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A PROJECT REPORT ON

Environment Management
Green Supply Chain Management
Submitted in Partial Fulfillment of the Requirements
for the Degree of

MASTER OF BUSINESS ADMINISTRATION


By
Group -2
K Vinay Kumar Goud
Saurabh Mishra
Abhiroop Mukherjee
G V S Pavan
D Phani Madhav
Shubhra Saroha
Suryansh Shrimal

G023
G040
G042
G049
G050
G053
G059

Introduction
Green supply refers to the way in which innovations in supply chain management and
industrial purchasing may be considered in the context of the environment management
consists of the purchasing functions involvement in activities that include reduction,
recycling, reuse and the substitution of materials improving environmental performance in
the supply chain Integrating environmental thinking into a supply chain management,
including product design, material resourcing and selection, manufacturing processes,
delivery of the final product to the consumer as well as product after its useful life.
Globalization increases the opportunities for buyers. As buyers increase their focus on
environment improvement, which increases the supplier environmental performance. It is
true for organizations that regard environmental improvement as a social goal, not just an
issue cost, risk and public image. Manufacturers need to work with their suppliers of raw
material and component, in order to produce environment friendly products. By using their
purchasing power, the industries can set up environment criteria for their suppliers upstream
in supply chain. Ultimately it can result in the greening of the supply chain.
Typical Supply Chain Scopes And Relative Environment Impacts

As Shown in Figure above, in-order to eliminate the waste in all energy used and material
consumption, manufacturing organisations need to implement Green quality standards like
ISO 14000 and also ISO 1400. However effective Green supply chain management is
implemented more systematically using the strategic framework of GSCM in figure below.
Green Supply Chain Management (GSCM) = Green Product Design +
Green Material Management + Green Manufacturing Process +
Green Distribution and Marketing + Reverse Logistics (RL).

GREEN PRODUCT DESIGN


Life cycle Assessment(LCA) and Environmentally conscious design(ECD) is generally
concerned with the process for evaluating and assessing the environmental, occupational health
and resource consequences of a product through all phases of its life . The scope of LCA and
ECD tracks all the materials and energy flows of the product from the retrieval to the disposal
of the product in the environment. LCA is used by business to strengthen the product
development techniques because the overall environmental impact of the product is minimized
. In ECD products are designed with certain environmental considerations and also called as
Design for Environment (DFE) .The best practice to be considered in Green supply chain
management is replacing the hazardous material or the process by the one which seems to be
less problematic . For green material management, following processes of material selection,
separation and material recovery should receive more support.

GREEN MATERIAL MANAGEMENT


The best practice to be considered in Green supply chain management is replacing the
hazardous material or the process by the one which seems to be less problematic . For green
material management, following processes of material selection, separation and material
recovery should receive more support :

Different materials used in a product should be easy to separate;


While maintaining compatibility with the existing manufacturing infrastructure, fewer
numbers of different materials in a single product should be used;More adaptable
materials for multiple product applications should be used; Smaller number of
secondary operations should be used to reduce the amount of scrap and simplify
the recovery processes.

GREEN MANUFACTURING PROCESS


In order to have a complete concept of green manufacturing, along with the product designs,
the issues involving manufacturing should also be addressed . The main objective of green
manufacturing is to reduce the use of virgin material as it indirectly reduces the amount of
waste at the manufacturing stage. Emission reduction is another significant aspect of green
manufacturing. There are two primary emission reduction means which are; (1) control,
emissions and effluents are trapped, stored, treated and disposed of using pollution control
equipment; or (2) prevention, emissions and effluents are reduced, changed or prevented
altogether through better housekeeping, material substitution, recycling or process
innovation .
GREEN MARKETING AND DISTRIBUTION
Green marketing started in the early 1970s and being discussed academically since early
1990s . Green marketing is a broader concept involving product modification, changes in
packaging, changes in production process and modifying advertising . Green advertising is
given primary importance in the green marketing concept. Green advertising is defined as
any advertisement that presents a corporate image of environmental responsibility, supports
a green lifestyle with or without highlighting a product/service and clearly and
understandably addresses the relationship between a product/service and the biophysical
environment . Another aspect in Greening of supply chain management is green distribution.
Green distribution is relied on green transportation and defined as ''transportation service
that has a lesser or reduced negative impact on human health and the natural environment
when compared with competing transportation services that serve the same purpose'' .
Educating suppliers on the basis of environmental matters and addressing environmental
aspects in the written contract are examples when green considerations are taken into
account.

REVERSE LOGISTICS
Remanufacturing, recycling and reusing are the major functions of reverse logistics that serve
green supply chain management. Reuse is using the item more than once. There are two types
of reuse. i.e.: Conventional reuse, which includes using the item again for the same purpose and
new-life reuse, where the item is used for the different function. Remanufacturing refers to
overhauling, refurbishing and repairing of an item to extend the life from the original core unit.

GREEN SUPPLY CHAIN MANAGEMENT IN INDIA


The above literature survey on green supply chain implementation, integration and practices
was broadly based on the assumptions globally with regard to an organizations performance.
Now let us review with regard to Indian perspective by taking into account of the global
scenario. India is a country with fast pace developing economy but in the same way India has
many challenges all ready existing in its way such as poverty, Low literacy rate, High
Population and growing hunger for technology. In order to overcome these challenges different
pressurizing ingredients to follow green are mentioned below:
1. Government regulations like NAPCC-2010 and tax benefits after following green are the
drivers that are forcing the organizations to improve their environmental performance.
2. Supreme court of India has urged the organizations to make appropriate changes in the
existing lane to make them more environment friendly.
3. Controlling of carbon footprints has emerged as an serious pressure from developed
countries to India.

4. Use of alternative resources such as Bio-diesel, CNG and solar energy by the organizations.
GSCM focuses on mainly the following issues

Less power and paper consumption termed as internal environment management


practice.
Developing suppliers to practice green techniques.
Waste Minimization, Investment-Recovery and environmental requirements after cooperating with the customers.

Many of the Indian organizations are going green and doing extraordinary environmental
friendly practices. They have been adopted and certified with global environmental system of
ISO 14001 . Thus the Indian government can contribute to organizational Green supply chain
management practices for Indian companies and their product and services.
CONCLUSION
With regard to the rising global awareness of environmental protection, businesses have
employed their GSCM to improve their core competitive advantage. GSCM is a progressively
widely-diffused practice among companies that are seeking to improve their environmental
performance. GSCM practices, which are viewed as cross-organizational and closed loop
reduces the ecological impact of industrial activity without sacrificing quality, cost, reliability,
performance or energy utilization efficiency.
Through Indian perspective it is evident that Indian organizations are also experiencing
pressure by both the international counterparts and Indian regulatory bodies. Indian
organizations fail to realize the strategic benefit of implementing green but take it as a financial
burden and thus increasing the gap between increasing awareness and slow implementation.

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