Green supply chains – Be green, my friend

More and more companies are adopting practices to address environmental issues in their supply chains.

Researchers and economists support that those who have applied this type of rethinking in their production chain have obtained positive effects, both in their operating costs and in their environmental performance and brand image.

Be green

The concept of the green supply chain is a multidisciplinary issue. It arises primarily from the development of environmentally friendly management practices in the context of supply chains.

It consists of the integral analysis of the production process, from its design to the end of the product’s life. It also includes proposing solutions to improve, not only from an economic point of view, but from a more environmental point of view.

It could be said that the best known application is the implementation of the well-known ISO 14.001 standard.

Application

The application of this technique undoubtedly affects the entire value chain. By shattering a standard production process, we could have these application pillars:

Application	Explanation
Green purchasing	Which supplier is best for our organization and whether it meets the environmental standards we have set.
Green manufacturing	Develop environmentally friendly products with efficient use of primary resources (water, materials, energy) and generate the least amount of waste.
Green packaging	Optimize the product packaging process by simplifying it and using biodegradable materials
Green distribution	One of the most polluting processes in any production chain is product distribution. Generally, this process depends heavily on fossil fuels. Performing an in-depth analysis of routes, vehicle fleet, distance from delivery points, frequency of transport and packaging characteristics (weight, shape and material) will determine the aspects to be improved.
Green marketing	Unfortunately, there is a tendency to believe that green marketing refers only to the advertising of products with environmental characteristics. However, green marketing encompasses many more actions, such as product modification, changes in production or packaging processes, etc.
Environmental education	It is one of the most powerful tools to achieve the goals set. To do so, all parties must be involved, both staff and suppliers, and using this tool is vital. The main purposes are to teach the staff the environmental policies of the corporation. The second is to be able to change individual behaviour so that they become more environmentally responsible.

Environmental, social, financial and bureaucratic benefits

By reducing the environmental impact of production and commercial processes, companies can find cost savings. These come from the integral review of the supply chain: resource acquisition, planning and more efficient management.

As a result of the above, environmental permits, bureaucratic procedures, less waste management, etc. would be reduced.

Wanna be green

After reading Sintec’s interview with Charles Corbett, Professor of Operations Management and Bio-Environmental Management at UCLA, Anderson School of Management, I have to say that my viewpoint is very much in line with his opinion.

He says that you are not only more competitive, but also more proactive in environmental and management issues. If you sell green or environmentally friendly products, you will immediately attract buyers who are interested in them, who will later identify with the brand, and therefore open up a new market segment by increasing the company’s profitability due to increased sales. At the end of the day, economic objectives are what matter most in companies.

References & Resources

• International Journal of Operations & Production Management (May 2019), “Investigating Green Supply Chain Management Practices and Performance: The Moderating Roles of Supply Chain Ecocentricity and Traceability”
• Emerald Insight (Dezember 2018), “Effects of green supply chain management practices on sustainability performance”
• Ukessays (Dezember 2017) “Benefits of Green Supply Chain Management”
• Inventio (March – June 2014), “Cadenas de suministro verdes, una respuesta al desempeño ambiental”
• Interview Sintec a Charles Corbett (2012), “Green Supply Chain as a driver of operational excellence”
• Researchgate (2011), “Green Marketing: Concepts & Applications”