M.S.

RAMAIAH INSTITUTE OF TECHNOLOGY

(Autonomous, Affiliated to Visvesvaraya Technological University,
Belgaum)
M.S.R.I.T Post, Bangalore - 560054

Seminar Report on
GREEN SUPPLY CHAIN MANAGEMENT
Department Of Management Studies

1
 CONTENTS
• Definition & Meaning
• What is GSCM?
• Literature Cited
• Management Approaches to greening
• GSCM Elements
• GSCM practices
• Drivers to Adopt GSCM
• Systematic Approach to implement GSCM
• Challenges of SSCM
• GSCM Strategies
• Barriers in Applying GSCM
• Link between GSCM and Competitive Advantage and Economic Performance
• Benefits of GSCM
• Areas of Focus in the Company due to GSCM
• Ten Steps to GSCM
• Fruitful Examples
• What do you Know?
• Conclusion

2
 DEFINITION OF GSCM
• “Green Supply Management is integrating
environment thinking into supply chain
management, including product design,
material sourcing and selection, manufacturing
process, delivery of the final product to the
consumers, and end-of-life management of the
product after its useful life.”

3
WHAT IS GSCM?

Green Supply Chain

Management=
Green Procurement + Green
Manufacturing/Materials
Management
+ Green
Distribution/Marketing
+Reverse Logistics

4
 LITERATURE CITED
• www.wikipedia.org
• www.springer.com
• www.scribd.com
• www.greenbiz.com
• www.supply-chain.org
• www.openj-gateinformindia.co.in

• “Greening the Supply Chain”- JOSEPH SARKINS

“ Green Supply Chain, Procurement, Sustainability “-JOHN WIKERSON
• Bowen, F, P. Cousins, R. Lamming and A. Faruk, 2001, The role of supply management capabilities in
green supply, Production and Operations Management, 10(2) 174-190.
• Bowen, F, P. Cousins, R. Lamming and A. Faruk, 2006, Horses for courses: explaining the gap between
the theory and practice of green supply. A Framework for Strategic Environmental Sourcing. Chapter 9,
Greening the Supply Chain. Editor Sarkis, Joseph, Springer, 151-172.
• The Coastal Business Journal,Spring 2009,Vol8,No1
• Srivastara, S. K. (2007). Green Supply-Chain Management: A State-of-The-Art Literature Review.
International Journal of Management Reviews, 9 (1), 53-80.
• Sarkis, J. (2003). A Strategic Decision Framework for Green Supply Chain Management. Journal of
Cleaner Production, 11 (4), 397-409

5
 SCOPE AND SIGNIFICANCE
• SCOPE:
• Companies effort to incorporate GSCM leads to reduction of wastage.
• Which in turn leads to reduction of pollution and sustainability of natural resources.
• Which in turn creates a better environment and world to live in.
• Hence, the opportunity to slowly orient to GSCM should be the focus of the
companies to world class standards.

• SIGNIFICANCE:
• Eliminate wastes.
• Optimum utilization of resources.
• Sustaining environment.
• Competitive advantage.
• Impress customers.
• To make difference.
• Reverse logistics.
• Create social responsibility.

6
 OBJECTIVES
• GSCM mainly focuses on making the business
orientation eco-friendly
• To achieve competitive advantage and high performance
through GSCM practices
• To integrate the green supply chain into the corporate
policies and strategies for smooth operation
• To make difference in its approach
• To show how important it is to conserve environment
and sustain our natural resources and show to what
extent is our business activities dependant on
environment

7
 Management approaches to
greening

• Reactive approach/comply with legislation

• Proactive approach/pre-empt new legislation
• Value-seeking approach

8
GREEN SUPPLY CHAIN
ELEMENTS

9
 Green supply chain practices

• Green supply chain practices

• Environmental collaboration
• With customers
• With suppliers
• Environmental monitoring
• Monitoring of suppliers
• Monitoring by customers
10
GSCM PRATICES

11
 DRIVERS TO ADOPT GSCM

Target Employee Brand Lowered Product

marketing Morale Reputation Cost and ROI Differentiation

Increased Adapting to Sustainability Competitive and Ethical

efficiency regulation of resources Supply chain Imperative
and reducing risk pressures

12
a systematic approach to implementing a Green Supply
Chain

• It's a four step decision making process.

• The first step is to identify environmental costs
within your process or facility.
• The next step is to determine opportunities which
would yield significant cost savings and reduce
environmental impact.
• The third step is to calculate the benefits of your
proposed alternatives.
• The last step is to decide, implement and monitor
your improvement solutions
13
Challenges for sustainable supply chain
managers

ECOLOGICAL SOCIAL
CHALLENGE CHALLENGE
ECONOMIC INTEGRATION
CHALLENGE CHALLENGE

14
GSCM STRATEGIES
• Risk-based
Strategies
• Efficiency-based
Strategies
• Innovation-based
Strategies
• Closed-loop
Strategies
15
 BARRIERS OF APPLYING GSCM
• maintaining close relationships
with their main suppliers
• obtaining a larger market share
through competition with other
market share
• improving product quality and
reducing costs
• ensuring the sustainability of
operations and reducing the
environmental impacts

16
 LINK BETWEEN GSCM AND ECONOMIC
ADVANTAGE AND COMPETITIVE ADVANTAGE

17
Benefits of Green Supply Chain Management
• Sustainability Of Resources
• Lowered Costs
• Increased Efficiency
• Product Differentiation And Competitive
Advantage
• Adapting to Regulation
• Reducing Risk
• Improved quality and products
• Positive impact on financial performance
• Effective management of Suppliers
• Dissemination of technology, advanced
techniques
• Transparency of the supply chain
• Large investments and risks are shared among
partners in the chain.
• Better control of product safety and quality
• Increasing of sales
• Find beneficial uses for waste

18
 AREAS OF FOCUS IN THE
COMPANY DUE TO GSCM
• Pollution and waste represent incomplete,
ineffective, or inefficient use of raw material.
• GS collaboration analysis provides an
opportunity to review processes, materials, and
operational concepts.
• GS analysis targets: ‣ Wasted material ‣
Wasted energy or effort ‣ Under-utilized
resources
19
 TEN STEPS TO GREEN SUPPLY
CHAIN
Step 1: Know where you stand
Step 2: Have a plan
Step 3: Have a single point of accountability
Step 4: Market your progress internally and externally
Step 5: Incorporate “green” into your existing sourcing
and procurement processes
Step 6: Communicate the goals and objectives to the
supplier community
Step 7: Stay up to date with your global regulations
Step 8: Keep up with new materials, technologies and
processes
Step 9: Do the “easy stuff first”
Step 10: Get everyone involved
20
 FRUITFUL EXAMPLES OF BEING
GREEN
• Wal-Mart anticipates its goal of a 5 percent reduction in
packaging by 2013 will produce $3.4 billion in direct savings
and roughly $11 billion in savings across the supply chain.
• Johnson & Johnson’s energy efficiency program resulted in
an estimated $30 million in annualized savings over the 10
years prior to the company’s 2006 sustainability report.
• Nestlé, through a combination of packaging source reduction,
re-use, recycling, and energy recovery, saved $510 million,
worldwide, between 1991 and 2006.

21
CADBURY GOES GREEN ACROSS
SUPPLY CHAIN
• Cadbury announced it will publish data
on greenhouse gas emissions from
across its global supply chain, as part of
plans to reduce its carbon footprint by
50 per cent.
• The announcement, made as a
commitment to the Carbon Disclosure
Project(CDP), would require all of
Cadbury's hundreds of suppliers to report
information such as greenhouse gas
emissions data, reduction targets and
climate change strategies.
• Paul Dickenson, CDP chief executive,
praised Cadbury for taking this
"significant milestone" and called on other
companies to follow the example.
• He also admitted that the move was also a
strategic step for the company as
"investors use the quality of a disclosure
as a very useful tool to assess how
seriously a company is taking the issues of
climate change".
22
 HOW DID hp BECOME A “GREEN”
COMPANY?
• HP finished at the top. In an article, titled “The
Greenest Big Companies in America"
• first highlight program, called Desigh for
Environment program for acquiring rooftop
solar panels has been implemented some
examples: About one year ago, HP designed a
notebook for Walmart, shipped in a stylish bag
made out of 100% recycled material, reducing
packaging with 97%, and winning Walmart’s
Design Challenge along the way.
• Another example is the increased use of
recycled material in the production of Inkjet
Catridges. These are just two examples in a
series.
• increase the use of renewable energy, decrease
emissions per unit of floor space ,also
consolidated our IT datacenters resulting in
drastic reductions in energy consumption
• Hp is committed to continue its efforts to reduce
the environmental impact

23
 THE GREENING OF WALMART’S SUPPLY
CHAIN
• In October 2005, Wal-Mart CEO Lee Scott
committed the company to three ambitious goals:
To be supplied 100 percent by renewable energy; to
create zero waste; and to sell products that sustain
Wal-Mart's resources and the environment. This is
the story of Wal-Mart's progress toward those goals
and the array of innovative practices that Wal-Mart
is implementing to “green” its supply chain.
• Implementing New Supply chain Strategies

• Identifying goals ,metrics , new technology

•
• Certifying Environmentally sustainable
products
• Providing network partner assistance to
suppliers
• Committing to larger volumes Environmentally
sustainable products
• Cutting out the middleman
• Consolidating direct suppliers
• Reconstructing the buyer role
• Licensing environmental innovations

24
 What we know
everything we do has an impact on the
environment.
Past, ‘back-page’ stories are now ‘front-page’
collective efforts have more impact than
individual ones
collaboration must become part of every
leader’s lexicon
we need to think BIG!
we need to start small
We are borrowing the future from
our children; we have to pay it
back. Our first responsibility is to
leave a healthy global biosphere for
our children – and the coming
generations... ‣ In a global village,
there is only one boat, and a hole
sinks us all.

25
 CONCLUSION
• GSCM is a relatively new green issue for the majority
of Indian Corporations.
• Adding the "green" component to supply chain
management involves addressing the influence and
relationships of supply chain management to the
natural environment.
• Green business practices that maintain and sustain
good environmental quality are increasingly becoming
a vital component of business organization.
• There is a strong association of business with
environment.
• It’s the responsibility of every business to sustain
itself in a eco-friendly manner and be environment
concerned along with making profits because the
business can sustain only if the environment does.

26
27