Applying Green Principles To Supply Chain Management
For the past few years, many discussions have been going on regarding climate change, sustainability, global warming, and other environment-related aspects. Such talks have generally impacted the customer’s perspective as now they consider these parameters too before making a purchase. Consequently, many businesses are looking for ways to reduce their carbon footprint and take steps to minimise the impact on the environment. While going green can indeed help reduce harmful effects on the ecosystem, companies also view this as an opportunity to improve their brand name and make a different place in the markets. A common way to do so is by opting for digital supply chains. There are many other steps that the companies are taking to churn out the benefits of green supply chain management. What Is Green Supply Chain Management? Green Supply Chain Management is the practice of culminating environmental sustainability steps into the supply chain management of a company. It involves practices to decrease a company’s environmental impact at all the levels of the supply chain, whether it be design, material and workforce sourcing, manufacturing, and final shipping and transportation. For green logistics in supply chain management to be effective, the companies need to consider the environmental impact across various departments. It is common practice for businesses to transfer the impact from one level to another, but an effective strategy can help eradicate them. Need For Green Logistics In Supply Chain Management? While there’s a general agreement that green logistics is about promoting environmental sustainability, many companies have also started using the concept as a modern marketing technique. The increase in public awareness regarding climate change, the impact of plastics, carbon emissions, and usage of fossil fuels has further led to the mushrooming of various environmental watchdogs, organisations, groups, and agencies. Therefore, the products that score low on the sustainability parameter are more likely to face rejection or massive criticism.
As a result, companies are trying to seize the opportunity to increase the reach of their products and services as direct benefits of green supply chain management. Implementing Green Principles To Supply Chain Management An essential aspect of green supply chain management is that you can implement it at any stage of industrial business. The key to integrating the green principles into your organisation is by examining the existing supply chain. Marking the areas where the sustainability practices are most feasible, and the ones that may catch the eye of the activists anytime soon also helps. Let us look at some ways of implementing it successfully to maximize the benefits of green logistics: ● Tuning The Transport Emissions A standard way of doing it is by looking for vendors nearer to the manufacturing site to cut down on transport fuel required. Using alternative energy like electric vehicles is also a feasible idea. ● Biodegradable Material Sourcing Retailers often deal with packaging, and nowadays, many e-commerce giants are facing flak because of using non-biodegradable plastic for the same. Therefore, it is a better idea to switch to recyclable and biodegradable materials for packaging. ● Logistics Optimization Strategically setting up warehouses and distribution facilities can drastically reduce truckloads and transportation needs, thereby adding dual benefits of green logistics. ● Certifications An excellent way to avoid indulging with suppliers which use non-biodegradable materials and products is by requesting specific certifications before making a deal. It will also improve the overall brand image of the company. GM’s Success Story: A Step Towards A Greener World Many companies have benefited by optimising their supply chain and shifting on to the greener side. For example, General Motors reduced its disposal costs by $12 million after establishing a reusable container program.
Therefore, whether you are a start-up or a well-established company, researching and implementing green supply chain management will always prove to be beneficial.
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