Green Supply Chain in Automobile Industry Green SCM v/s Conventional Life Cycle Thinking BENEFITS OF GREEN SCM Pollution Prevention Hierarchy Green Back-end Supply Chain of Maruti India Green Procurement Guidelines Tier 1 Barriers to implement GSCM in Indian Automobile industry Comparison of Lean Manufacturing with GSCM

1. Green Supply Chain in Automobile
Industry
Prepared By:
Nishant Agrawal
Urmi Khatri

2. What is GSCM ?
 Green supply chain management can be defined as integrating
environmental thinking into supply-chain management, including
• product design,
• material sourcing and selection,
• manufacturing processes,
• delivery of the final product
as well as end-of-life management of the product after its useful life.

3. Why Green SCM?
 Greater environmental concern and awareness.
 Modern thinking – collaboration of environment and
industrialization.
 Sustainable development is integral part of GSCM.

4. Green SCM v/s Conventional
Green SCM Conventional
Objective Economic & Ecological Economic
Costing & Pricing High Low
Speed & Flexibility Low High
Supplier Selection Criteria Long term relation Short term relation
Ecological Impact Low High
Consumer’s selection
Criteria
Less preferable due to high
pricing
More preferable due to low
pricing

5. Life Cycle Thinking

6. Life cycle Analysis Environmental
conscious analysis

7. Enablers Brief Description Researchers
Top management commitment Top management commitment is dedication to empower people to
change, the progress to ensure core manufacturing strategies ,
business strategies.
Hamel and Prahalad; Digalwar and Metri; Ravi and
Shankar;
International agreement An international environment agreements means green practices
should be promote at international platforms e.g. SAARC,WHO
etc.
Chien and Shih; Yu; Chien and Shih
Supplier Motivation Involvement of the suppliers in design process and technology
affects overall performance of whole chain.
Digawar and Metri; Ravi and Shankar; Sarkar and
mohapatra
Awarness level of customers Customer’s awareness means if customer wants green products;
the company has to change technology for innovative green
products.
Lamming and hamapson ;Duber Smith ; zhu and
sarkis
Environment Literacy among supply
chain distribution networks
Environment literacy is the understanding of environmental issues
to implement GSCM
Revell, and Rutherford; Mudgal
Supportive Company Policies
towards GSCM
Supportive company policies means policies that encourage or
motivate to implement GSCM
Mudgal
Economic Interests Economic interests means lowering costs by reducing waste and Lamming and Hamapson; stevels; Duber

8. Enablers Brief Description Researchers
Information Technology Enablement An efficient information technological system is necessary for
effective communication and supporting the GSCM
Jharkhariaand Shankar;Ravi and Shankar
Technology advancement and
Organization adoption
Technology advancement and organization adoption is
advancements in machinery and equipment to improve the
products and services to increase the environmental
performance to achieve GSCM
Gant; Digalwar and Metri;
Organization Encouragement Organization encouragement is to motivate the employees by
providing incentives or other benefits to achieve efficient GSCM
Sarkis
Quality of human Resources Quality of human resources means well qualified and professionals
to implement effective green practices.
Ravi and Sankar ; Sarkiset. Al.; Mugdal
Government Support systems Government sets the environmental regulations for industry
government support system means industry friendly governmental
policies to promote GSCM.
Scupola; and Hui; MudgaL
Innovative green practices Innovative green practices means use of those practices which are
not/less harmful to the environment e.g green design, green
Yu; Zhu , Hsu

9. BENEFITS OF GREEN SCM

10. Pollution Prevention Hierarchy

11.  Maruti has laid down robust sourcing
processes and procedures that
include competitive bidding and
evaluation of new supplier by all
concerned departments
(Engineering, Quality & Supply
Chain) before inclusion in the
company's supplier list.
Green Back-end Supply Chain of Maruti India

12. Green Procurement Guidelines Tier 1
 As per the guidelines, the tier-l suppliers are required to submit the
Green Procurement Agreement, Environment Compliance Sheet and a
copy of ISO 14001 certificate to the Company.
 So far, 150 agreements have been received by the Company. As on
March 2014, 85% suppliers were ISO 14001 certified. Maruti Centre
of Excellence (MACE) was set up by the Company along with 21
suppliers in 2004.
 Up gradation of Tier-II suppliers was in focus during the year. The
Company involved its Tier-I suppliers in improving the parts quality
sourced by them from Tier-II suppliers. The company has laid stress
on local suppliers.
 Nearly 78% of the supplier base by value is located within a 100 km
radius of the company

14. Hero MotoCorp
 Company has taken several initiatives
towards conservation of energy and
carbon reduction during the year 2016-17
 Company has very aggressive plans for
expanding its renewable energy base,
total solar PV capacity has been
enhanced to 5.6 MW.
 100% LED lights are installed in all latest
plants and 40% of the conventional lights
of existing plants have changed to LED.
Bajaj
 All factories are operational with a water
treatment facility to divide domestic and
industrial wastage ensuing in better
quality of treated water.
 The treated water is recycled again make
sure that water is reused.
 90% of the power used for manufacturing
in Maharashtra plants is resulting through
wind energy

15. Mahindra
 Mahindra is already leader in solar energy
business
 Contribution expertise in Energy, Build
Solutions and Engineering, company have by
now commissioned over 256 MW of solar
projects and have more than 288 MW of
projects under implementation.
 Government of India’s goal of rising solar
power generation to 100,000 MW by 2022
 first automobile factory to receive a platinum
rating from Indian Green Building Council.
Tata Motors
 In Jamshedpur around 50 percent of shop
floor roofing is covered by polycarbonate
sheets to increase natural light which reduce
daytime light load.
 Tata Motor’s plants recycled 1,450,140 L of
water
 Company is working on different types
Hybrid vehicle like Hybrid bus, Fuel cell bus,
etc all electric small commercial vehicle is
under expansion for North America and
Europe

16. Ashok Leyland
 Company also showcased India’s first Hybrid
Electric Vehicle in 2002.
 they launched India’s first CNG Hybrid Plug-
in Bus which uses a combination of electricity
and CNG in 2010
 Company set up project in all Units where
1.28 million liters of water is redeeming
from sewage every day.
 Company also developed Waste Treatment
project which uses waste to produce usable
by product
Suzuki
 Suzuki India reveals in its 2016 report that
1,014 ton of CO2 offset emission
reduction through 1 MW solar power
plant, 96% energy generated from natural
gas-based captive power plants, 50% water
recycled and reused.
 Company developed solar plant of 1 MW
capacity in Manesar in 2013-14 which
generate 1319 Mwh of electricity in 2014-
15

17. Barriers to implement GSCM in
Indian Automobile industry
 Lack of IT implementation
 Resistance to technology advancement adoption
 Lack of organizational encouragement
 Poor quality of human resources
 Market competition and uncertainty
 Lack of Government support systems
 Lack of implementing green practices
 Lack of top management commitment
 Cost implications
 Supplier reluctance to change towards GSCM
 Unawareness of customers

18. Comparison of Lean Manufacturing with
GSCM

19. Environmental Performance Index (EPI)
 It measures the effectiveness of national environmental protection efforts .
 EPI indicators focus on measurable outcomes such as emissions rates rather than
policy inputs
Rank Country
Finland 1st
Iceland 2nd
Sweden 3rd
UK 12th
USA 26th
China 109th
India 144th

21. SUCCESS STORIES:

22. Recommendation
&
Conclusion

23. Thank you..!!!!
“Its Not Organization that are
competing ,
It’s the GSCM that are competing”
- Wael Safwat