Innovative Techniques for Effective and Eco-Friendly Supply Chain Logistics - Literature review Example

Introduction

Environmental pollution is the greatest threat that man faces in the current world. This arises from various sources such as the emissions of CO2 from vehicles and airplanes. The innovation techniques for effective and eco-friendly supply chain logistics can viewed from the perspective of green supply chain management that is a powerful method to distinguish between competitive companies from less competitive ones. The Green supply chain could also influence the plan for success a great deal. In addition, the green supply chain is part of the corporate responsibility that takes into account the environmental conservation. It entails the manner in which the innovations are made in the supply chain management, whereby the purchase of the raw materials by the industries is considered in terms of the environmental effects. On the other hand, the environmental supply chain management entails the purchasing process that ensures reduction of environmental pollution, through recycling of waste products such as plastic materials, reuse of the materials, and the substitution of materials for those that are environmentally friendly (Azevedo, 2015). However, the substitution could be a dilemma on the type of product that is environmentally friendly, plastic bags could be worse than the effect caused by the logging of trees for paper. The environmental supply chain also entails monitoring and improving the supply chain in terms of performance. This could be done through the integrations of innovativeness in management of the supply chain, designation of the products, introducing the modern ways of manufacturing products, material resourcing, and selection, the conveyance of the finished products to the end users and the management of end of life of the product after its use. Globalization is a common trend in the current world whereby it increases the chances for buyers to access to the more products. In this case, as the green consumerism is also emerging, then globalization increases the supplier and buyer environmental performance. It is also advisable for the manufacturers and the suppliers of the raw materials to work together with the aim of promoting the environmental safety through production of materials that are environmentally friendly.

Objectives

The objective of this paper is to understand the innovation in the supply chain by discussion of the four parts of the supply chain are analyzed, which include sustainability in purchasing, manufacturing, marketing, and reverse logistics. In the discussion, literature research method has been used to study the eco-friendly in the supply chain for different companies to indicate innovations.

Methodology

Literature search method involves studying all the readily available resources. These materials include the company materials like the annual reports, appropriate trade publications, the newspapers, the company literature, information from the internet databases and other published materials like books (Baluch, 2015). The method is a cheap way of collecting information but does not provide up-to-date information. Furthermore, the method is time consuming while searching for suitable information that fits the topic, especially if the internet is used as the source of information.

Literature review

The environmental issues are becoming important to businesses today. The eco-efficiency benefits the businesses in different ways. This could be unique for a certain business but there are basic benefits that sustainability has on the companies. The first benefit is that it promotes the brand name, thus increasing the competitive advantage. This is because through research carried by Natural Brand Institute, it has been discovered that most of the consumers are keen at buying environmentally sound products at a higher percentage compared to other products. The research also indicated that more than 68 million adults in the US make purchase assessments depending on their individual, social, and environmental values. According to another research, by BBMG, almost all Individuals in America support the need of the American’s are aware of keeping the environment safe and thus tend to purchase the products that are safe for the environment. Furthermore, sustainability increases productivity and reduces the costs of production this includes the use of Nanotechnology and Biotechnology that have reduced the size of the products greatly and hence reducing the amount of natural resources exploited and the amount of energy and material spend due to the manufacture processes. For example, the making of the flat screen by has reduced the material for making TV’s hence contributes to safeguard the environment.

There is also increase in the finances and investment opportunities, through efficiency use of fuel and the reduction of pollution in consequence. Research, shows that companies that are at the forefront of managing the environmental sustainability outperform others in the stock market by an average percentage of 25 percent (Emory, 2011). The finance executives for most of the companies have decided to invest in the ecofriendly activities in order to improve the financial status of their companies through eco-friendly investment. Nevertheless, the other benefits for the companies include minimization of the carbon risks and improvement of efficiency by the companies. This is because environmental sustainability is among the top ten business risks facing the companies in the near future. This could be divided into two categories one of which is the inability to respond and plan for the regulation of the environment and creation of an energy efficient company or product. This is speculated due to the increased sensitivity towards creation of an environment that is sustainable for the future generation. The governments both federal and state would mandate that companies should reduce carbon emissions for more than 25 percent in five years to come and more than 50 percent for 35 years to come. The companies that would not be able to comply with the regulations set by these governments would end up in heavy fines and the danger of closure, due to the government directive and competition from the other green companies. There is also an increase in the employee retention and recruitment, because the awareness of the need for an environment that is friendly has influenced the employee need to be in a company that supports such an environment. This is because the employees who work in the green companies have a feeling that they are doing the right thing. Research by Adecco HR Company shows that most of the employees need their companies to be engage in a governmental friendly environment that could also promote their health. On the other hand, since the companies need employees who are loyal and ethical, there is need for the companies to build social responsibility programs that could enhance the retention of the employees into the company.

Green purchasing is one of the main tenets of increasing the eco-friendly activities. Since there are increased regulations for the sustainability of the environment and the increased need for green consumerism, the environmental issues are becoming non-tariff barriers. Europe and Japan are moving into the demand for the eco-friendly products, though such products are very much expensive and most individuals are not in a position to buy such products. In most of countries, globally the government and organizations achieve the purchase of the eco-friendly products (Freitas, 2015). The Environmentally Preferable Purchasing (EPP) also known as green purchasing is common in the current world that entails the purchase of the environmentally friendly products that reduce the effect of environmental pollution in the supply chain. Examples, of the organizations that assist in the purchase of the eco-products include the International Green Purchasing Network (IGPN) that is located in Japan. The organization also promotes the need for the environmentally friendly products globally. Furthermore, it supports the need for developing the eco-friendly products and matches the determinations for green purchasing and creation of an environmentally safe products and services in the global setting. Additionally, the Green Purchasing Network India is another organization that ensures sustainable consumption and production that makes use of the informal networking of professionals on the internet. The strategies involved in green purchasing include regulating the product standards that changes the supplier behavior by changing the ingredients of the product. Nevertheless, collaboration of the suppliers in the production of eco-products with the organizations and the government leads to the change of production of products by the suppliers a great deal. This could also be boosted by the demand of the buyers for the eco-friendly product and thus the buyers influence the green production of goods. The products characterize the green consumerism; in homes, individuals have bought products, as the organic cotton products from the Levi’s company that are very expensive are preferred. The photovoltaic solar panels and the fluorescence lamps are quickly replacing the traditional bulbs and the use of generators as an alternative source for electricity. There is also increased need for hybrid cars that make use of less fuel like the luxurious Lexus LS 600h L model that consumes one gallon of fuel for 22 miles and the Toyota Yaris that consumes a gallon of fuel for 40 miles using a standard gallon (Hou, 2013).

Furthermore, Walmart is enhancing green consumerism through its eco-friendly initiatives throughout its global chain. The chief executive officer of the company, David Cheesewright, suggested going green is not same for all people globally and the difference is huge between developed and underdeveloped countries, because the companies use different strategies to effect change. For example, innovation in Sub-Sahara countries needs products that use little water, while in China where there are so many people need food security, but in other countries, energy is a problem. Walmart is enhancing green consumerism in water through the different measures the company has taken to ensure that there is conservation of water. For example in their stores in England, they have installed many meters in their stores. These meters enable quick discovery in places where there are excess wastes or leakages. Moreover, the CEO also suggested that conservation of water in Africa where there is scarcity of water, the harvest of rainwater has led to the establishment of there is a big garden center for the company. This is achieved through the rainwater tapped is used to irrigate the plants (Taniguchi &Thompson, 2016). Furthermore, the company’s goal on sustainability goal that involves, to be supplied with 100 percent renewable energy sources, the company is striving to make use of the renewable energy and currently it is at 24 percent. Besides, the company is planning for relocation to the less populated regions where it is easy to transport is products without traffic interference. The stores of the company are also centralized to a single distribution center that reduces the distance for transportation, which could lead to increased consumption of oil. The other company that is a green consumer is Aramex, which purchases vehicles that make use of the vehicles that use less fuel. In addition, the company emphasizes the use of unleaded fuel that pollutes the environment less. Nevertheless, the company has developed strategies for improving the green consumerism in the manner in which they operate their businesses (Ken, 2014). This includes the manner in which the transportation of the products is done. In order to reduce the use of fuel, the company makes sure that transportation of the products is done early enough to reduce traffic that leads to high consumption of fuel.

Green manufacturing has become a common mission for most of the companies in the current world for most of the manufacturing companies. This is the main part of the supply chain that is a major cause of pollution. This part also raises controversy, on the cause of global warming, as the environmentalists suggest that manufacturing is the major cause of this effect. To reduce these effects, manufacturing companies have decided to grow green so that they can reduce wastes into the environment. In the process of green manufacturing the equipment’s are made in a way that they are fast, reliable are efficient. For example, the manufacture of energy saver light bulbs that consume less energy compared to other bulbs, hitherto producing sufficient amount of light. The green manufacturing results in the advantages highlighted above including increasing profits for the company and the impact it would have to the environment. The insurance companies also provide better rates to the companies that have strategies to prevent the environmental pollution (Narasimhan & Narayanan, 2013). In addition, green manufacturing helps the community to earn capital through jobs created through renewable energy processes. Research indicates that the green companies would provide more than seventy percent of new jobs in future. The other importance of going green makes the air clean, which retains employees as described above.

Nevertheless, lean manufacturing is also another form of green manufacturing that leads to the reduction of costs and improves the quality of the environment. This method focuses on the abolition of the waste products in all areas of manufacturing. In this case, activities that are not important to the value of the product like customer relations are eliminated. It enhances, human capital, and minimizes the time for to developing products among other things. The main strategies for lean manufacturing include; just in time inventory that enables in the decrease of costs and improves the quality of services, ISO 9000 and ISO 14000enable in the realization of the superiority standards that many companies follow. Furthermore, the Lean Manufacturing has also the zero emission strategy that eliminates pollution. However, the 16 percent of the companies have decided to follow the zero emission, while 80 percentage opt for the reduction of the emissions. A good example for the green manufacturing is the production of cars by Tesla Motors. The company is referred as the company of the future due to the evolution that it has brought to the automotive industries. For instance, the most recent manufacture of the model 3 has a great cut in price as compared to other previous models and it enhances environmental management because it does not consume any fuel. The car though not in the market is said to cost customers for $35,000, with a seating of five individuals. Furthermore, car is very quick to start because it can pick 100km/h within a few seconds and travels for 345 kilometers for a single charge. The company reports that the car could travel for more than 345 kilometers before exhausting the battery charge, which is appropriate for taking an individual to work and taking him/her back home. Charging is simple, done by just plugging it into the wall. However, the company has a solution for the problem of charging due to the provision of superchargers. The superchargers are provided freely and are sparsely scattered globally. It is estimated that the superchargers that take just 75 minutes to fill the batteries are the fastest in the world making the company to be highly competitive. Furthermore, Tesla cars have been developed with a bioweapon defense mode that filters the air that enters the car. The system enables the car to scrub all of the air pollutants that can affect people in it (Buford, 2012). The company suggests that the bioweapon is real and has the capacity of filtering the air with a bio attack by the military.

Furthermore, the American Automobile Association announced Tesla’s Model S 70D as its best car in 2016. It came top among more than 80 vehicles in the US market that are considered green. The unique features setting the car apart are the best styling, the fantastic speed and the air sophistication. This indicates the desire and need for companies to engage in green manufacturing.

Green Marketing is the observance of ethical and social responsibility in marketing of goods and services. This has also emerged due to an increased challenge in the environment. Moreover, due to the need for protecting the rights of consumers, the marketing approach strives to make the environment clean and save for people. Additionally, it involves being committed to selling products that do not pollute the environment and carrying out the marketing activities that reflect the company is bonded to the responsibility of making the environment safe. Green Marketing could be also involve development, setting prices and promotion of products that does not pollute the environment. The importance of green marketing is that it increases the competitive advantage of an organization, through making the organizations leaders in the market especially by increasing awareness in the market. Through green marketing, the owners of the products are satisfied because it opens up new levels of the businesses and opportunities. This is important mainly for new products in the market. Furthermore, the strategy leads to the accomplishment of security during introduction of products and management operations. This is because an emphasis of production of non-pollutant products propels the organizations to produce the less harmful products. This could also lead to the company avoiding punishment by the government and reducing the costs that may arise due to injury caused by the pollutants. Through green marketing, the organizations also gain social acceptance (Undead, 2012). This is because the society could perceive them as beneficial to them, and thus could easily provide market to their green products. For example, Coca-Cola Company’s green concept that is marketed as Coca-Cola Life involves plastic bottles that account for 30 percent plant material and making them to be fully recyclable. This is a great improvement if it is proven to be recyclable. This is because there are allegations that the company is using green washing strategy to increase the brand loyalty. Besides, that the company has also engaged in the advertisement of their new product that is socially sustainable. Diet Coke and Coca-Cola Zero, taste in a different way that is not likeable to most individuals. Coke Life however, which is the new product tastes close to the normal coke. The product is suitable for the lovers of Coca-Cola, but is restricted those individuals with health issues due to its large amounts of sugar (Han, 2013). However, it is also reported as greenwash because the sugar content is still high as reported by Jane Martin. Jane Martin echoes that the company should stop the promotion of Coke Life that has full sugar in sports and in schools. Professor Amanda, who deals with health and dietary issues, described the $10 million project as a greenwashing activity. The company’s production of Coke Life was to address the Obesity issue that most young people have and therefore, could bring issues of greenwashing because the company could be perceived as targeting that market.

Most companies focus on the forward looking ideas on the environmentally friendly production, manufacturing and marketing, forgetting about the reverse logistics strategies that include product repairs, recycling of products and proper disposal of the waste materials. Reverse logistics could help the companies to fully accomplish their sustainability and cut costs through addition of quality to the products that could be thrown away. Furthermore, recycling could reduce environmental pollution by avoiding unnecessary transportation of spoiled products, which could be recycled within the company. For instance, the Samsung customers in North America are required to take back old Samsung products to be recycled, as reported by David Steel, vice president of marketing in North America. This has resulted in the Samsung Take-back And Recycling program.

Finding resulting from the investigations

It has been found that most companies are striving to make their business to be environmentally friendly. This is due to the benefits that arise from the sustainability of the companies. Such benefits include increased competitive advantage gained by the company. This results from the demand for the green products by the customers. Other benefits include gaining the social support and loyalty that could increase the profits of the company and the ability to retain the employees. It has been found that the government has also set regulations that make the companies to consider sustainability.

Moreover, it has been discovered that the Eco-friendly supply chain logistics could be viewed by dividing the chain into four parts, production, manufacturing, marketing and reverse logistics. Reverse logistics is the most influential part of the supply chain that leads to arguments between the environmentalists and the manufacturers.

Conclusions/solutions/recommendations

In conclusion, the green supply chain has been discussed using the literature review method. The method uses already available materials such as the newspapers, annual reports of companies, and books. The supply chain has been divided into four parts; the production part, manufacturing, marketing and reverse logistics in the context of eco-friendly supply chain.

Innovations in various companies have been discussed like Walmart harvest for rainwater in Africa; to water its flower garden and the innovation of a shampoo that uses little water. On the other hand, Tesla has introduced the electric cars that could reduce pollution by 60 percent. Its model 3 is the most recent and has not yet been in the market with cheap price. Coca-Cola has also been innovative though it has been said that its strategy is greenwashing. The solution to green washing should be producing a genuine product that does not pollute the environment.

Personal Development

Through the research carried on this paper, I have been able to know that matters concerning the environmental sustainability are crucial both for business performance and for preservation of the environment for future generations. Furthermore, I have been challenged to be innovative in such a way that given an opportunity to manage any supply chain I would research for suitable ways of making the company sustainable.