Green supply chain management for manufacturers and distributers

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Green supply chain is fairly new concept. It is based on two concepts; the supply chain management concept and the environmental management concept. Green supply chain management is the integration of environmental management into supply chain management. It aims at confining the wastes within the supply chain system in order to conserve energy and prevent the release of dangerous materials into the environment.

Green or sustainable supply chain management is defined as the strategic, transparent, integration and achievement of an organization’s social, environmental, and economic objectives in the systemic coordination of key inter-organizational business processes for improving the long-term performance of the firm and its supply chain partners. This implies that specific criteria have to be applied by all supply chain partners. At the same time,responsible environmental and social behaviour must be promoted as well for the good of the entire chain.Green supply chain management practices can refer to a variety of activities and initiatives implemented by an organization in an attempt to reduce their impact on the natural environment.

The Green supply chain management practices include:

Reverse Logistics:It is the process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing or creating value or for proper disposal.

Green Procurement:The initiatives to minimize environmental impact in inbound supply chain, according to the “green procurement” approach include eco-labelled product purchase, adoption of environmental criteria into the supplier assessment system environmental and collaboration with suppliers.

Eco-design and Packaging:practice which requires that manufacturers design products that minimize consumption of materials and energy, that facilitate the reuse, recycle, and recovery of component materials and parts, and that avoid or reduce the use of hazardous products within the manufacturing process. Eco – design and Packaging will include packaging design for reduced environmental impact, packaging re-cycle or re-use and use of biodegradable materials.

Waste Management System:This involves the use of Carbon dioxide refrigeration systems, treatment and control of post combustion emissions, use of alternative fuels (e.g. cleaner fuels), treatment and recycle of hazardous wastes, process optimization implementation of waste-to-energy process, waste reduction, reuse and recycling approaches.

Internal Environmental Management:This is the practice of developing green supply chain management as a strategic organizational imperative through commitment and support of the imperative from senior and mid-level managers.

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