Individual assignment 8: Pros and Cons of the Green Supply Chain Management application
in selected industry.
What is a green supply chain?
The concept of a green supply chain is to use environmentally friendly inputs and transform
them into outputs through agents of change that can be reused and recovered at the end of
the product life cycle.
The aim is to help industries reduce carbon emissions and minimise waste while maximising
profits. Every area of the supply chain has room for green improvements, from
manufacturing and purchasing to distribution, warehousing, and transportation.
Advantages:
Green supply chain management (GSCM) practices offer substantial environmental benefits.
1. Minimise pollution: to minimise energy and pollution, hazardous products should not
be disposed of in the open.
2. Reducing waste: through lean policies and improved process management, managers
can eliminate waste.
3. Reduced transport costs: To reduce greenhouse gas emissions, companies will reduce
shipments that use less fuel and minimise truck tearing and wear and tear.
4. Reduced environmental impact: Using sustainable products, recycling paper, using
less electricity, reducing waste, and using less water will benefit the environment and
the company.
5. Improved public image: generate positive public relations by promoting your
organisation's environmental contribution through press releases. Including green
initiatives on advertisements and product packaging. This will attract the attention of
customers who prefer green products.
For example, the British-based retailer worked with supplier, MAS, on the first of four 'eco-
factories' opened in May 2008. Designed to be carbon neutral, the lingerie factory, in
Thuruliya, Sri Lanka, combines energy saving devices, renewable energy, waste reduction
processes and a healthy working environment. It uses 40 percent less electricity than similar
factories and enabled Marks and Spencer to launch the first ever carbon neutral bra.
Drawbacks :
1. Going green helps to protect the earth's natural system, but for businesses it means
extra costs
2. Expensive: Buying wind power or switching to solar power can be costly for your
business and can add to your costs.
3. Data risk: going paperless will directly jeopardise data record keeping. System
crashes, computer theft, viruses and hacking of sensitive information can be
disastrous.
4. Increased product prices: the use of green materials in a production facility or
process can lead to increased costs.
Individual assignment 2: one (1) retail supply chain (textile, food, DIY, agri-food...).