Importance Of Green Supply Chain Management

INTRODUCTION

Environmental pollution is the major problem that people faces in present state. Global pollution and improved awareness are motivating customers to look for better living standards. ‘Green’ principles and strategies have become essential for companies as public awareness of their environmental impacts has increased. Today clients are gradually more health conscious and actively support greener lifestyles. Green supply chain management is also recognized as sustainable supply chain management or environmental supply chain management. Green supply chain management (GSCM) is about making the entire supply chain more environmental sustainable. Here environmental sustainable terms use for laws, goods and services, guiding principle

The concept of GSCM is to integrate environment into supply chain management (SCM) including product design, material sourcing and selection, manufacturing process and delivery of final product to the consumers and end-of-life management of the product after its useful life. GSCM aims to reduce or eliminate wastages including hazardous chemical, emissions, energy and solid waste along supply chain. As such, GSCM plays a vital role in prompting the total environment impact of any firm involved in supply chain activities and thus contributing to sustainability performance enhancement. The very first green supply chain came into context in 1989. Kelle and Silver’s (1989) article was the first of this literature that developed a best forecasting system for organizations to use to forecast products that can be potentially be reused. Green supply chain has gained popularity with both academics and experts to aim in reducing waste and preserving the quality of product-life and the natural resources. Eco-efficiency and re-manufacturing processes are now become important resources to achieve best practice (Ashley, 1993; Srivastava,

• GSCM works on the principle of recycling so increases asset utilization.

• GSCM enhanced customer services, when business goes global, chances of profit and sales increases as more customers are available.

Social Benefit:

• GSCM reduces community impact

• Competitive advantages can be seen in GSCM

• GSCM helps noise reduction.

• Traffic congestion avoidance can be achieved through GSCM.

• Ultimately, health, safety and security measures achieved.

Organizations with Green Supply Chain Management

• Texas Instruments: Save 8 million dollars every year by reducing its transits packaging budget for its semiconductor business through source reduction recycling and use of reusable packaging system.

• Commonwealth Edison: Produces $50 million in financial benefits for managing materials and equipments with life cycle management approach.

• Pepsi/Coke: Saved $44 million by switching from corrugated to reusable plastic shipping containers for 1litre and 200 ounce bottles, conserving 196 million pounds of corrugated material.

• Dow Corning: Saves $2.3 million by using recondition steel drums in1995 and also conserved $7.8 million pounds of