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Green Supply Chain Management and Reverse Logistics

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Green Supply Chain Management and Reverse Logistics

  1. 1. GREEN SUPPLY CHAIN MANAGEMENT AND REVERSE LOGISTICS Presented By: Gurpreet Singh(21/015) Jasanpreet Kaur(21/016) Neha Diwakar(21/020)
  2. 2. WHAT IS SUPPLY CHAIN MANAGEMENT? Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
  3. 3. WHAT IS GREEN SUPPLY CHAIN MANAGEMENT “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".
  4. 4. SUCCESS STORIES: Texas Instruments: saves 8 million dollars every year by reducing its transit packaging budget for its semiconductor business through source reduction recycling and use of reusable packaging systems. Commonwealth Edison: Produced $50 million in financial benefits from managing materials and equipments with Life Cycle Management Approach. Pepsi/Coke: Saved $44 million by switching from corrugated to reusable plastic shipping containers for 1litre and 20 ounce bottles ,conserving 196 million pounds of corrugated material. Dow Corning: Saved $2.3 million by using reconditioned steel steel drums in 1995.Also conserved 7.8 million pounds of steels.
  6. 6. WHY THERE IS NEED FOR GREEN SCM?  Increasing Environmental Constraints due to Global Warming  Corporate Social Responsibility  Beneficial for Organization  Eco-friendly  Increasing Environmental awareness in stakeholders  Evolving Consumer and Client Demand  Response to increasing fuel prices
  7. 7. AREAS TO GREEN THE SUPPLY CHAIN Designing Of Products  Production  Material Purchase  Packaging  Warehousing  Logistics & Reverse Logistics 
  8. 8. DESIGNING OF PRODUCTS An eco friendly design approach leads 1] Less material usage 2] Minimum Operations 3] Proper use of Computational fluid dynamics tools can used to reduce the exhaust emissions at designing level
  9. 9. PURCHASE  Implementing Green purchasing policies  Technical support to vendors to reduce the emissions  Guidelines for usage of less hazardous materials
  10. 10. PRODUCTION Achieving Economies of scale in production  Lean manufacturing approach  Fuel efficient tools and machines  Selecting less carbon intensive energy sources 
  11. 11. PACKAGING Mercury free  Non toxic (minimize toxicity)  PVC or DEHP free  Recyclability  Hazardous waste considerations  Durability/Reusability  Energy efficient 
  13. 13. Driving the truck the opposite way Trash to Cash
  14. 14. WHAT IS LOGISTICS ? “Process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”
  15. 15. WHAT IS REVERSE LOGISTICS ? “Process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, inprocess inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal”
  16. 16. ACTIVITIES OF REVERSE LOGISTICS Handling of returned merchandise  Recycling and reuse  Hazardous materials disposition 
  18. 18. STRATEGIC USE  Strategic Weapon  Competitive Reasons  Good Corporate Citizenship  Clean Channel  Recapture Value and Recover Assets  Legal Disposal Issues
  19. 19. CHALLENGES  Retailer – Manufacturer Conflict  Problem Return Symptoms  Cause and Effect  Reactive Response
  20. 20. GENCO Service Offering: Return center operations  Return-to-vendor management  Product recall management  Test, repair and refurbishment  Product recycling