Chapter 5 Flashcards
involves sustainable environmental processes built into conventional supply chains — from manufacturing to operations to end-of-life management — incorporating the principle of 4R1D (reduce, reuse, recycle, reclaim and
degradable).
Green supply chain management (GSCM)
encompasses a set of environmental practices that encourage improvements to the environmental practices of two or more organizations within the same supply chain”
Green supply chain management (GSCM)
is the process of incorporating environmental
concerns into supply chain management including product design, material sourcing and selection, manufacturing, delivery of final products, and the management of product’s end-of-life
Green supply chain management (GSCM)
can be achieved by considering environmental
issues at the purchasing, product design and development, production, transportation, packaging, storage, disposal, and end of product life cycle management stages.
Green supply chain management (GSCM)
is the integration of environmental concerns in the inter-organizational practices of supply chain management
Green supply chain management (GSCM)
can contribute to sustainability performance
enhancement.
Green supply chain management (GSCM)
aims to minimize or eliminate wastages including hazardous chemicals, emissions, energy, and solid waste along the supply chain such as product design, material resourcing
and selection, manufacturing process, delivery of the final product, and end-of-life management of the product
Green supply chain management (GSCM)
practices encompass a set of green activities in
procurement, manufacturing, distribution, and reverse logistics
Green supply chain management (GSCM)
Enumeration:
GREEN SUPPLY CHAIN MANAGEMENT BENEFITS
- Environmental Conservation
- Cost Savings
- Regulatory Compliance
- Innovative Advantage
- Risk Management
- Brand Value
- Competitive Edge
- Sustainability Resources
One of the primary Benefits of Green Supply Chain Management lies in the substantial reduction of carbon footprints across the Supply Chain Be it sourcing raw materials or transportation of finished goods, GSCM emphasizes strategies to minimize energy consumption and emissions
Environmental conservation
Optimized transportation routes, eco-friendly packaging, and energy-efficient manufacturing processes collectively contribute to substantially decreasing greenhouse gas emissions. This not only helps mitigate the effects of climate change but also aligns businesses with global sustainability targets.
Environmental conservation
While adopting green practices might involve an initial investment, long-term cost savings are significant. This can involve the use of energy-efficient equipment, better facility design, and the integration of renewable energy sources. Moreover, energy-efficient operations, waste reduction, and streamlined processes can lead to lower operational expenses and increased profitability over time.
Cost saving
Environmental regulations are becoming stricter across the globe. Implementing GSCM helps businesses stay compliant with these regulations, avoiding legal penalties and reputational damage that non-compliance can bring.
Regulatory compliance
Often, failing to comply with environmental regulations can result in legal and financial ramifications that can cripple a business. GSCM minimizes these risks by embedding environmentally responsible practices into every phase of the Supply Chain. From procuring sustainable materials to managing waste and emissions, GSCM reduces a company’s exposure to legal penalties and litigation.
Regulatory compliance
The adoption of GSCM often spurs innovation in eco-friendly technologies. This includes the development of cleaner energy sources, sustainable packaging materials, and efficient waste treatment methods. As businesses embrace these innovations, they contribute to a broader transition towards a circular economy, where resources are conserved, and waste is minimized.
Innovative advantage
A traditional Supply Chain can be vulnerable to disruptions caused by climate change, resource shortages, or other environmental issues. GSCM diversifies sourcing options, making the Supply Chain more resilient to such risks. This helps reduce unnecessary steps and inventory. Moreover, companies can lower energy consumption, decrease waste, and enhance overall sustainability
Risk management
Green Supply Chain Management emerges as a proactive strategy, not only for its environmental merits but also for its role in fortifying businesses against various vulnerabilities. GSCM also mitigates reputational risks by demonstrating a commitment to responsible business practices
Risk management
Consumers are increasingly conscious of a company’s environmental and ethical practices. A commitment to Green Supply Chain Management can enhance your brand’s reputation, attract eco-conscious customers, and build trust in your products or services
Brand Value
GSCM builds trust with stakeholders by showcasing a dedication to environmental responsibility. This trust extends to investors, customers, partners, and employees, fostering a sense of confidence in the company’s long-term viability
Brand Value
As Supply Chains become increasingly global, navigating the complexities of international environmental regulations can be daunting. GSCM encourages companies to rethink transportation strategies, aiming to minimize carbon emissions and energy consumption. This could involve route optimization, the use of greener modes of transport, and consolidating shipments to reduce the number of trips
Competitive Edge
Green Supply Chain Management advocates for the reduction of waste generation through improved processes and innovative technologies. Recycling and reusing materials contribute to circular Supply Chain models, where products and materials are repurposed, extending their lifespan and reducing the demand for new resources
Sustainability resources
GSCM begins with selecting suppliers and materials that align with eco-friendly principles. This involves assessing suppliers’ environmental practices, evaluating the lifecycle impact of materials, and opting for renewable or recycled resources wherever possible
Sustainability resources
According to ___________“companies ecofriendly behavior is closely related to significant stock price increases, whereas firms with eco-harmful behavior face decreases in stock price
Flammer
Who “found that firms combine environmental and organizational practices can create a competitive advantage to enhance profitability, access to new market, strengthen customer relationships and gain competitive edge
Uchida and Ferraro
is a business strategy that is closely related to corporate social responsibility. Specifically, the organization, environment and society are the triads that are mutually dependent for a shared value or a “win-win-win” solution.
Sustainability
In order to achieve a long-lasting competitive advantage, organizational sustainability requires the intersection of economic, environmental and society superiority
Sustainability
Enumeration:
Why Does Green SCM Matter?
- Consumer Demand
- Efficiency
- Cost Savings
- CSR and Public Image
A growing number of consumers prefer products with minimal environmental impact. Businesses must adapt to this trend to remain competitive.
Consumer Demand
Green SCM not only benefits the environment but also improves operational efficiency.
Efficiency
Implementing green practices often reduces costs in the long run.
Cost Savings
Companies can demonstrate their commitment to sustainability through green SCM
CSR and Public Image
Many green SCM initiatives also lead to cost savings. For example, green transportation increases fuel consumption, and eco-friendly packaging reduces material and waste disposal costs.
False
Suppliers’ capabilities are directly linked to the firm’s ability to produce a product with higher quality and lower costs while meeting the delivery promise. In order to achieve organizational sustainability, firms need to pay attention to ___________________
supply-side practices
According to ______ it argued that GSCM must involve collaboration with suppliers in designing green product, providing awareness seminars, and helping suppliers to build their own environmental program.
Roa
According to _____________ “provided further evidence that an increasing number of companies are adopting collaboration of environmental practices into their strategic plans and processes
Sarkis
Enumeration:
DRIVERS OF GSCM
- Green Procurement
- Green Manufacturing
- Green Distribution
- Green Logistics
defined as a set of supply site practices utilized by an organization to effectively select suppliers based on their environmental competence technical and eco-design capability environmental performance ability to develop environmentally friendly goods and ability to support focal companies environmental objectives
Green Procurement
Furthermore, the 3Rs: reuse, recycle, and reduce in the process of green procurement in terms of paper and parts container (plastic bag/box) place purchasing orders through emails (paperless) use echo labeling of products ensure suppliers environmental compliance certification and conduct auditing for suppliers internal environmental management
Green Procurement
Production process which converts input into output by reducing hazardous substances, increasing energy efficiency in lighting and heating, practicing 3Rs, maintaining waste actively designing and redesigning green processes
Green manufacturing
It requires manufacturers to design products that facilitates the reuse, recycle, and recovery of parts and material components; avoid or reduce the use of hazardous products within production process; minimize consumption of materials as well as energy
Green manufacturing
consist of green packaging with the aims to
1. downsize packaging
2. use green packaging materials 3. promote recycling and reuse programs
4. cooperate with vendor to standardize packaging
5. encourage and adopt returnable packaging methods
6. minimize material uses and time to unpack
7. use recyclable palette system and lastly
8. save energy in warehouses
Green distribution
It is about delivering goods directly to user site, using alternative fuel vehicles and grouping orders together, rather than in smaller patches investing in vehicles that are designed to reduce environmental impacts, and planning vehicle routes
Green Logistics
It is about reverse logistics that includes collecting use products and packaging from customers for recycling, returning packaging and products to suppliers for reuse, and requiring suppliers to collect their packaging materials
Green logistics
Refers to the management of an organization’s environmental programs in a comprehensive systematic plan and documented manner.
It includes the organizational structure planning and resources for developing implementing and maintaining policy for environmental protection.
Environmental Management System (EMS)
“a system and database which integrates procedures and processes for training of personnel monitoring summarizing and reporting of specialized environmental performance information to internal and external stakeholders of a firm”
environmental management systems (EMS)
Enumeration:
wlWhat are the goals of EMS?
- compliance
- waste reduction
it is the act of reaching and maintaining minimal legal standards. by not being compliant companies may face fines, government intervention or may not be able to operate
compliance
______ goes beyond compliance to reduce environmental impact. the EMS helps to develop, implement, manage,coordinate, and monitor environmental policies. _____ begins at the design phase through pollution prevention and waste minimization. at the end of the life cycle which is reduced by recycling
waste reduction
Enumeration:
What are the benefits of EMS?
EMS benefits based on ISO 14000 standards include:
- reduced energy and other resource consumption
- decrease environmental liability and reduce waste and pollution
- improve community goodwill
the ________ also known as the Deming cycle or Shewhart cycle is a fundamental model for achieving continuous improvement in various processes it provides a systematic approach to managing change and enhancing performance.
Plan-Do-Check-Act (PDCA) Cycle
Wnumeration
Four steps of PDCA cycle
- Plan
- Do
- Check
- Act
true or false:
just like a circle the PDCA cycle has no end it should be repeated continuously for ongoing improvement
true
true or false:
organizations use the PDCA framework to enhance processes products and services
true
- recognize an opportunity for improvement or identify a problem
- plan a change our solution to address the issues
- set specific goals define objectives and create an action plan
plan
- implement the planned change on a small scale (a pilot or test)
- carry out the proposed movement
- collect data during this phase
do
- review the results of the implemented change
- analyze the data collected during the Do phase
- compare the actual outcomes with the expected outcomes
- identify what you’ve learned from the test
check
- take action based on the insights gained through the check phase
- if the change was successful incorporate it into wider processes
- if the change did not work as expected adjust the plan and repeat a cycle with a different approach
- use the lessons learn to plan new improvements and begin the cycle again
act
Enumeration:
when to use the PDCA cycle?
- starting a new improvement project
- developing a new processes product or service design
- defining repetitive work processes
- planning data collection and analysis
- implementing any change
- working toward continuous improvement
true or false:
the process also includes checking the system and acting on it.
the model is a continuous because an ems is a process of continue and improvement in which an organization is constantly reviewing and revising the system
true
