GREEN SUPPLY CHAIN MANAGEMENT

Paper review

I. II. III.

INTRODUCTION
OVERVIEW OF THE TOPICS RECOMMENDATIONS AND CONCLUSION

ERDENECHIMEG /EMMY/ ID: 22131628 E-Mail: s_rjang@yahoo.com

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 without compromising 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.

Supply chain drivers that foster the development of green initiatives in an emerging economy

Developing green management standards for restaurants: An application of green SCM

Sustainable SCM across the UK private sector

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

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 permanent developments. 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, SocioCultural 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

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

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 benefits associated 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.