9.

7 GrSCM Framework Although numerous articles on GrSCM exist, the numbers of proposed comprehensive frameworks for GrSCM are still few. Most of literature in GrSCM is addressing green design or operations issues. Very little articles exist which address GrSC analysis via generic models which could be applied to different products, processes, and industries. In this section, two generic models, EPA Lean and Green Supply Chain Model and GreenSCOR are reviewed and discussed (Reza et al., 2009). 9.7.1 EPA Lean and Green Supply Chain Model According to (Reza et al., 2009) the United States Environmental Protection Agency (EPA) has issued a guide entitled The Lean and Green Supply Chain: A Practical Guide for Materials Managers and Supply Chain Managers to Reduce Costs and Improve Environmental Performance. This guide provides a systematic approach to implementing a green SC. The proposed model is created through a collaboration program with US industry, trade associations, research institution, and government agencies (Fig. 9.3). The proposed model has a four step decision making process. In the first step, environmental impacts within each process or facility are identified. This would later allow focusing on the significant improvement alternatives. Next, the opportunities, which would yield considerable cost savings and reduce environmental impact, are determined. The third step is to evaluate the quantitative and qualitative benefits of each alternative. Finally, the best alternative is selected, implemented, and its

performance is monitored to control the behavior of the system (Reza et al., 2009). 9.7.2 GreenSCOR Model The Supply Chain Operations Reference (SCOR) is a state-of-the-art SCMtool developed by Supply Chain Council. SCOR drives an end-to-end view of SC performance. This model incorporates best practices from a variety of industries, hence making it suitable for different kinds of organizations. Currently, SCOR model consists of five main processes including Plan, Source, Make, Deliver, and Return. For each process, suitable required inputs and outputs, enablers, and best practices are defined. The current version of SCOR is 9.0 as January 2009. Before version 9.0, SCOR did not explicitly consider GrSCM; although Return process does partially relate to GrSCM concepts (Reza et al., 2009) . GreenSCOR (LMI 2003), developed by Logistics Management Institute2, is a model for focusing on the impacts of SCM on each stage of the product life cycle.

Fig. 9.3 EPA lean and green supply chain framework (McDaniel et al. 2000)

GreenSCOR modifies the SCOR 5.0 model structure to include environmental processes, metrics, and best practices. Most of these modifications have occurred in the SCOR model best practices part. LMI developed GreenSCOR model through a structured approach. First, they researched for GrSC best practices and metrics. Then, environmental impacts of current SCOR model processes were evaluated (Table 9.2). Then, LMI incorporated environmental metrics and best practices into the SCOR model, and reported the changes in a way that specifies the reasons of each change and its the impact on SC operations (Reza et al., 2009) Table 9.2 SCOR process environmental impact SCOR process Plan Potential environmental impact Plan to minimize energy and perilous material consumption Plan the handling and storage of perilous materials Plan for the disposal of ordinary and perilous waste Plan conformity of all supply chain activities Select suppliers with positive environmental records Select materials with environmentally friendly content Specify packaging requirements Specify delivery requirements to minimize transportation and handling

Source

Make

Deliver

Return

requirements Schedule production to minimize energy consumption Manage waste generated during the make process Manage emissions (air and water) from the make process Minimize use of packaging materials Schedule shipments to minimize fuel consumption Schedule transportation and aggregate shipments to minimize fuel consumption; prepare returns to prevent spills of perilous materials (oils, fuels, etc.) from damaged products

GreenSCOR is intended to be used by organizations that have already implemented the more advanced features of environmental management and SCM. For environmental management, this includes GrSCM practices and life cycle assessment. As for SCM, the organization must implement supply chain integration and SCOR model. Supply Chain Council is still working on complete incorporation of GrSCM in SCOR. They are designing appropriate and efficient metrics and best practices for suitable incorporation of GrSCM concepts in SCOR (Reza et al., 2009). 9.7.2.1 GreenSCOR Findings According to (Reza et al., 2009) one of the main gaps in the SCOR model was lack of process for waste disposal during the production. Therefore, GreenSCOR added a new waste disposal process to every function of Make process. Also, as stated before, the return process does not completely account formany of GrSCMpractices such as remanufacturing, refurbishing, reusing, recycling etc (Table 9.3). Table 9.3 SCOR performance attributes environmental linkage Performance attribute Reliability SCOR definition Delivering correct product to correct customer, to correct place, at the correct time, in the correct condition and packaging and quantity, with correct documentation Environmental definition Delivering the correct reduces waste, pollutions and fuel use from extra transportation for returned products; Proper documentation enables all of the supply chain entities to keep

Responsiveness

The speed of providing products to the customers

Flexibility

The agility in responding to market changes to gain or maintain competitive advantage

Costs

Costs of operating supply chain Effectiveness of assets management in order to satisfy customers demand

Asset management efficiency

LMI added new metrics to GreenSCOR to measure

better track of perilous materials that are embedded in products; thus allowing to arrange for proper storage, handling, and disposal. The environmental impacts affecting the speed of material movement, including regulatory or pollution control steps within a process. The extent to which a firm can meet the environmental demands of its customers. This refers to the products, their production, transportation and recyclability, etc. The costs of environmental conformity and cleanup as well as energy costs. Assets management in a way that mitigates environmental impacts and reduces internal costs. supply chain environmental

performance. All of the metrics are supply chain oriented in order to improve customer service by implementing environmental practices. Finally, LMI added environmental best practices to the model. These environmental best practices are implementable regardless of industry (Reza et al., 2009).