Question

As a supply chain manager at a medium-sized family business that manufactures shoes and wishes to recommend that the company adopt green supply chain practices.

Make a report to the organisation’s management to present your perspective and the benefits of green supply chain practices?

Answer 1

answer-

According to me, Green supply chain is the practice in which Company can integrate ideas to make supply chain as environment friendly chain. in this company would be able to reduce its carbon footprints so that supply chain do not harm our environment. Green Supply Chain Management is all about delivering products and services from suppliers, manufacturers to end customers through material flow, information flow and cash flow in the context of environment.

Today's Green Supply chain management mandates to incorporate the environmental idea in each and every stage of the product and service in a Supply Chain.

practices to build Green Supply Chain

Product Selection: Designing the shoe product in such a way that it should be safe for use, creating least pollution and consumes less energy. It should not be hazardous during storage, transportation and also while disposing once it reaches end of its product life cycle. DFE (Design for Environment) is about developing products that has no negative side effect for human and environment, cost effective and environment friendly. This practice has to be implemented in product design stage.

Process and production: Process has to be designed so that it conforms to the Green Supply Chain Management initiatives to reduce environmental negative impact. Efficient and effective production strategy to reduce energy consumption which includes reducing waste material, air and water emissions. This contributes to lean manufacturing. All possibilities have to be checked for recycling the Scrap materials.

Packaging Material: Replacing package materials which are eco-friendly. Fumigation certificate should be obtained for international shipments for wooden pallets and crates. Packaging material has to be designed in such a way it can be re-used and re-cycled. Packaging should be robust so that any hazardous material inside it doesn't spill over and cause environmental hazard. .

Information Technology: A Green approach to IT has to be achieved through various automatic processes thereby reducing carbon foot prints. Paper usage has to be minimized through automatic invoice/payment processing. Using EDI for creating/transmitting orders.

Benefits of adopting above green supply chain practices are-

• Sustainability of Resources

Green Supply Chains sponsor the effective utilization of all of the available productive resources of organizations. By incorporating Green Supply Chain Management thinking through their entire business decision making process, organizations may now purchase green input resources that will flow through environmental friendly production process to produce the desired green outputs.

• Lowered Costs/Increased Efficiency

At the core of Green Supply Chain Management is the principle of reducing waste by increasing efficiencies. Effective management of resources and suppliers, can reduce production costs, promote recycling and also, the reuse of raw materials. Also, the production of hazardous substances can be reduced, thereby preventing organizations from being fined as a result of violating environmental regulations.

Consequently, the relevant operational costs are reduced whilst; the efficiency of using resources is improved.

• Product Differentiation and Competitive Advantage

It helps an organization to position itself and its products as environmentally friendly in the customers’ perception. Besides attracting new profitable customers for organizations, it will give competitive edge over the competitors in the market place. It will also strengthen the brand image and reputation in market place.

• Adapting to Regulation and Reducing Risk

Organizations adopting Green Supply Chain practices can reduce the risk of being prosecuted for anti-environmental and unethical practices. A demonstrated effort towards creating an effective Green Supply Chain through the sustained dedication of resources, activity, measurement and management protocol, will be highly regarded in the event that any questions arise.

• Improved quality and products

Organizations that produce products which are technologically advanced and environment friendly will find this will enhance the brand image and brand reputation in customers’ mind.

Conclusion-

I can say that Green supply chain will help your business to grow. it would make your business cost lower as much as possible. Your company would be seen as Socially responsible company in the eyes of stakeholders(customers, suppliers,community, government etc)