| Best Practices in Green Supply Chain Management | | | | supply chain should take the opportunity to review all |
| Introduction | | | | their business processes to identify areas where |
| The trend towards developing a green supply chain is | | | | adopting a greener outlook can actually improve their |
| now gaining popularity but most companies are still | | | | business. Companies should review each process |
| coming to terms with how this can be achieved and | | | | along the supply chain to identify if a more |
| where do they start. For years businesses have been | | | | environmentally sound approach will help cure the |
| concentrating on improving supply chain visibility, | | | | inefficiencies that occur. Many companies that have |
| refining efficiency and minimizing cost. Despite the | | | | been through this exercise have identified processes |
| focus being moving towards a green supply chain the | | | | where raw materials were wasted; resources |
| goals of visibility, efficiency and cost reduction do not | | | | underutilized and unnecessary energy used due to |
| have to be discarded. By examining the companies | | | | inefficient equipment. |
| who have already made strives towards to a green | | | | Green Suppliers and Material Refurbishment |
| supply chain, we can begin to see some best | | | | Companies reviewing their business processes should |
| practices that will help others to begin their own | | | | look beyond their factory walls. When reviewing |
| transition. | | | | purchasing processes the aim of any company, |
| Align Your Green Supply Chain Goals with Business | | | | looking to transition to a green supply chain, should |
| Goals | | | | be to find suppliers who have minimized their |
| Creating a green supply chain that has little to do | | | | environmental impact without reducing the quality of |
| with your business will not help your company to | | | | their product or significantly raising costs. By |
| achieve its business objectives. For example, if a | | | | purchasing products from green suppliers businesses |
| company decides to use biodegradable packaging for | | | | can then begin their green supply chain before any |
| its products that costs 25% more than traditional | | | | material reaches their site. |
| packaging, this goes against the businesses goals of | | | | At the opposite end of the supply chain businesses |
| reducing costs. If a business has an overall goal to | | | | should look at their return process. Many businesses |
| reduce costs then the move to a green supply chain | | | | have not developed a successful refurbishment |
| should dovetail with the business goal. A company | | | | program for their products that have been returned |
| should look at its overall business goals and identify | | | | or exchanged. By offering refurbished items |
| how a transition to a green supply chain can help | | | | businesses can increase purchasing options to their |
| achieve those goals. For example if a business wants | | | | customers and widen their customer base, whilst |
| to reduce its energy costs it should start by looking | | | | improving the environmental impact of their products. |
| at the consumption to see if a reduction can be | | | | There are many ways in which businesses can |
| made by using more energy efficient and greener | | | | transition to a green supply chain; however it is |
| equipment. | | | | important to realize that it is difficult to achieve |
| Use Green Supply Chain to Improve Processes | | | | results without strong focused leadership. Senior |
| Companies do not often change their businesses | | | | management has to lead the effort to move to a |
| processes and it is this attitude allows inefficient | | | | green supply chain and provide the resources for the |
| processes to continue unabated causing unnecessary | | | | transition. Many businesses have documented a intent |
| waste and pollution. For example ineffective | | | | or plan to implement a green supply chain, but |
| processes in the US automotive industry allowed the | | | | without the necessary resources, both financial and |
| innovative Japanese automakers to become market | | | | manpower, any impact will be minimal. |
| leaders. Businesses that want to transition to a green | | | | |