Group 8B Green Supply Chain

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.jpg


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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.pdf


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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.pdf


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Thank You

SHRUTI

ANURAG

JATIN

ASHWIN

SIDDHARTH
http://www.facebook.com/album.php?profile=1&id=665210536

Documents

Group 8B Green Supply Chain