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Green supply chains aim for greening every stage in production to confine wastes within the industrial system so as to conserve energy and prevent the dissipation of harmful materials into the environment.to achieve this, manufacturing processes include the most energy-efficient technology, use sustainable raw materials and create as little waste and pollution in the process. Distribution changes are made by choosing carriers which source locally or have a low 'fleet average' of carbon emissions per kilometer. Efforts are made to downsize packaging, use renewable packaging materials and standardize packaging. Replenishment of inventory, pre and post procedures are also now being made green by use of e technologies and less of paper work. These can reduce the ecological impact of industrial activity without sacrificing on quality, cost, reliability, performance or energy utilization efficiency; meeting environmental regulations to not only minimize ecological damage but also to ensure overall economic profit.
Logistics: Improved green supply chain operations should also result in lower relative logistics costs. Procurement: Green Supply Chain operations initiates to keep the costs lower and increase in electronic connections between companies. Automatic order placement, billing, and payment can all be triggered and performed by a computer without requiring human intervention and/or a trail of paperwork. And such electronic transactions can now be accomplished faster and cheaper, thereby enhancing the efficiency of the green supply chain. Production and Sales Volatility: Green Supply Chain operations helps in real-time monitoring of sales, shipments, quality and output, along with more reliable performance measures of lead times, forecast errors, etc., we expect less volatility in output when utilizing e-business systems. Green Supply Chain Network: The supply chain network implies, location of plants, distribution centers, warehouses and customization centers. As a thumb rule about 70% of the cost of a supply chain is fixed at the network design stage itself. Network design and optimization should be done whenever there is a change in the supply chain acquisition of a company, setting up a new plant, changes in distribution structure.
implement. Dashboards for metrics, and utilize the proven principles of Six Sigma and Lean Manufacturing to identify hidden variance and complexity within the supply chain.6
References
1. Creating a Green Supply Chain Mr. Amarnath Shete Wipro Consulting. 2. http://www.tcs.com/thought_leadership/Pages/Enabling-Green-SupplyChains.aspx 3. Green Supply Chain Management, Marketing Tool or Revolution? - Published on the occasion of the inaugural speech related to the lectureship Logistics & Sustainability 4. Godrej archives and Website www.godrej.com 5. GEO-TEXTILE SAND CONTAINER MATTRESSES (GSCM) LINING FOR TEMPORARY RIVER DIVERSION CHANNELS By Rajendra Deshpande, Hindustan Construction Co. Ltd, Mumbai, India. 6. Creating a Green Supply Chain Cognizant White paper