Green Supply Chain

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How green supply chains will affect and
drive the design of next generation logistics and supply chains? Due to the deterioration of global environment, increasing concerns of the overall condition of the natural environment have brought the attention on environmental conservation. As Purchasing Magazine (Atkinson, 2002) reported that “the most significant factor affecting supply, demand, pricing, and availability of solvents is the environmental issue”. As a result, for manufacturers, there is a need to take environmental issues into consideration in supply chain management in order to gain competitive advantage. On 1st February, 2007, Wal-Mart started the “Sustainability 360” program which aims to Integrate sustainability into its supply chain and even the operation as a whole (Larson, 2009). In the year 2009, Shanghai General Motors has been successful in reducing 100 tons of water, 8,000 kilowatts of energy, and more than 50,000 tons of greenhouse gas through its new “green supply chain planning”. As matter of fact, there are an increasing number of companies, like Wal-Mart and Shanghai General Motors have recognized the potential benefits by implementing green supply chain (Diabata A. and Govindanb k, 2011). This essay will first review the research about the concept of green supply chain, drivers for the implementation of GSCM and practices used in green supply chain. After that, some possible suggestion will be given for the design of next generation Logistics and supply chains. A supply chain is various activities involved in transforming natural raw materials,resources and components into finished products or services (Nagurney,2006). According to Simchi-Levi and Kaminsky(2007), a successful supply chain is the integration and collaboration of manufacturers suppliers, warehouses and stores, which tries to cater to customers’ needs. Generally, production and manufacturing operations tend to be regarded as the enemy of environmental protection with the aspect of supply chain especially (Fiksel, 1996). Therefore, Becoming more aware of changing the manufacturing philosophy and transforming the way production systems operate towards sustainability as part of the green supply chain management (Beamon, 1999). Various definitions of green supply chain management appeared in the literature. According to Srivastava (2007), green supply chain management involves in integrating environmental thinking into supply chain management process, including long-term relationships with suppliers and organizational purchasing decisions. Zsidisin and Siferd (2001) defined green supply chain as: “the set of supply chain management policies held, actions taken and relationships formed in response to concerns related to the natural environment with regard to the design, acquisition, production, distribution, use, re-use and disposal of the firm’s goods and services”. Practices used in green supply chain management have been referred to quite a lot in previous literature. As Srivastava (2007) summarized that green design, green operations, reverse logistics, green marketing, green purchasing and green manufacturing belong to the category of green supply chain. These existing practices, as significant parts of green supply chain, play indispensible role in the development of green supply chain and will gain higher efficiencies in the future. Green Design also called Ecological Design. Generally, the 70%-80% performance of the product is determined by the design phase and the cost of the design itself is about 10% of the total cost. Therefore, the ecological and environmental impacts should be fully taken into account during the design phase so as to utilize resource fully and minimum energy consumption and environmental pollution in the entire life cycle. According to Dan, B. et al (2000), green designing approach includes modular design and loop design. Modular design satisfies the requirement of the rapid development of green products,...
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