1. GREEN SUPPLY CHAIN MANAGEMENT
INTRODUCTION

2. MEMBERS
HILLARY K. KIPLAGAT…..D61/82728/2015
VIRGINIA MWAI……………D61/77435/2015

3. Green supply chain management
….. can be defined as the process of integrating
environmental thinking into supply chain
management including production design, material
sourcing and selection, manufacturing processes,
delivery of the final production to the customers
and end of life management of the production after
its useful life.
Introduction to Green Supply chain
Management

4. CONTINUA…
 Green supply chain on the other hand is the process of using
environmentally friendly inputs and transforming these inputs
through change agents whose by products can improve or
improve or be recycled within existing environment.
 Supply chain management is the coordination and management
of complex network of activities involved in delivering a finished
product to the user/customer. The supply chain itself is a process
that at the end may produce waste causing serious pollution to the
environmental threatening human health and ecological balance
therefore the need to go green becomes a point of concern to
many organizations.

5. The concept of green supply chain
GSCM was first proposed by the Manufacturing
Research Consortium (MRC) of Michigan State
University in the U.S. in 1996, for comprehensively
considering environmental impacts and resources
optimization of manufacturing supply chains.
It aimed at minimizing the environmental impacts of
the products end-of-use by tracking and controlling
the raw material procurement, in order to ensure
compliance with environmental rules and
regulations starting from the stage of product
research and development.

6. Scholars who have contributed to the
understanding of GSCM
Among the scholars who have contributed to the understanding
of GSCM are :
 Hervani and Helms (2005),
According to them, GSCM comprises of Green
Purchasing, Reverse materials management, Green
distribution and Reverse logistics
 Srivastara (2007)
He defined the concept as an integrative environmental
thinking into supply chain management including
product design, material sourcing and selection,
manufacturing processes, delivery of final products to
the consumer and the end-life management of the
product and its useful life

7. Reasons for increased significance on GSCM among
Kenyan firms.
In recent times, Green Supply Chain Management (Green
SCM) is gaining significance among manufacturers due to
the following reasons:
 Diminishing raw materials
 Deterioration of environment
 Overflowing waste lands
 Increasing levels of pollution

8. Green Supply Chain Management Practices
These are practices which a firm should embrace in order to
be associated with greenness. This practices includes and
not limited to the following;
 Green packaging
 Green purchasing
 Green production
 Reverse logistics
 Recycling and reusing products
 Eco design and green marketing
 Environmental monitoring and collaboration

9. GSCM PRACTICES
 Green purchasing
It is considering environmental impact such as prices,
performance and other factors when making purchasing
decisions . It is environmental purchasing activities that
include the reduction, reuse and recycling of materials in
the process of purchasing. It is a solution for
environmentally concerned and economically
conservative business, and a concept of acquiring a
selection of products and services that minimizes
environmental impact (Salam, 2008).

10. Practices
 Green marketing
It is the marketing of products that are presumed to be
environmentally friendly? Thus green marketing
incorporates a broad range of activities, including product
modification, changes to the production process,
packaging changes, as well as modifying advertising

11. CONTI…
 Eco/Green design
Green design is an important sub-attribute to Green
supply chain management. It is design for the
environment / for disassembly and product life cycle
assessment, specifically to consider environmental
aspects in the products design. It is also about
designing a product or a service with environmental
awareness.

12. CONTINU….
 Recycling and reusing products
It is a practice of producing outputs or products that have
the ability to be recycled and use to package products
instead of producing another packaging containers.
Reusing of packaging materials is also considered a driver
in attaining green procurement where packaging
containers are used by customers for other purposes after
consuming the packed products.

13. Continu..
 Green production/ Manufacturing
It is defined as production processes using inputs with
relatively low environmental impacts, which are highly
efficient, and that generate little or no waste or pollution
(Atlas and Florida (1998).
 Green packaging
It is the practice of packaging products using
environmentally friendly packages which have less impact
on environmental habitats because they can easily
decompose.

14.  Reverse logistics
Its is defined as end use customer to the secondary
market from a series of activities. These activities
include; recycling, maintenance, transportation,
reuse, re-manufacturing, inspection, classification
and disposal. The value of remaining reverse logistics
terminals affect the different treatment of flow
treatment, and is designed to create value or improve
waste treatment.

15. BENEFITS OF GSCM
Greening the supply chain benefits the enterprise in terms of cost
reduction, integrating suppliers in a participative decision
making process that encourages environmental innovation.
The benefits are as follows;
 Reducing Operational Costs
 Boosting Brand Image
 Reduction of waste
 Increases employee morale.
 Positive public relations
 Increasing firms profitability
 Low environmental risk and fines from regulatory
bodies(NEMA)

16. CHALLENGES OF GSCM
 Green supply chain management just like any other business is
faced with challenges; this is probably because it is new to many
organizations. Businesses need to overcome these challenges in
order to ensure their green efforts become a reality. These
challenges includes and not limited to the following;
 Lack of IT implementation
 Resistance to change
 Fear of uncertainty
 High cost of implementation
 Issues of stakeholder positions
 Poor quality of human resources
 Lack of awareness from customers and firms
 Standards and rules of greenness

17. ENABLERS OF GSCM
There is need for drive towards green supply chain to
ensure customer requirements are met, cutting on cost and
even strengthening corporate relationship with the
suppliers. The drivers to green supply chain management
in Kenyan organizations include ;
 Regulatory compliance
 corporate social responsibility
 Competitive pressures and
 Customer and public pressures
 Economic globalization

18. MEASURING GREENNESS
There is need for firms to measure and evaluate the level of
greenness within their firms so as to be able to come up
with new greenness strategies which will ensure their
supply chain goals are attained..one of the strategic tool
which can be used for this purpose is the balance score
card which emphasizes on four aspects of the firm. These
perspectives are customer measures, internal business
processes measures, learning and growth measures and
financial measures

19. Measuring the level of greenness
 Customer measures
This can be accomplished by looking at the safety of the
products an organization is offering i.e do they pose as
hazards to the customer? This can be established by
doing statistics on the preferred products against others.
 Internal process measures
The percentage of materials that are recycled can be used
to show how green a supply chain is. A green supply
chain will tend to have green suppliers to manage the
chain so the number of certified suppliers will help one to
determine how green a supply chain is

20. continuation
 Financial measures
A green supply chain is one which eliminates wastes into
the environment and therefore a green supply chain
should have minimum or no disposal costs at all
 Learning and growth measures
During implementation of the green supply chain
management, staff needs to be trained. The number of
trainees trained and retention rate in an organization can
be used to measure how green a supply chain is.The
number of violations reported by employees, and number
of awards received as a result of achieving environmental
related goals.

21. Conclusion
 GSC is a very important aspect which all the organizations
should implement in order to save the environment and
improve the health of people through the reduction in
pollution. Despite it being expensive to implement, its
benefits are more and results to reduction of products costs
through recycling materials and reduction of waste in each
and every stage of production process.
A green strategy provides prudent business processes.
Successful green supply chain will feature cross functional
collaboration, emphasize innovation, and stay tune to the
strategic focus of supply chain and enterprise as a whole. Such
a framework emphasizes network redesign, packaging
changes, and business collaboration that promote a smaller
carbon footprint and generates cost saving.

22. THE END…
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