SCM Review of Papers

8/13/2019 SCM Review of Papers

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ERDENECHIMEG /EMMY/

ID: 22131628

E-Mail: [email protected]

GREENSUPPLYCHAIN

MANAGEMENTPaper review

I. INTRODUCTION

II. OVERVIEW OF THE TOPICS

III. RECOMMENDATIONS AND CONCLUSION


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INTRODUCTION:

Sustainable development is one of the serious global issues, more especially in

business letters, the experts and businessmen are taking their consideration on it very

intensively as well as the researchers havent ever ignore the integration of supply chain

with sustainable development in area of Supply Chain Management. However it is quite a

new concept among scholars, there have been done several analyses to determine the

impacts from supply chain on sustainable development.

Sustainable development was defined by World Commission on Environment and

Development in 1987 as Development that meets the needs of the present withoutcompromising the ability of future generations to meet their own needs. The positive

integration of economic growth, social and environmental stability creates the sustainable

development.

What is Green supply chain management: It can be defined as integrating

environmental thinking into supply-chain management, including product design, material

sourcing and selection, manufacturing processes, delivery of the final product as well as

end-of-life management of the product after its useful life.The following three topics are

the least examples of the impacts through supply chain management however we can see

three different perspectives as emphasizing their research methods in these topics.

These research works have been conducted in Malaysia, Taiwan and UK. The

countries have a lot in common that those have emerging economy with support of

business entities however all those have some constraints from legal entities like

government agencies, NGOs and any other environmentally oriented organizations. The

reasons behind those studies explicit that there is arising need to take proactive and lively

Supply chain drivers that foster thedevelopment of green initiatives in

an emerging economy

Developing green managementstandards for restaurants: An

application of green SCM

Sustainable SCM across the UKprivate sector


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measures for the development of green management in any profit making business

entities.

Even though the perspectives and methodologies are considerably different for

those three papers they put their efforts in clarifying the influences of green supply chain

practices.

OVERVIEW OF THE TOPICS

Drivers of green supply chain management

There are various participants in supply chain management. It is necessary to adopt

environmentally friendly approaches for all companies to sustain their permanentdevelopments. Being green is not green color. It covers broad philosophy to achieve

corporate profit and market share by reducing environmental risks. The key drivers of

green supply chain management are customer pressures, regulatory measures, Socio-

Cultural responsibility and Competitors pressure as supported by the case of Malaysia. In

the other hand those are motivations for all firms to adopt the Green Supply Chain

management as for their economically efficient approach.

While conducting empirical survey via Structural Equation model among 132 firms with ISO

14001 certificate, the positive results indicate that the manufacturing firms should adopt

the green supply chain initiatives. More specifically the regulatory measure and competitor

pressures are forms of coercive regulatory isomorphism, since customer pressure is a form

of normative isomorphism. So far the socio- cultural pressure is the mimetic isomorphism

that reflect s the rational desire embrace green initiatives that have proven valuable to

others.

Implementation of green initiatives in supply chain operations

Green SCM itself is a systematic platform for integrating industry profits,

environmental protection, energy usage and ecological balance. On the other hand this is

the integration of three systems namely materials, environment and culture.

Human activities generate annual greenhouse gas emissions of around 50000 mega


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tons CO2 out of which 2800 mega tons or 5.5% is contributed by logistics and transport

sector. But it was interesting study that restaurants are also one of the largest energy users.

A single restaurant is able to produces 490 tons of carbon dioxide in a year.

This study was conducted in Taiwan to establish green management standard with

green supply chain that green restaurants can implement. However the green restaurant

concept is quite a new and immature, the Taiwanese economy is emerging and

perspective. 23 experts with experience of 3-28 years from government, industry and

professional agencies have been participated in the three stage of Delphi technique. There

are basically three facets namely green food, green environment and equipment and green

management and socio- responsibility those includes 81 sub indicators. The result estimate

that the above three facets are important more specifically green cleaning and post

treatment, green management policy and green food procurement. Even so far, to mitigate

carbon dioxide emission, green restaurants should make advancement on energy efficient

appliances and facilities.

Challenges in implementation of Green Supply Chain Model

The study conducted in UK was aimed to explore sustainable supply chain management

issues in companies and to investigate what factors influence sustainable SCM as well as

future perspectives.

At the time of exploring seven companies experts through semi- conducted interviews,

they were focused on exploring barriers and enablers to sustainable SCM. The finding form

this research shows that key enablers are customer requirement, reputational risk,

organizational factors including strategic, people and functional issues and stakeholders

involvement. On the other hand, the barriers to progress included pressure to reduce costs,

other organizational priorities, the ability of buyers to tackle the subject, and accounting

methods that focus on short term measure.

RECOMMENDATIONS AND CONCLUSION


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The issue of sustainable green supply chain engages in three concepts including

economy, society and environment. Firms should carefully and strategically seek solutions

for mitigating negative impacts on environment while adopting green supply chain

practices however the social issues ensures the idea of providing not only suppliers with

decent working conditions but also developing supply chain in a clear and ethical ways,

therefore it is should be efficient in economic approaches.

Most of the time, greening the operations is related to corporate social

responsibility or emotional aspect of business towards the environment. However for

sustainability of the green initiatives, it is important that we look this opportunity from

business point of view. Its high time to focus on the tangible or intangible benefitsassociated with these green initiatives. Sustainability reports of many companies indicate

that greening the supply chain has helped them to reduce their operating cost with

increased sustainability of business. Now its not an option but a necessity for the

companies to proactively invest in economically attractive opportunities in supply chain

management that address environmental impact in the near or medium term and increases

the overall sustainability of business.

I my opinion, the green supply chain has balanced concept with sustainable SCM

that promoted to mitigate issue of global environmental problems. As for this reasons, the

green concepts should not be persuaded or required by the non-profit companies however

the supply chain players should voluntarily adopt the sustainable SCM with right green

management, green equipment and green people. In turn it will provide us with green

environment. For the With Green Supply Chain Management a collection of many

opportunities, it is difficult to decide which potential opportunities to consider and in what

order. One way is to evaluate the CSR (Corporate Social Responsibility) in each case of each

activity. However CSR in case of all activities may not appear positive but net result of all

the activities put together is definitely significant both in terms of CSR and intangible

benefits. Initial investments may look as a challenge but sustainability reports of many

companies have proved that the financial gains are also significant.

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SCM Review of Papers