Green Supply Chain Management in Small Medium Enterprises Report

This report delves into Green Supply Chain Management (GSCM) within Small and Medium Enterprises (SMEs), examining its significance and implementation. It begins with an introduction to supply chain management and GSCM, emphasizing the environmental benefits and the role of ...Read More

GREEN SUPPLY CHAIN MANGEMENT IN SMall MEDIUM
ENTERPRISES

NAME:
TITLE OF COURSE:
MODULE CODE:
MODULE NAME:
LECTURER’S NAME:
Date: __________
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TABLE OF CONTENTS
1. INTRODUCTION...............................................................................................................................3
1.1 SUPPLY CHAIN MANAGEMENT:..........................................................................................3
1.2 GREEN SUPPLY CHAIN MANAGEMENT:...........................................................................3
1.3 SMALL and MEDIUM ENTERPRISE:....................................................................................3
2. STUDY...............................................................................................................................................4
2.1 Practices that can be learned from theories and implementation of green supply chain in
SMEs......................................................................................................................................................4
2.2 Advantages and disadvantages for SME to implement Green Supply Chain Management:
.................................................................................................................................................................5
2.3 ‘SME’ WHO IMPLEMENTED GREEN SUPPLY CHAIN:..........................................................6
3. CONCLUSION..................................................................................................................................7
4. REFERENCE....................................................................................................................................8
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1. INTRODUCTION
1.1 SUPPLY CHAIN MANAGEMENT:
Supply chain management is that chain of management which takes place from initiation to
consumption of a product. This process involves the movement of goods and services at all
levels. All the tasks including procuring and storing the raw material, production of goods and
services, storage of finished goods, distribution and consumption by consumers forms a supply
chain. It takes place to create value at every level, for the company and to coordinate supply
with demand. ("Supply chain management", 2016)
1.2 GREEN SUPPLY CHAIN MANAGEMENT:
Green supply chain management (GSCM) is an evolution of supply chain management. It was
generated as a result of various types of pollution caused by the industries which were affecting
the ozone layer. It focuses on carrying out the supply chain activities without harming the
environment. And it also works on reducing the harmful effects or abolish the wastages like the
solid & liquid waste, emissions, hazardous chemicals, harmful gasses, etc. done by the
industries. It plays a very important role in influencing the impact of any firm performing supply
chain management on the environment. (Chin, Tat, & Sulaiman, 2015)
GREEN SUPPLY CHAIN = procurement of raw material + storage of raw material + production
of goods + storage of finished goods + marketing + distribution of final product
1.3 SMALL and MEDIUM ENTERPRISE:
SMEs are those businesses whose personnel number and capital investment fall under a
certain limit. These enterprises are considered to play a vital role in developing economies. In
many economies, SMEs are the main reason for high employment. As per Ayyagari et al.
(2007), SMEs are a reason for contributing 50% of GDP on average in high-income countries.
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2. STUDY
2.1 Practices that can be learned from theories and implementation of green supply chain in
SMEs
Practices that can be learned from theories of green supply chain in SMEs:
Green supply chain gives a wider view for companies to work in an environment-friendly manner
and the theories of GSCM educated the companies for why should they opt for a green supply
chain. The theories teach us various forms or practices in which SMEs can implement GSCM
into their businesses. By focusing on the environmental issues a company can differentiate from
its customers and can gain the competitive advantage over its competitors, it also increases the
awareness among the employees and workers of the company regarding the environmental and
social responsibility. By incorporating green supply chain in any business's supply chain, there
will be a great reduction of solid waste, hazardous gasses and greenhouse gas emissions within
the supply chain.
The GSCM will help in improving the productivity of the company while improving the
environment. Setting goals for the environment improvement will help in improving the
company’s image as well as the economic growth. With more responsible consumption and
production of products will help in the improvement of environment quality.
Practices that can be learned from implementation of green supply chain in SMEs:
Some practices are way beyond theories which means you'll not be able to understand certain
situations until you experience them. So, the practices which we can learn by implementing the
green supply chain include various situations and solutions for improving the environment and
economy. The use of GSCM will help us in decreasing or abolishing the wastage done in the
production process by utilizing all the resources optimally. The company must check with the
other businesses it wants to deal with as the others including the suppliers and distributors must
also focus on environmental issues. The awareness of supplier about the environment while
performing the operations plays a vital role.
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SMEs can also go for the Alliance for producing new products and solutions for the
environmental issues with a company also concerned about environmental protection, if they
feel it will be much easier for them to perform such activities together as sometimes these
activities cost higher than operating a traditional supply chain. With the increased awareness
among business owners, the company must also concern about educating the employees and
suppliers about the optimum utilization of resources, reducing the pollution, etc. So that the
overall supply chain management must be a success regarding resolving the environmental
issues that might have been occurred if the company was not aware of the green supply chain.
At procurement level, the company must choose only the required number of raw material rather
than order more than needed; at production level, the company must use optimum technology
to use resources to the fullest and must also use recycled material, etc. The company should
refine its suppliers to help the company in producing environment friendly products. This
adoption of GSCM will help in economic growth and poverty reduction with improved health and
safety of employees. ("GREEN SUPPLY CHAIN MANAGEMENT- A REVIEW", 2016)
2.2 Advantages and disadvantages for SME to implement Green Supply Chain Management:
Advantages for SME to implement Green Supply Chain Management:
 Use of cleaner and better technology
 Less or no wastage of resources
 Reduction in number of accidents and health problems to workers
 Increased awareness among employees and suppliers
 Competitive advantage to the company
 Better economic performance
 Reduction in pollution and hazardous waste
Disadvantages for SME to implement Green Supply Chain Management:
 Less number of suppliers available concerning environmental issues
 Low knowledge of environmental concerns to employees
 Lack of organizational acceptance
 Resistance to new and advanced technology
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 Market uncertainty
 May require extensive cost
 Lack of awareness among customers
2.3 ‘SME’ WHO IMPLEMENTED GREEN SUPPLY CHAIN:
SHAKLEE
Shaklee is a little-known company which produces nutrition products naturally and is considered
to be the first SME to obtain Climate Neutral™ certification in the world and to eliminate the co2
emissions totally from their company which resulted in absolutely no impact on the environment.
And this made SHAKLEE come up on any list related to businesses that focus on their supply
chain. This company was initiated by Dr. Forrest C. Shaklee with a philosophy of living in a
healthy environment with harmony to live healthily and happily. Shaklee is popular for going
above industry standards to tackle carbon reduction to make sure green operations in the
company. The company is only related and works with the businesses including the suppliers
and distributors, with the world positive and environmental standards. ("Top 10 green supply
chains", 2016)
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3. CONCLUSION
By conducting the above project, it can be undoubtedly said that small and medium enterprises
are a great help for any economy especially developing economies to grow as they support a
considerable amount to the GDP of an economy. And in such a scenario when the SMEs will
start to adopt and implement a green supply chain management, the environmental growth with
economic growth will also foster. GSCM are a great way and were initiated to prevent
hazardous gasses, solid waste, green gas emissions, toxic waste, etc., that are done by various
industries especially, manufacturing industries. It is a great way to help the environment by
protecting the ozone layer and preventing global warming, and also to give the company a
competitive advantage over others.
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4. REFERENCE
 Supply chain management. (2016). Wikipedia. Retrieved 6 August 2016, from
https://en.wikipedia.org/wiki/Supply_chain_management
 Chin, T., Tat, H., & Sulaiman, Z. (2015). Green Supply Chain Management,
Environmental Collaboration and Sustainability Performance. Procedia CIRP, 26, 695-
699. http://dx.doi.org/10.1016/j.procir.2014.07.035
 GREEN SUPPLY CHAIN MANAGEMENT- A REVIEW. (2016). Academia.edu.
Retrieved 6 August 2016, from
http://www.academia.edu/5285983/GREEN_SUPPLY_CHAIN_MANAGEMENT-
_A_REVIEW
 Top 10 green supply chains. (2016). Supplychaindigital.com. Retrieved 6 August 2016,
from http://www.supplychaindigital.com/top10/2522/Top-10-green-supply-chains
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