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    Debayan Ghosh 16004 PGDM 2016-2018 MGLO Assignment

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    Soumo Das
    Green supply chain management (GSCM) aims to reduce the environmental impact of supply chain activities through material, information, and cash flow management. It focuses on product design, efficient production processes, selecting environmentally conscious business partners, using eco-friendly packaging and renewable energy sources, and reducing paper usage through IT. GSCM faces barriers like lack of sustainability standards, high initial costs, short-term profit priorities over long-term strategies, insufficient management motivation, and training. It differs from conventional SCM which prioritizes cost and speed over environmental impact.

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    Debayan Ghosh 16004 PGDM 2016-2018 MGLO Assignment

    Uploaded by

    Soumo Das
    29 views3 pages
    Green supply chain management (GSCM) aims to reduce the environmental impact of supply chain activities through material, information, and cash flow management. It focuses on product design, efficient production processes, selecting environmentally conscious business partners, using eco-friendly packaging and renewable energy sources, and reducing paper usage through IT. GSCM faces barriers like lack of sustainability standards, high initial costs, short-term profit priorities over long-term strategies, insufficient management motivation, and training. It differs from conventional SCM which prioritizes cost and speed over environmental impact.

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    supply chain management

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    Debayan Ghosh

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    Green supply chain management (GSCM) aims to reduce the environmental impact of supply chain activities through material, information, and cash flow management. It focuses on product design, efficient production processes, selecting environmentally conscious business partners, using eco-friendly packaging and renewable energy sources, and reducing paper usage through IT. GSCM faces barriers like lack of sustainability standards, high initial costs, short-term profit priorities over long-term strategies, insufficient management motivation, and training. It differs from conventional SCM which prioritizes cost and speed over environmental impact.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views3 pages

    Debayan Ghosh 16004 PGDM 2016-2018 MGLO Assignment

    Uploaded by

    Soumo Das
    Green supply chain management (GSCM) aims to reduce the environmental impact of supply chain activities through material, information, and cash flow management. It focuses on product design, efficient production processes, selecting environmentally conscious business partners, using eco-friendly packaging and renewable energy sources, and reducing paper usage through IT. GSCM faces barriers like lack of sustainability standards, high initial costs, short-term profit priorities over long-term strategies, insufficient management motivation, and training. It differs from conventional SCM which prioritizes cost and speed over environmental impact.

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    © All Rights Reserved
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    of 3

    Debayan Ghosh

    16004
    PGDM 2016-2018
    MGLO Assignment

    Q: Difference between Conventional & Green Supply Chain Management.


    A: Conventional Supply Chain management is a traditional way of carrying out the process
    of transporting the product from its raw material to the end user. For example, in a
    conventional SCM, a manufacturer might contract with a wholesale distributor, which in turn
    contracts with individual retail stores. Each entity does its part to transport the product from
    the manufacturer to the end consumer. Focuses on Total Quality, optimum Cost and best
    service which in some way contributed to environment.
    Conventional SCM faced varieties of challenges as follows:
    Improper planning leading to non-visual relationship between the channel partners.
    Focused on the individual performance without considering the intermediaries.
    Lack of long term growth plan and focus.
    Lack of Mission and Vision Statements.
    Supported by old legacy system with very low integration among various channels.
    Storage areas became full, leaving no room for more product. If so, orders are
    delayed, driving increased Shortages.

    Green Supply Chain Management (GSCM) is all about delivering products and services
    from suppliers, manufacturers to end customers through material flow, information flow and
    cash flow in the context of environment. To incorporate the environmental idea in each and
    every stage of the product and service in a Supply Chain.
    Supply chain managers in GSCM have a great role in developing innovative environmental
    technologies to tackle the problems faced by the economy on environmental problems and
    communicate this to every stake holder in the chain. Lean Manufacturing is eliminating waste
    in every stage of supply chain. It focuses on producing economically and environmentally
    friendly quality products which meets the customer expectation. It is the best practice to be
    followed since it reduces inventory, saves space and energy. Hence Lean manufacturing
    contributes to the Green environment.
    Green supply chain management can be built as follows:
    Product Selection: Designing the product in such a way that it should be safe for use,
    creating least pollution and consumes less energy. It should not be hazardous during
    storage, transportation and also while disposing once it reaches end of its product life
    cycle. DFE (Design for Environment) is about developing products that has no
    negative side effect for human and environment, cost effective and environment
    friendly. This practice has to be implemented in product design stage.

    Process and production: Process has to be designed so that it conforms to the Green
    Supply Chain Management initiatives to reduce environmental negative impact.
    Efficient and effective production strategy to reduce energy consumption which
    includes reducing waste material, air and water emissions. This contributes to lean
    manufacturing. All possibilities have to be checked for recycling the Scrap materials.

    Business Partners selection: Selecting suppliers who have proven track records on
    practicing lean manufacturing and using environment friendly material. Involving
    vendors during product conception and design so that they can share their best
    practices to best align your strategy with the customer strategy on going greener
    supply chain. Ultimately it results in customer delight and satisfaction.

    Packaging Material: Replacing package materials which are eco-friendly.


    Fumigation certificate should be obtained for international shipments for wooden
    pallets and crates. Packaging material has to be designed in such a way it can be re-
    used and re-cycled. Packaging should be robust so that any hazardous material inside
    it doesn't spill over and cause environmental hazard.

    Information Technology: A Green approach to IT has to be achieved through


    various automatic processes thereby reducing carbon foot prints. Paper usage has to
    be minimized through automatic invoice/payment processing. Using EDI for
    creating/transmitting orders.

    Green Building: Deploying greener practices in Design, construction and


    maintaining the buildings. Using energy efficient bulbs, natural lightning saves
    considerable energy. Water has to be recycled for day to day use. LEED certification
    (Leadership in Energy and Environmental design recognized by US and other
    countries) has to be obtained. Investment in Renewable energy sources such as solar,
    wind etc. are needed for sustainable green practice.

    Barriers for adopting GSM:


    1. Lack of proper sustainability standards and government regulations
    2. High initial investment for adopting waste disposal methods In Sweden the
    consumers are often unwilling to bear the extra cost of a sustainable solution.
    3. Improper alignment of long-term sustainability strategies of the company with its short
    term goals of profitability For example in China due to cutthroat competition the
    providers of transportation cut corners to stay competitive
    4. Lack of sufficient motivation on the part of the top management
    5. Insufficient training about sustainable practices of Supply Chain

    Characteristics Conventional SCM Green SCM

    Objective & Value Economic Economic & Ecological

    Ecological Optimization Integrated approach is high Ecological Impact

    Supplier Selection Price switching supplier, Ecological aspects, long


    Criteria short term relationship term relationship
    Cost Low High

    Speed & Flexibility High Low

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