Knowledge Partner:

TEAM OPTUMIZ NMIMS

With the growing environmental concerns and rampant industrialization, corporations across the globe are trying to be more judicious in their use of natural resources and are looking at introducing environment friendly processes in their daily operations. The theme for this edition of the magazine is `Green Supply Chain Management'

TEAM OPTUMIZ

Table of Contents

Foreword ................................................................................................... 2 GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY ................................................................................................. 4

Manoj Bisht NMIMS Mumbai ............................................................................................................. 4

GREEN CONSTRUCTION ........................................................................ 12

Prasad Madhusudan, Saurabh Shah NMIMS ....................................................................................... 12 Occupant Health and Safety ................................................................................................................ 15 Building Operation and Maintenance ..................................................................................................16

GREEN SUPPLY CHAIN MANAGEMENT SCENARIO ...........................19

Vishal Arora and Ankit Bansal, NMIMS.............................................................................................19

ECONOMIC FEASIBILITY OF GREEN TECHNOLOGY........................ 23

Mehul Jain, NMIMS .......................................................................................................................... 23

GREENING THE SUPPLY CHAIN .......................................................... 28

Naresh Chandak and Ann Varghese,NMIMS ..................................................................................... 28

GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY ................................................................................................33

Ganesh Iyyapan and Dhiren Chaudhary ............................................................................................. 33

Quotable Quotes..................................................................................... 38

TEAM OPTUMIZ

Foreword
There are great expectations from the management school graduates as increasingly large number of qualified students having diverse educational backgrounds enrol in management schools to sharpen their skills. Over a considerable period of time, the industry has partnered the institution in setting up the syllabus according to the industrial requirements and also by absorbing students during campus selection.

The necessity to improve the teaching & learning methodology has resulted in a novel learning process- the case study approach wherein the involvement of the students themselves becomes the key to learning. The quest for improvement and innovation never stopped and in August 2007 at the NMIMS we saw a new beginning or rather a new approach to learning with the inception of the OPTUMIZ cell, taking learning beyond the classrooms walls.

The OPTUMIZ initiative has been gaining momentum every year since then, recognizing the need to integrate various organizational functions such as IT, Finance & marketing with the efforts of organized operations for optimum & sustained success. The cell has now put together articles in a Newsletter titled Catena Aurea which means crisp, clear & easy to read highlighting the current operational management issues. The articles in the present edition, for instance, are all related to Green Supply Chain management. Initiatives such as these contribute to the continuous improvement in learning. My heartfelt wishes to the success of the initiative. Prof Shailaja Head of Department, School of Business Narsee Monjee Institute of Studies Rego Operations Management Management

TEAM OPTUMIZ

GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY

Manoj Bisht NMIMS Mumbai

Supply Chain While the term Supply Chain implies a linear relationship, it is more accurate to say that supply chain is a complex network of activities that includes performing functions of procurement of materials, transformation of these materials into intermediate and finished products, and distribution of these finished products to customers. Thereby, supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Green supply chain management (GrSCM) Adding the Green concept to the Supply Chain concept adds a new dimension to it whereby the supply chain has an Environment factor additionally attached. This is an altogether novel concept because the basic definition of Supply chain, in an operational sense, is about extracting and exploiting raw materials from the natural environment. So the idea of GrSCM is to eliminate or minimize waste along the supply chain. There are two main aspects that differentiate green supply chains from traditional supply chains 1) Green supply chain aims to improve the environmental performance of its existing supply chain through environmental monitoring. 2) The supply chain is augmented to include reverse supply chain management that builds a closed-loop system for the products.

TEAM OPTUMIZ

Innumerable industries have made enormous financial profits by switching to this sustainable developmental model. Few Green-Profit success stories include x x Dell saves over $20mn annually as a result of supply chain and packaging improvements. Texas Instruments saves $8mn each year by reducing its transit packaging budget for its semiconductor business through source reduction, recycling, and use of reusable packaging systems. Pepsi-Cola saved $44mn by switching from corrugated to reusable plastic shipping containers. Dow Corning saved $2.3mn by using reconditioned steel drums and conserved 7.8mn pounds of steel. Commonwealth Edison managed to generate $50 million in financial benefits by using materials and equipment using life-cycle management approach.

x x x

GrSCM in the Electronics Industry To reduce the environmental impact of the waste of electrical and electronic equipment (WEEE), the EU implemented Waste Electrical and Electronic Equipment (WEEE) directive in August 2005. This directive stresses upon the need of recycling, reuse and recovery of the inputs used in the making of the goods. The main objective of the WEEE directive is to reduce environmental damage by reusing and recycling electrical and electronic equipment, by which the volume and the capacity required for handling waste electrical and electronic equipment can be reduced. Similar regulations have been implemented in the US, China, Japan, Korea etc.

TEAM OPTUMIZ

Also, the ROHS (Restriction of Hazardous Substances) directive prohibits electrical and electronic equipment containing lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) and polybrominated diphenylethers (PBDE). GrSCM has been adopted as a proactive strategy by leading electronic companies like Dell, HP, IBM, Sony, Panasonic etc. For example, ACER, has established a green product supply chain management system for its global operations. TATUNG has established a green supply chain to meet the demands of its clients green procurement standard to ensure that its export to the European market is unhindered. ASUS provides its suppliers with ASUS e-Green for registration and evaluation to determine the capability of suppliers. Most electrical and electronics manufacturers are involved in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM). These companies play important roles in global markets as their products share a substantial portion in market.

The key themes that emerge from GrSCM literature for the electronic industry include 1) Green procurement - defined as an environmental purchasing consisting of involvement in activities that include the reduction, reuse and recycling of materials in the process of purchasing. 2) Green manufacturing - defined as production processes which use inputs with relatively low environmental impacts, which are highly efficient, and which generate little or no waste or pollution.

TEAM OPTUMIZ

3) Green distribution consists of green packaging and green logistics. Packaging characteristics such as size, shape, and materials have an impact on distribution because they affect the transport characteristics of the product. Green Package intends to implement Green Package Designing, optimize packing structure, and reduce packing materials. 4) Reverse logistics - defined as the process of retrieving the product from the end consumer for the purposes of capturing value or proper disposal. Activities here include collection, selection, sorting, re-processing, redistribution and disposal.

TEAM OPTUMIZ

The Cisco-Green Initiative Cisco implemented foundational changes in the Reverse Supply Chain space to unlock the value from product returns with focus on changes in Asset Recovery, Receiving and Disposition, Recycling, and Order Management processes. Cisco has developed Proactive Asset Recovery capabilities to help the customer in returning the used-material. By creating this tool, product return rates increased dramatically to over 80%. This has helped reduce grey market and brand protection risks. Cisco recycles about 22 million pounds of returned material through environmental friendly processes. Improved Process for Product Reuse reduced operating expenses from 119% to 29% from 2005 to 2009. Also, the Reuse factor has shot up from 5% to 44%. By redeploying products after return, the business increased its bottom-line by $147 million.

Increase in Reverse Supply Chain Contribution Expenses

Reduction

in

Operational

A recent green packaging pilot program reduced packaging materials by 77%, saving over 3.7 million pounds from going into landfill. This pilot program itself lead to annual savings of over $24 million. One of the product lines reduced packaging by 33 percent and increased transportation load utilization by 50 percent resulting in $1.3 million annual savings. x By reducing carbon emissions, waste production, and natural resource demand, Cisco's Global Supply Chain Management realized over US$3 million in annual cost savings through manufacturing efficiency in 2008. By regrinding the excess plastic produced during the manufacturing process, Cisco recycles approximately 13 per cent of the plastic used in its IP phones, conserving materials and saving US$880,000 per year. Converting product documentation from paper manuals to CDs saves 2.7 million sheets of paper a year and roughly US$1.2 million By changing the format and reducing the font, Cisco saves 22 million sheets of paper annually thereby making savings of approximately US$1 million in printing costs.

x x

TEAM OPTUMIZ

The Kodak Perfect Green-Profit Picture Industry sources estimate that 1.5 billion One-Time Use Cameras (OTUCs) have been reclaimed for recycling with the rate of recycling of OTUCs going up from 75% to 84% within half a decade.

Of the 1.5 billion cameras recycled, it is estimated that nearly 1 billion are of Kodak brand. Started in 1990, the Kodak OTUC program works with photofinishing outlets to return used cameras to Kodak sorting centers, from where they are routed for recycling. Just the fact that if these 1.5 billion cameras are laid one beside the other they would stretch 120,000 miles, which is enough to circle the earth five times or reach more than halfway to the moon signifies how much waste has been prevented from reaching landfills. In 2005, Kodak as an eco-friendly initiative recycled and reused, more than 750 million pounds of scrap materials, including solvents, plastics, wood, metals, and other by-products of manufacturing, making Kodak Park one of the largest recyclers in New York State. According to Kodak, 80% of the weight of their cameras will be used or recycled and a camera can have as many as nine lives. Nearly every piece of the camera is either recycled or reused in the ongoing production of more OTUCs, bringing down costs for consumers and keeping huge amounts of waste out of landfills. Kodak has recycled more than 650 million of
9

TEAM OPTUMIZ

these cameras and in the past five years alone, the recycling program prevented about 16 million pounds of mixed plastics and 9 million pounds of circuit boards from entering the waste stream. Kodak has diverted more than 9.8 million pounds of waste from landfills by recycling one-timeuse cameras. This is equivalent to 774 tractor trailer loads of waste. Apart from this, though the company uses millions of pounds of the chemicals, more than 99 percent is reused over and over again. This has been a major step to help decrease airborne emissions caused by methylene chloride by 96% in the last quarter of the century.

Dells roadmap to the elusive Zero Footprint Dell Corp. claims to be the first company to join the global carbon-neutral initiative that aims to offset the carbon dioxide produced when customers power their computer systems. Dell has already collected about 484 million pounds (220 kilograms) of computer equipment since 2006 and offered free recycling of PCs and related accessories to consumers. In 2008, Dell recycled about 290 million pounds of electronics, about 10 percent more than its goal, and aims to recycle a billion pounds per year by 2014. Dell has also banned the export of electronic waste including non-working electronics to developing countries as a part of its global policy on responsible electronics disposal. In terms of packaging, Dells goal is to eliminate the use of approximately 20 million pounds of packaging materials by 2012. Dell also became the first PC maker to create packaging from bamboo last year, and shipped products built with more than 7.2 million pounds of postconsumer recycled plastic. It aims to achieve 75 percent curbside recyclability of packaging components. Dell is also striving to make its operations more energy efficient. Over the past three years, such upgrades have reduced energy usage by 36 million kWh, prevent 21,000 metric tons of greenhouse gas (GHG) emissions, and save roughly $5.8 million each year. By applying its green efficiency approach, Dell IT has achieved more than $29 million in energy savings. Dell is working to reduce global greenhouse gas (GHG) emissions by 15 percent per dollar of revenue from 2007 to 2012, achieve net zero global GHG emissions by calendar year 2008 and maintain that level through calendar year 2012. According to Dell, 25 million tons of GHG emissions can be reduced through improved product performance and preconfigured systems with Energy Smart Operational Settings. Conclusion GrSCM can reduce the environmental impact of industrial activity without sacrificing quality, cost, reliability, performance or efficiency. So implementing the Green Supply Chain certainly drives Real business value. However, there are areas in Green Supply Chain Management that require further study and the field is yet quite open. Moreover, the inherent complexity of the environmental issue - its

10

TEAM OPTUMIZ

multiple stakeholders, uncertain implications for competitiveness etc. - presents significant and new challenges. New research initiatives are needed to cover this gap. I feel that, Eco-Design of the Supply Chain to maintain and sustain good environmental quality is becoming a vital component of business organization and will be a key sought-out-for goal of the entire business chain and not only the Electronics Industry in the 21st century. References 1) The International Journal of Logistics Management. 2) Reverse Logistics magazine, Reverse Logistics Association. 3) Supply Chain Digest. 4) Hsu, C. W.; Hu, A. H., (2007). Green supply chain management in the electronic industry. Int. J. Environ. Sci. Tech., 5 (2), 205-216. 5) Ninlawan C., Seksan P., Tossapol K., and Pilada W., The Implementation of Green Supply Chain Management Practices in Electronics Industry. 6) M. K. Chien; L. H. Shih, An empirical study of the implementation of green supply chain management practices in the electrical and electronic industry and their relation to organizational performances. 7) Jamal Fortes, Green Supply Chain Management: A Literature Review, Otago Management Graduate Review, Volume 7, 2009. 8) Blogs: 2Sustain and ThinkOR. 9) L. K. Toke et al, Green Supply Chain Management; Critical Research and Practices, International Conference on Industrial Engineering and Operations Management. 10) Letcia Labegalini, Green Supply Chain Management: the state-of-the-art literature review on production, logistics and operations international journals, Abstract number: 015-0844. 11) Series of Internet websites and Web News releases.

11

TEAM OPTUMIZ

GREEN CONSTRUCTION

Prasad Madhusudan, Saurabh Shah NMIMS

Imagine working in an office that uses sunlight instead of artificial lights for illumination and that has in place central air conditioning instead of the split or window air conditioners. In an increasing revolt against over-urbanization, companies are opting for eco-friendly options. The concept of environment-friendly buildings, or green buildings as they are popularly known, is catching on in India. While the green building movement has been around globally since the 1970s, it has picked up momentum in India only in the last couple of years. Buildings account for one-sixth of the world's fresh water withdrawals, one-quarter of its wood harvest, and two-fifths of its material and energy flows. Building "green" is an opportunity to use our resources efficiently while creating healthier buildings that improve human health, build a better environment, and provide cost savings. Green construction does not only reduce wastage but also boosts the profits. A similar concept is natural building, which is usually on a smaller scale and tends to focus on the use of natural materials that are available locally. Green buildings are steadily increasing their footprint in India with an increase from 6,000 sq. m of green space in 2003 to 304,800 sq. m expected by the end of 2008, according to the Indian Green Building Council, which is promoting the green building movement in India. The Indian Green Building Council estimates the demand for green building materials and equipment will reach $4 billion (Rs15,720 crore) every year by 2010. In most case, the external appearance of green buildings does not differ very much from that of normal buildings. The first green building in India was the CII-Sohrabji Godrej Green Business Centre in Hyderabad. Kolkatas Technopolis lays claim to be the countrys first green building for information technology. A mix of green building projects is coming up in the country, which includes residential, commercial and hotel properties. As cities get hemmed in by concrete buildings and green spaces rapidly disappear, companies are looking at green buildings to do their bit for the environment. In turn, some of them can earn carbon credits for the clean buildings.

12

TEAM OPTUMIZ

About 2-3% of all construction in India is green, as good as (in) the US. In the next two or three years, Indian Green Building Council (IGBC), wants to bring it up to 10%, which will put India on top. Indian Green Building Council (IGBC) is a body that certifies green constructions. Effective green building can lead to
x x x

Reduced operating costs by increasing productivity and using less energy and water Improved public and occupant health due to improved indoor air quality Reduced environmental impacts by, for example, lessening storm water runoff and the heat island effect.

Green Building A green building is a structure that is designed, built, renovated, operated, or reused in an ecological and resource-efficient manner. Green buildings are designed to meet certain objectives such as protecting occupant health; improving employee productivity; using energy, water, and other resources more efficiently; and reducing the overall impact to the environment. Elements of Green Buildings Right from the design to implementation phase , new systems have been brought to minimize wastage. Below given is how green construction practice can be implemented Design Phase A formal design is come up with standard building material sizes in mind. Then Specific waste reduction goals are set at the beginning of the project, target specific materials and activities. This is followed by analysis of where maximum waste is generated On Site Construction Construction sites generate massive amounts of waste. Suppliers are asked to buy back unused items, replace all damaged materials & deliver materials in returnable pallets and containers. All the material storage practices are reassessed to prevent loss due to weather. Reusing and recycling also reduces waste to a great extent

13

TEAM OPTUMIZ

A special designated area is made for onsite-reused materials including lumber for fire blocking and spacers, scraps of drywall for filler in hidden areas, etc. Chunks, broken bricks, blocks and other masonry rubble are saved for backfill. Cleared brush and trees chipped are used for mulch. Contractors use joint compound buckets for other materials and tools. They also use sawdust for mulching landscape, path ways. Instead of throwing always excess insulation, they are installed in interior walls or on top of attic insulation for added protection. Implementation of Green Security Instead of the usual cameras now builders are attaching solar powered cameras. Jobsite Water run off Jobsite runoff is very expensive. Thus the practitioners prevent potential fines, injunctions and restraining orders by preventing runoff. Stabilization is attained by planting rye grass. All drain inlets, outlets are protected with rock arranged in check dam formation AND silt fencing. Vehicles are monitored for leaks and spill kits are kept on hand. Now we come to how efficiency can be brought in energy and water usage Energy Efficiency Most buildings can reach energy efficiency levels far beyond California Title 24 standards, yet most only strive to meet the standard. It is reasonable to strive for 40 percent less energy than Title 24 standards. The following strategies contribute to this goal.
x

Passive design strategies can dramatically affect building energy performance. These measures include building shape and orientation, passive solar design, and the use of natural lighting.

Develop strategies to provide natural lighting. Studies have shown that it has a positive impact on productivity and well being.

Install high-efficiency lighting systems with advanced lighting controls. Include motion sensors tied to dimmable lighting controls. Task lighting reduces general overhead light levels.

14

TEAM OPTUMIZ
x

Use a properly sized and energy-efficient heat/cooling system in conjunction with a thermally efficient building shell. Maximize light colors for roofing and wall finish materials; install high R-value wall and ceiling insulation; and use minimal glass on east and west exposures.

x x

Minimize the electric loads from lighting, equipment, and appliances. Consider alternative energy sources such as photovoltaics and fuel cells that are now available in new products and applications. Renewable energy sources provide a great symbol of emerging technologies for the future.

Computer modeling is an extremely useful tool in optimizing design of electrical and mechanical systems and the building shell

Water Efficiency
x

Design for dual plumbing to use recycled water for toilet flushing or a gray water system that recovers rainwater or other nonpotable water for site irrigation.

Minimize wastewater by using ultra low-flush toilets, low-flow shower heads, and other water conserving fixtures.

x x x

Use recirculating systems for centralized hot water distribution. Install point-of-use hot water heating systems for more distant locations. Use a water budget approach that schedules irrigation using the California Irrigation Management Information System data for landscaping.

Meter the landscape separately from buildings. Use micro-irrigation (which excludes sprinklers and high-pressure sprayers) to supply water in non - turf areas.

Use state-of-the-art irrigation controllers and self-closing nozzles on hoses.

Occupant Health and Safety Recent studies reveal that buildings with good overall environmental quality can reduce the rate of respiratory disease, allergy, asthma, sick building symptoms, and enhance worker performance. The potential financial benefits of improving indoor environments exceed costs by a factor of 8 and 14

15

TEAM OPTUMIZ

Zero or Low emission construction materials and interior finish products to improve indoor air quality. Many building materials and cleaning/maintenance products emit toxic gases, such as volatile organic compounds (VOC) and formaldehyde. These gases can have a detrimental impact on occupants' health and productivity. Adequate ventilation and a high-efficiency, in-duct filtration systems are provided. Heating and cooling systems that ensure adequate ventilation and proper filtration has a dramatic and positive impact on indoor air quality. Contractors try to prevent indoor microbial contamination through selection of materials resistant to microbial growth. Building Operation and Maintenance Green building measures cannot achieve their goals unless they work as intended. Building commissioning includes testing and adjusting the mechanical, electrical, and plumbing systems to ensure that all equipment meets design criteria. It also includes instructing the staff on the operation and maintenance of equipment. Over time, building performance can be assured through measurement, adjustment, and upgrading. Proper maintenance ensures that a building continues to perform as designed and commissioned. Examples The Good Earth Orchard, a colony of 60 homes, Bengaluru There is an overgrowth of reeds which is actually part of a labyrinthine water-treatment system. Gallons of used water from the colony enter it every day to be pumped out for reuse a week later, good enough at least to water the bushes. Other Green Practices & Implementations Green construction in India uses a liberal mix of modern science and methods that are nearly 400 years old. Take wind towers, for example, a system used for decades by Arabs in West Asian deserts to keep buildings cool. The Confederation of Indian Industrys (CII) Institute of Quality

16

TEAM OPTUMIZ

in Bangalore uses this technology to continuously supply air in the building. So do the office of the inspector general of police (IGP) in Gulbarga, and Aquamall Water Solutions building in Dehradun. Wind towers are a series of concrete or fly ash towers. Every morning, these draw in hot air, which passes through channels splashed with water at night so cooled air is circulated through a building. The combination of increased airflow and contact with water brings down the temperature by 8-10 degrees Celsius, which in cities such as Bangalore does away with the need of air conditioning. Warmer cities like Hyderabad can use hybrid systems Wind towers were often augmented in Persian architecture with geothermal systems that exploit the difference in temperature between the earths surface and 5-6 m below. At this depth, across the planet, temperature is almost constant in a range of 10-15 degree Celsius. Towers connected to underground pipes would cool air even further beyond plain-vanilla wind towers. The physics of geothermal energy is tweaked in many ways by modern air conditioning systems in Indian green buildingsanother throwback to an ancient practice. Both cooling and heating can be achieved, though heating often requires a supplemental system. Geothermal systems are a major money-saver because almost 70% of the energy used by most buildings is for air conditioning. Conventional technologies have also kept pace. Efficiencies, or the ability of air conditioning systems to convert electricity into cooling power, are far higher today than a decade ago. Today, the focus is on part-load efficiency of an air conditioner when we certify a green building. Partload refers to the time of the day when cooling requirements are not the highest. This is the case for most part of the day, and therefore, air conditioning efficiency during this time is more crucial than during peak-load hours. Over the years, with more green construction happening in India, an industry catering to this has sprung up. High performance glass, which can arrest almost 30% of heat in windows, is manufactured by Saint-Gobain and Asahi (India Glass Ltd), while waterless urinals, which use concepts of specific gravity, are manufactured by Parryware, Hindware, etc.

17

TEAM OPTUMIZ

As demand grows, these technologies get cheaper. Waterless urinals now cost only Rs6,000 a piece compared with Rs15,000-16,000 some years ago. Its a virtuous cycle. As the tech gets cheaper, adoption will rise. References www.livemint.com/2010/12/.../Green-construction-gaining-tra.html http://en.wikipedia.org/wiki/Green_building www.teriin.org/events/DSDS/Sus_bldg_paper.pdf construction.indiabizclub.com/info/types/green_building www.calrecycle.ca.gov/Greenbuilding/ - United States www.livemint.com/2007/.../Ecofriendly-construction-catc.html donnamacdougall.wikispaces.com/file/.../What+Makes+a+Building+Green.doc

18

TEAM OPTUMIZ

GREEN SUPPLY CHAIN MANAGEMENT SCENARIO

Vishal Arora and Ankit Bansal, NMIMS

Introduction We all are aware about the present day world scenario in which environment has become a critical factor for our future survival. Depleting non-renewable resources and natural resources, increased global warming and other environmental issues due to industrial development needs to be addressed effectively. There is a need for a collaborative approach throughout the supply chain to tackle these issues. This leads to the concept called as Green Supply Chain Management(GSCM). The degradation of environment can take place at any level of supply chain; be it raw material, manufacturing or distribution or even disposal. Hence, it becomes imperative to implement green methods at all levels of supply chain. GSCM aims to optimize both economic and ecological impact of all the inputs used to produce the required output. A company can save a lot if it reduces the environmental impact of its business process. By reassessing the companys supply chain right from purchasing to the final delivery, savings are often seen as a benefit resulting from implementation of green policies. Improved environmental performance and financial gains are the two sides of the same coin. Financial benefits resulting from using sustainable techniques , push from various stakeholders and the changing regulatory and environmental requirements are the main drivers which compel a company to adopt Green Measures in all its day-to-day processes. Examples: There are many examples in the present scenario where companies have seriously taken up the Green Cause to save the Earth for future generations. IBM, which is known for its software technologies worldwide , has attached itself with Green Sigma Coalition which is an alliance among high-technology related companies. Green Sigma is a well known approach which involves the application of Lean Six Sigma principles and various practices to water, energy ,waste and greenhouse gas emissions throughout the operations carried out by a company. It includes procurement of raw material, conversion of raw material into finished goods, transportation and distribution operations which together constitute a products value chain.

19

TEAM OPTUMIZ

Coca-Cola which is a giant in beverage industry has 9 million coolers and vending machines which lead to greenhouse gas emissions. It has set out norms to phase out refrigerators which use hydrofluorocarbons which add up to global warming. In addition ,there are many companies which are keeping a track of the environmental impacts of the various transporatation vehicles like trucks, trains, planes and ships which are used to carry out their products. PepsiCo and Walmart which are well known names are endorsing GSCM big time.They are asking for sustainability data from their suppliers which require the suppliers to ask from their suppliers and so on right down the chain. This may pose as a challenge to the companies which are small as they find it tough to justify the costs of sustainability reporting as compared to the big companies. On the other hand, there are big companies which although have made many sustainability promises but have the most complex supply chains to manage. These pressures will make the companies invest in software which will merge energy efficiency, regulatory compliance, carbon accounting and financial reporting. Challenges to Green Supply Chain Management: Despite knowing the importance of Green Supply Chain Management, many companies are still turning a blind eye to these critical issues. They are not ready to accept the fact that if there is an improvement in environmental performance, it would lead to lower material costs, lower wastedisposal and training costs and fewer environmental permitting fees. Other challenges are: Numerous Standards : There are many standards and rules available for GSCM, hence it often becomes tough for a company to implement all of them .Companies find it difficult to prioritize the standards and hence may not implement those standards which are of utmost importance to them. Hence, first of all ,a company should try to understand which standards or rules are applicable to its current scenario. This will provide organizational direction and is a first step towards GSCM. Lack of Awareness: Green awareness is improving but is still a challenge. More awareness needs to be created which poses a major challenge. Business Case Development: Competitive pressures and Corporate Social Responsibility are major forces which will determine an organizations future course of action. Also, how effective limited capital can be

20

TEAM OPTUMIZ

deployed will be another crucial aspect which will make the strategic planners to struggle with business cases as best practices are shared. Sustainability Program Implementation: Implementation is a big challenge as organizations keep on procrastinating whenever Green initiatives are being talked about. Communication Planning: The green space is very broad. It encompasses everything from renewable energy to industry specific operational definitions. Organizations need to develop a communication strategy early in Green Supply Chain Planning process to drive long term compliance and reduce emissions. Recommendations:
1.

2.

3.

4. 5. 6.

We know that organizations are driven by profit. If the vision of different departments like sales, marketing and supply chain vary, then the supply chain organization needs to take a more measured approach. Sustainability and Supply Chain Deployment planning should be integrated. It involves working with supply chain organizations and with sustainability groups using a formal project implementation plan with a full length protocol. Another important point is to understand what is the right implementation methodology for the organization. The first step is planning, the second one being measurement and analysis followed by implementing solutions and last step is control. A score card should be developed with appropriate metrics for the sustainability and supply chain teams alongwith a talent development plan. Each organization has their own communication models and best methods. Defining the right communication tool and model is key for long term success. IT solutions can provide the required foundation to support the business processes and provide tools to measure, contain, mitigate and solve environmental problems which is critical to a sustainable future.

Conclusion: Green practices and a green supply chain is the need of the hour. They have become a necessity as there are compelling pressures from the regulatory bodies and no doubt, there are hidden economic benefits as well. The companies are now increasingly trying to give a greener shade to their different brands. This will help in promoting loyalty of customers who are getting more aware about the socio-ecological implications of businesses. Thus, it becomes the responsibility of companies to implement GSCM in their processes to save the environment and do their Bit for the society.

21

TEAM OPTUMIZ

References:

1. http://theenergycollective.com/davemeyer/45450/green-supply-chain-managementrequires-less-procrastination-more-innovation-leading2. http://www.greentechmedia.com/articles/read/the-green-supply-chain-challenge/ 3. http://www.supplychainbrain.com/content/nc/industry-verticals/hightechelectronics/single-article-page/article/challenges-and-opportunities-for-greenersupply-chain-management-in-high-tech/ 4. http://logistics.about.com/od/greensupplychain/a/green_intro.htm

22

TEAM OPTUMIZ

ECONOMIC FEASIBILITY OF GREEN TECHNOLOGY

Mehul Jain, NMIMS Abstract When we consider a purchase, do we mull over a product's quality and its durability? Do we spend more money now on that pricey, well-forged suitcase rather than replacing it a couple of times as substandard ones wear out? Green technologies are no different. We can pay more for a solar heating appliance now and enjoy the benefits of reduced power consumption over a number of years to come. The perception that green technology is expensive is in fact, a wrong notion. It is less expensive when we get smarter, simpler products with optimum resource utilization while conserving invaluable resources. In addition to this, we can alleviate the impact of consumerism on the Earth. If this is your mindset, then you belong to a small section of futuristic visionaries who wish to live in a green world. Green technology puts into practice environmental science to conserve the natural assets and resources, and to inhibit the negative impacts of human action. It is a big boost to the environment. A simple step of replacing fluorescent bulbs with energy-efficient lights can lessen the number of burnt bulbs dumped into landfills and help reduce the already huge heap of ewaste. Most eco-friendly technology devices are energy- efficient. And in a business, this translates to lesser electricity bills. Companies are beginning to mould their strategies to have minimum impact on the environment. They are upgrading their businesses to function more efficiently and preserve resources while retaining economic feasibility. Moore's Law produces really fast devices but it's incredibly harsh on the environment. Greenpeace says transition in technology generates 4,000 tons of e-waste per hour, which is conveniently dumped into garbage gardens of India, Africa and China. But finally Dell is leading the way with its take-back programs in which the PC maker recovers tons of unwanted equipment from its customers to recycle the parts for new gadgets. MNC's like Timberland, BOA and Google prize their employees who buy hybrid cars with cash incentives and prime parking spots. Tesco, the British grocery chain has created a database of its customers and offers discounts to shoppers who bring reusable bags to their stores.
23

TEAM OPTUMIZ

For years, skeptics have argued that green operations cannot co-exist with business growth. But Bank of America silenced them when the company reduced paper use despite a healthy growth in their customer base. As if this wasn't enough, BOA also recycles 30,000 tons of paper each year, saving nearly 2 lakh trees. Since 2006, GE has sold its Ecomagination products worth billionstransforming this world green.Wal-mart, which in all probability would head the most hated list by green movement, is set to make its doubters eat their words as it plans to power all its stores by renewable energy in the near future. It is also funding truck manufacturers like ArvinMeritor and Eaton to develop heavy duty hybrid vehicles. STAR TVs Hong Kong headquarter reduced the lighting by one-third trimming its CO2 emissions by 18000 pounds per year. The hottest zone of an office is the server room. The water that cools these hot mean machines generally go wasted. But at Intel's new data centre in Haifa, Israel, this hot water is recycled to heat the showers in gym and to keep the buildings warm during winters. Constructing eco-friendly house is no more expensive today. The domestic market offers a gamut of green energy solutions for households at bargain prices. Setting up solar water heater, placement of solar photovoltaic panels on the roof of the house, use of bricks made of insulated material, building a compost pit in the garden to recycle biodegradable kitchen waste and make garden greener and fecund are some easy ways to build an eco-friendly society. As politicians and business leaders continue to debate on the economic viability of clean technology, a green revolution is taking place all over the world. Zhang Chengui, a leader of a village in northwest Chinas Yunnan province installed a solar water heater, energy-efficient stove, tank to collect rain water and an autoclave that transforms human and animal waste to clean gas that can be used for household purposes such as cooking, lighting and heating. Zhang also used slurry from the biogas digester to fertilize his crops. He thus reduced his dependency on firewood, freed more of his time for farming, and tripled his annual income. Zhang could educate his children. Today his son works as an editor for a magazine and his daughter is a government official. Credit goes to innovative financing by GreenVillage credit program-part of United Nations Environment Programmes CREED initiative that provides micro loans and technical help to families investing in green technology. With strong focus on micro-finance, rural development and corporate social responsibility, India is primed to benefit with similar initiatives.

24

TEAM OPTUMIZ

Several thousand villages all over the nation are still disconnected with the Indian National Grid. Putting up a small wind turbine in such areas would mean electricity to cover the basic needs of a household. For example, cooking and lighting can be achieved pretty easily with a small wind turbine. Heavy transmission lines to carry electricity from centralized power plants to these rural areas could then be done away with. Indias Tata Group, which heralded a new era with its amazingly cheap Tata Nano, is hoping to start bringing the one-turbine-per-house project to these rural areas. Stadiums no longer solely focus on sports; indeed, they now also host business meetings, concerts, conclaves or other events. They are gradually transforming into multifunctional buildings. Hence, there is heightening need for total solutions that make stadiums green. Imtechs green stadium philosophy is an energy saving concept that will reduce power consumption in the Hamburg football stadium by some 3,500 MWh and lower CO2 emissions by 1,200 tons, making football more and more green. No wonder why the home base of the top European football club HSV in Hamburg was recently rechristened Imtech Arena.In India, RIL Solar Group, successfully licensed Indias first 1MW solar plant at Thyagaraj Stadium in New Delhi for the Commonwealth games. A similar plant was installed in the R K Khanna Tennis Complex. Commonwealth Games Village was illuminated by Solar LED street lights and garden lights, clearly defining the way forward for green sports in India.

The recently launched Volkswagen Polo 1.4 TDI BlueMotion, a fuel efficient diesel car that emits only 99g/km of carbon dioxide has become the new flavour of the Indian automobile market. VW have fitted their green diesel cars with advanced filters that remove from the exhaust gases every trace of particulate that can cause asthma in young people. The cars may be highly priced but the value of their clean technology is higher still.This statement is justified by its impressive growth in the New Year when VW sold 5,601 vehicles in the month of January alone. Out of these, over 5000 were the awards winning Polo and Vento. Sales shot up more than 10 times over the same month last year.

For two decades now, the Indian IT industry has diverted all their energy in achieving greater processing power and creating persistent long term data storage facilities. Today, they face a new

25

TEAM OPTUMIZ

challenge of minimizing the energy used to power their IT infrastructure. The trends to cloud computing can be an elixir to this industry as it helps outside the server room as well. Why do I require a Core i7 C02 producing system, when a simple, small, Atom-based net book consumes less than half the power when running, and demands far less raw materials to fabricate. The power of the processor, hard disk space and lack of a never-used DVD drive becomes largely irrelevant, when most of the work in web-based. When we add this to the bottom-line of the companies, it seems that IT has been spending money at wasteful servers and desktops for too long. Toxics Link, a Delhi based NGO reports that India annually accounts for $1.5 billion worth of e-waste domestically, with the flourishing IT sector being the biggest contributor, as 30 percent of its machines degenerate annually. Cloud computing and software as a service (SaaS) solutions brings a golden chance for companies to cut their investment and maintenance cost not just in the server room, but across the entire IT infrastructure.

Solar energy does not releases noxious gases in the atmosphere and requires little maintenance once installed. However, its manufacturing and operational costs have been quite high. Soon this might be a thing of the past as nanosolar Inc. has successfully engineered the most cost efficient solar energy source to date, bringing down the production costs from $3 per watt to 30 cents per watt. They use an innovative technology which coats metal sheets, as thin as aluminum foil, with a microscopic layer of printer ink that contain minuscule solar cells. Since these panels do not require silicon they can transfer maximum sunlight into power. This piece of innovation can be of immense importance to India as it plans to provide thousands of students with solar powered laptops costing as low as $20.

A report from International Energy Agency indicates that by 2030, the world will spend more than $16 trillion on development and installation of smart grids. These smart grids will integrate alternative energy sources, including wind and solar and employ an advanced infrastructure for measurement purposes. This system will help power companies to identify peaks and lags in consumption, limit electricity theft and losses and enable them to distribute loads more efficiently.

26

TEAM OPTUMIZ

India intends to increase its share of grid connected inexhaustible energy to 10 per cent in next two years. In Budget 2010-11, the Government announced its plans to introduce a National Clean Energy Fund. The budget also introduced some subsidies on production of photovoltaic plates for solar lamps and other products. These are welcome steps as they will invite more investment for a green economy. The challenge posed by the twenty first century is achieving sustainable and inclusive growth. Hence, going green should not be viewed as an impediment to growth. Both developed and developing nations have to voluntarily adopt a green path to live a better future. Researchers posit that, over the next ten years, the cost of fossil fuels will increase due to restricted supplies and the cost of alternative energy will decrease due to improved technology and greater availability. Fossil fuels cannot be relied upon for future use for comforting our home. It is time we start utilizing the endless opportunities offered by clean technology and paint this knowledge economy green. REFERENCES www.about.com www.imtech.eu www.ril.com http://www.solarpowerenergygeneration.com http://en.wikipedia.org/ www.eta.co.uk http://www.environmentalgraffiti.com www.iea.org

27

TEAM OPTUMIZ

GREENING THE SUPPLY CHAIN

Naresh Chandak and Ann Varghese,NMIMS

With the public becoming more aware of environmental issues and global warming, consumers are asking more questions about the products they are purchasing. Questions are being asked about how green their manufacturing processes and supply chain are, about their carbon footprint and how they recycle. Public opinion is shifting and people are demanding increased environmental friendliness from the corporate world. In order to satisfy customer demand, companies are being pressured to consider the areas where they impact the environment most, very often in transportation or agriculture. Old Thinking: Companies have long mistakenly thought that adopting environmentally friendly processes adds costs. New Thinking: Green practices like recycling, reusing and reducing waste can cut costs because they make a company more efficient. In addition, governments are rewarding companies that adopt green strategies and are creating new regulations that penalize those companies that do not. These regulations may be dependent on country or region and, consequently, companies operating globally face different compliance standards and regulationspotentially increasing the complexity and cost of doing business. Companies traditionally viewed as the worst environmental offenders have responded with an array of green initiatives, which benefit the companys public image as well as the environment. However, with neck breaking competition, its often difficult convincing companies to adopt green modes of operations which do not add business value. The prevailing question: How can a company use these initiatives to reduce their supply chain cost in addition to minimizing their environmental impact? Answer: Green Supply Chain. "Green Supply Chain Management is integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the product after its useful life."

28

TEAM OPTUMIZ

Green supply chain management (GSCM) has emerged as a key approach for enterprises seeking to become environmentally sustainable. The notion of Green Supply Chain Management implies the insertion of environmental decisions within the traditional concept of Supply Chain Management. Lets recap the basics concepts of supply chain first. A Supply Chain is defined as a set of three or more companies (of a company, an immediate supplier and an immediate customer) directly linked by one or more of the upstream and downstream flows of products, services, finances and information from a source to a customer. Supply Chain Management (SCM) is the systematic, strategic coordination of the traditional business functions within a particular company and across business within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole. GSCM addresses the four interrelated areas of the supply chain: upstream, downstream, within the organization, and logistics.
x

Upstream activities of the organization include evaluation criteria of suppliers' environmental performance. Companies reviewing their business processes should look beyond their factory walls. When reviewing purchasing processes the aim of any company, looking to transition to a green supply chain, should be to find suppliers who have minimized their environmental impact without reducing the quality of their product or significantly raising costs. By purchasing products from green suppliers businesses can then begin their green supply chain before any material reaches their site.

Downstream, usually comprises activities related to the disposal and sale of excess stock, including recovery and recycling opportunities.

Companies do not often change their business processes and it is this attitude that allows inefficient processes to continue unabated causing unnecessary waste and pollution. For example ineffective processes in the US automotive industry allowed the innovative Japanese automakers to become market leaders. Businesses that want to transition to a green supply chain should take the opportunity to review all their business processes to identify areas where adopting a greener outlook can actually improve their business. Companies should review each process along the supply chain to identify if more environmentally sound approach will help cure the inefficiencies that occur. Many companies that have been through this exercise have identified processes where raw materials were wasted; resources underutilized and unnecessary energy used due to inefficient equipment.
x

Within the organization, supply chain management might include involvement with "design for the environment"

29

TEAM OPTUMIZ

Interface Corporation is a leading maker of materials for commercial interiors. In its new Shanghi carpet factory a liquid had to be circulated through a standard pumping loop similar to those used in nearly all industries. A top European company designed the system to use pumps requiring a total of 95 horsepower. The Interface engineer working on the project re-designed the system by using "fatter pipes" and straightening/shortening the length of the pipes used in the system. The overall horsepower requirement was now 7 horsepower or a 92 percent reduction. His re-designed system cost less to build, involved no new technology and worked better in all respects. This engineer used whole system thinking which can help managers find small changes that lead to big savings that are cheap and free
x

In logistics, activities such as just in time or quality management intertwine with environmental criteria.

Just in time production can have both positive and negative effects on the environment. Because in JIT we produce the good only when required, we save a lot in the form of reduced wastage .But on the other hand JIT also involves more transportation cost as compared to ordinary production methods. Hence a company must assess these points before going for JIT production. Benefits of Green Supply Chain Management Organisations can enjoy several benefits by greening their Supply chain, such as; Sustainability Of Resources - GSCM helps in proper and effective utilisation of available productive resources of organisations. Organisations will purchase 'green' input resources for environmental friendly production process to produce desired outputs. Lowered Costs/Increased Efficiency - Effective management of suppliers can reduce transaction costs and promote recycling and reuse of raw materials. Also, the production of waste and hazardous substances can be cut, preventing corporations from being fined as a result of violating environmental regulations. Consequently, the relevant handling and operational cost involved can be further reduced and, in the mean time, the efficiency of using resources can be enhanced. Product Differentiation And Competitive Advantage - It helps the organisation in positioning its product differently in customer's mind. Besides attracting new profitable customers for organisation, it will give competitive edge over competitors in market place. It will strengthen the brand image and reputation in market place. Adapting to Regulation and Reducing Risk - Organisations adopting GSCM practices can reduce the chances of being prosecuted for anti-environmental and unethical practices. Improved quality and products Organization will produce products which are technologically advanced and environment friendly. This will enhance the brand image and brand reputation in customers' mind.

30

TEAM OPTUMIZ

Examples of Green Supply chain initiatives Texas Instruments: Saves $8 million each year by reducing its transit packaging budget for its semiconductor business through source reduction, recycling, and use of reusable packaging systems (20% annual savings). Pepsi-Cola: Saved $44 million by switching from corrugated to reusable plastic shipping containers for one litre and 20-ounce bottles, conserving 196 Million pounds of corrugated material. Commonwealth Edison: Produced $50 million in financial benefits from managing materials and equipment with a life-cycle management approach. Dow Corning: Saved $2.3 million by using reconditioned steel drums in 1995. It also conserved 7.8 million pounds of steel.

These green initiatives benefit the company in more than one way, not only do they help in improving the supply chain and reducing environment impact but they also help in developing better perception of the company by the public and shareholders alike. While green initiatives can lead to better supply chain efficiencies, the key to extracting business value lies in establishing a long-term green strategy that is aligned with corporate strategy and approached top-downwith strong sponsorship. When putting a long-term strategy in place, companies need to be aware that a full-blown green implementation could prove costly and it may have a negative impact on the companys bottom line in the short term. That is precisely why companies must keep in mind that greening is best accomplished in smaller steps. For example, green initiatives can start in areas that have the greatest business and environmental impact, and companies can look for quick wins before moving forward. . Such green initiatives
31

TEAM OPTUMIZ

also require a strong business case that highlights a prioritized list of targeted opportunities and a phased adoption roadmap. Finally, the initiatives need to be integrated with other companywide projects to ensure that one does not compromise another. Green Synergies Are Not Without Challenges While going green can prove a critical source of competitive advantage, its easier said than done. To achieve real financial benefits companies need to follow certain key practices. Above all, they must commit to a green philosophy and incorporate environmentally sustainable practices into their product lifecycle and supply chain operations. Still such an approach is not without its fare share of problems.

1) Green strategies that require just-in-time delivery of small lot sizes require increased
transportation, packaging, and handling that may contradict a green approach. Introducing global supply chain management into the green and lean equation increases the potential conflict between the green and lean initiatives. 2) Such initiatives require revamping the existing supply chain. Usually very few companies have the funds available to go in for such overhauling of the system. Conclusion Companies which adopt green supply chain methods are usually recognised by the industry as those doing so to improve their corporate image and also tending to do the right thing However, adopting environmentally sustainable business practices also yields measurable financial benefits. Becoming green is no longer an end in and of itself, but the by product of optimizing a supply chain. Transitioning to a Green Supply Chain while also maximizing efficiency is not a clear-cut process, and opportunities to implement green initiatives require a comprehensive understanding of the entire supply chain. Ultimately, each green opportunity should positively contribute to the value of the firm and environment. References http://logistics.about.com/od/greensupplychain/Implementing_a_Green_Supply_Chain.htm http://www.ehow.com/how_2106433_build-green-supply-chain.html http://www.articlesbase.com/corporate-articles/best-practices-in-green-supply-chainmanagement-1422520.html http://www.diamond consultants.com

32

TEAM OPTUMIZ

GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY

Ganesh Iyyapan and Dhiren Chaudhary

ABSTRACT: Green supply chain management has emerged as a proactive approach for improving environmental performance of processes and products in accordance with the requirements of environmental regulations. This research examines the challenges and opportunities in the electronics industry and the implementation of green supply chain management in Taiwanese electronic industry.

Introduction Supply chain management is the coordination and management of a complex network of activities involved in delivering a finished product to the end-user or customer. All stages of a products life cycle will influence a supply chains environment burden, from resource extraction, to manufacturing, use and reuse, final recycling, or disposal. Green Supply Chain Management basically refers to the use of the use of Green Procurement, Green Manufacturing, Green Distribution and Reverse Logistics. The Key idea behind all this is to minimise wastes along the Supply Chain by 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. Key Terms Green Procurement Green procurement is defined as an environmental purchasing consisting of involvement in activities that include the reduction, reuse and recycling of materials in the process of purchasing. Besides green procurement is a solution for environmentally concerned and economically conservative business, and a concept of acquiring a selection of products and services that minimizes environmental impact. Green Manufacturing Green manufacturing is defined as production processes which use inputs with relatively low environmental impacts, which are highly efficient, and which generate little or no waste or pollution. Green manufacturing can lead to lower raw material costs, production efficiency gains, reduced environmental and occupational safety expenses, and improved corporate image. Green Distribution Green distribution are consists of green packaging and green logistics. Packaging characteristics such as size, shape, and materials have an impact on distribution because of their affect on the transport characteristics of the product. Better packaging, along with rearranged loading patterns,

33

TEAM OPTUMIZ

can reduce materials usage, increase space utilization in the warehouse and in the trailer, and reduce the amount of handling required. Reverse Logistics Reverse logistics is the process of retrieving the product from the end consumer for the purposes of capturing value or proper disposal .Activities include collection, combined inspection/selection/sorting, re-processing/direct recovery, redistribution, and disposal.

Need for Green Supply Chain Management

The world today is beset with dangerous environmental changes. We are noticing turbulent weather patterns ranging from record heat waves to snowfall and hurricanes. Global warming is another pressing issue: every single year since 1993 has been in the top 20 warmest years on record. Apart from extreme environmental changes many countries are now facing resource depletion. Although, India and China are growing economically at double digit rates, they are already facing resource depletion .According to the World Bank 80 countries now have water shortages that threaten health and economies while 40 percent of the world have no access to clean water or sanitation. At present rates of use and degradation, we will be little left with very little Natural resources at the end of the next century. Moreover, consumers are becoming increasingly aware of health & safety issues and corporations run the risk of public backlash if their supply chain causes poor environmental impact. Also, the regulatory environment world over are becoming extremely stringent. In wake of these changes Green Supply Chain Management (GSCM) seems the way ahead. GSCM can help address the issues of environmental concerns while simultaneously reducing costs.

Challenges and Opportunities for GSCM in the Global Electronics Industry The Electronics industry operates in a competitive environment with a complex and long value chain that has become increasingly dynamic. The changing regulatory and environmental requirements and the push from stakeholder groups for accountability and transparency in practices are a few of the key drivers in this environment. Financial benefits accruing from sustainable practices are other drivers. Thus, the players in the Electronics industry have now embarked on a path towards achieving a Green Enterprise. However, the road map towards a greener supply chain is full of challenges that each organization has to overcome. The Key focus areas for Green SCM are as follows: Product Life Cycle Management Supply Chain Network and Logistics Optimization Process Optimization Product Life Cycle Management
34

TEAM OPTUMIZ

Electronics industry is facing the challenge of ever increasing demand for innovative new products at lower prices but of improved quality while ensuring regulatory compliance. To meet these demands and maintain profitability, electronics and high-tech companies must relentlessly accelerate product innovation and introduction, minimize costs, and manage risks arising due to a changing regulatory scenario. One of the prominent trends in the Electronics industry is the increasing amount of regulation that can slow down the time to market of new products or in worst-case scenarios threaten the product life cycle itself. There are several pieces of environmental legislation that are aimed at reduction of hazardous materials included in many products. Some of the key regulations are the Restriction of Hazardous Substances (RoHS) directive and the Waste Electrical and Electronic Equipment (WEEE) in manufacturing and electronics industry; IMDS (International Material Data Systems) reporting; and ELV (End-of-Life Vehicle) in the automotive sector. According to the European Union more than 80 percent of a products environmental impact is determined in the product conception phase. Hence, companies failing to efficiently manage product compliance across the range of regulatory bodies can suffer costly business interruptions such as product redesigns, delayed market launches, product returns and recalls. Supply Chain Network and Logistics Optimization In the Electronics supply chain, Transportation is a significant component after manufacturing. This is because the chain itself has a high number of players like Semiconductor Players, Component Manufacturers, Component Distributors, Electronics Manufacturing Services (EMS), Original Equipment Manufacturers (OEMs), Product Distributors, Software and Service Providers and End Customers. Inefficient transportation methods in the modern supply chain represent a significant part of the ecological problem. Certain reports suggest that as much as 75 per cent of a company's carbon footprint comes from transportation and logistics alone. Moreover, stricter norms on disposition of goods in the Electronics industry, makes reverse logistics a very strategic area as implementing reverse logistics can reduce the waste dumped as well as increase opportunities to re-introduce returned products to Market.

Process Optimization Process Optimization can be attained with the help of Lean Manufacturing and Lean Procurement. Electronic companies have embraced the principles of lean manufacturing, to improve the synchronization of production with customer demand and supplier capacity. The focal areas of green manufacturing are reduction in energy consumption, waste (both hazardous and non-hazardous Waste) and emissions which are part of manufacturing processes. Lean Procurement means a procurement process that cuts out waste, seeks innovative procurement solutions which are environmental friendly.
35

TEAM OPTUMIZ

Green SCM in The Taiwanese Electronics Industry With increase in environmental concerns during the past decade, a consensus is growing that environmental pollution issues accompanying industrial development should be addressed together with supply chain management, thereby contributing to green supply chain management (GSCM) . Since the Waste Electrical and Electronic Equipment (WEEE), Restriction of Hazardous Substances (RoHS) and Ecodesign for Energy using Products (EuP) directives were passed by the European Union (EU), GSCM has been adopted as a proactive strategy by leading electronic industry companies, including Dell, HP, IBM, Motorola, Sony, Panasonic, NEC, Fujitsu and Toshiba. Nowadays, similar regulation has been spread throughout the world in the US, China, Japan and Korea; the emerging issue of green product seems to be quickly picked up in Asia. Some countries such Japan, Taiwan and Korea are the heralds in terms of green electronic products. The issue of GSCM is pertinent for Taiwans electronics industry as recent studies have shown that most of the worlds manufacturing will be relocated to Asia within the next two decades .Therefore, GSCM is an operational initiative on the part of many organizations, including those in Asia and South Asian region which are adopting to address such environmental issues. Taiwan is one of the most industrialized countries in the Asia-Pacific region. Most electrical and electronics manufacturers in Taiwan are involved in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM). These companies play important roles in global markets as their products share a substantial portion in market these industries are subject to customer requests for green products and green manufacturing that comply with emerging environmental directives (such as WEEE, RoHS and EuP).

Green SCM at ACER in Taiwan To meet international expectations and demand for environmental protection, many Taiwanese companies have already implemented GSCM practices. ACER, has been the pioneer in green product supply chain management system in Taiwan, including green product specification, green products compliance data, an auditing management mechanism, and a green procurement system. The environmental management covers environmental accounting, life cycle assessment, green procurement and reduction of greenhouse emissions. ACER has also implemented measures to ensure that no prohibited substances as defined by the EC are present in their products. Apart from meeting the demands of its clients, ASUS has also taken initiatives to understand the difficulties faced by its suppliers and provide them with necessary information and services. ASUS also provides their suppliers with ASUS e-Green for registration and evaluation to ensure the capability of suppliers through the mechanism of a part approval process. Finally, the company has established an auditing mechanism for the green management system to ensure that their suppliers conform to green management, thus establishing incentive and elimination mechanisms for green procurement. In summary, ASUS promotes green engineering by implementing green design, green procurement, green production, green marketing and green services in order to conserve natural resources. To ensure that its export to the European market is unhindered, its upstream suppliers are requested to provide a guarantee, evaluation report and inspection of hazardous substance management, to assess the suppliers and

36

TEAM OPTUMIZ

strengthen the existing supply chain, in order to be able to supply its downstream clients with products conforming to the green procurement standard and the EU ROHS directive .It has established a control list of environmentally hazardous substances and profiles for raw materials containing no prohibited substances, as well as having developed an environmental management table to evaluate the environmental protection performance of its suppliers. The company has also included suppliers environmental information into its e-management of suppliers and provides necessary training to relevant personnel to enhance their awareness of environmental protection. The green supply chain practices adopted by companies in Taiwan in response to green issues and experts opinions can be divided into green procurement practices, including establishing a control list of environmentally hazardous substances, profiles for raw materials containing no prohibited substances, assessment tables for the environmental management of suppliers, green product approval data, and an auditing mechanism for green management, and green manufacturing practices, which include green design, manufacturing of green products, recovery and reuse of used products and green products standards.

Conclusion With the onset of Green Futuristic demands the need for Green Supply Chain Management will increase with the onset of new technologies. Moreover Supply Chain in realistic terms occupies an important section of the organization, so the need to focus on the Green Supply Chain will increase. Because of Green Supply Chain there is not only change in the operational activities of the organization but also for the associated distribution activities, this creates an opportunity for the organization to get First Mover Advantage in its own sector. Hence the need for the organizations to develop a sustainable model for future will inculcate Green Supply Chain and so the Green Supply Chain will be the need of the future.

37

TEAM OPTUMIZ

Quotable Quotes
Bill Gates Analytical software enables you to shift human resources from rote data collection to valueadded customer service and support where the human touch makes a profound difference.

W. Edwards Deming Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.

Peter F. Drucker The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Michael LeBoeuf A satisfied customer is the best business strategy of all.

Henry Ford It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.

Zig Ziglar Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business.

38

TEAM OPTUMIZ

Quotable Quotes
Peter Drucker The purpose of a business is to create a customer.

Bill Gates Your most unhappy customers are your greatest source of learning.

Walt Disney Do what you do so well that they will want to see it again and bring their friends.

Jonathan Alter If Franz Kafka were alive today he'd be writing about customer service.

Peter Drucker Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.

Peter Drucker The single most important thing to remember about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer.

39

TEAM OPTUMIZ

40