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Green supply chain management


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Published in: Business, Technology

Green supply chain management

  1. 1. P R E S E N T A T I O N O N“ C O N C E P T O F G R E E N S U P P L Y C H A I N M A N A G E M E N TA N D U S E O F I . T I N I T ”S U B M I T T E D T O : S U B M I T T E D B Y :D R . A K A N S H A S I N G H I S U R A B H I K A U S H A LP R O J E C T G U I D E M . I . B ( 4 T H S E M )School Of EconomicsDAVV
  2. 2. IntroductionGreen Supply chainmanagementEnvironmentalManagementSupply chainmanagementGreen SCM recognizes thedisproportionate environmentalimpact of supply chain processesin an organization.
  3. 3. Green SCM leverages the role of the environmentin SC value creationEmployeeSatisfactionEnvironmentalSustainabilityCommunityQuality of LifeGreen SupplyChain Programs Supply ChainValueProfitabilityAsset UtilizationService LevelCustomerReputationContinuityAlliancesTechnologyTangible OutcomesIntangible Value DriversStakeholderInterestsEnvironmental ValueDrivers
  4. 4. The product life cycle is the basis of green supplychain management
  5. 5. Companies are starting to view GSC as a strategicanalysis tool.Source ReductionRecycle/ReuseControlTechnologyDisposalPollution Prevention HierarchyLongtermShortTermStrategicTacticalThePollutionPreventionHierarchygauges thevalue ofenvironmental programs.
  6. 6. Green supply chain best practices focus on thebusiness results first Align green supply chain goals with business goals Evaluate the supply chain as a single life cycle system Use green supply chain analysis as a catalyst forinnovation Focus on source reduction to reduce waste
  7. 7. Green supply chain management is a driver forprocess improvements In general, pollution and waste representincomplete, ineffective, or inefficient use of rawmaterial. Green supply chain analysis provides an opportunityto review processes, materials, and operationalconcepts. As with continuous improvement programs, greensupply chain analysis targets: Wasted material Wasted energy or effort Under-utilized resources
  8. 8. Use Of Information Technology inGSCM
  9. 9. IT on Purchasing The use of the IT in managing a supply chain purchasing inthe supply chains includes The communication with vendors, checking particularlyimportant for a company catalogues. Vendor negotiation has also been streamlined through the useof the IT. This includes the bargaining, services firm or a consultingoperation, the supply chain renegotiation, price and termagreements. The receipt of queries from vendors, providing vendors withinformation and the processing of returns and damaged goodswere all handled by the IT. The other more popular use of the IT in supply chains is inorder processing applications.
  10. 10. IT on Operation One of the most costly aspects of supply chains is themanagement of inventory. The research has shownthat the most popular use of the IT in this area is thecommunication of stock outs by customers tovendors Production scheduling has traditionally been themost difficult aspect of SCM. The IT has enabledfirms to minimize the difficulty in their productionscheduling by improving the communicationbetween vendors, firms and customers.
  11. 11. IT on Logistic: The Transportation typically is the highest costcomponent in most popular use of the IT in supplychains is in the management of transport a supplychain, according to literature review The research showed that the monitoring of pickupsat regional distribution centres by carriers is themost popular application of the IT in this area
  12. 12. IT on Customer Relationships: Many management experts argue that, by focusingon total customer satisfaction, a company canimprove its processes to deliver better service at alower cost. Customer-satisfaction driven is oftendescribed as the next step beyond TQM, total qualityma but to deliver total satisfaction to the customer,of which management: the objective is not simply todeliver some abstract definition of quality but todeliver total satisfaction to the customer, of whichthe delivery of quality is only a part.
  13. 13. The green supply chain data framework Collect Optimize Report
  14. 14. Green supply chain efforts need to rise above thecost center view Green supply chain projects need to be clearly defined interms of the business value to the organization. Clear value will gain senior management support. Clear value will help secure buy-in from other organizations Environmental programs are viewed as business cost centers. Environmental, safety, and health (ESH) resources are often scarce in anorganization. ESH offices are targeted early during cost cutting programs. ESH offices have difficulty articulating their business value. The inability to articulate the value of green supply chain effort inbusiness terms lowers their profile. Many executives have misconceptions of how green supply chain effortswill impact their operations. Without a clear business value proposition, it is difficult to get executivesupport for projects
  15. 15. Implementing Green supply chain properly willdrive real business value Green supply chain concepts manage environmentalimpacts where they occur—ideally before they occur. Best practices focus on the business, not social, value thatgreen supply chain management creates. Align green supply chain goals with business goals Evaluate the supply chain as a single life cycle system Use environmental analysis as a catalyst for innovation Focus on source reduction to reduce waste Successful implementation requires raising the profileand perceived value of environmental projects. Articulate project value in terms of business value Create the project to work within the organizational culture Use effective tools (e.g., Green SCOR) to enable project execution