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Due to continuous globalization and innovative changes the organizations are inevitably required
to response quickly to the fast-changing competitive environment . According to Hervani et al.
(2005) and Srivastava (2007), GSCM practices are considered as material management, green
purchasing, green manufacturing, green design, reverse logistics and green
distribution/marketing that refer to the environmental integration of supply chain management
with consumers end-of-life management. Bangladesh construction sector is booming by
making a great contribution to the GDP of 10 % (UNEP, 2012). In Bangladesh, the lack of
environmental practices lead environmental hazard, climate change, less energy efficiency,
insufficient waste management and more carbon accumulation in the atmosphere. The
application of environmental laws and regulation is rare. As GSCM has already been sought as a
sustainable tool to improve the supply chain and overall business operation, this study has
intended to review the relevant literature to provide a perspective of GSCM practices which can
be employed in Bangladesh construction industry.
Green SCOR:
Green supply chain management is seen as an important stride companies need to take on the
road to sustainable practices. SCOR Model (Supply Chain Operations Reference) has been
developed by the Supply Chain Council (SCC is now merged with APICS) in order to guide
companies applying SCM principles. The Green SCOR model was also developed as an
integrated green supply chain management tool that allows companies to manage their supply
chains environmental impacts, resulting in more efficient operations which have minimal impact
on the environment. This chapter will talk about how SCM principles can be modified to reduce
the adverse effects of company operations on the environment, especially using the Green SCOR
model.
SCOR breaks the supply chain down into processes within the six categories shown in Table 2-1.
Category
Plan
Source
Make
Deliver
Return
Enable
Description
Processes
associated
with
planning,
scheduling, and coordinating supply
Chain activities.
Processes associated with procuring material,
physically receiving material, and storing raw
materials.
Processes associated with transforming raw
material into a finished product. In defense
maintenance, repair, and overhaul operations,
the Make category is used to model
maintenance activities
Processes associated with storing, packaging,
and delivering finished products to the
customer.
Processes associated with delivering and
receiving material from a customer to a
supplier, commonly called reverse logistics.
Processes that facilitate the movement of
materials
(e.g.,
business
rules,
data
management,
performance
management,
contract management, asset management, and
compliance management
These processes are further broken down to form three process levels. Level 1 defines the scope
of the supply chain and is used to evaluate competitive performance of the entire chain. Level 2
configures the supply chain into three primary types:
Make to stock
Make to order
Engineer to order.
Level 3 defines the processes that compose a supply chains operations. These levels define a
companys ability to perform via the application of best practices and the use of performance
metrics. Levels 1 and
2 are shown in Figure 2-1. Further process decomposition can be performed if it is useful for the
specific analysis; however, this is beyond the scope of the SCOR model.
SCOR processes can be replicated to model supplier and customer interactions across the supply
chain. In this way, a user can use the same six high-level processes to model an entire supply
chains operations, as shown in Figure 3.
Within each SCOR process, the model includes a process element table that defines the process,
provides metrics for measuring the process, and lists best practices for managing the process,
complete with software features of that practice. As an analytical tool, these tables are the true
power behind the model. They allow organizations to compare and link their operations using a
common language and measurement base. A sample table is shown in Figure 4.
SCOR users have found the models approach of breaking supply chains into common, discrete
process activities to be a very effective method for improving performance. The common
language of SCOR makes it easy for an organization to compare its performance against others
within the same industry. Likewise, the common processes allow for faster application of supply
chain management best practices.
People, Profits and Planet. These concepts can easily be applied to supply chain operations as
well. As the world population is increasing the waste generated also increases. The growing
waste problem can be reduced by applying the principles of 4R many of which are related to the
operations of the supply chain
Reduce: For example, designing concentrated detergent that uses less packaging
Reuse: Using reusable packaging
Recycle: Packages used in transportation can be recycled and turned into new packages
Recover: Energy can be gained from waste
Creating a sustainable supply chain can start with the design of the products. Products can be designed in such as way so as to consume less materials, result in less transportation costs and be
easily disassembled so that parts can be used for remanufacture or refurbishing. As an example,
polyester fabric 100% recyclable, polar fleece may be made by recycled soda bottles, also the
new BMW i30 interior is made from recycled materials. Firms can generally follow these
principles for design for the environment or DFE:
We can see Walmart as an example of applying the above principles. Stores use solar panels,
windmills, and skylight thereby reducing the power consumption. Spoiled food is composted and
resold as fertilizer using a 0% waste policy. Stores sell power saving light bulbs such as Compact
Fluorescent (CFL) or LED lights.
that would be too easy to dismiss when performing analysis, thus negating the purpose of our
efforts. Table 3-2 shows the SCOR performance attribute definitions with their corresponding
environmental definitions. The environmental definitions serve only as a guide to assist our
development of metrics. They ensure the metrics for each process element are consistent; they
are not recommended for addition to the SCOR model itself.
Performance Attribute
Reliability
SCOR definition
The performance of the supply
chain in delivering: the correct
product, to the correct place,
at the correct time, in the
correct
condition
and
packaging, in the correct
quantity, with the correct
documentation, to the correct
customer.
Responsiveness
Flexibility
Cost
The effectiveness of an
organization
in managing assets to support
demand satisfaction. This
includes the management of
Environmental Definition
The ability to deliver the
correct product reduces waste
from product discards; reduces
air emissions and fuel use
from extra transportation for
returned products. Proper
documentation enables all
players of the supply chain to
keep better track of hazardous
materials or toxins that are
embedded in certain products;
thus allowing them to arrange
for proper storage, handling,
and disposal.
The environmental impacts
that affect the speed of
material movement, including
regulatory or pollution control
steps within a process.
The degree to which a firm
can meet the environmental
demands of its customers.
This pertains to the products,
their
production,
transportation
and recyclability, etc.
The costs of environmental
compliance and cleanup as
well as energy costs.
Managing assets in a manner
that reduces environmental
impacts and
reduces internal costs.
Designing of products
Production
Materials purchase
Packaging
Warehousing
Logistics & Reverse Logistics
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Adapting to Regulation and Reducing Risk: Organizations adopting Green Supply Chain
practices can reduce the risk of being prosecuted for anti-environmental and unethical practices.
A demonstrated effort towards creating an effective Green Supply Chain through the sustained
dedication of resources, activity, measurement and management protocol, will be highly regarded
in the event that any questions arise.
Improved quality and products: Organizations that produce products which are technologically
advanced and environment friendly will find this will enhance the brand image and brand
reputation in customers mind. Besides the above six benefits, there are additional advantages
that can be generated by GSCM:
Challenges of Green supply chain Management: Overall, the green supply chain industry
sector has a number of challenges. However, it is first important to note that when we look at
supply chain, we start with product innovation and the marketing impact. We also end at the
supply chain with consumer products and product recall. Sales planning is a second function.
The third function would be manufacturing planning and manufacturing operations. We involve
procurement (the purchasing organization) and we look at the overall manufacturing and
transportation in that process.
5
1. Standard: Standards is the most confusing aspect. The major standards out there include the
U.S. Greenhouse Gas Protocol, SO standards, ISO 14065, an EPA standard called the
Greenhouse Gas Reporting Rule, and the Wal-Mart Sustainability Index. The challenge is that
each organization may have to comply with all of these different standards. They may comply
with only part, and the issue faced by manufacturers, retailers and supply chain professionals is
that the awareness or knowing what to go after is a challenge. The first step for someone new to
the sector is to understand what standard they need to comply with and understand what
direction to go. This needs to be done first.
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2. Awareness: Three years ago one of the first things we picked up was a report called the
Carbon Disclosure report. Now I think its probably in its third iteration. Each year a different
consulting group goes out to actually write this report. They survey different organizations in
different categories. One of the things that is always constantly improving is the awareness piece
which assesses the level of awareness of the C-staffs. This awareness is improving but has been a
challenge since we got involved in 2007. The good thing is that the U.S. government is actually
forcing compliance. For example, in 2011 federal contractors, roughly about five hundred
thousand of them, will have to show evidence that theyve measured their greenhouse gas
emissions along with having a developing program.
Direct emissions
2.
3.
All indirect emissions (all indirect carbon emissions, such as purchasing, outsourced
activities, travel, and looking at employee commute.
5. Communication Planning: The environmental sustainability green space is very broad. It
encompasses everything from renewable to various definitions and terms. Organizations have to
get the communication strategy under control pretty quick as they start to go out and implement
new programs
Conclusion: Global market demands and governmental pressures are driving businesses to
become more sustainable. Hence Green supply chain management (GSCM) initiatives are the apt
practices that can improve competitiveness and environmental performance leading to
sustainability. The subject launches a number of challenges for managers, academics and
researchers. GSCM involves a paradigm shift in which the issue of sustainability is no longer
seen as a source of costs, representing a potential source of competitive advantage for
companies. Manufactures today are under pressure to adopt these strategies to create an
environmental stance that is a driver for reduced costs and risks, increased revenues, and
improved brand image. Organizations which have taken up the environmental position go
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beyond the basics of cutting waste and operating efficiently to adopt the strategy of Lean and
Clean to be really green.
References:
Beamon, B. M. (1999). Designing
management, 12(4), 332-342.
the
green
information
Emmett, S., & Sood, V. (2010). Green supply chains: an action manifesto. John Wiley & Sons.
Pagell, M. 2004. Understanding the factors that enable and inhibit the integration of operations,
purchasing and logistics. Journal of Operations Management, 22 (5): 459-487.
SCOR Model and the Green Supply Chain (PDF Download Available). Available from:
https://www.researchgate.net/publication/286060731_SCOR_Model_and_the_Green_Supply_Ch
ain[accessed May 9, 2016].
Srivastava, S. K. (2007). Green supplychain management: a stateoftheart literature
review. International journal of management reviews, 9(1), 53-80.
Walton, S. V., Handfield, R. B., & Melnyk, S. A. (1998). The green supply chain: integrating
suppliers into environmental management processes.International journal of purchasing and
materials management, 34(1), 2-11.
Walton, S. V., Handfield, R. B., & Melnyk, S. A. (1998). The green supply chain: integrating
suppliers into environmental management processes.International journal of purchasing and
materials management, 34(1), 2-11.
Zhu, Q., & Sarkis, J. (2004). Relationships between operational practices and performance
among early adopters of green supply chain management practices in Chinese manufacturing
enterprises. Journal of operations management, 22(3), 265-289.