Traits of a Green Supply Chain
There are certain attributes of a supply chain based on which the supply chain practices can be designated as Green Supply Chain. This blog is a result of the analysis of green supply chain initiatives of various companies. The blog describes the various innovative steps and business processes which are helping companies to have more aware and environmental friendly operations amd processes, making it more sustainable. These practices and steps indicates the traits of a supply chain being green and environmental friendly.
These supply chain operations indicates an environmentally aware demand-supply chain and a conscious effort toward building a green sustainable practice to make earth a better place to live. The following list describes the supply chain practices:
- Organization following a Green Supply Chain Operations Reference (SCOR) model
The flow of environment information into Supply chain: The extent of flow of environmental information into the supply chain proves to be a powerful information and is a big differentiator for environmental conscious supply chains. - The plan for product disposal: Companies having plans of product from Cradle to Grave or Cradle to Cradle are definitely having a lot greener supply chains compared to those who are not having.
- An advanced reverse logistics and reverse supply chain is an important trait of green supply chain.
- Supply chain environmental compliance and auditing programs tailors a green supply chain.
- Eco-labeling of products is a new emerging trend which traits a aware and green supply chain.
- Companies doing the Landfill status calculation and trying to reduce the same based on their waste generation suggests a greener orientation to supply chain.
- Solvent, waste recovery and waste recycling methodology in the manufacturing practices is an indication of green manufacturing.
- Companies have adopted Green Purchasing philosophy and is a good indicator of green supply chain.
- Carbon footprint measurement in business processes is an indication of green processes.
- Reduced Emission or zero emission in manufacturing is an indication of green manufacturing.
- Adoption of environmental conscious (green) technologies in supply chain and last but not the least, following a lean strategy where a value added steps includes environmental values as well.
Its not necessary that a green supply chain is restricted to these many attributes, There can be many more as well. These are just an indicator. And at the same time it is not necessary that any environmentally aware company needs to follow all the practices highlighted. It can be following any one of them only. The awareness and conciousness is important, means and practices will evolve.
Comments
Green Supply Chain model is becoming increasingly more relevant in the changing global scenario. Organizations can adopt simple practices like giving an option of e-statements to the customers instead of paper printed ones, or charging nominal amount for the plastic carry bags etc to increase the green foorprint.
Posted by: Ashutosh Topey | August 11, 2011 5:15 AM
Hello Arnab,
Very informative article and environment friendly and plausible methods pointed out in easy language to make the earth green again.
To add to it, organizations can and are following Zero Liquid Discharge (ZLD)approach to gradually move towards green manufacturing.
Thanks
Kedar
Posted by: Kedar Tamane | August 11, 2011 5:20 AM
This was a good read, some of traits where nice to know. As soon as I read this I could relate to Subaru Auto plant in Lafayette, IN. To achieve the recycle rate of 99% like Subaru, my thought around this is just concentrating on manufacturing operations may not suffice. It has to trickle down right from design of products till the time it is sold.
Posted by: Shinu | August 12, 2011 4:57 AM
Good Article Arnab.
'Go Green' is the mantra that can bring revolutionary changes. Certainly this article will bring attention towards this attempt.
Thx,
Nitin
Posted by: Nitin jain | August 12, 2011 11:04 AM
Hi Arnab,
Article well describes the factors one has to consider to make Go Green and this can form as basis to start with .
Good document.
Regards,
Sridhar.
Posted by: Sridhar | August 12, 2011 11:20 AM
That was a good read. Organizations need to create awareness and must start emphasising on getting their customers (internal/external) follow the same and putting a stricter control over the suppliers..
Posted by: Paresh | August 12, 2011 12:08 PM
Yes, i agree this Go-Green initiative is getting momentum in India since last couple of years. I was in the Oracle induction program and the Oracle Facilities head said their new campus building in Hyderabad are green complient to the extent of 40 on a scale of 70 (numbers may not be exactly correct). This green initiative requires green-compliant materials to be used in the construction of the facilities instead of the conventional materials.
Shyam Bhagat
Posted by: Shyam Bhagat | August 13, 2011 5:17 AM
A good article that broadens the scope Go Green initiative to supply chain and areas where the organizations can focus. It would be interesting to see how organizations will use different methods/technologies across supply and demand chains to provide products/services to a well informed environmentally conscious customer.
Posted by: Amit | August 13, 2011 1:11 PM
A very good article !! I can think of the following green initiatives by companies in different sectors to reduce the emissions to be more environment friendly.
These days more and more energy distribution companies have started to use natural gas as a major source of energy in a bid to reduce the carbon footprint.
CPG companies with chains of retail stores also claim to reduce upto 10% energy consumption with the use of energy efficient lightings.
The concept of commercial spaces operating entirely on solar panels and without any elevators and parking spaces in the building to encourage people to commute by bikes/public transit is also gaining momentum in some US cities.
Posted by: Gaurav | August 17, 2011 5:13 AM