1. Green Supply Chain
1

2. What is Green Supply Chain?
 Green supply chain includes the whole
process right from products designing up
to its final retrieving
 covering those aspects such as green
designing, green materials choosing,
green supply process, green
 production, green packaging, green
distribution, green consumption and
green retrieving.
2

3. Traditional Cost Avoidance
Emerging Value
creation
1. Historically, GSC mgt. focused on the
upstream supply chain i.e.,
Manufacturer encourages suppliers to
adopt green practices, environmental
management systems, and material
content.
3. Now, GSC programs are moving from
compliance to value creation in terms
of raise in productivity, enhance
relations, support innovation, enable
growth
3

4. Because……
 GSC improves operations by
employing an environmental
solution.
 Increases Agility
 Increases Adaptability
 Promotes Alignment
4

5.  GSC best practices focus on the
business result first.
 Focus on source reduction to reduce waste
 Evaluate the SC as a single life cycle
optimisation by minimizing the “bad” inputs
and outputs and maximizing the “good
outputs”.
 Use green SC analysis as a catalyst for
innovation
 Align GSC goals with business goals
5

6.  GSCM is a driver for process
improvements.
 Continuous improvement programs w.r.t.
 waste material,
 Waste energy or effort
 Under-utilised resources
 Green Process Improvement Approach
Identify the Create innovation Vs.
Identify the waste Opportunity cost Treatment bias toward
streams of the waste Waste reduction
6

7. A Case Study of
Wal- Mart’s “Green” SCM
According to Supply Chain Management
Review, Wal-Mart CEO Lee Scott
committed the company to three
ambitious goals:
 To be supplied 100% by renewable
energy
 To create zero waste, and
 To sell products that sustain Wal-Mart’s
resources and the environment and to
move towards integrated Corporate Social
Responsibility (CSR)
7

8. The three goals were just an introduction to Mr. Scott’s
speech. He also discussed the following goals:
1. Increas e fuel efficiency in Wal-Mart’s truck fleet by 25 percent over three years and
doubling it within 10 years
2. Reduce greenhous e gas es by 20 percent in 7 years
3. Reduce energy us e at s tores by 30 percent in 7 years
4. C ut s olid was te from U.S . s tores and S am’s C lubs by 25 percent in three years .
5. B uying dies el-electric and refrigerated trucks with a power unit that could keep
cargo
cold without the engine running, s aving nearly $75 million in fuel cos ts and
eliminating
an es timated 400,000 tons of C O2 pollution in one year alone
6. Making a five-year verbal commitment to buy only organically grown cotton from
farmers , and to buy alternate crops thos e farmers need to grow between cotton
harves ts .
Las t year, the company became the world's larges t buyer of organic cotton
7. Promis ing by 2011 to only carry s eafood certified wild by the Marine S tewards hip
C ouncil, a group dedicated to preventing the depletion of ocean life from
overfis hing.
8. B uying (and s elling) 12 weeks ' worth of Res trictions on Hazardous S ubs tances
(RoHS )-
compliant computers from Tos hiba.
A lt h o u g h t h is m a y s e e m lik e a v e r y la r g e lis t f o r a
c o m p a n y t o a c c o m p lis h , e a c h o f t h e s e a r e 8
a t t a in a b le a n d p la c e W a l-M a r t in a g r e a t c o m p e t it iv e

9. 9

10.  A Green certificate /
Renewable Energy
Certificates(REC) in the USA
are a tradable commodity
proving that certain
electricity is generated using
renewable energy sources.
 1 certificate represents
generation of 1
megawatthour of electricity.
10

11. Class Presentation
by
Darur Shailaja
11