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8/14/2019 Group 8B Green Supply Chain
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Green Supply Chain
Group 8B :Anurag SinghAshwin UnnikrishnanJatin MishraSiddharth MishraShruti Agrawal
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What WhereWhoWhy
Green Supply Chain
Green Supply Chain leverages the role of environment in SupplyChain Value Creation.
For the benefit of the employees , community and the environment
The environmental impact at each Supply Chain level is examinedfor reduction
Need and awareness of environmentfriendlinessIll effects of global warming
Product differentiation and competitiveadvantageGovernment regulationsCost SavingsImproved public image
Retail IndustryIT Industry
Food & Beverage IndustryPower Plants
Manufacturing PlantsFinance Industry
At all stages of supply chainFactoryDistributorWhole-sellerRetailer
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GSC Metrics
The Greeno-meter Measurement done at all levels ofa supply chain
Energy and Water savings in factories
Fuel savings in transportation and logistics
Savings in usage of environment friendly packagingmaterial
Savings by recycling waste Carbon footprint
Avoided landfill
Regulatory Violations
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The Stats
Financial benefits timeline forgreen supply chain initiatives
How effective Green supplychain have been??
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How to Go Green..
The supply chain way ?? Design products using
environment friendly raw materials
Choose the right suppliers
Make the manufacturing process efficient: Reduce energy consumption, harmful emissions
Decrease the cost of scrap and material losses
Convert wastes to by-products
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How to Go Green??Contd.
Reduce the production of hazardous materials
Recovering and recycling materials through
take back programs Seeking advice from organizations like WWFto improve processes
Certifying products and spreadingawareness among consumers
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Wal- Marts ExampleWal- Marts Example
1989: Campaign to convince suppliers to provideenvironmentally safe products (biodegradable and recyclable
packaging)
2005: Lee Scott committed 3 goals
To create zero waste To be supplied 100% by renewable energy
To sell products that sustain environment and resources
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Key efforts by Wal-MartKey efforts by Wal-Mart
Hybrid diesel-electric trucks andrefrigerated trucks (25% fuel efficiency, 400,000 tons CO2)
Implementation of web based scorecard by the suppliers
Knowledge and process assistance through non profit in itsnetworks (e.g. Beijing Olympics)
Commitment to large volumes (e.g. Organic cotton)
Buying & selling 12 weeks RoHS compliant PCs from Toshiba
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Impact on the bottom lineImpact on the bottom line
of the companiesof the companies Examples of how green supply chain has affected the
bottom line i.e. financial performance of companies:
Texas Instruments: Saves $8 million each year by reducing its transitpackaging budget
Pepsi-Cola: Saved $44 million by switching from corrugated toreusable plastic shipping
GM reduced its disposal costs by $12m with reusable container
program with the suppliers
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Is this enough?How about sustainability?
Reference- https://reader010.{domain}/reader010/html5/0627/5b32cee1586a7/5b32cee7f1c73.jpg
http://www.greenbiz.com/images/090514-supplychain-full.jpghttp://www.greenbiz.com/images/090514-supplychain-full.jpg8/14/2019 Group 8B Green Supply Chain
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Trade Off- Various Levers
Design-Material Selection, Disposability,Rec clabilit , Ener E icienc
Packaging-Reuse/Recycling,Materials
Processes-Manufacturing,
TransportationComponents-Substitutes, Sourcing,Locations
Energy-Fossil Fuel Based/RenewableSource
Inventory Policy-JIT/Vendor
Managed, Frequency
Transportation-Modes, ShipmentFrequency, Load Consolidation
Reference-http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf
http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdfhttp://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdfhttp://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf8/14/2019 Group 8B Green Supply Chain
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Trade-Off Logistics and Distribution
Shipment Consolidation- JIT and direct customer delivery policy requires smallerloads that are shipped more frequently and while this increases the responsiveness andreduces inventory it increases the carbon footprint. A change in the overall policy offewer but large shipments would effectively solve the problem. However this would comeat the cost of increased storage and inventory levels.
Modes of Transportation- Company may now have to choose between low carbontransportation viabilities. This would also include optimizing the FTL, vehiclerequirements(Speed and Driving patterns).
Network Optimization-Will have to be relooked at. The new strategy would have toaddress carbon variable and the impact on various operations(facilityplacement/transportation/distribution etc).
Reference- http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf
http://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdfhttp://www-05.ibm.com/innovation/uk/green/pdf/SOLUTION_OPERATIONS_mastering_carbon_management.pdf8/14/2019 Group 8B Green Supply Chain
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Thank You
SHRUTI
ANURAG
JATIN
ASHWIN
SIDDHARTH
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