Green Supply Chain
Green Supply Chain
Introduction to green supply chain
As the public becomes more aware of environmental issues and global warming, consumers will be asking more questions about the products they are purchasing. Companies will have to expect questions about how green their manufacturing processes and supply chain are, their carbon footprint and how they recycle? There is the need for green logistics!
Need of Green Logistics
As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents. A more sustainable balance between economic, environmental and social objectives needs to be achieved.
Drivers for Green Logistics
Drivers for green logistics are Mounting Energy Costs, Worldwide Alarms Among Corporate over Green House Gases Emissions (GHG), Climate Change, Regulation such as Environmental Protection Agency (EPA), Restriction of Hazardous Substances (RoHS) & so on and Improved Community Awareness of Environmental Issues.
Impact on the Environment at various stages of Supply Chain
The impact on the environment at various stages of supply chain starts from conceptualizing the idea, designing, water and energy are the input needed for further stages from raw material extraction, transporation and to manufacturing. Again from the manufacturer the products are transported to customers and finally disposal. The impact on the environment starts from the raw material extraction to until the disposal which inturns creates pollution on air, water and increasing of wastes.
Green Logistics – Impact
The four areas where a successful green logistics implementation can have a positive impact on the overall Supply Chain of the organization is by Network Optimization, Packaging Reduction, Sustainable Procurement and Warehouse Layout Optimization.
Environmental Benefits of Green Supply Chain Best Practices
The benefits thereby, practicing green supply chain are Improvements in energy, Waste reduction, Less packaging in related activities and Decreased GHG emissions.
Challenges in Implementing Green Logistics
Implementing green logistics is a challenge due to the Lack of information about the green supply chain best practices, Lack of tools to optimize the supply chain with environmental management and Advent of global sourcing making tracing of carbon footprint difficult.