Rexjournal
Renewable Research Journal
Green Supply Chain Management (GSCM)
Avadhut Sukhtankar
JJTU, Research Scholar
Abstract
Logistics is the term widely used to describe storage, transport & handling of products
as they move from sourcing of materials through production system to the final point of sale
or consumption. Logistics’ core activities have been fundamental to economic development
& social wellbeing for mankind, it is only over the past 50 years that logistics has been
regarded as key determinants of business performance, a profession & a major field of
academic study. The prime objective of logistics management is maximization of
profitability. However, due to environmental concern, over the past 10-15 years, various
industries & firms have come under mounting pressure to reduce environmental impact of the
logistics operations. The impact is diverse. The distribution of goods impairs the local air
quality, generates noise & vibration, causes accidents & make significant contribution to
global warming.
Green Supply Chain Management is a relatively young but rapidly
evolving subject. This is a good time to take stock, reflect on the work that has been done to
date & access the challenges ahead.
Key Words:
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Green Supply Chain Management (GSCM)
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Environmental Impact
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Green house Gas (GHG)
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Exhaust Gas Recirculation (EGR)
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Reverse Logistics
Many firms wish to apply green principles to their own operations (internal), naturally
would wish to ensure that their purchases of goods & services come from vendors also meet
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certain minimum environmental . standards. They will at least try to minimize any
environmental liability associated with purchased goods & services.
The Greening of purchasing activities has gained importance, while selecting the
vendors, keeping in mind issues of environmental criteria & environmental accreditation.
GSCM can initiate & develop a chain, by negotiating with vendor & in turn vendor
negotiating with its vendor. This collaborative initiative will improve total environmental
performance.
1.
Environmental Impact.
Logistics is responsible for variety of externalities, including(1) Air Pollution (2) Noise
Pollution (3) Accidents (4) Vibration (5) Land Take (6) Visual Intrusion etc.
As climate change is now considered to be the most serious environmental challenge facing
man-kind, the main focus should be on Greenhouse Gas(GHG) from Freight Transport.
By & large, Logistics Operations include major functions of (1) Transport (2) Warehousing
& (3) Waste Management/Reverse Management.
The environmental effects of logistics can be distinguished into two: First Order Impact &
Second Order Impact.
First Order Environmental Impact: Directly associated with freight
Transport, Warehousing & Materials Handling Operations.
Second Order Environmental Impact: It results indirectly from logistics operations & can
take various forms.
2.
Atmospheric Pollution
United Nations Inter-governmental panel on climate change ( UNI PCC) lists27 greenhouses
gases which are combined into six categories:
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•
•
•
•
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CO2
MH4
NOx
HFC
PFC
SF6
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulphur Hexafluoride
Each gas has a different global warming potential (GWP)
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An emission of huge quantity of greenhouse gases that get produced during the usage of
electricity, transportation, cooking, burning & consumption of various grades of products &
various industrial applications.
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Noise Pollution
Road Traffic is the main cause of environmental noise at the local level. The immediate
adverse effects of noise disturbance include annoyance, communication difficulties, loss of
sleep, loss of productivity, psychological & physiological health issues.
Trucks generate noise from 3 sources:
(i)
Propulsion Noise, which dominates at low speed.(Power/Engine)
(ii)
Tyre/Road contact noise------- main cause of noise at speed(50kmph)
(iii)
Aerodynamic noise, which increases as the vehicle accelerates.
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Warehousing
In today’s supply chain context, wide range of functions & activities from cross docking,
consolidation, distribution etc. would be included. Warehouse is moreassociated today, in
terms of storage, flow movement & rapid fulfillment of customers orders, customization &
value added services.
In assessing overall impact of warehousing, consideration need to be given to:
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(i)
Land occupied
(ii)
Direct Energy Used--(Heating/cooling warehouse, warehouse lighting.
(iii)
Emission Produced
(iv)
Water Consumed
Reverse Logistics
It is defined as the process of Planning, Implementing, Controlling, the efficient, cost
effective flow of raw materials, in-process inventory, finished goods & related information
from the point of consumption to the point of origin, for the purpose of recapturing value or
proper disposal.
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Products may not necessarily be returned to their point of origin, but to a different point for
recovery & as the level of complexity in the reverse logistics operations has increased, there
is an increasing need to address issues of sustainability & integration within the overall
function of supply chain.
The shipment of materials back to disposal sites & treatment centres is a natural extention of
reverse logistics & better integrating waste management processes within the overall reverse
process could help reduce the negative transport impacts.
Actions by firms for better future: Becoming more greener.
1.
Transfer freight to more greener modes, alternative modes to road transport, which are
perceived today to have lower environmental impacts, particularly in relation to their
contribution to climate change
2.
Greater use of Rail & Water--- Inland water way & coastal shipping. Pipelines &
Airfreight could also be considered eventhough there are inherited limits.
3.
Increase in Gross Load, say from 12 MT to 40 MT. Re-designing of vehicles may be
required.
4.
Advances in vehicle technology. Re-circulation of exhaust gases.
5.
Improved fuel-efficiency, lower exhaust emission.
6.
Improving vehicle utilization.
7.
Designing Green Buildings/Warehouse.
8.
Energy Audit for Electric/gas supply.
9.
Use water efficiently.
10.
Use Green Energy -----Solar power.
11.
Buy energy-efficient appliances.
12.
Make your company carbon neutral---- Reduce global warming greenhouse gases
produced by your business.
13.
Invest in the future---Reduce CO2 emissions.
14.
Make sure new buildings are fit for the future---Development for Green Buildings.
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Supply Chain Professionals need to look into ‘Tomorrow’ & take proactive steps to
“Save the Earth from Pollution & Global Warming”. No doubt, it is a herculean task,
but everyday’s small steps with proper determination & awareness would bring
success.
Reference:
Green Logistics----Alan Mckinnon, Sharon Cullinance
Websites: WWF with various information regarding Green living
Wikipedia---The free Encyclopedia
Times of India---Article Footprint dated 25.12.2009.
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