Green SCM

GREEN SUPPLY CHAIN,[object Object],Pallavi Arunika Saurabh Mallik,[object Object]

Presentation Overview,[object Object],What is a Supply Chain Management?,[object Object],SCOR Model,[object Object],Why think Green SCM? ,[object Object],What is Greening the Supply Chain?,[object Object],Green Supply Chain Principles,[object Object],GSC as a strategic tool,[object Object],Trends in Green SCM,[object Object],Examples of cleaner technology,[object Object],LEED,[object Object],Global Eco-labelling Network,[object Object],Environmentally Preferable Purchasing (EPP),[object Object],Carbon Footprint,[object Object],Green Sourcing,[object Object],Stanford Case study – “The Greening of Wal-Mart,[object Object]

Definition of supply chain management (SCM),[object Object],Product,[object Object],assembly,[object Object],Material,[object Object],production,[object Object],Component,[object Object],manufacture,[object Object],Mining, drilling,[object Object],and harvesting,[object Object],Sale and,[object Object],delivery,[object Object],Planning,[object Object],Sourcing,[object Object],Production,[object Object],Inventory,[object Object],Logistics,[object Object],Supply Chain Management is aboutmanaging business activities and relationships ,[object Object],internally within an organization, ,[object Object],with immediate suppliers,,[object Object],with first- and second-tier suppliers and customers along the supply chain, and,[object Object],with the entire supply chain. ,[object Object],SCM has two dimensions:,[object Object],[object Object]

Coordinating the business activities between various supply chain agents,[object Object]

SCOR drives an end-to-end view of supply chain performance,[object Object]

Why think Green ?,[object Object],Why think Green ?,[object Object],- Eco-efficiency saves money,[object Object],[object Object]

Regulation ( US , Europe , the world)

Recruiting and retaining talent

etcWhy now ?,[object Object],[object Object]

many firms have slack capacity

Green economy , green collar jobs, green infrastructure ,[object Object]

Assessing Value of Green Initiative,[object Object]

ATKearney Report,[object Object]

Key Findings (A T KEARNEY),[object Object]

What is a “Green” Supply Chain?,[object Object],Integrating environment thinking into supply chain management, including,[object Object],[object Object]

Material sourcing and selection

Delivery of the final product to the consumers

End-of-life management of the product after its useful life.,[object Object]

Green SCM integrates environmental and supply chain management.,[object Object],Environmental,[object Object],Management,[object Object],Green SCOR Model,[object Object],SCOR Model,[object Object],[object Object]

GreenSCOR maintains the integrity of the current SCOR model by adding to the existing elements.

The GreenSCOR model enables organizations to more effectively integrate environmental management with supply chain management.,[object Object]

Lessening Environmental Impact,[object Object],Through GreenSCOR, industry can:,[object Object],[object Object]

Ensure compliance with regional/governmental

Manage remediationAt the same time, it can:,[object Object],[object Object]

Green Supply Chain Principles,[object Object]

Green SCM leverages the role of the environment in SC value creation.,[object Object],Tangible Outcomes,[object Object],Green Supply Chain Programs,[object Object],Profitability ,[object Object],Supply Chain,[object Object],Value,[object Object],Asset Utilization,[object Object],Service Level ,[object Object], Employee Satisfaction,[object Object],Customer,[object Object],Environmental Sustainability,[object Object],Reputation,[object Object],Continuity ,[object Object],Community of Quality of Life,[object Object],Alliance,[object Object],Technology,[object Object],Stakeholders Interest,[object Object],Intangible Value Drivers,[object Object],Source: Forging New Links, GEMI, 2004,[object Object]

Commercial firms have had early success using Green SCM principles,[object Object]

More win-win scenarios,[object Object]

Not everyone's as enthusiastic though...,[object Object],Despite high profile initiatives from firms such as Wal-Mart and HP to limit the environmental impact of their supply chains, the majority of large firms still have no green supply chain policy in place.,[object Object],[object Object]

Survey of over 600 directors at companies with turnovers in excess of $100m found that just 35 per cent had an explicit green supply chain strategy, although 83 per cent claimed to factor environmental factors into decisions.

A lack of information about green supply chain best practices and regulations was identified as the main reason for the relatively low adoption of green supply chain policies.,[object Object]

Three Competitive Edges of Firms,[object Object],Operational Excellence,[object Object],Reducing carbon footprints,[object Object],Implementing cleaner technology,[object Object],Green logistics,[object Object],Supplier Audits,[object Object],Product Leadership,[object Object],CustomerIntimacy,[object Object],Working with suppliers,[object Object],Supplier Engagement,[object Object],Defining and implementing Environmentally Preferable Purchasing,[object Object],Green building Standards,[object Object],Standards & Eco labels,[object Object]

How do firms stack up…,[object Object]

Start at the Beginning,[object Object],[object Object],– Use more environmentally friendly materials,[object Object],– Design more efficient product,[object Object],– Plan in recycling of product at end of life,[object Object],– Consider environmental impact of product,[object Object],[object Object],– Review supplier environmental data,[object Object],– Consider supplier source of raw materials/components,[object Object],– Partner with suppliers to improve environmental performance,[object Object],– Consider energy‐efficient practices (“green” manufacturing facilites, hybriddeliveryvehicles, etc.),[object Object],Trends in Green Supply Chain,[object Object]

Greening the Process,[object Object],Manufacturing,[object Object],– Use more efficient processes,[object Object],– Institute pollution/emission controls,[object Object],– Plan waste management,[object Object],– Implement quality control,[object Object], Packaging/Shipping,[object Object],– Use environmentally friendly/recyclable packaging,[object Object],– Plan for reuse of packaging materials,[object Object],– Ship in hybrid/efficient vehicles,[object Object],– Ship directly to customers,[object Object]

End Product,[object Object],End Product,[object Object],– Deliver efficiently to end user,[object Object],• Use recyclable/reusable packaging,[object Object],• Deliver in hybrid/efficient delivery vehicles,[object Object],• Consolidate shipments,[object Object],– Plan for recycling/reuse of product/components at end of life,[object Object],– Educate customer on recycle/reuse policy,[object Object], Cost savings,[object Object],– Efficient design saves waste,[object Object],– Environmentally friendly sourcing saves disposal costs,[object Object],– Pollution/emissions control saves cleanup costs,[object Object],– Compliance with environmental regulations,[object Object]

Customer Intimacy ,[object Object]

A leading-edge system for designing, constructing, operating and certifying the world’s greenest buildings.,[object Object]

What is “Green” Design?,[object Object], Design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas:,[object Object],[object Object]

Safeguarding water and water efficiency

Energy efficiency and renewable energy

Conservation of materials and resources

Indoor environmental qualityLeadership in Energy & Environmental Design (LEED),[object Object]

A Green Building is measured by the impact of the facility on its occupants, site, community and region,[object Object],[object Object]

Indoor environmental quality (air quality, thermal comfort, lighting)

Waste management and air emissions

Site disturbance and storm water management

Transportation options for occupants

Longevity (durability, adaptability to changing building user needs)What makes a Green Building?,[object Object]

Establish market value with recognizable national “brand”

Facilitate positive results for the environment, occupant health and financial return

Define “green” by providing a standard for measurement

Prevent “greenwashing” (false or exaggerated claims)

Promote whole-building, integrated design processes

Transform the marketplace!Why Was LEED® Created?,[object Object]

ISO 14020 and 14024,[object Object],[object Object]

Principles and Procedures for Type I EcolabelsGlobal Ecolabelling Network (GEN) membership criteria,[object Object],GEN Internationally Coordinated Ecolabelling System (GENICES, evaluation for conformance with ISO 14024),[object Object],ANSI-accredited standards developer,[object Object],EPA Guidelines for Third-Party Certifiers,[object Object],Consumers Union criteria for “What makes a good eco-label?”,[object Object],Standards and Eco Labels,[object Object]

Standards and Eco Labels,[object Object], Eco labels are a method of assessing environmental performance .The EU has developed a label which is for accommodation.,[object Object],[object Object]

Identifies products that meet specific environmental criteria

This varies widely among labels

Labels exist for electronics and many other products

A third-party identifies criteria and verifies adherence to criteria

Different from “green” symbol or claim made by manufacturers on product.,[object Object]

Types of Eco-Labels,[object Object],Based on ISO Identification,[object Object], Type I,[object Object],[object Object],Type II,[object Object],[object Object],Type III,[object Object],[object Object],[object Object]

What is EPP?,[object Object],EPP is the process of selecting products and services whose environmental impacts have been considered and found to be preferable to those of comparable alternatives.,[object Object],EPP is a way for purchasers to implement their values and goals as they relate to environment, health, and safety.,[object Object],EPP takes into consideration performance, availability, and price.,[object Object],[object Object]

Non-toxic (or minimize toxicity)

Recycled Content (post-consumer)

Hazardous Waste Considerations

Green SCM

Green SCM

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