1. Green supply chain management (GSCM) involves addressing the environmental influence of supply chain activities from procurement to distribution to reverse logistics. 2. Key trends in GSCM include reducing carbon emissions, optimizing supply chain networks, reducing paper usage through automation, and green warehousing practices. 3. Research on GSCM implementation in electronics firms measured practices through manager surveys and found promoting ecodesign, controlling hazardous substances, and expanding product lifespans increased GSCM performance.

1. Green Supply Chain Management
Leonard Merari 122140085
Firdaus Albarqoni 122140058
Ricky Agustinus 122140126
Indrawan Mulia 122131052
Rama Kresandi 122131136
M.Dimmitri 122140171
Dharma Putra Rambe 122140161
ECONOMIC AND ENVIRONMENTAL MANAGEMENT

2. Overview Green Supply Chain Management1
Trends Green Supply Chain Management2
Literature Green Supply Chain Management3
Case Study : Benefit Cost Analysis GSCM4
Summary5
Content
1Economic and Environmental Management MM Trisakti – July 2015

3. Overview
Supply Chain Management
(Council of Supply Chain Management Professionals)
Supply chain management encompasses the
planning and management of all activities involved
in sourcing and procurement, conversion, and
all logistics management activities
Economic and Environmental Management MM Trisakti – July 2015
Logistics Management
(Council of Supply Chain Management Professionals)
Logistics management is that part of supply chain
management that plans, implements, and
controls the efficient, effective forward and
reverses flow and storage of goods, services and
related information between the point of origin
and the point of consumption in order to meet
customers' requirements.

4. Economic and Environmental Management MM Trisakti – July 2015
Overview Source : “Performance measurement for green supply chain management”. Emerald Group Publishing
Limited. Benchmarking : An International Journal, Vol. 12 No 4, 2005.
Green Supply Chain Management (GSCM)
Adding the “green” component to supply chain management involves addressing the influence and
relationships of supply chain management to the natural environment. Motivated by an environmentally-
conscious mindset, it can also stem from a competitiveness motive within organizations.
Green Supply Chain Management (GSCM) defined as :
= Green Purchasing + Green Manufacturing / Materials Management + Green Distribution / Marketing +
Reverse Logistics

5. Overview
Green Logistics
Green logistics consists of all activities related to the eco-efficient management of the forward and reverse
flows of products and information between the point of origin and the point of consumption whose purpose
is to meet or exceed customer demand
Source : Green Logistics : Global Practices and their Implementation in Emerging Markets, 2011
Economic and Environmental Management MM Trisakti – July 2015

6. Trends
Decrease carbon usage across supply chain.
Green purchasing practices with choose the right
suppliers, Company send RFP (request for
proposals) include very specific questions as a part
of its selection criteria — everything from “What’s
your carbon-neutral strategy?” to “We’re looking to
lower our carbon footprint in transportation. What
tools do you have that you can provide to us?”
Source : Greening The Supply Chain : Best Practices and Future Trends
Economic and Environmental Management MM Trisakti – July 2015
A carbon footprint is historically defined as "the total sets of greenhouse
gas emissions caused by an organization, event, product or person”

7. Trends
Economic and Environmental Management MM Trisakti – July 2015
Supply chain network optimization.
Company study their Supplier, DC and Outlet
facilities to reduce total cost and also decrease their
fuel consumptions.
Key factors network optimization study :
- Supplier, DC and Outlet location
- Mode of Transportation
- Investment of new facility
Indonesia trends :
- Short sea shipping
- Tol Laut
- Railways (KA Logistics)
- Development infrastructure for new port

8. Trends
Reducing paper consumptions and
process automation. Implementation
of technology to reducing paper and
process automation.
eg : Pick/Put to light technology,
Handheld / Device, RFID (Radio
Frequency Indentification), GPS
Tracking System
Economic and Environmental Management MM Trisakti – July 2015
Pick / Put to light RFID Technology
Handheld / Gadget GPS Tracking System

9. Economic and Environmental Management MM Trisakti – July 2015
Trends
Green Warehousing. Warehouse operation minimize
carbon and energy consumption. Warehouse Key
Performance Indicator.
eg : Roof lighting, LED Light, Fuel cell forklift
Roff lighting

10. Trends
Green Packaging, sustainable packing with least or no impact on environment. Bioplastics and other
biodegradable materials belong to this category.
Source : C.Ho, “Opportunities in Green Supply Chain Management”.
The Coastal Business Journal. Spring 2009, Volume 8 (1)

11. Literature GSCM Source : Ninlawan, 2010, “The Implementation of Green Supply Chain
Management Practices in Electronics Industry”.
Proceedings of the International Multiconference of Engineers, 2010.
Object research : Computer parts manufacturers in Thailand.
Output : Measure implementation GSCM practices
Methodology :
- Questionnaire : In-depth interview about GSCM to measure.
- Responden : Supply chain mid level managers from 37
organizational which 86,5% are large sized company
- Questionnaire Items : GSCM practices, GSCM performance,
and GSCM pressure/driver.

12. Source : Ninlawan, 2010, “The Implementation of Green Supply Chain
Management Practices in Electronics Industry”.
Proceedings of the International Multiconference of Engineers, 2010.
Literature GSCM

13. Literature GSCM
Conclusion of research :
• Promote Ecodesign. Developing environmentally friendly products is cause to change in product design using 2
principles: (1) designed to extend lifetime of product, it can be improved, repair, and re-use of products such as modular
design (2) designed for recycling / design for disassembly, after end of life products that can be more recovery.
• Control hazardous substances: complying with RoHS and other regulations.
• Set rules for disposing electronics waste and consider more investment in recycle plants.
• Propagate GSCM knowledge and encourage using environmentally friendly goods and services.
• Set a direct responsible unit to take in charge of electronics waste only which will increase reverse logistics efficiently.
• Promote refurbishing and recycling through campaigns/ activities to raise reuse/recycle awareness in electronics
consumption
• Expand product lifespan by designing for disassembly or upgrading computer specification instead of buying new ones
or using computer rental services

14. Literature GSCM
Conclusion of research (cont…) :
• Set a database unit to collect and record information About production, import/export data, and waste management (do
traceability).
• Encourage team building and train skilled labors for reverse logistics management
• Raise the applications in Extended Producer Responsibility (EPR); EPR is an environmental protection strategy based on
the "polluter pays" principle, by making the manufacturer of the product responsible for the entire life-cycle of the product
and packaging they produce

15. Case : Benefit Cost Analysis Modelling GSCM
Overview Pick/Put to Light System
Pick/Put to light technology reducing paper usage and
decrease number of worker on warehouse operation.
Before decide to invest on this technology, company
needs to do benefit cost analysis.
Pick / Put to light

16. Case : Benefit Cost Analysis Modelling GSCM
Base Case Qty UoM
No of DC 1 DC
No of Outlet 350 Outlet
Total item 3,000 Item
Average item pick / Outlet 1,250 Item
HVS A4 30,000 Rim

17. Case : Benefit Cost Analysis Modelling GSCM
Investment Qty UoM
Digital Display per Unit 800,000 Unit
No of Item 3,000 Item
Supporting item 350,000,000 IDR
Total Investment 2,400,000,000 IDR

18. Case : Benefit Cost Analysis Modelling GSCM
Cost Reduction Qty UoM
Paper per Outlet / day 42 Pcs
Paper per day 14,583 Pcs
Paper Expense per day 875,000 IDR
Reduce cost - paper 26,250,000 IDR
Reduce worker 6 Person
Cost / worker / month 4,500,000 IDR
Reduce cost - worker 27,000,000
Total Cost Reduction / Month 53,250,000 IDR

19. Case : Benefit Cost Analysis Modelling GSCM
Benefit Cost Amount UoM
Investment (2,400,000,000) IDR
Monthly Cost Reduction 53,250,000 IDR
Yearly Cost Reduction 639,000,000 IDR
Break Even Point 45 Month
Cashflow Year-1 Year-2 Year-3 Year-4 Year-5
Investment (2,400,000,000) - - - -
Yearly Cost Reduction 639,000,000 639,000,000 639,000,000 639,000,000 639,000,000
Cashflow (1,761,000,000) 639,000,000 639,000,000 639,000,000 639,000,000
Accumulated Cashflow (1,761,000,000) (1,122,000,000) (483,000,000) 156,000,000 795,000,000
Interest (MARR) 11% Percentage
Net Present Value 199,516,032 IDR
Interest Rate of Return 16.77% Percentage

20. Summary
1. Green Supply Chain scope : Green Purchasing + Green Manufacturing / Materials Management + Green Distribution /
Marketing + Reverse Logistics
2. Company needs to do research regarding key trends of implementation GSCM
3. One of method to measure GSCM practices is questionnaire to survey response from supply chain practicioner
4. Case study showing result as follows :
• Break even point : 45 months
• Net Present Value : IDR 199,516,032
• Internal Rate of Return : 16,7%