Green supply chain management (GSCM) involves using environmentally friendly inputs and transforming them into outputs that can be reclaimed and reused. It aims to create a sustainable supply chain. Companies can gain competitive advantages from GSCM by reducing environmental costs like waste disposal and storage. Examples show Dell and Texas Instruments saving over $20 million and $8 million annually through GSCM strategies like recycling and reusable packaging. The document also discusses drivers for GSCM, challenges in adopting it, and how the concepts of green productivity and GSCM are related. It provides examples of green initiatives companies can take and potential rewards from implementing GSCM.

2. GREEN SUPPLY CHAIN
M NAZMUS SAKIB ID#113-0419-060
Musabbirul Islam ID# 113 0074 560
SHARMIN JAHAN ID# 113 0229 560

3. GREEN SUPPLY CHAIN MANAGEMENT
(GSCM)
Process of using environment friendly inputs
Transforming these inputs into outputs that can
be reclaimed and re-used at the end of their
lifecycle
Creating a sustainable supply chain

4. THE FRAMEWORK

5. COMPETITIVE ADVANTAGE
Unfriendly environmental Costs
 By Product Cost
 Waste Disposal
 Other Environmental Costs
 Storage Costs
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6. COMPETITIVE ADVANTAGE

7. EXAMPLES
 Dell saves over $20mn annually by supply chain
and packaging improvements
 Texas Instruments reduced packaging by $8mn
(20% annual savings) each year through
 source reduction
 Recycling
 use of reusable packaging systems
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8. EXAMPLES
 Pepsi-Cola saved $44mn
 switching from corrugated to reusable plastic
shipping containers
 GM reduced its disposal costs by $12 million
 establishing a reusable container program with its
suppliers.
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9. Creating a green supply
chain
 Many organizations have introduced ‘greening’ requirements
 purchasing clauses, targets, practices, and technologies
 Automotive firms frequently require suppliers to certify to ISO
14001 (Toyota and Ford)
 Starbucks Coffee as well as Ben and Jerry’s require raw
material suppliers to meet guidelines for sustainable farming
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10. Creating a green supply
chain
 Many organizations require
 suppliers avoid specific materials such as chemicals that
may be deemed hazardous to the environment (DuPont,
Seventh Generation, and organic supply chains)
 Many firms invest in recycling systems intended to retrieve
waste or used product from customers (Kodak, Hewlett
Packard, and Fuji-Xerox).
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11. Drivers for GSCM
 Rising energy costs
 Global concerns about green house gases
 Climate change
 Regulations like RoHS, EPA And others
 Technology innovations
 Increased public awareness of environmental issues
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12. Challenges in Adopting a GSCM
 Lack of information about the green supply chain best
practices
 Lack of integration of IT system
 Uncertainty and competition in market
 Lack of government initiatives system for GSCM practitioners
 High Cost of implementation for GSCM
 Supplier’s flexibility to change towards GSCM
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13. Concept of Green Productivity
 Green Productivity is the integration of two important
developmental strategies
 Productivity improvement
 Environmental protection
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14. Green Productivity
 Green Productivity is a strategy for enhancing productivity
and environmental performance for overall socio-economic
development
 By applying
 appropriate techniques
 Technologies
 management systems
to produce environmentally compatible goods and services.
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15. GP and SCM
 These have synergies and help firms to
 enhance their productivity & quality
 improve the environmental performance
 GP improves environmental performance by
 First reducing the waste at the source
 Then reusing, recovering, and recycling waste
 Any residual waste will be treated by the End Of the Pipe (EOP)
system
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16. GP and SCM
 GP enhances productivity and quality of products
and services
 GP
 improves the profitability of the organizations
 creates an advantage on competitiveness by reducing the
cost of production and operation
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17.  Green the exterior & roof of
the building
 minimize heating and cooling
needs by 25% or more
 Increase supply chain visibility
to better control of inventory
 reduce
• over-ordering
• warehouse space required
• need to expedite shipments
Some green initiatives

18.  Consider telecommuting
 Deploy a viable Transportation
Management System
 Optimize the transportation of
goods
 Automate
 more you automate —the more
efficient it becomes
 Reward eco-friendly behaviour
Some others…

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Operational cost savings due to reduced waste
Compliance penalty reductions
Reduced health and safety costs
Lower labour costs
Reduced water, energy, fuel and transportation costs
Rewards

20. Conclusion
 Green & Productive initiatives -if properly managed
 enable organizations to be responsible corporate citizens
 deliver higher profitability and competitive advantage
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