Environmental Pollution and Hazard in Purchasing and Supply Chain Management - Literature review Example

Environmental pollution and hazard in purchasing and supply chain management Introduction Supply chain management refers to all activities under management of an organization which leads to production and delivery of products to end customers (Hines, 2008). This involves all stages of product life-cycle from procurement of raw materials to delivery of goods to consumers.Supply chain management involves various processes of transforming raw materials to finished products including the delivery to customers. There are usually emissions of environmental toxic substances in the process of production. However, organizations should consider using green alternatives for purposes of reducing effects on environment such as pollution and emission of wastes from production line directly or indirectly to the environment. This is in reaction to increasing effects of global warming and climate change and promoting life in an environmentally conscious world. For instance, environmental impact of e-waste re-use, storage and recycling are the stages found at the end of the lifecycle of a device. These stages come before waste treatments like land filling and incineration. At times the e-wastes are shipped off to developing countries for recycling since it is cheaper. According to the steps on e-waste disposal, most of the e-waste ends up in the incinerators or landfills and is not recycled. This happens as these items are mostly classified together with the household items and therefore don’t get much attention (Nnorom and Osibanjo, 2007). Even though this happens, the metal fumes emissions coming from the incinerators pose adverse impacts on human health as well as the environment. The various hazards that are in the landfills also pose a hazardous danger. Recycling E-waste is regarded as a reliable source of metals like copper, gold and aluminum. When these metals aren’t recovered, there has to be processing of raw materials to make brand new products (Nnorom and Osibanjo, 2007). This results in the significant loss of precious resources and causes damage to the environment which is brought about as mining takes place, transport of the materials as well as the use of energy. The recycling of the e-waste is the recovery of raw materials from these e-waste materials. This process involves dismantling, processing of obsolete materials and collection of these materials. Recycling prevents incineration and landfilling and thus the environment benefits but these benefits are felt only when the recycling process is efficient enough. The recycling situation is however very different between the developing and developed countries. Green Marketing Green marketing consists of various activities focused on satisfying human needs with ultimate reduced negative impacts on the society. This ensures that the interest of all players, organization and consumers, are well protected. The buyer and the seller should mutually benefit from the voluntary exchange taking place within the market place. Consumers all over the world are generally becoming concerned about environmental conditions especially the advertisements on green-washing (Bhat, 1993). Green-washing is a term used to refer to the various advertising and public relations used in misrepresenting organizations and products based on sustainability and environmental benefits. Research done in Australia in early 1990s, revealed that 85% of the studied sample believed in their responsibility towards the environment. Over 80% of the sample also agreed on the fact that they changed their purchasing habits owing to environmental reasons. Hence, the conclusion that environmentally friendly firms involved in marketing, have competitive advantage over those marketing non-environmentally responsible goods(McDonnell and Bartlett, 2009, pp. 63-70). It is important for firms to realize their role within the wider society, hence conduct their activities in an environmentally responsible manner. This normally arises from the belief that profit related objectives should be achieved alongside environmental objectives. Governments always strive to protect consumers from marketing related activities through creation of regulations relating to environmental marketing. The attempts made by governments to protect consumers from various exploitations provide consumers with opportunity of making informed decisions (McDonnell and Bartlett, 2009, pp. 63-70). Most organizations utilize the media when conveying important information on innovative practices they seek to legitimize. The media provides the channel through which cognitive legitimacy is built based on business organizational activities. The same channel can be used in rebuilding organizational brand image whenever in question. Business organizations normally use impression and crisis management practices to sensitize consumers on their commitment towards environmentally friendly activities. In this case study, the intended examination is geared towards rebuilding legitimacy by individual organizations. Organization’s image can easily be built through media activities where they seek to influence public reactions towards their products, services and other related actions. On the other hand, media can as well be used by organizations to criticize others’ practices in the process of promoting their own. The effects of public reactions towards company’s brand image usually have long-term effects. Legitimacy within the marketplace is socially constructed in such a manner that the various practices provide the required blueprint on ways of approaching social interactions (McDonnell and Bartlett, 2009, pp. 63-70). Construction and setting of messages provides vital frames necessary in the process of assessing and understanding the level of organizational actions towards stakeholders. The kind of framing used influences public opinions towards the various organizational practices and policies towards climate change. At this stage it is possible for stakeholders to rate company’s concerns towards ‘green-washing’ and whether they appropriately interpret climate change. Agenda-Setting Theory provides for the relationship between media, stakeholders and policy makers. Media is known to focus on product attributes by use of symbols and reasoning devices which appeals entirely towards moral claims. Using media as marketing tool helps in shaping the authenticity of business organization’s practices. This makes agenda setting an important theoretical tool used for the purposes of understanding organizations’ reactions towards green-wash. In the process of using marketing as means of promoting green-washing, consumers need to be reassured of the fact that the advertisements are both business and environmentally oriented. The firm need to ensure that indeed their activities are genuine and not misleading to consumers (Martinson, 2000). At the same time, the activities should follow all the regulations safeguarding environmental marketing. The claims should clearly detail environmental characteristics as well as state the various benefits and processes on how they are achieved. There is also need for the company to ensure that the various differences are justified besides ensuring that all set-backs are dealt with including the appropriate use of images and pictures. The process of modifying the products at times meet increased consumer perceptions which at times are never genuine, hence bowing too much to consumer pressure at times may mislead. Good example is in the use of plastic coated paper instead of clam shells which are scientifically approved to be more environmentally friendly (Marsh, 2001). Probability is high on the fact that those practices currently approved to be environmentally friendly might be harmful in the future years. Good example is in aerosol industry shifting from using CFCs to HFCs of which is currently considered to be part greenhouse gas hence harmful to the environment. Such mistakes are provided for due to the current limited scientific knowledge making firms to be uncertain on the future corrective measures that may be environmentally responsible. However, some firms have decided to become socially responsible in a silent manner without any publicity due to uncertainties which may arise in future. This can as well protect the firms from future negative consumer perceptionsin case their corrective measures are proved otherwise by consumers (McDonnell and Bartlett, 2009, pp. 63-70). Green Purchasing Program In today’s world, it is important for organizations to integrate environmental responsibility with supply chain management. This is referred to as Green Supply Chain Management (GSCM) and assists in addressing various environmental concerns of stakeholders and also enhancing organization’s market value. The idea on GSCM caters for various environmental aspects associated with production of goods such as diminishing resources, overflowing waste sites as well as increasing levels of pollution (Srivatsava, 2007). Incorporating the aspect of greening within supply chain of any organization involves integrating environmental thinking into various product process developments. The Green Purchasing Program involves all nature of acquisitions whether simplified or complex done through government-issued purchase card to major contract awards. However, the whole process of Green Marketing starts with concept of Green design which is the initial stage of production. The first step involves evaluation and identification of wastes which could be generated at different stages of the product life-cycle. The green design majorly focuses on the 3R’s (Recycle, Reuse and Remanufacture) of the product life cycle. According to Sakis (2003), decisions on procurement or purchasing processes within an organization influences green supply chain in the event that materials used are recyclable and reusable. There is pressure on suppliers towards improving their environmental impact for the purposes of coping with rising demand on eco-friendly raw materials having acceptable environmental standards (Jabbour and Jabbour, 2009). Cleaner production processes is preferable to many organizations within their manufacturing stages for the purposes of effective utilization of raw materials. Such process also helps in reduction of toxic materials and at the same time minimizes harmful emissions hence safeguarding the concept of Green. The concept of packaging products with an element of greening plays vital role in purchasing process. This involves innovative solutions focusing on thickness and weight reduction of packaging materials (Testa and Iraldo, 2010). Application of recyclable and biodegradable materials in packaging eliminates the aspect of hazardous materials from reaching environment. However, within supply chain delivery process, it is important to consider Green products or services and give them the first choice within any procurement procedure. The process should consider green procurement rules that mandate the specific procurement of supplies or services. Conclusively, it is important to focus on the rules that only emphasize on procurement of green products or services as highly preferable. For instance, procurement rules within government require that institutions should purchase green products in case the underlying categories apply. Office products including electronic equipment and furniture Printing services Fleet vehicles and fleet maintenance products Building construction, renovation and maintenance (including janitorial and landscape services) Traffic Control Park and recreation Lighting and Appliances Environmentally Friendly Transportation An environmental friendly transportation system is necessary in delivery phase of product life-cycle. This is since most transportation system contributes to environmental hazards owing to burning of fossil fuels, noise and emissions of toxic chemicals. The use of bio-fuels is considered positive step towards reduction of green house gas emissions during transportation. Implementation of environmentally friendly container designs could assist in achieving green supply chain. At the same time decisions concerning choice of items to store and warehouse designs has proved a great challenge. Application of ‘per order’ basis presents a challenge especially when it comes to deciding on whoever is responsible in signing an order. Customers make online purchases of which they require real-time delivery as per scheduled dates. Such method makes it cumbersome when it comes to operational costs incurred in delivery processes especially when items are stored in different facilities. Despite such challenges, there’s improvement in the fulfilment of costs incurred on all processes within the supply chain. Investing in delivery processes involves taking care of business activities characterized by numerous problems that require solutions. Such kind of business is tied primarily to customer objectives based on efficiency and time-delivery. Every segment within the supply chain is normally required to contribute towards the company’s profits. Shareholders are number-one beneficiaries of efficient supply chain within any organization. The study addresses various means used by companies to fulfil their objectives to customers within the supply chain. Such activities require appropriate use of information and communication technologies. Customer care, logistics involved in the process of delivering both goods and services are also considered part of the process (Wieland and Carl, 2011). Supply chain management refers to the management of company’s processes from manufacturing, transportation through to delivery of products and services to customers. All the objective movements involved including storage, planning and control of various activities are used in explaining supply and demand of various goods and services. Supply chain forms the core of the company’s operational activities hence should be monitored by experts to ensure efficiency. Service delivery enterprises are normally anchored on key assumption that management, information and communication technology are important aspects and ingredients which are very crucial for success to be realized. However, all employees are required to embrace the use of information technology since it forms crucial part of a qualified member within any supply chain. This ensures efficient monitoring and delivery of intended goods and services to consumers. Service deliveries ensure that all members of the society are reached with the intended product or services at the right time. Such companies usually operate on a designed conceptual model taking into account economic, social and political forces that determine resource allocation and management within companies from every region. The leadership structure is another important aspect of the supply chain (Mentzer et al., 2001). Benefits from the overall supply chain can be identified through application of relevant partnership and service oriented goals. The kind of transport network offered by the company is considered market viable in the sense that majority of market segments have poor communication and transport network system. Many companies from remote regions are in great demand for efficient services. Such group forms a large market base for logistic, consultant and transportation (Simchi-Levi and Kaminsky, 2007). Besides, various company staff and machinery equipped with sound technical knowledge makes it possible to reach many consumers across the globe at a faster rate. Value-added and facility management services ensures that enough support is gathered from potential sources such as world organizations. In essence, delivery models that are technologically driven are relevant for current generation because the information and communication technology tools are consumer-centric and involve use of frameworks that make it possible the involvement of all stakeholders during decision making processes (Larson and Halldorsson, 2004). Environmentally Friendly E-Waste Management within supply chain Increase in dependency on electronic equipment led to the increase in supply of computers and other electronic products (Macauley et al., 2003). For instance, currently there are more mobile phones with computer capabilities used by persons as well as other computer gadgets applicable in homes that have increased the electronic wastes from residential estates. Such waste proves hazardous to the environment and appears as a result of different home owners trying to keep up with technological trend. Changes in technology innovations requires frequent update and purchasing of electronics which results into constant disposal of used equipment for the purposes of keeping with the trend hence leading to the increase in electronic waste. The most common electronic devices include computers and phones. However, computers and other home electronic appliances are made up of heavy metals and hazardous materials and need to be well managed once their life ends (Macauley et al., 2003). In the year 2001, DTSC (Department of Toxic Substances Control), California ascertained that the cathode ray tubes in computer monitors are quite hazardous as they contain high percentage of lead (Santa Clara County Department of Environmental Health, 2004). Also inclusive are television sets within homes. Such electronic wastes are potential environmental hazards that requires careful disposal. Additionally, there is an increase in the production of high speed computer processors as well as other accessories. Such production process increasingly makes the lifespan of computers shorter. Mundada et al. (2004), notes that the lifespan of computers has reduced to approximately two years on average and that the new inventions have the potential to double the obsolescence rate. The reason for this is that users prefer the buying of a new computer or electronic than to upgrading the one they already have (Mundaba et al. 2004). The lack of management of these toxic-laden computer wastes enables the products to be considered solid waste stream from municipal junk. There is an approximate rate of one dead computer for each new one introduced into the market. The USEPA (United States Environmental Protection Agency) estimates that by the year 2005, there were around 250 million obsolete computers (USEPA 2005). This leads to high price payment as far as the environment is concerned due to the rapid technological changes. A significant portion of the electronic waste ends up in the developing countries and also in landfills (Macauley et al., 2003). Suppliers need to consider components making up electronic devices that are harmful to the environment and need to be treated before being released into the environment. Although this is a national issue, it is a sad fact that it is the state legislators that are at the fore front of pushing for action to handle the issue. With the rate at which US alone is producing waste, the world would have to increase its capacity threefold for it to be able to process the wastes naturally (Nnorom and Osibanjo, 2007). The solid waste disposal issue is a global concern. Though in all regions, it is most persistent in the urban setting. There are several studies that have been conducted and helped suggest ways through which these wastes can be dealt with. However, the waste production rate has grown tremendously that these recommendations have been rendered null. It is a clear fact that the earth’s regenerative capacity cannot allow for this kind of expansion in waste production forever. The design of the different products behind production is only made to make the product look attractive, affordable, meet regulations and to work well long enough to meet the specific customer requirements. These products are usually designed to meet the user’s and manufacturer’s needs and none of the environmental requirements. To conduct repair on a broken down equipment is more expensive compared to if you bought another equipment altogether. This contributes largely to the increased and large waste generation (Macauley et al., 2003). Conclusion Much importance should be attached to green procurement requirements that apply to both supply and service acquisitions. The procurement request initiator should quantify and justify every decision made as a green alternative in every procurement process. This should be done in conjunction with relevant institutions and programs. For instance, for recovered material content and bio-based purchases, the justification should be on the basis of lack of qualification in the process of product acquisition a timely manner, at a reasonable price as well as satisfying the technical or performance requirements. The lack of measures to control the environmental pollution as well as primitive recycling methods end up in creating serious environmental pollution and also pose adverse health risks to the human race (Macauley et al., 2003). E-waste Campaign which is a coalition organization founded in the United States came out to fight against computer e-waste which was well known to be hazardous. The CTBC (Computer Take Back Campaign) includes 16 national organizations that are involved in this advocacy. These organizations include; Basel Action Network, Silicon Valley Toxics Coalition etc. CTBC takes pride in the provision of protection and health to electronics users, communities where electronics are being discarded and produced too. They push for the brand owners to take responsibility of their different brands life cycle up to the recycling part. This is done through enforceable agreements and policy requirements. However, these goals are achievable through application of several strategies. The most primary campaign method that the organization applies is to pressure for the application of EPR (Extended Producer Responsibility) by companies dealing with electronics. This goes a long way in making the manufacturers responsible for their own electronic wastes. The strategies works well as the manufacturers internalize the costs involved and finally act to phase out hazardous materials. Extended Producer Responsibility involves three policies: a) “Take it back,” which means that the recovery, reuse and recycling of electronics should be carried out by the manufacturer. This helps in the shifting of the usual tax burden from the users to the manufacturer. b) “Make it clean,” meaning there should be the phasing out of hazardous material in the products being manufactured. c) “Recycle responsibly,” which advocates for the use ofwhich advocates for the use of responsible recycling companies which don’t harm the economy as well as the community around these industries. References Bhat. N.V. (1993). Green Marketing Begins with Green Design, Journal of business & Industrial Marketing, 8 (4), pp. 26-31, Hines, T. (2008), Supply chain strategies: Customer Driven and Customer Focused, Elsevier ltd, ISBN -13: 978-0-7506-5551-4 Jabbour, A.L.S and Jabbour, C.J.C, (2009), Are supplier selection criteria going green? 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