GREEN SUPPLY CHAIN MANAGEMENT
(MLSCM 2031)
Department of Logistics & Supply Chain
Management
College of Business and Economics
Bule Hora University
By: Mesfin L.( PhD; student in Marketing
Management)
COURSE OBJECTIVE – GREEN
SCM
• Upon completing this course, the students will be able to:
• Explain the fundamental concepts of green supply chain.
• Understand the Closed-loop Supply Chain.
• Explain the fundamental concepts of Eco-Design.
• Understand the various tools of Product Eco-Design.
• Explain the Green Procurement and Purchasing.
• Identify the Green Supplier Development.
• Explain the Lean Manufacturing for Green Manufacturing.
• Explain the applications of Green Logistics and
Transportation.
Chapter – I
Green Supply Chain Management
What SCM
 “A supply chain is the management of a network, which is
used to deliver products and services, from raw material to
the customers, through physical distribution, the flow of
information, and cash”.
 It comprises a network of both processes and entities. In a
basic supply chain, there are three entities: Producer,
Supplier, and Customer. These entities that perform the
processes can be businesses or governmental organizations
or individuals.
SCM: is the management of flows including all
processes that transform raw materials into final
products between businesses and locations.
GSCM is defined as "the process of using environmentally
friendly inputs and transforming these inputs into outputs that
can be reclaimed and re-used at the end of their life cycle thus,
creating a sustainable supply chain.
Cont…
Green supply chain concept occurs to mitigate
environmental degradations and control air,
water and waste pollution through the
adoption of green practices in business
operations.
Undeniably,(definitely) the basic ideology
behind green concept is to enhanced
environmental sustainability, but firms adopt
green concept as “kill two enemies with one
bullet”.
Cont…
GSC: can reduce environmental pollution, production
costs, it also can spur economic growth, create
competitive advantage in terms of greater customer
satisfaction, positive image and reputation and
provide better opportunity to export their products in
pro-environmental countries
The main aim of GSCM will reduce Carbon Footprint, which
is a measurement of a persons negative impact on the
environment.
Cont…
Even though, reducing air, water and waste
pollution is the main goal of green supply chain,
while green operations also enhance firms’
performance in terms of less waste
manufacturing, reuse and recycling of products,
reduction in manufacturing costs, greater
efficiency of assets, positive image building, and
greater customer satisfaction.
Traditional Supply Chain and Green Supply Chain
• Traditional supply chain management typically
focused on cost and control of the product instead
of its environmental impacts. However, GSCM is
environmentally optimized, aims for cleaner
production, waste management, and deals with
human toxicological impacts as well.
• Green supply chain practices incorporate
sustainability concepts into traditional supply chain
management. The goal is to help industries reduce
their carbon emissions and minimize waste while
maximizing profit.
Why Green SCM
 Green supply chain practices are critical to
the health of our planet and the continued
sustainability of industry. In addition, they
lead to competitiveness and economic
performance in several ways: by increasing
cost efficiency, reducing waste, and meeting
consumer demand for green products
Green Supply Chain Practices
Green Design is about designing a product or a
service that encourages environmental
awareness.
Design and develop recoverable products, which
are technically durable, repeatedly usable,
harmlessly recoverable after use and
environmentally compatible in disposal.
Life-cycle analysis: Life-cycle analysis is an
important sub concept to Green Design, measure
environmental and resource related products to
the production process that from extraction of
raw materials, production, distribution, and re
manufacturing, recycling and final disposal.
GREEN PRODUCTS - DESIGN
GP is defined as an environmentally conscious purchasing
initiative that tries to ensure that purchased products or
materials meet environmental objectives set by the
purchasing firm, such as reducing the sources of wastage,
promoting recycling, reuse, resource reduction, and
substitution of materials
GP ensures that purchasing or supply chain managers
consider the issue of sustainability in the purchasing of
inputs, in addition to the traditional purchasing criteria of
cost, quality, and delivery.
The “greening” of manufacturing, in which workers use
fewer natural resources, reduce pollution and waste,
recycle and reuse materials, and moderate emissions in
their processes.
Green packaging, also called sustainable packaging,
uses materials and manufacturing techniques to
diminish energy use and reduce the harmful impacts of
packaging on the environment. Green packing solutions
often include biodegradable and recyclable materials in
preference to materials like plastic and Styrofoam.
GREEN WAREHOUSING
• Green warehouse can be defined as the cluster
of technological and organizational
solutions designed for the efficiency of
warehouse processes by maintaining the
highest social standards and minimizing the
effect on nature in terms of financial
efficiency.
GREEN WAREHOUSING
REVERSE LOGISTICS
• Reverse logistics is defined as the process of
moving goods beyond their typical final
destination for things like re-use, capturing
value, or proper disposal. In supply chain
networks, materials flow from suppliers through
to end customers.
• For example, if a product is found defective, it
is sent back to the manufacturer for testing,
repairing, dismantling, recycling, or proper
disposal of the product.
Reverse logistics is another name for a
backwards supply chain – when goods flow
backwards from the consumer towards the
manufacturer. This usually happens when
goods are retrieved for resale or recycling.
Traditional Supply Chain and Green Supply
Chain
ENVIRONMENTAL CONCERN
OF SCM
CLOSED – LOOP SUPPLY CHAIN
• What is closed- loop supply chain?
• In a closed-loop supply chain (CLSC)
network, forward flows satisfy demands for
new products, while reverse flows represent
collection and remanufacturing or recycling of
returned products. One source of the
environmental impacts is the carbon emissions
from transporting products.
CORPORATE ENVIRONMENTAL
MANAGEMENT
• What is corporate environmental management?
• Corporate Environmental Responsibility
is about managing the use natural resources
in the most effective and efficient manner in
order to reduce environmental impacts and
financial costs. Areas of Focus : Energy
Efficiency and Savings. Waste Management.
Travel and Transportation.
Sustainable Development
Environmental Sustainability is refers to "Sustainable
development is development that meets the needs of the
present, without compromising the ability of future
generations to meet their own needs.
Economic sustainability is refers to the practices that
support long-term economic growth without
negatively impacting the social, environmental, and
cultural aspects of the community. Economic
sustainability is all about giving people what they
want without compromising the quality of life,
especially in the developing world
Social sustainability is about identifying and
managing business impacts, both positive and
negative, on people. The quality of a company's
relationships and engagement with its stakeholders is
critical.
Social Sustainability and Inclusion focuses on the need
to “put people first” in development processes. It
promotes social inclusion of the poor and vulnerable by
empowering people, building cohesive and resilient
societies, and making institutions accessible and
accountable to citizens.
SUSTAINABLE DEVELOPMENT
THANK YOU

GSCM CP- I (2)(1).pptx

  • 1.
    GREEN SUPPLY CHAINMANAGEMENT (MLSCM 2031) Department of Logistics & Supply Chain Management College of Business and Economics Bule Hora University By: Mesfin L.( PhD; student in Marketing Management)
  • 2.
    COURSE OBJECTIVE –GREEN SCM • Upon completing this course, the students will be able to: • Explain the fundamental concepts of green supply chain. • Understand the Closed-loop Supply Chain. • Explain the fundamental concepts of Eco-Design. • Understand the various tools of Product Eco-Design. • Explain the Green Procurement and Purchasing. • Identify the Green Supplier Development. • Explain the Lean Manufacturing for Green Manufacturing. • Explain the applications of Green Logistics and Transportation.
  • 3.
    Chapter – I GreenSupply Chain Management
  • 4.
    What SCM  “Asupply chain is the management of a network, which is used to deliver products and services, from raw material to the customers, through physical distribution, the flow of information, and cash”.  It comprises a network of both processes and entities. In a basic supply chain, there are three entities: Producer, Supplier, and Customer. These entities that perform the processes can be businesses or governmental organizations or individuals.
  • 5.
    SCM: is themanagement of flows including all processes that transform raw materials into final products between businesses and locations.
  • 8.
    GSCM is definedas "the process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their life cycle thus, creating a sustainable supply chain.
  • 9.
    Cont… Green supply chainconcept occurs to mitigate environmental degradations and control air, water and waste pollution through the adoption of green practices in business operations. Undeniably,(definitely) the basic ideology behind green concept is to enhanced environmental sustainability, but firms adopt green concept as “kill two enemies with one bullet”.
  • 10.
    Cont… GSC: can reduceenvironmental pollution, production costs, it also can spur economic growth, create competitive advantage in terms of greater customer satisfaction, positive image and reputation and provide better opportunity to export their products in pro-environmental countries
  • 11.
    The main aimof GSCM will reduce Carbon Footprint, which is a measurement of a persons negative impact on the environment.
  • 12.
    Cont… Even though, reducingair, water and waste pollution is the main goal of green supply chain, while green operations also enhance firms’ performance in terms of less waste manufacturing, reuse and recycling of products, reduction in manufacturing costs, greater efficiency of assets, positive image building, and greater customer satisfaction.
  • 13.
    Traditional Supply Chainand Green Supply Chain • Traditional supply chain management typically focused on cost and control of the product instead of its environmental impacts. However, GSCM is environmentally optimized, aims for cleaner production, waste management, and deals with human toxicological impacts as well. • Green supply chain practices incorporate sustainability concepts into traditional supply chain management. The goal is to help industries reduce their carbon emissions and minimize waste while maximizing profit.
  • 14.
    Why Green SCM Green supply chain practices are critical to the health of our planet and the continued sustainability of industry. In addition, they lead to competitiveness and economic performance in several ways: by increasing cost efficiency, reducing waste, and meeting consumer demand for green products
  • 16.
  • 18.
    Green Design isabout designing a product or a service that encourages environmental awareness. Design and develop recoverable products, which are technically durable, repeatedly usable, harmlessly recoverable after use and environmentally compatible in disposal. Life-cycle analysis: Life-cycle analysis is an important sub concept to Green Design, measure environmental and resource related products to the production process that from extraction of raw materials, production, distribution, and re manufacturing, recycling and final disposal.
  • 19.
  • 21.
    GP is definedas an environmentally conscious purchasing initiative that tries to ensure that purchased products or materials meet environmental objectives set by the purchasing firm, such as reducing the sources of wastage, promoting recycling, reuse, resource reduction, and substitution of materials GP ensures that purchasing or supply chain managers consider the issue of sustainability in the purchasing of inputs, in addition to the traditional purchasing criteria of cost, quality, and delivery.
  • 23.
    The “greening” ofmanufacturing, in which workers use fewer natural resources, reduce pollution and waste, recycle and reuse materials, and moderate emissions in their processes.
  • 25.
    Green packaging, alsocalled sustainable packaging, uses materials and manufacturing techniques to diminish energy use and reduce the harmful impacts of packaging on the environment. Green packing solutions often include biodegradable and recyclable materials in preference to materials like plastic and Styrofoam.
  • 27.
    GREEN WAREHOUSING • Greenwarehouse can be defined as the cluster of technological and organizational solutions designed for the efficiency of warehouse processes by maintaining the highest social standards and minimizing the effect on nature in terms of financial efficiency.
  • 28.
  • 29.
    REVERSE LOGISTICS • Reverselogistics is defined as the process of moving goods beyond their typical final destination for things like re-use, capturing value, or proper disposal. In supply chain networks, materials flow from suppliers through to end customers. • For example, if a product is found defective, it is sent back to the manufacturer for testing, repairing, dismantling, recycling, or proper disposal of the product.
  • 31.
    Reverse logistics isanother name for a backwards supply chain – when goods flow backwards from the consumer towards the manufacturer. This usually happens when goods are retrieved for resale or recycling.
  • 32.
    Traditional Supply Chainand Green Supply Chain
  • 33.
  • 41.
    CLOSED – LOOPSUPPLY CHAIN • What is closed- loop supply chain? • In a closed-loop supply chain (CLSC) network, forward flows satisfy demands for new products, while reverse flows represent collection and remanufacturing or recycling of returned products. One source of the environmental impacts is the carbon emissions from transporting products.
  • 45.
    CORPORATE ENVIRONMENTAL MANAGEMENT • Whatis corporate environmental management? • Corporate Environmental Responsibility is about managing the use natural resources in the most effective and efficient manner in order to reduce environmental impacts and financial costs. Areas of Focus : Energy Efficiency and Savings. Waste Management. Travel and Transportation.
  • 48.
    Sustainable Development Environmental Sustainabilityis refers to "Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. Economic sustainability is refers to the practices that support long-term economic growth without negatively impacting the social, environmental, and cultural aspects of the community. Economic sustainability is all about giving people what they want without compromising the quality of life, especially in the developing world
  • 49.
    Social sustainability isabout identifying and managing business impacts, both positive and negative, on people. The quality of a company's relationships and engagement with its stakeholders is critical. Social Sustainability and Inclusion focuses on the need to “put people first” in development processes. It promotes social inclusion of the poor and vulnerable by empowering people, building cohesive and resilient societies, and making institutions accessible and accountable to citizens.
  • 50.
  • 52.