Green Supply Chain

Topics: Supply chain management, Manufacturing, Greenhouse gas Pages: 16 (5724 words) Published: March 18, 2013
The supply chain has been traditionally defined as one way process of integrated manufacturing wherein, raw material are converted in final products, and then delivered to customers. The most common method opted for goods transport is from its raw material state from supplier to finish product to consumer. To elaborate: the follow pattern is from raw material from supplier to manufacture, finished goods compilation within the manufacturing premises, then finish goods to consumer through distributer, to wholesaler, to retailer. In this traditional case the most important fact is the loss of time, money and infrastructure (both space & money) in this fast running world. These activities with traditional perspective not only delays but reduces the responsiveness and efficiency of meeting the demand of product, but also cause harms to the environment to a large extent. Changing environmental condition has triggered a major concern about protecting the environment. Companies are trying to adopt various methods \ techniques to safeguard the environment. Government is also encouraging companies in opting for greener production by providing various subsidies. This paper deals with, what are the options these companies have to make their entire demand cycle cost effective and environment friendly. Introduction

During the initial phase of industrialization the demand was limited hence production quantity was limited. During this period companies use to procure limited number of raw materials from one or two vendors and thus quite easy to be maintained with paper and pen. As the output was limited record keeping was based on independent department based. With progress in time the demand increase, so is the increase in raw material requirement and its vendors. Record keeping in individual department became difficult as challenges like, avoiding multiple orders, overstock, flow of goods and its handling became prominent problems. Hence integration was the need of the hour and concept of supply chain management surfaces to solve the issues. Whether or not you’re personally feeling the effects of global warming in your daily life, it’s clear that our planet is facing some grave issues. Resources are becoming scarce, areas that were once wooded now have fallen victim to deforestation, animal species are disappearing at an alarming rate as their native habitats are destroyed, air and water quality is questionable and the overall temperature of our planet is soaring at an astounding rate negatively impacting people, places and things. Environmental pollution is considered to be the main problem facing mankind today as it has the potential to lead its extinction. Air pollution is a form of pollution that needs immediate attention as the amount of carbon dioxide which was found to be roughly around 280 parts per million by volume before industrial revolution has reached to a level 392 parts per million by volume, and its rise has accelerated (Johnny et al., 2009).[4] Some of the other form of pollution are: land pollution (eg: pollution created by polythene bags), water pollution (like waste addition from industries to the sea)etc. The growing scientific evidence on the harmful long term effects of environmental pollution has led to increased demands for more sustainable industrial processes, so that the quality of life for future generations is not compromised by today's business decisions (World Commission on Environment and Development, 1987).[4] To overcome this problem, we can redesign our conventional supply chain as “green supply chain”. Green supply chain management is the process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their lifecycle thus, creating a sustainable supply chain (Cognizant, 2008).[3] The example of such initiative is, the Indian government has banned the use of thin polythene bags in retail shops. Also in...
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