Case Study On Green Supply Chain Management

Leading manufacturers in developed countries generally implement green practices and have high levels of environmental awareness. However, it is uncertain which practices are implemented and how they are implemented in the home appliance sector of emerging countries such as Brazil. The purpose of this study is to identify and analyze the practices of green supply chain management adopted by home appliance manufacturers. To analyze green practices in this industry, 5 manufacturers and 2 professional associations were used as case studies; this approach provided in-depth interviews about internal environmental management, reverse logistics, green purchasing, eco-design, life cycle assessment, waste management, and green manufacturing. Waste management was the most widely used technique among the research participants, and green purchasing and life cycle assessment practices were less widespread. Significant differences in the adoption of certain green supply chain management (GSCM) dimensions were observed between companies with ISO 14001 certification and non-certified companies. Suggestions for further developing GSCM in the home appliance industry are also presented.

Green Supply Chain Management (GSCM) is gaining much importance in many industries due to pressure from the government and environmental consciousness among the customers, to gain competitive advantage.    We have compiled a list of Green Supply Chain studies to assist you in your efforts to address these issues.  The green supply chain studies we spotlight cover the following topics: the role that the logistics and transport sector plays in reducing emissions; the effects of ISO 14001 certification on the promotion of green supply chain management (GSCM), research on interest and implementation of green supply chain initiatives; a quantitative picture of current sustainable supply chain practices and plans; a measurement and quantification of how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns; key drivers of sustainable supply chains;a new integrated supply chain model that takes into account sustainability parameters such as CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion;best practices for companies looking to green their supply chains ; an outline of the supply chain green initiatives currently implemented or planned in manufacturing, warehousing and distribution;survey of sustainable packaging policies ;a look at the growing role of procurement organizations within sustainability efforts institutions of higher learning; a categorization of research and practice in purchasing, manufacturing, outbound, and reverse logistics dimensions;a framework for measuring the “green-ness”of green supply chain initiatives, the business case for green supply management initiavies, research on the debate by empirically evaluating the relationship between EMS and GSCM practices.

By Tracey de Morsella, the Green Economy Post

Supply Chain Decarbonization: The Role of Logistics and Transportation in Reducing Supply Chain Carbon Emissions. 2009
by Sean Doherty and Seb Hoyle.  Supply Chain Decarbonization, examines the role that the logistics and transport sector plays in reducing emissions, both in its own operations and by influencing shippers and buyers to undertake broader supply chain improvements.  According to the report, logistics and transportation activities contribute approximately 5 percent of the 50,000 mega-tonnes* of carbon-dioxide emissions generated by all human activity annually. The report reviews 13 commercially viable opportunities for reducing supply chain carbon emissions—within the logistics and transport sector as well as across the extended supply chain—and assesses them according to carbon-dioxide abatement potential and feasibility to implement.

Is ISO 14001 a Gateway to More Advanced Voluntary Action? A Case for Green Supply Chain Management. 2009
by Toshi H. Arimura, Nicole Darnall and Hajime Katayama.  Using Japanese facility-level data, the authors estimate the effects of ISO 14001 certification on the promotion of more advanced practices, namely green supply chain management (GSCM). The results show that ISO 14001 promotes GSCM practices, in that facilities with environmental management systems (EMS) certified to ISO 14001 are 40 percent more likely to assess their suppliers’ environmental performance and 50 percent more likely to require that their suppliers undertake specific environmental practices. Further, they found that government approaches that encourage voluntary EMS adoption indirectly promote GSCM practices, in that the probability of facilities assessing their suppliers’ environmental performance and requiring them to undertake specific environmental practices increases by 9 percent and 10 percent, respectively, if a government assistance program exists. Combined, these findings suggest that there may be significant but previously unnoticed spillover effects of ISO 14001 and government promotion of voluntary action.

Building a Green Supply Chain: Social Responsibility for Fun and Profit.2008
by Robert Shecterlea and Jhana Senxian. Aberdeen research on the Supply Chain Executive’s Strategic Agenda 2008 shows that interest in Green Supply Chain initiatives is robust and growing. For respondents with green as a top focus, the key pressure for their green initiative was overwhelmingly related to a company-wide CSR initiative (55%). This study will explore the main green drivers, and identify specific areas of opportunity in each, such as carbon-footprint and energy usage reduction, supply chain network design and logistics optimization, and green supplier initiatives. Aberdeen anticipates that this research will show that companies implementing successful green supply chain initiatives realize benefits in energy cost reduction, logistics cost reduction, and perceived competitive advantage.

Greening the Supply Chain: Benchmarking Sustainability Practices and Trends. 2009
by Eric Klein, David Schatsky, and Paul Baier. GTM Research conducted a survey of 74 supply chain executives to build a quantitative picture of current sustainable supply chain practices and plans. They found that despite its growing prominence, sustainability is not a core part of most companies’ strategies today. It also is not a prime driver of their supply chain agendas. Sustainability lies in the middle of the pack of supply chain priorities today, behind cost cutting.

Acceleration of ECO-Operation: A Milestone Study on Achieving Supply Chain Success and Sustainability. 2009
Acceleration of ECO-Operation  reveals that despite the enthusiasm regarding sustainability expressed by the global business community, these organizations have been slow to address these issues when it comes to sustainable supply chain management.  The study, titled “Acceleration of ECO-Operation: Achieving Success & Sustainability in the Supply Chain,” gained insights from more than 125 supply chain, operations, finance, and executive professionals around the world across multiple industries.  It set out to measure and quantify how companies are managing the complexities of supply chain demands, distribution costs and environmental concerns.

18th Annual Trends and Issues in Transportation and Logistics Study Exploration into the Five Drivers of Sustainable Supply Chains. 2009
by Dr. Karl Manrodt and Dr. Mary Holcomb. Trends and Issues in Transportation and Logistics Study Exploration into the Five Drivers of Sustainable Supply Chains  shows that nearly half of transportation and logistics players see cost-cutting as their primary strategic objective, while the focus on customers is declining.  The study identified five key drivers of sustainable supply chains: optimization, adaptability, velocity, profitability and synchronization. Each of these five drivers will be explored in depth through a series of additional supplements that will be released individually.

Future Supply Chain 2016: Serving Consumers in a Sustainable Way. 2008
The key finding of the Future Supply Chain 2016 study is that there is a strong correlation between sustainability and the future supply chain of the consumer products and retail industry. This is.  The study presents a new integrated supply chain model that takes into account sustainability parameters such as CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion, as well as traditional measures like on-shelf availability, cost reduction and financial performance. The total potential impact of this supply chain redesign is significant, including reduction in transport costs per pallet, reduction of handling costs per pallet, reduction of lead-time, lower CO2 emissions per pallet and improved on-shelf availability.

Best Practices in Sustainability: Supply Chain –Key Steps to Building a Sustainable Supply Chain. 2009
The report, Best Practices in Sustainability: Supply Chain reveals the best practices for companies looking to green their supply chains that were uncovered during Kanal Consulting’s study of 25 leading corporations.  The study found that sustainability in the supply chain was one of the major areas that the participating companies acknowledged needed improvement.

The Green Supply Chain Study. 2009
The Green Supply Chain Study was conducted by Supply Chain Management Review and Logistics Management Magazines online. The study found concerns about waste and recycling are more important than greenhouse gas emissions and resource consumption. The study focuses on the most important environmental issues faced by supply chain professionals; outlines the supply chain green initiatives currently implemented or planned in manufacturing, warehousing and distribution; gauges the level of green collaboration with extended supply chain partners; and highlights the greatest challenges for implementing sustainable business practices. .

Packaging Sustainability Report: Evaluating the Benefits of Environmentally Friendly Packaging. 2009
A Tompkins’ Supply Chain Consortium survey of top retail- and manufacturing-related companies reveals that more than 65% of companies have some type of sustainable packaging policy in place, while 28% are currently developing a policy. The Packaging Sustainability survey is the first of a four-part series being conducted by Tompkins’ Supply Chain Consortium.  Topics for the upcoming sustainability reports include: Part II: Transportation Sustainability (December 2009); Part III: Greening Facilities (2010); and Part IV: Waste and Recycling (2010)

Carbon Disclosure Project Supply Chain Report2009
The second annual supply chain report is a summary of the responses from the suppliers of the current 34 members of the CDP’s supply chain group. Those current members are primarily from two sectors: consumer packaged goods (e.g., Colgate-Palmolive, Unilever, PepsiCo, etc.) and high tech (e.g., Dell, HP, Juniper Networks, etc.), with a handful from other sectors (e.g., retailer Carrefour, Newmont Mining, Johnson Controls).Carbon emissions-focused surveys were sent to some 2300 suppliers of these member companies, asking a variety of questions around current perceptions and practices. The suppliers sent the survey were chosen by the CDP supply chain member companies. For the first time, CDP also requested information from private and smaller companies.

The Current State of Green Procurement Trends within Higher Education Survey. 2009
National Association of Educational Procurement (NAEP) and SciQuest, Inc., a procurement automation organization have published the findings of “The Current State of Green Procurement Trends within Higher Education” survey. The survey, which garnered responses from procurement professionals at more than 100 colleges and universities in the U.S., sought to provide a benchmark from which the profession can gauge the growing role of procurement organizations within sustainability efforts, from the American College and University Presidents Climate Commitment–an effort to address global warming by garnering institutional commitments to neutralize greenhouse gas emissions–to higher education’s efforts to contain costs and do more with less. This is the first year the survey was conducted.

How Green is the Supply Chain? Practice and Research. 2007
by Joseph Sarkis. This paper provides an overview of environmental (green) supply chain management. The overview includes a categorization of research and practice in purchasing, manufacturing, outbound, and reverse logistics dimensions.

Green Corporate Strategies – Issues and Implementation from the Supply Management Perspective2009
by Bryan Ashenbaum. Can businesses simultaneously pursue green practices while boosting the bottom line? Can they afford not to? To what extent are consumer and political forces shaping their approach? These issues are discussed in Green Corporate Strategies – Issues and Implementation from the Supply Management Perspective,” One possible framework for measuring the “green-ness” of a given strategy has been provided by author, Bryan Ashenbaum, Ph.D, is the Triple Bottom Line (TBL). TBL incorporates economic, environmental and social performance. This report delves into some of the definitions of “green” and “sustainability,” the drivers for green initiatives, the business case for green, recommendations for establishing internal and external green strategies, emerging standards and benchmarks, and information on “greenwashing.” It also includes a case study from The Auto Club Group and several Internet resources for further information.

Environmental Management Systems and Green Supply Chain Management: Complements for Sustainability? 2008.  Revised 2009
by Darnall, Nicole, G. Jason Jolley & Robert Handfield.  Some researchers question the legitimacy of EMSs since organizations can claim to have one when in fact they make no attempt to reduce their environmental harms. In instances where EMSs enhance an organization’s environmental performance, critics argue that improvements are likely to incur within the organization’s operational boundaries rather than being extended throughout the supply chain. However, previous research suggests that the organizational capabilities required to adopt an EMS may facilitate GSCM implementation and the institutional pressures to adopt both management practices are similar. Consequently, EMS adopters may have a greater propensity to expand their focus beyond their organizational boundaries and utilize GSCM practices to minimize system-wide environmental impacts. This research illuminates the debate by empirically evaluating the relationship between EMS and GSCM practices.

© 2010, Tracey de Morsella. All rights reserved. Do not republish.

  18th Annual Trends and Issues in Transportation and Logistics Study, Aberdeen research, Acceleration of ECO-Operation, American College and University Presidents Climate Commitment-, Bryan Ashenbaum, Building a Green Supply Chain, Carbon Disclosure Project Supply Chain, carbon emissions, carbon footprint, carbon-dioxide abatement, CDP, CO2 emissions per pallet, complementary capabilities, corporate environmental management, CSR, David Schatsky, discrete choice model, EMS, EMSs, endogeneity, energy usage reduction, environmental impacts, environmental management systems, Environmental Management Systems and Green Supply Chain Management, environmental performance, Environmentally Friendly Packaging, Eric Klein, extended supply chain partners, external pressures, Five Drivers of Sustainable Supply Chains, Future Supply Chain 2016, G. Jason Jolley, GHG, government assistance programs, Green Corporate Strategies, green supply chain management, Green Supply Chain Study, Greening, Greening Facilities, Greening the Supply Chain, greenwashing, GSCM), GTM Research, Hajime Katayama, handling costs per pallet, How Green is the Supply Chain? Practice and Research, Is ISO 14001 a Gateway to More Advanced Voluntary Action, ISO 14001, ISO 14001 certification, Jhana Senxian, Jim Tompkins, Joseph Sarkis, Kanal Consulting, Karl Manrodt, lead-time, Logistics, Logistics Management Magazine, logistics optimization, Mary Holcomb, NAEP, National Association of Educational Procurement, Nicole Darnall, on-shelf availability, on-shelf availability.Best Practices in Sustainability, Packaging Sustainability Report, Paul Baier, positive spillover, reduced energy consumption, resource consumption, reverse logistics, Robert Handfield, Robert Shecterlea, SciQuest, Sean Doherty, Seb Hoyle, supplier networks, Supply Chain Consortium, Supply Chain Decarbonization, Supply Chain Management Review, supply chain network design, supply chains, sustainability, sustainable packaging policy, sustainable supply chain management, TBL, The Current State of Green Procurement Trends within Higher Education, Tompkins, Tompkins Associates, Toshi H. Arimura, traceability, transport, transport costs per pallet, Transportation Sustainability, triple bottom line, voluntary actions, voluntary EMS adoption, Waste and Recycling

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