents
1.0 Introduction......................................................................................................................................2
2.0 Discussion........................................................................................................................................2
2.1 Drivers for the Green Supply Chain Management......................................................................2
2.2 Strategies for green supply chain management...........................................................................3
2.2.1 Selection of the Product........................................................................................................3
2.2.2 Process and production.........................................................................................................3
2.2.3 Reverse logistics Design.......................................................................................................3
2.2.4 Electric cars..........................................................................................................................4
2.3 Rule from Australian government for design the cars.................................................................4
2.3.1 Australian Design Rules (ADRs)..........................................................................................4
2.3.2 Australian Transport Advisory Council (ATAC).................................................................5
2.4 Benefits of green supply chain management...............................................................................5
2.4.1 Resource and money efficiency............................................................................................5
2.4.2 Competitive advantage.........................................................................................................5
3.0 Summary..........................................................................................................................................5
4.0 Literature Review............................................................................................................................7

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1.0 Introduction
Green Jr et al. (2012) stated that in order to enhance the economic and environmental
performance many companies initiate incorporation of green supply chain management practices
(GSCM). Guang Shi et al. (2012) furthermore depict that one of the prime reason that the
organization adopts this green supply chain management process is to bring sustainability in the
supply chain process. Thus, many organization consider their crucial business aspects like
logistics network to reduce the environmental risk and waste costs (Tseng and Chiu 2013). In
automobile industry the free design and the green operations are the main component for
implementing the green supply chain management process. This assessment will highlight the
drivers for adopting GSCM and the aspects in the concerned industry implementing which
improves the monetary benefits and productivity of the organization.
2.0 Discussion
2.1 Drivers for the Green Supply Chain Management
Green Jr et al. (2012) stated that there are two drivers- external and internal drivers for
adopting the concept of the GSCM. The external drivers comprised of government, political
bodies, NGOs and consumers (Chan et al. 2012). Chan et al. (2012) stated that in order to
address the problem of the global warming and climate change, government bodies put pressure
on the automobile industry to develop energy and fuel efficient technology for the engine so that
the pollution level can be reduced. Moreover, customers also become more concerned about the
environment and intend to use greener technology and products. Meixell and Luoma (2015)
stated that the internal driers for implementing the GSCM are the satisfaction of the internal

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stakeholders that are the employees. Touboulic and Walker (2015) depicted that if a company
moulds their business process in a way so that it put less harmful impact on the climate and
environment. Another motive of the organization is to attract the consumers, who prefer green
products.
2.2 Strategies for green supply chain management
2.2.1 Selection of the Product
Yu et al. (2014) stated that the organizations are liable to create such products that are
safe to use and create less pollution. Especially in automobile industry, the organization needs to
manufacture the engine in such a way that it consume less fuel and give more mileage. Amann et
al. (2014) also depict that company should also adopt DFE (Design for Environment) approach
to develop products that are less harmful for the human as well as for the environment. The
research and development team of the company need to incorporate this strategy in the products
design phase.
2.2.2 Process and production
Automobile company need to adopt the lean manufacturing and also recycle the scrap
material to develop new automobile parts. Brandenburg et al. (2014) stated that automobile
industry focuses on the energy and water saving align with reducing water wastage CO2
emission. These companies emphasizes on the eco-friendly design and materials for developing
the car components (Tseng and Chiu 2013). Adopting Just-In-Time manufacturing and modular
consortium is used by these companies to streamline their production systems.

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2.2.3 Reverse logistics Design
Chan, Chan and Jain (2012) stated that reverse logistic deign refers to the scenario where
should be effectively used for re-use after consumption recycle, remanufacture and
redistribution. Automobile industry thus can use the recycled materials for developing new car
products. Mahmoudzadeh, Mansour and Karimi (2013) argued that the reverse logistic is
associated with many risk like high investment risks, scattered location and complex design.
However, Dyckhoff, Lackes and Reese (2013) depicted that company can reduce their complaint
reports by adopting slack return and recall policy for the raw materials and components from the
automobile sellers.
2.2.4 Electric cars
Sierzchula et al. (2012) depict that it is important for an organization to save the natural
resources for the next generation by diminishing the use of such resources. Automobile industry
thus has taken the initiative to manufacture electric cars that run on electivity and will not use the
fuel. De Santiago et al. (2012) stated that for reducing the greenhouse gases disruption are the
one of the primary reason for developing hybrid and electric cars.
2.3 Rule from Australian government for design the cars
2.3.1 Australian Design Rules (ADRs)
According to the Australian Design Rules (ADRs), vehicle safety, anti-theft and
emissions are the primary aspects that the car manufacturer needs to incorporate in the car. These
aspects are developed under the legislation Motor Vehicle Standards Act 1989, which need to
follow not only for newly manufactured cars in Australia but also for imported cars and second

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hand vehicles in the time of manufacture and supply in Australian market (Infrastructure.gov.au
2018).
2.3.2 Australian Transport Advisory Council (ATAC)
Australian Transport Advisory Council (ATAC) focuses on the alignment of the vehicle
categories following the vehicle safety standards of ADR (Infrastructure.gov.au 2018).
Australian Motor Vehicle Certification Board (AMVCB) and Strategic Vehicle Safety and
Environment Group (SVSEG) are the two groups that assess all the aspect of the car
manufacturing and calculate the carbon emission calculation in order to pass a car in the market
(Industry.gov.au 2018).
2.4 Benefits of green supply chain management
2.4.1 Resource and money efficiency
Company adopts green technology for reducing waste by increasing efficiencies which
will saves the resources through recycling process and investment of cost in buying new raw
materials (Green Jr et al. 2012). Meixell and Luoma (2015) also stated that the automobile
industry can be certified a sustainable company, which can also gain the trust of the customers.
2.4.2 Competitive advantage
Amann et al. (2014) depicted that automobile company if followed green supply chain
management, their company is supported by the government and environment concerned
organizations. This will enhance their brand reputation and attract more customer base towards
their company.

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3.0 Summary
In Australia, government is more concerned about their environment and also has bodies
for assessing the quality of the automobile industry. These bodies are Australian Motor Vehicle
Certification Board (AMVCB) and Strategic Vehicle Safety and Environment Group (SVSEG)
and Australian Transport Advisory Council (ATAC) and regulation are also there that are Motor
Vehicle Standards Act 1989. It is also found that the drivers for the Green Supply Chain
Management are external drivers that are government, political bodies, NGOs and consumers
and internal drivers are stakeholder’s satisfaction. The assessment also found that the strategies
for green supply chain management can be attained through selection of the product, process and
production, reverse logistics design and electric cars. Lastly, the most effective benefits of green
supply chain management are resource and money efficiency and competitive advantage.

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4.0 Literature Review
Amann, M., K. Roehrich, J., Eßig, M. and Harland, C., 2014. Driving sustainable supply chain
management in the public sector: The importance of public procurement in the European
Union. Supply Chain Management: An International Journal, 19(3), pp.351-366.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for
sustainable supply chain management: Developments and directions. European Journal of
Operational Research, 233(2), pp.299-312.
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.

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Industry.gov.au., 2018. Review of Australia’s Automotive Industry. [online] Available at:
https://industry.gov.au/industry/IndustrySectors/automotive/Documents/
ReviewofAustraliasAutomotiveIndustry.pdf [Accessed 06 Jun 2018].
Infrastructure.gov.au., 2018. Vehicle safety & the environment. [online] Available at:
https://infrastructure.gov.au/vehicles/design/index.aspx [Accessed 06 Jun 2018].
Mahmoudzadeh, M., Mansour, S. and Karimi, B., 2013. To develop a third-party reverse
logistics network for end-of-life vehicles in Iran. Resources, Conservation and Recycling, 78,
pp.1-14.
Meixell, M.J. and Luoma, P., 2015. Stakeholder pressure in sustainable supply chain
management: a systematic review. International Journal of Physical Distribution & Logistics
Management, 45(1/2), pp.69-89.
Sierzchula, W., Bakker, S., Maat, K. and Van Wee, B., 2012. Technological diversity of
emerging eco-innovations: a case study of the automobile industry. Journal of Cleaner
Production, 37, pp.211-220.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a
structured literature review. International Journal of Physical Distribution & Logistics
Management, 45(1/2), pp.16-42.
Tseng, M.L. and Chiu, A.S., 2013. Evaluating firm's green supply chain management in
linguistic preferences. Journal of cleaner production, 40, pp.22-31.
Yu, W., Chavez, R., Feng, M. and Wiengarten, F., 2014. Integrated green supply chain
management and operational performance. Supply Chain Management: An International
Journal, 19(5/6), pp.683-696.