Green Supply Chain Management In Manufacturing Industry Environmental Sciences Essay

Green Supply Chain Management In Manufacturing Industry Environmental Sciences EssayIn this section, this chapter will be continued to talk of about the previous chapter which is focus on super C sum mountain range precaution (GSCM) in manufacturing industry. Meanwhile, this chapter will review on an overview and definition of kibibyte try stove circumspection, barriers of implementation of special K come forth compass charge, factors that influence of the operation of grand bring out cosmic string management and benefits of verdancy bestow range management.2.1 Overview and definition of Green Supply Chain Management (GSCM)In business today, the milieu has become a critical issue in manufacturing industry and it has been increasing in consciousness of the environment in the last few decades. Nowadays, people are aware of the worlds environmental problems such as toxic substance usage, decreasing in non-replenish resources and global warning. This problem if no deal with well(p) it has the potential to lead to the extinction of mankind on earth.To promote these environmental problems, giving medication has to organize germane(predicate) campaigns to public. As a result, there prolong several giving medications start to apply park principles to their industry. For example the organizations will use environmental friendly raw material, using recycle papers for advancement and contract the usage of petroleum power during implement operations. agree to Sheu et al (2005), with increase in environmental concerns during the past decade, a consensus is growing that environmental pollution issues accompanying industrial development should be addressed together with supply chain management thereby contributing to spirt supply chain management (GSCM).Green supply chain management it has roots in environment management and supply chain management literature. Adding the green component to supply chain management involves addressing the influence and relationships between supply chain management and the natural environment. Besides that, green supply chain management also defines as integrating environmental thinking into supply chain management including material sourcing and selection, product design, manufacturing processes and deli truly of the final product to the clients as well as end-of- vivification management of the product after its useful behavior.In addition, green supply chain management is a invention that is gaining popularity in the South due east Asian region. For many organizations in this region it is a way to demonstrate their sincere commitment to sustainability (Bacallan, 2000). Furthermore, many realize that customers and other stakeholders do not invariably distinguish between a company and its suppliers. If an organization has environmental liabilities, stakeholders may often hold the lead company in a particular supply chain responsible for the adverse environmental impacts of all organizations within a specific supply chain for a particular product.Rao and Holt (2005), reported that green supply chain management also net promote efficiency and synergy among business partners and their lead corporations and helps to enhance environmental performance such as lessen waste and achieve represent saving. Meanwhile, the most far- reaching undertake of environmental management is to create value through greening the supply chain (van Hoek, 1999). meet 1 Functional computer simulation of an organizational supply chain with environmentally influentialpractices ( Sarkis, p.400)As illustrated by figure 1, the green supply chain model shows the various points where wastes occur and opportunities exist to limit waste by reuse, recycling and remanufacturing. In a green manufacturing environment, the supply chain conclusions include the possibility that a process plunder use certain renewable materials, the ability to utilize reusable or remanufactured materials and the reduction of wastes. This diagram is typical for a single organization. According to Sarkis (p.399) states that environmentally friendly innovations may best be utilized during the manufacturing stage of the supply chain, as this part is the most internally focused and the organization can more directly see the benefits of implementing environmentally friendly process.On the other go along, green supply chain management also involves formal supply chain management practices which are integrated manufacturing process wherein raw materials are manufactured into final products then delivered to customers via distribution, retail or two. (Beamon, 1999). However green supply chain management has ranged from green purchasing to integrated supply chains flowing from supplier to manufacturer, customer and reverse logistics which is closing the loop as defined by supply chain management literature. (Zhu and Sarkis, 2004).CharacteristicsConventional SCMGreen SCMObjectives and valuesEconomicEconomic and ecologicalEcological optimization tall ecological impactsIntegrated approachLow ecological impactsSupplier selection criteriaPrice switching suppliers quicklyShort term relationshipsEcological aspects (and price)Long term relationshipsCost pressure and pricesHigh cost pressureLow pricesHigh cost pressureHigh pricesSpeed and flexibilityHighLow plank 1 Differences between the conventional and green supply chain managementBased on tabularise 1, we can differences between the conventional and green supply chain management. Overview on this table showed that green supply chain management can will highly innovative and an efficiency environmental management to manufacturing industry whether on supplier selection, prices, renovate and other characteristics.2.2 Activities in green supply chain managementGreen supply chain management (GSCM) is defined as green procurement+ green manufacturing+ green distribution+ reverse logistics. Green supply chain management is an idea used to min imize waste such as energy, solid and idle wastes, natural resource and environment pollution along supply chain.Inventory Inventory(Material) Defects (Product)ManufacturerCustomerProductionSupplierEnd of life products foundReuse/ Recycle/ RefurbishReuse/ Recycle/ Re- AssemblyMaterials ProductsReuse/ Recycle MaterialsWasteFigure 2 Activities in green supply chain managementGreen ProcurementGreen procurement is an environmental purchasing with involve the reduction, reuse and recycling of materials in the process of purchasing. The procurement decision is very all important(predicate) because it will impact the green supply chain during purchase of materials. Besides that, it is also a solution for environmentally concerned and is a concept of selection of products and services that can minimize environmental impact and eliminate waste. As an example during implement of green procurement, manufacturers will purchase materials only from green partners and consider supplier who acqui re ISO 14000 and OHSAS 18000.Green ManufacturingGreen manufacturing is a production processes which use materials with low environmental impacts, highly efficient and minimize waste or pollution. Green manufacturing is a very important area in green operations, because it can lead to minimum energy and resource, provides a lower raw materials cost and reduced environmental impacts. For detects materials, usually manufacturers will reuse, recycle or reassembly it before produce to product. It can help organization to minimize of waste.Green disseminationGreen distribution also is an important functional that will affect the green supply chain. Green distribution consists of 2 components are green packaging and green logistics. Size, shape and materials of packaging are very vital because it can impact on distribution due to affect on the transport characteristics of the products. emend packaging is along with rearranged loading patterns, can reduce materials usage, reduce the amou nt of handling required and increase space utilization in the warehouse. When implement of green distribution, manufacturers will use green packaging materials, adopt returnable packaging methods, deliver directly to customer site and distribute products together rather than in smaller batches.Reverse LogisticsReverse logistics is a last part of activities in green supply chain management. Reverse logistics is the process of returning the end of life product from end user back to the supplier. The supplier can plant, reuse, recycle and refurbish the material. These activities also include collection, selection, re-processing, redistribution and disposal. According to Rogers and Tibben-Lembke (1999), a well managed reverse logistics design can result in savings in inventory carrying transportation and waste disposal costs as well as improving customer service.2.3 The barriers of implementation of green supply chain managementWith increasing pressures of environmental impacts, manufa cturing industry faced many barriers or problem to implement of their product or services. So those, organization need to find out the barriers which impede organization to implementation of green supply chain management.According to Perron (2005), there are 3 barriers of organization to implementation of green supply chain management.Attitude and perceptions barriersAttitude and perceptions is one of the barriers for organization to implementation of green supply chain management. To implementation of green supply chain management, top management plays an important role in organization because it can affect the development in organization. For example, for top management who pass bad attitude it can influence the relationships organization with supplier or customer during they make decision making.Information related barriersThe second barriers that faced by manufacturing industry is information related. There have some organization are often lack of awareness and information abou t how to implement green supply chain management. Besides that, they may not be aware of what is going wrong and not understand the environmental impacts of activities in organization. Other than that, lack of characterisation also is another barrier that faced by manufacturing industry because they dun have any information related with green supply chain management had been taken by other organization.Technical barriersTechnical also is a barriers that impede organization to adopt green supply chain management. Some organization is usually cannot get a state of the art information about new technology, materials, operations and processes. Besides this, lack of technical expertise of employees also is a major barrier because they unable to fulfill the design for environment requirements.2.4 The factors influence of the operation of green supply chain managementGreen supply chain management is an effective motivated to improve the efficiency and effectively of environmental manageme nt, but there have some factors that influence of the operation of green supply chain management.The main factors that influence of the operation of green supply chain management are market and competitor. Nowadays, the competitive among organization is very high because have so many organization was develop in Malaysia. So that, organization needs to make them standing out with other organization and to give a good impress for customers. Being environmental friendly also is one of the ways to differences them from the competitors.Besides that, the role of the government involves in green supply chain management has been getting increasing attention. In the United States, there have a large number of government agency controlling guide line, statute and law. These agency and organization are responsible for either similar or different issues such as pollution, chemical waste and product material. For an example, one of the government agencies is Environmental Protection Agency (EPA ). Environmental Protection Agency is a government organization established to protect human health and the environment. The focus on EPA is developing the best practices of green supply chain management and bringing awareness of those practices through guidebooks and manuals. (US EPA, 2000).Last factor that can influence of operation of green supply chain is decision making. Decision making involves a wide range of knowledge because it includes many factors such as environment, commercial performance, the benefits of a bent of behavior subjects and others. According to Nagurne (2003), the members decision behaviors of green supply chain are utilized the network model to set up the corresponding multiple goals decision model and provided the corresponding algorithm on the problems that asked. Manufacturer also needs to make decision when choosing supplier because collaborative relationships between manufacturers and supplier is very important to organization to implementation of gr een supply chain management.2.5 The benefits of green supply chain managementThe benefits of green supply chain management are can provide a lower environmental load, achieve cost savings and reduce pollution to manufacturing industry. The principle of green supply chain can be applied to all departments in the organization and the effects of green supply chain management are can be develop to all area, both tangibly and intangibly.According to Stevels (2002), the benefits of green supply chain to different roles of supply chain including environment and society in terms of different categories such as material, immaterial and emotion.Benefit forBenefitcategoryEnvironmentSupplierProducerCustomerSocietyMaterialLower environmental loadLower cost priceLower costLower cost of ownershipLess consumption of resourcesImmaterialOvercoming prejudice and cynicismLess rejectsEasier to manufactureConvenience, funBetter deferenceEmotionMotivation of stockholdersBetter imageBetter imageFeel good, Quality of lifeIndustry in on the right (green) trackTable 2 The benefit matrix for green supply chain cooperationBased on table 2, it showed that for material, green supply chain management helps lower environment load for environment, lower cost price for supplier, lower cost for producer, lower cost of ownership for customer and less consumption of resources for society. On the other hand for immaterial, green supply chain management helps overcoming prejudice and cynicism for environment, less rejects for supplier, easier to manufacture for producer, convenience and fun for customer and can provide a better submission for society. The last one is for emotion, green supply chain management helps motivation of stockholder to environment, better image for supplier and producer, feel good and quality of life for customer and makes industry in on the right track. As a result of this table show that different categories of material, immaterial and emotion can provide a benefit for en vironment, supplier, producer, customer and society.2.6 Environmental Management SystemsEnvironmental management systems is a strategic management approaches that define how an organization will address the impacts on the natural environment and how the organization using environmental management system to challenge their supplier networks to become more environmentally sustainable. (Bansal and Hunter, 2003 Darnall, 2006). Besides that Sarkis (2001) reported that the operational capabilities necessary to adopt an environmental management system may also assist an organizations efforts to reduce its environmental impacts throughout its supply chain.2.61 Relationship between environmental management system (EMS) and green supply chain management (GSCM)Relationship between environmental management system and green supply chain management has potentially complementary and it is important for an organizations environmental sustainability because they will provide the definition and estab lish sustainability among network of organization together. As a result, relationship of e environmental management system and green supply chain management can to minimize impact to the natural environment, reduce waste, increase boodles and achieve environmental sustainability goals for all manufacturing industry in Malaysia.2.62 ISO 14001ISO 14001 is an international standard requirement for an environmental management system which can be employed by an organization to measure, reduce the environment impact of activities, products and service and its can improve the environmental performance continually. To implement this certification requirement, company can demonstrate their commitment to environment and profit from the guidance the standard provides on more effective environmental management.Below are some benefits to an organization in adopting of ISO 14001Enhanced imageReduced adventure of environmental incidentsImproved relationships with customers, government and the ge neral publicBetter use of energy and resourcesAchieve cost savingsCompliance with environmental rules and regulationsEnhanced body of work health and safetyAccess to markets or company that demand ISO 14001 certification