Green Supply Chain management – A literature review Nada Ahmed Elbaz Supply chain • Is movement of materials from their source to the end customer • It produce value in form of products and services to customers through different networks, this networks consists of: • • • • 1- purchasing 2-suppliers 3- warehouse 4-transportation and distribution centers Manufacturing and production process harming the environment inform of: 1. ecosystem disruption 2. waste generation 3. depletion of natural resources Key themes of GSCM literature 1- green design: It’s about designing product or service that encourages environmental awareness 2- lifecycle analysis: • Is an important sub-concept to green design, it introduced to measure environmental and resources related to production processes • this measurement involves in stages from extraction of raw materials, production. distribution, recycling and final disposal. Key themes of GSCM literature 3- reverse logistics: Process where a manufacturer accepts previously shipped products from the point for consumption to possible recycling 4- green packing: Important for attaining a company’s environmental objectives Discuss the reasons for adopting Green Supply Chain Management: 1. Compliance with environmental laws and regulations. 2. Competitive differentiation by being environmentally friendly. 3. Need to stay competitive if competitors have already adopted GSCM. 4. Increasing customer awareness and regulatory norms. Present examples of companies benefiting from GSCM: Dell: Achieved over $20 million annual savings through supply chain and packaging improvements. Goal of becoming carbon neutral by 2008. Pepsi-Cola: Saved $44 million by switching to reusable plastic shipping containers, conserving 196 million pounds of corrugated material. Conclusion Summarize the key points discussed in the literature review: • GSCM has gained popularity in academia and practice. • Focus on waste reduction, product-life preservation, and ecoefficiency. • Literature reviews and studies have contributed to the understanding and implementation of GSCM. Thank You Green Practices in Supply Chain Management By: Kholoud Othman Definition of Green supply chain management (GSCM) • GSCM is a concept that focuses on the implementation of environmentally sustainable practices within the entire supply chain, from the sourcing of raw materials to the delivery of products to customers, and even including recycling processes. The Practices of Green Supply Chain Management (GSCM) include: These practices are designed to reduce the environmental impact of supply chain operations and promote sustainability. 1- Green Procurement: • Involves the purchasing of products and materials that have minimal environmental impact, such as those with low carbon emissions and minimal damage to natural resources. The Practices of Green Supply Chain Management (GSCM) include: 2- Green Production: • concept that aims to use raw materials and natural resources efficiently to reduce harmful wastes such as emissions, polluted water and solid waste that occur during the production process, and to reuse the wastes if possible. 3- Green Design: • Aims to create products and systems that consume fewer materials and energy, use non-toxic and renewable input materials, reduce unwanted outputs, and convert outputs into inputs. The Practices of Green Supply Chain Management (GSCM) include: 4- Green packaging: • aims to reduce packaging costs by designing the packaging to be recyclable without harming the natural environment • It has gained significance due to increasing consumer awareness 5- Green Marketing: • Involves promoting the environmental benefits of products and services to consumers, highlighting eco-friendly features and sustainability aspects. The Practices of Green Supply Chain Management (GSCM) include: 6- Green Logistics: • The aim of green logistics is to reduce the environmental externalities of logistics operations such as greenhouse gas, emissions, noise and waste • The correct packaging contributes to reducing the amount of products to be shipped. thus reducing the energy loss and most importantly environmental pollution that will occur due to transportation. By implementing these components, companies can achieve environmental sustainability, reduce their carbon footprint, and enhance their overall supply chain performance. A Case Study on Nike Manufacturer • Nike has implemented green supply chain practices to reduce its environmental impact and promote sustainability. • The company has restricted the use of harmful chemicals in its production and supply chain, while also using renewable energy in its facilities. • Nike has integrated technology such as Flyknit to create products with 60% less waste, without compromising on quality. • The company has recycled plastic bottles in its production and reused expired shoes, resulting a reduction in waste compared to traditional methods. THANK YOU! Green supply chain THE DIMENSIONS OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES Introduction • • GSCM can be defined as "integrating environmental thinking into supply chain management, including product design, material sourcing and selection, manufacturing process, delivery of the final product to the consumer as well as end-of-life management of the product after its useful life". Question really is what is green supply chain management? GSCM = green purchasing + green manufacturing/materials management + green distribution/marketing + reverse logistics Introduction • • • • Research Institute at the University of Michigan developed the first complete concept of GSCM in 1996. The process of using environmentally friendly inputs and transforming these inputs into outputs that can be reclaimed and re-used at the end of their life cycle thus, creating a sustainable supply chain. Handfield et al. (1997) developed and defend GSCM as the integration of environmental management disciplines throughout the supply chain, including design, procurement, manufacturing, logistics, and distribution approach to improve corporate environmental performance. GSCM is one of the recent innovations for the enhancement of capabilities of Supply Chain Management. Green practices in supply chain management Green Purchasing Green transportation and reverse logistics Eco-design Green supply chain Green inventory management Green manufacturing Green practices in supply chain management • 1- Green Purchasing Green purchasing focuses on cooperating with suppliers for the purpose of developing products that are environmentally sustainable . Manufacturing organizations are compelled to select suppliers who are having environmental competence, technical and eco design capability, environmental performance, ability to develop environmentally friendly goods and ability to support focal organizations ecofriendly objectives therefore increases productivity. • 2- Eco-design Eco-design requires that manufacturers design products that minimize consumption of materials and energy that facilitate the reuse, recycle and recovery of component material and parts and that avoid or reduce the use of materials within the manufacturing process. Green practices in supply chain management • 3- Green manufacturing Green manufacturing practices are to implement socially and environmentally accountable practices to limit harmful effects of manufacturing and increased profitability of firms. • 4- Green inventory management Green management practices (GMP) provide a firm with supplementary sources of information that can enhance their business and environmental objectives and Coordination of stock and flow,(FIFO,LIFO) which coordinates environmental sustainability. Green practices in supply chain management • 5- Green transportation Green Transportation or Sustainable Transportation comprises of those modes of transportation that do not depend on diminishing natural resources like fossil fuels which reduces overall manufacturing expenses. These transportation modes rely on renewable energy sources. • 6- reverse logistics Reverse logistics practices are different from traditional logistics practices. reverser logistics practices provide opportunity to organizations, to improve their image and reduce their costs through products/materials are returned from the user to the Producer in order to be recycled, reused (wastes). Green Supply Chain Management practices and Impact THE DIMENSIONS OF GREEN SUPPLY CHAIN MANAGEMENT Environmental Performance Operational Performance Economic performance Social Performance THE DIMENSIONS OF GREEN SUPPLY CHAIN MANAGEMENT • Environmental Performance Environmental performance relates the ability of manufacturing plants to reduce air emissions, effluent waste and solid wastes and the ability to decrease consumption materials. • Operational Performance Operational performance relates to the manufacturing plant’s capabilities to more efficiently produce and deliver products to customers. THE DIMENSIONS OF GREEN SUPPLY CHAIN MANAGEMENT • Economic performance Economic performance relates to the manufacturing plant’s ability to reduce costs associated with purchased materials, energy consumption, waste treatment, waste discharge and fines for environmental accidents. • Social Performance Social Performance relates to Improved corporate image, Social commitment Preserve environment ,Enhanced employee job satisfaction(Quality of Work Life). Impact of Green Supply Chain Management (GSCM) on corporate Performance and Environmental Sustainability BENEFITS of Green Supply Chain FINANCIL BENFITS • Increased Revenue • Reduced Costs • Increase Asset Utilization • Enhanced Customer Service • Increased productivity Environmental Benefits • Reduced Waste • Increased Energy Efficiency • Reduced Air Emissions • Reduced Water Emissions • Reduced Fuel Consumption SOCIAL BENFITS • Reduce Community Impacts • Noise Reduction • Traffic Congestion Avoidance • Health • Safety • Security Challenges of the Green Supply Chain Management system (GSCM) Internal Challenges • • • • • • • Different in perspective and culture ExternalChallenges • Different fundamentals and main features Insufficiency of knowledge and experience Insufficiency of information Shortage of resources Financial limitations Fear of failures • • • Restrictions Support , guidelines from the government Do not have actual environmental measurements of this system Obtainability of green products & materials Do not have an engagement of management from third parties THANK YOU Abdalla Elhendawy . Pressures affecting green supply chain performance Research purpose This study aimed to empirically investigate the relationship between the directions of pressures affecting green supply chain management (GSCM) and supply chain (SC) performance. In other word :the source of pressures affecting GSCM and SC performance overview GSCM is usually a part of an organization’s innovation process for an organization to survive and prosper in the dynamic business environment. GSCM refers to “integrating environmental thinking into SCM, including: 1.product design 2.material sourcing and selection. 3.manufacturing processes 4.delivery of the final product to the consumers as well as end-of-life management of the product after its useful life.(recycling) GSCM concepts cover diverse areas, including SCM participants and practices, green purchasing, integrated SCs flowing from suppliers to manufacturers, to customers. Green supply chain performance Managers consider green management simply as compliance with regulations while evaluating trade-offs between environmental and economic performance. And the researchers also found that there is no significant relationship between environmental management and firm performance. Collaboration in green management with suppliers and customers enhance manufacturing and environmental outcomes, and organizations through such partnerships (can attain better quality and flexibility performance). Among the several motivations, financial benefit is the strongest factor that encourages enterprises to implement green strategic GSCM is affected by various pressures, which can be categorized as external and internal factors:EXTERNAL FACTORS INTERNAL FACTORS are mostly linked to stakeholder pressure are related to specific business-led strategic processes. (Institutional theory) (The resource based view) suggests that external factors require organizations to pursue strategic actions because of institutional pressure. RBV focuses on driving competitive advantage through the good use of the resources. Institutional theory Institutional theory, focusing on :1. how external pressures influence organizations and shape their strategies. 2. how firms conform to norms, traditions, and prevailing trends in their industries to establish strategies. External pressures, categorized as:1.Functional 2.Political 3. social Which prompt organizations to adopt specific strategic actions. Resource-based view (RBV) RBV theory explores firms' strategies concerning their internal resources and capabilities. RBV suggests that sustainable competitive advantage arises from valuable, rare, inimitable, and non-substitutable resources. Helps examine how firms' resources influence internal green practices and SC performance, enabling quick adaptation to market dynamics. The Natural Resource-Based View (NRBV), an extension of RBV, includes natural resource concepts, emphasizing firms' ability to build competence through pollution prevention, product stewardship, and sustainable development. Supply chain performance The three measures of SC performance: resources, output, and flexibility. 1.Resources are associated with SC efficiency, including total cost, distribution cost, manufacturing cost, inventory cost, and return on investment. 2.Output stands for the level of customer service, sales, profit, on-time deliveries, backorder/stockout, customer response time, manufacturing lead time, shipping errors, and customer complaints. 3.Flexibility is defined as the ability to respond to uncertainty, which is related to volume, distribution, responsiveness, product, and/or new product flexibility. Achieving SC flexibility leads to : 1. Inventory reduction 2. Counteracting market variations efficiently 3. Responding to consumer demand quickly 4. Integrating with suppliers and partners effectively Conceptual framework HEPOTHESIS H1. GSC practices based on external pressure are positively related to SC flexibility H2. GSC practices based on external pressure are positively related to SC resource requirement. H3. GSC practices based on internal pressure are positively related to GSC practices based on external pressure. H4. GSC practices based on internal pressure are positively related to SC flexibility. H5. GSC practices based on internal pressure are positively related to SC resource requirement H6. SC flexibility is negatively related to SC resource requirement. H7. SC resources requirement is negatively related to the SC output. H8. SC flexibility is positively related to the SC output RESULTS The results confirmed the importance of implementing environmental SC practices to sustain organizations’ competitive advantage and performance. Increased SC flexibility helped reduce resources, through decreased cost factors and improved output. Enterprises with environmental SC policies tended to increase SC flexibility and, hence, enhanced profits.
