Increasing cross-border transactions in supply chain is a phenomenon closely associated with the liberalization and globalization of economies. The intense competition drives the manufacturers to keep the cost of raw materials and labor low…
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Sourcing of raw materials with right quality and lower price necessitated movement of materials across the continents. On the other hand, shifting of production facilities to the places where the cost of labor is cheap is also considered by the companies. These twin strategies result into movement of raw materials and finished products from place to place cutting across the borders of the nations. The increase in the level of activity in the flow of the movement of goods over the period of time necessitated revisiting of the strategies by the corporate companies in respect of supply chain management with a view to reduce cost. However, the developments that have been taking place in the environmental front warrant corporate social responsibility (CSR) in view of atmospheric pollution which leads to global warming, water pollution, human rights issues involved, and extinction of animal and plant species. Judicious use of natural resources in the process is very important for maintaining ecological balance and the welfare and rights of the future generations. Also, growth at the current level with the accelerated use of natural resources is not sustainable in the long run. ...
Green supply chain management Parry, P., Martha, J. & Grenon, G. (2007) state “the supply chain is the production and distribution network that encompasses the sourcing, manufacturing, transportation, commercialization, distribution, consumption, and disposal of goods, from the ore mine to the trash can”. Primarily, the uninhibited consumption of energy at various levels leads to inflation in the energy prices. The cascading effect of the increasing fuel prices results into inflation in food prices and becomes a threat to food security. The impact of greenhouse gas emissions is considered to be very serious as the damage to the environment could be irreversible. Supply chain management needs to play an important role in reduction in the consumption of energy in an organization. This could be achieved through a comprehensive corporate strategy which encompasses conservation of energy on voluntary basis, compliance with the regulations as a good corporate citizen, savings in cost by reducing emissions, adoption of standards issued by various agencies and environmental auditing, water and effluents treatment, recycling, waste disposal and renewable energy. For instance, according to a study by Canning, P. et al. (2010) food processing showed the largest growth in energy use. Recycling of packing materials, generation of electricity from waste and avoiding use of environmentally unfriendly packing materials in the industry would not only be beneficial to the environment and the society but also results into cost saving. According to Bruntland report “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (The World Bank Group, 2001). Emission of
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The relationship between advanced technology and Green supply chain. Green movements emanate from the need to address environmental problems that have become unmanageable for the last decades despite international organizations’ efforts. Green supply chain programs address a web of concerns (diagram below) with the end goal to meet profit expectations but at the same time placate customer, regulatory, as well as community demands with regards to arresting environmental degradation.
Old vehicles are replaced with new vehicles and the company implements new technology that ensures their vehicles are efficient. Drivers are made aware on the importance of preserving and conserving the environment. Stagecoach should ensure that green supply chain is connected to its transportation business to reduce cost and increase outputs.
On the other hand, it is obvious that competent management involves proper planning. In effect, supply chain planning should constitute forecasting, efficient discovery and prioritizing of all essential sources of supply and add value to the product along the supply chain.
At the same time, organizations are becoming responsible for their partners and suppliers’ social and economic performance due to the increased demands as well as strong economic performance. These pressures are coming from a number of sources, which include the community, employees, governments, and socially aware organizations.
Stock maintenance should be ensured through material flows. Zara, a Spanish clothing outlet, follows automated routing systems for transporting electronically tagged clothes to correct loading bays in its logistics locations. This electronic procedure assists in minimising shrinkage levels with 98.9% accuracy in distribution.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
Research and practice shows that connecting and informing on supply chain, its management and the distribution of characteristics that dictate management of corporate organizations have greatly contributed to the integration of supply chain and its management.
The author states that a business strategy includes several organizational functioning strategies, such as supply chain management strategy, production strategy, marketing strategy, human resource management strategy and financial strategy. These all are equally important for an organization to achieve significant business growth rate.
ver, it has been observed that in order to achieve success, companies need to integrate their available resources and networks effectively to ensure optimum success. This process of management that a company follows is termed as supply chain management. A supply chain is a