Supply Chain Management: Kerry Logistics and Green Procurement

This report analyzes green procurement within supply chain management, focusing on Kerry Logistics' practices. The introduction emphasizes the importance of green procurement, highlighting its environmental and financial benefits. The literature review explores green supply chain practices, green purchasing, and eco-design, providing a comprehensive overview of the topic. The case study examines Kerry Logistics' implementation of green procurement, detailing its environmental initiatives and supply chain solutions. The report highlights the company's commitment to sustainability through the Green Procurement process. Recommendations are provided to enhance energy efficiency, promote clean energy resources, and improve recycling capabilities. The conclusion reinforces the significance of green procurement in ensuring eco-friendly products, reducing waste, and improving competitiveness. The report aims to help students understand how to reduce cost, increase profit and also sustain in the competitive edge.

Running head: SUPPLY CHAIN MANAGMENT
Supply Chain Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive summary
The purpose of this paper is to discuss about Green Procurement related to Supply Chain
Management. The report aims to have emphasis on Kerry Logistics’ procurement practice of
being environment friendly by increasing the production of eco-friendly products which are safe
for human health as well as away from risk. The report further aims to discuss about company’s
implementation of Green Procurement and it recommends the company with the advise to
improve with its sustainability through Green practices in future related to its manufacturing and
production. The paper also aims to include the supply chain solutions to the stakeholders of the
company.

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Table of Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................3
Green Supply Chain Practices......................................................................................................3
Green Purchasing.........................................................................................................................4
Eco-design....................................................................................................................................4
Chronology of Green Supply Chain Management.......................................................................4
Case study........................................................................................................................................5
Supply chain management and environment...............................................................................5
Green Procurement system in environmental conservation and its improvement.......................5
Green Procurement practice of Supply Chain providing solutions..............................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8

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Introduction
The purpose for choosing this topic is to make clear study about green procurement of
supply chain management (Chin et al., 2015). This topic emphasizes on importance of green
procurement supply chain management for organization. The company uses Green Procurement
supply chain management such that purchase of products do have less negative impact on
environment as well as on human being’s health. This would include use of operations,
manufacturing as well as raw materials required for production process. The topic has also been
selected to know that using green procurement system how an organization can get rid of
financial as well as environmental risk. Importance of the topic lies on how green procurement
system can be benefitting in terms of eco-efficiency, management of risk and also how it can
bring about improvement into performance of the environment. It also shows that if green
procurement is used for healthy environment purpose in that case how well procurement process
can lead to reduction of wastes and how does it bring about reduction in costs (Blome, Hollas &
Paulraj, 2014). Green procurement process of supply chain emphasizes on ethics as well as on
economic related concerns.
Literature review
Green Supply Chain Practices
Green Supply Chain Practices is used to motivate organization activities with
environmental management using environment management practices through supply chain
system and helps to maintain good relationship between organization and its suppliers(Lee,
2008)

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Internal wellbeing as well as environmental sustainability is based upon external environment
(Vachon and Klassen, 2006)
Establishment of green practices meets the requirement of customers relating to the
products as well as services without having negative impact on environment and that support
green practices of supply chain management of the organization (Vachon and Klassen, 2008)
Competitive advantage can be obtained by organization through green practices of supply
chain and get into environment sustainability (Eltayeb, 2009)
Green Purchasing
There is some recognized study by authors related to green market, green customers as
well as green products (Shawnee, 2012)
The key reasons behind why organizations are establishing and implementing green
practices are due to cost reductions and making of eco-friendly products as well as for good
marketing prospects (Eltayeb, Zailani and Jaya Raman, 2009)
Green purchasing leads organizations to continue in long-run to increase their brand
value (Shi et al., 2012)
Green purchasing gives commitment to the supply chain mangers for sustainable
development as well as to be free from environmental risks (Kumar et al., 2009)
With respect to environment concerns of the manufacturing firms green purchasing helps
in enhancement of environmental management (Diabat and Govindan, 2011)

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Eco-design
The use of eco-design into designing of products to make it environment friendly and
movement of product in supply chain (Handfield etal., 2002)
The manufacturing industry, teamwork as well as retailers and suppliers impacted into
positive environmental performance (Cheng and Shiu2012)
Development of eco-design facilities for increasing environmental performance to bring
about enhancement in supply chain for managing of product and decreasing environment risk on
products(Zhu et al.,2008)
All due to Increase in standards of customer’s consciousness relating to concerns of the
environment, organizations should change actions into eco-design in order to get competitive
advantage (Lauring and Thomson 2009)
Chronology of Green Supply Chain Management
According to Jason and Harnfield (2008) Green Supply Chain Management says that
EMS takes initiatives to reduce environment risk.
According to Fiksel (1996) organizations should be eco-friendly with their products and
services and should have supply chains for the benefits of reverse logistics
Green Supply Chain management does have aim towards reduction of waste as well as
improve product life quality (Ashley, 1993; Shrivastava, 2007)

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Case study
Supply chain management and environment
The company Kerry Logistics is connected with more than 50 countries as well as
territories. Through its strong distribution network, it provides with facilities of logistics to these
countries. The company has very close relationship with suppliers like shipping companies as
well as airlines companies that support them with logistics facilities. Kerry logistics in order to
have more reliability related to its service and flexibility uses model of asset ownership
(Ameknassi, Ait-Kadi &Rezg, 2016). Kerry logistics takes the responsibility for management of
environmental footprint for serving the purpose of logistics facilities related to self-own
(Hussain, Clapper & Doostdar, 2017). Through management of emissions, optimization of
resource usage as well as protection of natural environment company aims to make its operations
greener through the Green Procurement process of supply chain (Bag, 2016).
Green Procurement system in environmental conservation and its improvement
In the year 2018 Kerry Logistics had participated in Green Power Hike in order to
encourage green practices by raising funds (Acharya &Aithal, 2015). The company takes
responsibility towards management of environmental footprint related to logistic facilities for
self-own and operates using asset ownership model in order to create their service flexibility and
involves environment awareness related to this (Hussain, Clapper& Doostdar, 2017). Optimum
use of resources using green procurement helps Kerry Logistics to make their operations more
greener and environmental friendly. For further improvement as well as for awareness the
company has established for EMS accreditation of ISO14001 as a standard and has then
implemented it in the year 2018 to carry on its business in Hong Kong as well in Singapore
(Daddi et al., 2015). The company has set up Green Committee at Hong Kong with all head of

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the departments as well as with business units to take initiatives towards environment. Annual
Green Program has been implemented by the Committee for bringing about improvement in
performance related to environment important for their logistics operations (Peng & Jim 2015).
Through Group Environmental Policy it took initiative towards minimization of
environmental footprint and optimization of waste management (Marausek, 2014). Kerry
Logistics had participated in Pilot Green Transport Fund in order to support testing of green
technologies related to local public transport sector (Tan et al., 2018). Company’s business of
logistics is currently working with green road freight operations. Kerry Logistics headquarter
Hong Kong uses and maintains well Green Specification List with the help of environment
friendly equipment in order to help out sustainable procurement practices. The company makes
use of renewable energy in their operation system for reducing carbon footprint of their logistics
business (Budzionowski & Postawa, 2017).
Green Procurement practice of Supply Chain providing solutions
For Kerry Logistics supply chain system is becoming complex as well as multi-
dimensional. In several countries the company is creating support with its sourcing,
manufacturing as well as distribution activities. In order to meet as well as fulfill the
requirements and needs Kerry Logistics provides with easy solutions. New models to facilitate
operations are established by management teams and they also provide solutions to global
customers starting from consultation to implementation as well as evaluation. Company provides
benefit through Green Procurement System of Supply Chain by reducing inventory, create short
period of lead time to market, leading to increase in cost-efficiency (Chopra & Sodhi, 2014). At
the global level Kerry Logistics is achieving its strategic needs with the help of long-term
partnership as well as competitive advantage related to cost (Lai & Cheng, 2016). Kerry

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Logistics has a belief within itself that sustainability using Green Procurement is the key to their
success (Wolf, 2014). Through this they are being able to create long-term value for their
stakeholders that have leaded them towards growth of their business as well. Hence, they are
creating value for their customers through green environment practices of supply chain and
company is well sustaining in the competitive edge. Kerry Logistics through Green Procurement
practice has been able to build trust with its customers as well as suppliers (Dodds & Holmas,
2016).
Recommendations
It is recommended to the company to continue further with Green Procurement practice
such that it can bring about more and more enhancement in the brand image with its products. It
should bring about increased customer satisfaction and reduction in risks. Further it is
recommended to the company Kerry Logistics to use Green Procurement practice of supply
chain to increase energy efficiency in the coming years of future. It is also recommended to
follow the green practices for utilization of clean energy resource or for new technologies that
would be developed in future. Further, there should be improvement brought relating to the
ability of recycling in the coming years. It is the advised to the company to maintain the quality
of its product with reduced cost but that is free from environment risk and at the same time
increases the growth and profitability in future period of time. It is further advised to avoid
supply chain risks by avoiding PR disaster. Without abiding with environmental standards and in
order to somehow increase sales the company should not get involved in malpractices of supply
chain.

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Conclusion
It can be concluded from the above discussion that Green Procurement practice related to
Supply Chain Management is quite important as well managed procurement would ensure the
supply of needed quantity of products which are environment safe, free from risks as well as safe
for human beings. Supply chain management through Green Procurement process helps to sell
products and at the same time increase growth as well as profit and reduce cost for eco-friendly
products. This procurement will help to reduce waste by use of such inputs that would be
generating less waste. Green Procurement practice of supply chain should manufacture eco-
friendly product to mange demand well of the customers. It should improve its own
competitiveness in the market as well as be efficient for suppliers as well as its others
stakeholders. It can also be found from the above discussion about Kerry Logistics green
practices participation and how it is useful for its sustenance in future. Further, Kerry Logistics
uses green practices to be environment friendly with its products in order to retain its customers
as well as suppliers can also be found in the above discussion.

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Reference List
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technology. International Journal of Conceptions on Management and Social
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Ameknassi, L., Aït-Kadi, D., & Rezg, N. (2016). Integration of logistics outsourcing decisions in
a green supply chain design: a stochastic multi-objective multi-period multi-product
programming model. International Journal of Production Economics, 182, 165-184.
Bag, S. (2016). Green strategy, supplier relationship building and supply chain performance:
Total interpretive structural modelling approach. International Journal of Procurement
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Blome, C., Hollos, D., & Paulraj, A. (2014). Green procurement and green supplier
development: antecedents and effects on supplier performance. International Journal of
Production Research, 52(1), 32-49.
Budzianowski, W. M., & Postawa, K. (2017). Renewable energy from biogas with reduced
carbon dioxide footprint: Implications of applying different plant configurations and
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Chcpra, S., & Sodhi, M. (2014). Reducing the risk of supply chain disruptions. MIT Sloan
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Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green supply chain management, environmental
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Daddi, T., Frey, M., De Giacomo, M. R., Testa, F., & Iraldo, F. (2015). Macro-economic and
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