Green supply chain management
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Green Supply Chain Management. Introduction. Background Product Life Cycle Supply Chain Management Industry Practices The Future Conclusions. Background.

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Green Supply Chain Management

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Green supply chain management

Green Supply Chain Management



  • Background

  • Product Life Cycle

  • Supply Chain Management

  • Industry Practices

  • The Future

  • Conclusions



  • Industrial Ecology: a systematic organizing framework for the many facets of environmental management..industrial world as a natural system - a part of the local ecosystems and the global biosphere ... offers a fundamental understanding of the value of modeling the industrial system on ecosystems to achieve sustainable environmental performance (Lowe, 1993).

Green supply chain management1

Green Supply Chain Management

What is it? Lots of definitions.

Here’s one -

Management of Materials and Resources from Suppliers to Manufacturer/Service Provider to Customer and Back, with the Natural Environment Explicitly Considered (hopefully in a conscientious manner).

The Operational Instantiation of Industrial Ecosystems

Green supply chain management




Closed-Loop Manufacturing,


Source Reduction



Location Analysis,

Inventory Management,




Internal Transportation



Raw and Virgin Material

Customer Relationships

Green Marketing

Product Stewardship

Inventory Management





New Components and Parts


Distribution, Forward Logistics



Recycled, Reused Material and Parts

Purchasing, Materials Management, Inbound Logistics

Outbound Logistics



Product/Process Design



Recyclable Materials and Components






Reverse Logistics


Supply chain management

Supply Chain Management

  • Logistics, Procurement have become strategic

  • Organizations outsourcing, forming partnerships, alliances

  • Product environment becoming more complex

  • Time based competition requires time compression

  • Managing suppliers and customer relationships necessary

  • Competition shifting from company vs. company to

    Supply Chain vs. Supply Chain

Supply chain management1

Supply Chain Management

Supply Chain Elements

Supply Chain => Supply Cycles

Some supply chain practices

Some Supply Chain Practices

Prequalification of suppliers

  • Require or encourage environmental criteria for approved suppliers

  • Require or encourage suppliers to undertake independent environmental certification

    Environmental requirements at the purchasing phase

  • Build environmental criteria into supplier contract conditions

  • Incorporate EHS staff on sourcing teams

    Supply base environmental performance management

  • Supplier environmental questionnaires

  • Supplier environmental audits and assessments

Supply chain practices

Supply Chain Practices

Build environmental considerations into product design

  • Jointly develop cleaner technology with suppliers

  • Conduct life cycle analysis in cooperation with suppliers

  • Engage suppliers in design for environment (DFE) product innovation

  • Coordinate minimization of environmental impact in the extended supply chain

  • Develop tools that assist in the DFE effort

    Cooperate with suppliers to deal with end-of-pipe environmental issues

  • Reduce packaging waste at the customer/supplier interface

  • Reuse/recycle materials in cooperation with the supplier

  • Launch reuse initiatives (including buy backs and leasing)

    Reverse logistics

  • Give supplier an incentive to reduce the customer’s environmental load

Some more supply chain practices

Some More Supply Chain Practices

Influence legislation to facilitate better SCEM policies

  • In cooperation with suppliers, lobby to strengthen environmental regulation

  • Lobby on behalf of SCEM initiatives

    Work with industry peers to standardize requirements

  • Create interfirm procurement group to collaborate on environmental issues

  • Standardize supplier questionnaires

    Inform suppliers of corporate environmental concerns

  • Issue statements of EHS priorities to suppliers

  • Draft and distribute comprehensive SCEM policy

    Promote exchange of information and ideas

  • Sponsor events to facilitate discussions between customers and suppliers on environmental issues

  • Host training and mentoring programs.

Why do it benefits

Why Do it? (Benefits)

USAEP, 2001, USAEP, (2001), “Greening the Supply Chain”, U.S. – Asia Environmental Program,

  • Economic benefits from increased efficiency. By reducing wastes, companies decrease handling expenses, fines, and even costly inputs. Supplier's savings may be passed along to buyer companies.

  • Competitive advantage through innovation. Efficient production is enhanced through the use of cleaner technologies, process innovation, and waste reduction. Reduction in wastes equals dollars earned.

  • Improved product quality. Supply chain partnerships help maintain relationships between buyers and suppliers leading to increased control over product quality.

  • Consistent corporate environmental goals. In an era of multi-faceted, non-vertical manufacturing, companies include supplier outreach to address corporate environmental goals.

  • Improved public image. Consumers, investors, and employees respond positively to companies with a reputation for good environmental performance.

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