Green Supply Chain

Group 8B :
Anurag Singh
Ashwin Unnikrishnan
Jatin Mishra
Siddharth Mishra
Shruti Agrawal
 Green Supply Chain

What Why Who Where

•Need and awareness of environment

•Green Supply Chain leverages
•Retailthe role of environment in Supply
Industry
friendliness
Chain Value Creation. At all stages of supply chain
•IT Industry
•Ill effects of global warming
•Factory
•Food & Beverage Industry
•Product
•For the benefit differentiation
of the employees and competitive
, community
•Distributor and the environment
•Power Plants
advantage •Whole-seller
•Manufacturing Plants
•Government
•The environmental impact regulations
at eachIndustry Chain level is examined
Supply
•Retailer
•Finance
for reduction•Cost Savings
•Improved public image
 GSC Metrics
The Greeno-meter
 Measurement done at all levels of
a supply chain
• Energy and Water savings in factories
• Fuel savings in transportation and logistics
• Savings in usage of environment friendly packaging
material
• Savings by recycling waste
• Carbon footprint
• Avoided landfill
• Regulatory Violations
 The Stats …
How effective Green supply Financial benefits timeline for
chain have been?? green supply chain initiatives
 Success Factors

• Strategic Alignment
– Starting from the top

• Measure for value not just

cost

• Focus on Business Value

How to Go Green..
The supply chain way ??
 Design products using
environment friendly raw materials

 Choose the right suppliers

 Make the manufacturing process efficient:

 Reduce energy consumption, harmful emissions
 Decrease the cost of scrap and material losses
 Convert wastes to by-products
 How to Go Green??
Contd.
 Reduce the production of hazardous materials
 Recovering and recycling materials through
take back programs
 Seeking advice from organizations like WWF
to improve processes
 Certifying products and spreading
awareness among consumers
 Wal- Mart’s Example
 1989: Campaign to convince suppliers to provide
environmentally safe products (biodegradable and recyclable
packaging)
 2005: Lee Scott committed 3 goals –
• To create zero waste
• To be supplied 100% by renewable energy
• To sell products that sustain environment and resources
Key efforts by Wal-Mart
 Hybrid diesel-electric trucks and
refrigerated trucks (25% fuel efficiency, 400,000 tons CO2)

 Implementation of web based scorecard by the suppliers

 Knowledge and process assistance through non profit in its

networks (e.g. Beijing Olympics)

 Commitment to large volumes (e.g. Organic cotton)

 Buying & selling 12 week’s RoHS compliant PCs from Toshiba

 Impact on the bottom line
of the companies
 Examples of how green supply chain has affected the
bottom line i.e. financial performance of companies:

• Texas Instruments: Saves $8 million each year by reducing its transit

packaging budget

• Pepsi-Cola: Saved $44 million by switching from corrugated to

reusable plastic shipping

• GM reduced its disposal costs by $12m with reusable container

program with the suppliers
 Is this enough?
How about sustainability?

Reference- http://www.greenbiz.com/images/090514-supplychain-full.jpg
 Trade Off- Various Levers
•Design-Material Selection, Disposability,
Recyclability, Energy Efficiency
•Packaging-Reuse/Recycling,
Materials
•Processes-Manufacturing,
Transportation
•Components-Substitutes, Sourcing,
Locations
•Energy-Fossil Fuel Based/Renewable
Source
•Inventory Policy-JIT/Vendor
Managed, Frequency
•Transportation-Modes, Shipment
Frequency, Load Consolidation

Reference- http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf
 Trade-Off Logistics and Distribution

Shipment Consolidation- JIT and direct customer delivery policy requires smaller
loads that are shipped more frequently and while this increases the responsiveness and
reduces inventory it increases the carbon footprint. A change in the overall policy of
fewer but large shipments would effectively solve the problem. However this would come
at the cost of increased storage and inventory levels.

Modes of Transportation- Company may now have to choose between low carbon
transportation viabilities. This would also include optimizing the FTL, vehicle
requirements(Speed and Driving patterns).

Network Optimization-Will have to be relooked at. The new strategy would have to
address carbon variable and the impact on various operations(facility
placement/transportation/distribution etc).

Reference- http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf
 Best Practices
Aligning Green Goals with the Bottom Line

Improving Processes using Green Supply

Chain

Suppliers and Reusability

Reference- http://logistics.about.com/od/greensupplychain/a/GSC_Best_Prac.htm
 Thank You

JATIN
SIDDHARTH

SHRUTI

ASHWIN ANURAG