Green Supply Chain

Management

Presented by:
Akhilesh Garude (B024)
Soham Kadam (B033)
Saurabh Kala (B034)
Vivek Manjarekar (B041)
Nirmit Mehta (B042)
Arjun Padmanabhan (B048)
Pawan Pandey (B049)

Supply Chain Management

Introduction

Principles

Components

Implementati
on

Conclusion

Green Supply Chain v/s Conventional SCM

Green SCM

Conventional SCM

Objective

Economic & Ecological

Economic

Ecological Impact

Integrated approach, Low

High

Costing & Pricing

High

Low

Speed & Flexibility

Low

High

Supplier Selection
Criteria

Long term relation

Short term relation

Consumers selection
Criteria

Less preferable due to high

pricing

More preferable due to low

pricing

Introduction

Principles

Components

Implementati
on

Conclusion

Green Supply Chain Management

Introduction

Principles

Components

Implementati
on

Conclusion

Value Creation Through GSCM

Tangible
Outcomes
Green
Green Supply
Supply
Chain
Chain
Programs
Programs

Profitability
Profitability

Supply
Supply Chain
Chain
Value
Value

Asset
Asset
Utilization
Utilization
Service
Service Level
Level

Stakehold
er
Interests

Employee
Employee
Satisfaction
Satisfaction
Environmenta
Environmenta
ll
Sustainability
Sustainability
Community
Community
Quality
Quality of
of Life
Life

Introduction

Principles

Customer
Customer
Reputation
Reputation
Continuity
Continuity
Alliances
Alliances
Technology
Technology

Components

Intangible Value
Drivers
Implementati
on

Conclusion

Advantages of GSCM
Improves Agility
Green supply chain management help mitigate
risks and speed innovations

Increases Adaptability
Green supply chain analysis often lead to
innovative processes and continuous
improvements

Promotes Alignment
Green supply chain management involves
negotiating policies with suppliers and customers,
which results in better alignment of business
processes and principles

Introduction

Principles

Components

Implementati
on

Conclusion

Environmental Impacts of Conventional SC

Air

Concept Design

Air

Impacts

Air

Raw
Transport Manufacture Transport Retail/ Transport Disposal
Material
Consumer
Extraction
Use

Introduction

Air

Air

Air

Air

Water

Water

Water

Water

Waste

Waste

Waste

Waste

Principles

Components

Implementati
on

Stage

Impacts

Conclusion

Pollution Control in GSCM

Source Reduction

Long Term

Strategic

Efficient transportation
Operational
efficiency
Packaging
Short Term
Introduction

Principles

Tactical
Components

Implementati
on

Conclusion

Components of GSCM
Green Manufacturing
Hazardous substance control
Energy-efficient technology
3Rs and waste minimization
Green Distribution
Green packaging
Green logistics/transportation

Align
Align green
green supply
supply chain
chain goals
goals
with
with business
business goals
goals

Evaluate
Evaluate the
the supply
supply chain
chain as
as aa
single
single life
life cycle
cycle system
system

Use
Use green
green supply
supply chain
chain analysis
analysis
as
as aa catalyst
catalyst for
for innovation
innovation

Reverse Logistics

Introduction

Principles

Components

Focus
Focus on
on source
source reduction
reduction to
to
reduce
reduce waste
waste

Implementati
on

Conclusion

Inputs

Raw Material

Energy

Stage
Concept

Design

Raw
Material
Transport
Extraction

Manufacture

Product

Outputs

Transport

Retail/
Consumer
Use

Waste

Principles

Components

Disposal

$
Minimize
Minimize the
the
bad
bad inputs
inputs
and
and outputs.
outputs.

Maximize
Maximize the
the
good
good
outputs.
outputs.

Introduction

Transport

Implementati
on

Conclusion

Management Point-of-View in Implementation of GSCM

Green supply chain projects need to be clearly defined in terms of the business value
to the organization.

Clear value will gain senior management support.

Clear value will help secure buy-in from other organizations

Environmental programs are viewed as business cost centers.

Environmental, safety, and health (ESH) resources are often scarce in an organization.

ESH offices are targeted early during cost cutting programs.

ESH offices have difficulty articulating their business value.

The inability to articulate the value of green supply chain effort in business terms lowers their
profile.

Many executives have misconceptions of how green supply chain efforts will impact their
operations.

Without a clear business value proposition, it is difficult to get executive support for projects.

Introduction

Principles

Components

Implementati
on

Conclusion

Implementation in India
Indian Companies have sensed the demands to go green, as many of their Western counterparts
are building environmental sustainability as a business ethic.
Wal-Mart, which imports over $3 billion in goods annually from Indian suppliers, recently asked them
to adopt green practices or risk of losing the retail giant as a customer.
To overcome increasing electricity costs that became a huge burden on the profits of Tulsi Tantis
textile business, he developed a wind energy system. That idea changed his focus and he switched
over to energy production and today his company, Suzlon Energy, is one among the largest windturbine makers in the world.
Realising a need in the market, the Maini Group launched Reva, an electric car that has an
increasing customer adoption in India today. Reva has received a good response in European
customers as well.
Rahul Bajaj set up a wind-power generation system that today provides 90% of his plants energy
needs, while realising savings of $5 million annually.
Nokia India is going ahead with take-back and recycling activities in 2008 and is running over 1400
permanent recycling points at their Care and Retail outlets. The Planet Ke Rakhwaale take-back
initiative was extended to 28 cities across India in September 2009 and became a nation-wide
recycling campaign in January 2010. Recycling awareness related activities were carried out at all
Nokia Care Centres and Priority Dealers. The campaign, supported by an extensive media
campaign, aimed to inspire young minds to spread the recycling message. For every handset,
regardless of the brand, dropped in the recycle bin, Nokia promised
to plant a tree and also offered
Implementati
Introduction
Components
Conclusion
a surprise gift. Under Principles
this initiative nearly
1, 00,000 trees have been
on planted in different parts of
India by various NGOs.

Challenges in Adopting Green Supply

Chain Practices
Internal
External
Barriers
Barriers
High ICT running
cost

Lack of Customer
Interest
Lack of
Distributor/Logistics
support

High initial
investment costs

Limited access to
technology
Lack of supplier
support

Introduction

Doubtful
payback
period

Lack of clear
regulations

Principles

Lack of In-house
skills/knowledge

Components

Implementati
on

Conclusion

Issues and Solutions for GSCM in India

Issues

Key Opportunities

Solutions

Transportation

Railway Network

Bulk transportation or use of

Railways

Expensive Packaging

Middle class not affected

by packaging; price the
most important
consideration
Bulk packaging

Quality packaging Vs
Quantity packaging
Container based Vs
Refillable Products

Excessive use of
Non-biodegradable
items
Lack of effective
recycling

Introduction

Use renewable sources

Make littering punishable
Spot-fines
Less than 5% e-waste is
recycled
Less contribution by
organized sector

Principles

Components

Provide incentives to
organized sector to recycle
Incentivize the formation of
Recycling Industry

Implementati
on

Conclusion

A progressively widely-diffused practice among companies that

are seeking to improve their environmental performance
Reduces the ecological impact of industrial activity without
sacrificing quality, cost, reliability, performance or energy
utilization efficiency
The key themes that came out are greening the product
design, manufacturing process, distribution and marketing,
and Reverse Logistics
Indian organizations are also experiencing pressure by both the
international counterparts and Indian regulatory bodies to adopt
GSCM

Introduction

Principles

Components

Implementati
on

Conclusion

References

http://www.isca.in/rjrs/archive/v1i6/14.ISCA-RJRS-2012-130%20Done.pdf

http://www.thegreensupplychain.com/

http://www.epa.gov/ppic/pubs/lean.pdf

http://
www.iaeng.org/publication/IMECS2010/IMECS2010_pp1563-1568.pdf