Business the world over is threatened by the globalization of markets, ever shortening product life-cycles, the need to lower

costs, and ever increasing demands of the customer. The speed and manner in which business is conducted has radically changed. In the face of highly competitive markets, enterprises today consider supply chain management to be the key area where improvements can significantly impact the bottom line. A Supply is understood as the quantity of goods available for use or the actual (or planned) replenishment of a product (or component). A Supply Chain is defined as a set of three or more companies (of a company, an immediate supplier and an immediate customer) directly linked by one or more of the upstream and downstream flows of products, services, finances and information from a source to a customer. Supply Chain Management (SCM) is the systematic, strategic coordination of the traditional business functions within a particular company and across business within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole. Increasingly, the Supply Chain Management is becoming an important concept in modern manufacturing. It is not a business formula or a computer system, but a continuous process of shaping and reshaping inter - and intra-company performance, information technology tools, product and services, and organizational and personal excellence to exploit the ever-changing context of customer opportunities. The primal focus of SCM is to sense consumers with excellent goods and services against minimum possible costs and response time. It means the purpose of Supply Chain Management is to improve customer value and satisfaction that really why we are doing this. In supply chain management following activities can be identified: y y y y y y y Integrated behaviour to incorporate customers and suppliers. Mutually sharing information among channel members for planning and monitoring processes. Mutually sharing channel risks and rewards that yield a competitive advantage. Cooperation among channel members is required for effective SCM. The same goal and the same focus of serving customers so better serving the customer needs. Integration of processes for synergistic effects. Partners to build and maintain long term relationships for competitive advantages.

Green Supply Chain Management Green supply chain management (GSCM) has emerged as a key approach for enterprises seeking to become environmentally sustainable. The notion of Green Supply Chain Management implies the insertion of environmental decisions within the traditional concept of Supply Chain Management. "Green Supply Chain Management is integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing

processes, delivery of the final product to the consumers, and end-of-life management of the product after its useful life." GSCM addresses the four interrelated areas of the supply chain: upstream, downstream, within the organization, and logistics. y y y y Upstream activities of the organization include evaluation criteria of suppliers' environmental performance. Downstream, usually comprises those activities related to the disposal and sale of excess stock, including recovery and recycling opportunities. Within the organization, supply chain management might include involvement with "design for the environment" with suppli ers. In logistics, activities such as just in time or quality management intertwine with environmental criteria.

Benefits of Green Supply Chain Management Organisations can enjoy several benefits by greening their Supply chain, such as; Sustainability Of Resources - GSCM helps in proper and effective utilisation of available productive resources of organisations. Organisations will purchase 'green' input resources for environmental friendly production process to produce desired outputs. Lowered Costs/Increased Efficiency - Effective management of suppliers can reduce transaction costs and promote recycling and reuse of raw materials. Also, the production of waste and hazardous substances can be cut, preventing corporations from being fined as a result of violating environmental regulations. Consequently, the relevant handling and operational cost involved can be further reduced and, in the mean time, the efficiency of using resources can be enhanced. Product Differentiation And Competitive Advantage - It helps the organisation in positioning its product differently in customer's mind.Besides attracting new profitable customers for organisation, it will give competitive edge over competitors in market place. It will strengthen the brand image and reputation in market place. Adapting to Regulation and Reducing Risk - Organisations adopting GSCM practices can reduce the chances of being prosecuted for anti -environmental and unethical practices. Improved quality and products organization will produce products which are technologically advanced and environment friendly. This will enhance the brand image and brand reputation in customers' mind. Besides above, there are following advantages that can be generated by GSCM:y y y y y y y y Positive impact on financial performance Effective management of Suppliers Dissemination of technology, advanced techniques, capital and knowledge among the chain partners. Transparency of the supply chain Large investments and risks are shared among partners in the chain. Better control of product safety and quality Increasing of sales Find beneficial uses for waste, and

Conclusion GSCM is a relatively new green issue for the majority of Indian Corporations. Adding the "green" component to supply chain management involves addressing the influence and relationships of supply chain management to the natural environment. Green business practices that maintain and sustain good environmental quality are increasingly becoming a vital component of business organization.

Why Green Your Supply Chain?

General Motors (GM) sums it up well: "Working together with our suppliers, we can accomplish much more to improve the environment than GM can alone". "Greening the supply chain" refers to buyer companies requiring a certain level of environmental responsibility in core business practices of their suppliers and vendors. Many businesses have internal standards, policies, and/or environmental management systems that govern their own environmental performance and efficiency. If suppliers do not abide by these same standards, the buyer company may be buying and using products that do not meet their own standards. A supply chain can be complex, with environmental issues occuring at the second and thirdtier supplier levels. Some companies may also attempt to work the opposite spectrum of the supply chain, by educating their customers on the environmental benefits of their products.

Listening to Environmentally Aware Consumers

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.
Profiting from Being Green

However some companies have seen that this not a bad thing and indeed have been able to convert the publics interest in all things green into increased profits. A number of companies have shown that there is a proof of the link between improved environmental performance and financial gains. Companies have looked to their supply chain and seen areas where improvements in the way they operate can produce profits. General Motors reduced disposal costs by $12 million by establishing a reusable container program with their suppliers. Perhaps General Motors may have been less interested in green issues if they were making record profits, but in an attempt to reduce costs in their supply chain, GM found that the cost reductions they identified complemented the companys commitment to the environment.
Unaware of Potential Benefits

Companies can find cost savings by reducing the environmental impact of their business processes. By re-evaluating the company's supply chain, from purchasing, planning, and managing the use of materials to shipping and distributing final products, savings are often identified as a benefit of implementing green policies. Despite the publics focus on the environment, benefits attributed to reducing a companys environmental impact are not in the forefront of supply chain executives minds. It appears that many executives are still unaware that improved environmental performance means lower waste-disposal and training costs, fewer environmental-permitting fees, and, often, reduced materials costs. Hopefully the interest in green issues and environmental concern by the public will not wane as economic issues become more important due to the faltering economy.

INTRODUCTION

The trend towards developing a green supply chain is now gaining popularity but most companies are still coming to terms with how this can be achieved and where do they start. For years businesses have been concentrating on improving supply chain visibility, refining efficiency and minimizing cost. Despite the focus being moving towards a green supply chain the goals of visibility, efficiency and cost reduction do not have to be discarded. By

examining the companies who have already made strives towards to a green supply chain, we can begin to see some best practices that will help others to begin their own transition.
Align Your Green Supply Chain Goals with Business Goals

Creating a green supply chain that has little to do with your business will not help your company to achieve its business objectives. For example, if a company decides to use biodegradable packaging for its products that costs 25% more than traditional packaging, this goes against the businesses goals of reducing costs. If a business has an overall goal to reduce costs then the move to a green supply chain should dovetail with the business goal. A company should look at its overall business goals and identify how a transition to a green supply chain can help achieve those goals. For example if a business wants to reduce its energy costs it should start by looking at the consumption to see if a reduction can be made by using more energy efficient and greener equipment.
Use Green Supply Chain to Improve Processes

Companies do not often change their businesses processes and it is this attitude allows inefficient processes to continue unabated causing unnecessary waste and pollution. For example ineffective processes in the US automotive industry allowed the innovative Japanese automakers to become market leaders. Businesses that want to transition to a green supply chain should take the opportunity to review all their business processes to identify areas where adopting a greener outlook can actually improve their business. Companies should review each process along the supply chain to identify if a more environmentally sound approach will help cure the inefficiencies that occur. Many companies that have been through this exercise have identified processes where raw materials were wasted; resources underutilized and unnecessary energy used due to inefficient equipment.
Green Suppliers and Material Refurbishment

Companies reviewing their business processes should look beyond their factory walls. When reviewing purchasing processes the aim of any company, looking to transition to a green supply chain, should be to find suppliers who have minimized their environmental impact without reducing the quality of their product or significantly raising costs. By purchasing products from green suppliers businesses can then begin their green supply chain before any material reaches their site. At the opposite end of the supply chain businesses should look at their return process. Many businesses have not developed a successful refurbishment program for their products that have been returned or exchanged. By offering refurbished items businesses can increase purchasing options to their customers and widen their customer base, whilst improving the environmental impact of their products. There are many ways in which businesses can transition to a green supply chain; however it is important to realize that it is difficult to achieve results without strong focused leadership. Senior management has to lead the effort to move to a green supply chain and provide the resources for the transition. Many businesses have documented a intent or plan to implement a green supply chain, but without the necessary resources, both financial and manpower, any impact will be minimal.

Issues in the green supply chain A report by IFS North America, a Milwaukee based software manufacturer, says that although companies understand the important of the green supply chain and green procurement, they are not achieving their own goals. The report states that 80 percent of respondents realize that green supply chains will become more important in the next three years, but their IT infrastructure and ERP solutions are not able to adapt the requirements needed to achieve the desired results. The vast majority of respondents, 87 percent, honestly claimed that data was handled at least in part through hard copy. Despite the results of the report many companies are taking visible steps to reduce wastage and adopt a green supply chain model. High profile companies such as Wal-Mart and Apple have made attempts to not only reduce their own environmental impact, but those of their suppliers in the US and overseas. In the UK, telecommunications giant, BT, has also adopted similar aims with a green procurement strategy requiring all its suppliers to prove they are making efforts to cut their carbon emissions.

http://www.pprc.org/pubs/grnchain/index.cfm http://www.pprc.org/pubs/grnchain/partner.cfm http://www.pprc.org/pubs/grnchain/purchase.cfm http://www.pprc.org/pubs/grnchain/ems.cfm http://www.pprc.org/pubs/grnchain/eval.cfm

http://www.environmentalleader.com/2010/04/05/greening-the-supply-chain-part-i/ (2 diagrams)