| Green Supply Chain – An introduction | | | | costs in their supply chain, GM found that the cost |
| Listening to Environmentally Aware Consumers | | | | reductions they identified complemented the |
| As the public becomes more aware of environmental | | | | company’s commitment to the environment. |
| issues and global warming, consumers will be asking | | | | Unaware of Potential Benefits |
| more questions about the products they are | | | | Companies can find cost savings by reducing the |
| purchasing. Companies will have to expect questions | | | | environmental impact of their business processes. By |
| about how green their manufacturing processes and | | | | re-evaluating the company's supply chain, from |
| supply chain are, their carbon footprint and how they | | | | purchasing, planning, and managing the use of |
| recycle. | | | | materials to shipping and distributing final products, |
| Profiting from Being Green | | | | savings are often identified as a benefit of |
| However some companies have seen that this not a | | | | implementing green policies. |
| bad thing and indeed have been able to convert the | | | | Despite the public’s focus on the environment, |
| public’s interest in all things green into increased | | | | benefits attributed to reducing a company’s |
| profits. A number of companies have shown that | | | | environmental impact are not in the forefront of |
| there is a proof of the link between improved | | | | supply chain executive’s minds. It appears that |
| environmental performance and financial gains. | | | | many executives are still unaware that improved |
| Companies have looked to their supply chain and | | | | environmental performance means lower |
| seen areas where improvements in the way they | | | | waste-disposal and training costs, fewer |
| operate can produce profits. | | | | environmental-permitting fees, and, often, reduced |
| General Motors reduced disposal costs by $12 million | | | | materials costs. Hopefully the interest in green issues |
| by establishing a reusable container program with | | | | and environmental concern by the public will not wane |
| their suppliers. Perhaps General Motors may have | | | | as economic issues become more important due to |
| been less interested in green issues if they were | | | | the faltering economy. |
| making record profits, but in an attempt to reduce | | | | |