Green Supply Chain Management

1. DEFINITION OF GREEN SUPPLY CHAIN MANAGEMENT

              Green supply chain can be defined as integrating environmental thinking into supply chain management including product design, material sourcing and selection, manufacturing process, delivery of the final product to the customers, end-of-life management of the products after useful life, Srivastava 2007. Green Supply chain is a method to preserve environment from pollution occurs during the process of management from suppliers to customers. According to the some research, a high percentage of pollutions come from emission of vehicles. Transportation contributes to the largest number of pollutions to the environments nowadays. One of the ways to reduce the pollutions is by having green supply chain management in order to sustain the transportation. Transport can be classified as derived demand because when there is no transportation occur and will not fulfill the demand of the people for education, travel, work and others. By transportation the demand of people can be achieved but contribute the pollutions to environment. Hence, the green supply chain management is conducted to reduce the pollution of environment at the same time to fulfill the demand of people as well.  

1. STRATEGIES AND EFFORT OF GREEN SUPPLY CHAIN INITIATIVESIN TRANSPORT AND LOGISTICS INDUSTRY

1. Manufacturers setting up “win-“win belief”

              One of the strategies and effort of encourages green supply chain management is manufacturers build strategic collaborations between suppliers and sellers. From that strategy, the supplier and seller will come out with new strategy of production which is to produce recycle packaging which could save producing cost and preserve the environment as well. Packaging is one of the important roles towards environmental effects which are toxicity ingredients, recyclability, durability and others. Nowadays, many suppliers take an advantage by producing low cost packaging which non-environmental packaging for examples plastics bags. According to the research, plastic bags take a long time to dispose from the earth. Plastic bags one of the easiest ways for the suppliers to produce to the low cost of manufacturing and low cost of maintenance.  The central enterprises should give training and technological support to suppliers and sellers which to do some research of environmental protections. The manufacturers are also same to the suppliers and sellers which restricted by the environment. If one of them closed due to the disobeying the law of environmental protection, the whole chain has to stop as well. Hence, the training and technological support from central enterprises will improve the management in order to meet environmental protections needed.

1. Valuing BPR Technology

              Business process reengineering (BPR) is the analysis and redesign of the workflows within and between enterprises in order to optimize end-to-end processes and automate non-value-added tasks. BPR technology is needed in order to ensure the improvement of the workflows from time to time to increase the efficiency. Business process reengineering is the key to transforming how people work. It will give an what would be appear to be minor changes in process can have the dramatic effects on cash flows, service delivery and customer satisfactions. Hence, by valuing BPR technology from time to time will give an impact to the organizations to be more efficient as well. Other than that, BPR technology may help the organization become more modernize and follows the trending nowadays.

1. Strengthening Green Beliefs in all staff in supply chain

              Besides that, the other strategies and effort of the green supply chain management is by strengthening green belief in all staff in supply chain which to set up Green Beliefs. This is will encourages the staff to be more concerns on environments if the top managements  take Green as the part of the supply chain management so the others will follows as well. For example, Honda has formulated Green Purchasing Guideline to share the guideline to suppliers of each region and work to realize a low carbon supply chain. From that, Honda encourages the beliefs the suppliers to produces eco-friendly products to sustain the environments as well. Honda come out with Honda Global Environment Purchasing Vision which together reducing environmental impacts with their suppliers worldwide as their main procurement of operations.

1. Formulating relevant policies

If we look at our country right now, it also listed as one of the developing country in terms of trading activities that incur logistics parties in that sector. By having rapid growth of this activity, we should pay more attention and concern more towards the environment in order to keep sustainability and green environment by protecting the environment. If we compared our country with the other developed countries such as England or America, our country’s economic development lags its plans.

Although there is some enterprises have formulated some “Green” policies, but the implementing of this ways still could not make us satisfied yet. We have Green Management Policies in the Chain but this kind of policies still not achieves it level of goals and the authorities should concern more about this matter on how to regulate and formulate policies about green supply chain to all parties as their first priority in supply chain management .

The enterprises in our country have to choose Supply Chain Management to get competitive advantages in their business. Therefore, it is very important to formulate relevant policies of Green Supply Chain Management. We should choose the successful industries as our benchmark, which have taken Green Supply Chain Management in foreign countries, which have great volume of exports and always meet Green trade barriers, and some Green industries which are accepted by consumers.

1. Building Green Resources Database actively

If we look at the framework and contents of Green Supply Chain Management, it determines that Green Supply Chain Management is varied and not just focusing by having effective green transportation and so on. Therefore, the chain will face difficulties in order to implement with just having one or several enterprises’ research and technologies.

With the development of our society and the enterprises, the Chain has to meet the requirements from the outer conditions. In order to achieve green supply chain management, the government and the related organizations should build Green Resources Database actively which is this database should including Green Manufacture Technology, Green Transportation, Green Product Patent, Green Materials, and Green Management Technology. So by having this kind of database, all the parties that involve in the chain could afford and gain information and intellectual supporting to Green Supply Chain Management. By having green resources database, it also will give advantage to all the parties that involve in terms of cost, which they can reduce the operation cost in supply chain management. This kind of database is a root in order to achieve better and greener supply chain management.