Introduction
Researchers, institutions, and professionals have been undertaking more studies on Green Supply Chain Management due to their growing interest in environmental sustainability concerns such as global warming and climate change (GSCM). Environmental concerns about emissions and waste from different supply chain operations have encouraged companies to implement proper GSCM policies. As a result, firms must be positioned to react to environmental issues regarding their production and supply chain management strategies. Sustainability may be enhanced at any step in the supply chain, starting with product design and development and continuing through all stages of production to customer distribution. The supply chain’s movement of materials from their supplier to their ultimate customer. The supply chain generates benefits in the form of products and services for ultimate customers through different procedures and actions carried out by the corporate structure. GSCM seeks to make the entire supply chain more environmentally friendly.
Importance of green supply chain management
Green Supply Chain Management (GSMC) is a relatively young research subject. Customers increasingly demand environmentally conscious products and services made with environmentally favorable methods (Dhull and Narwal). This is following the government’s environmental standards. As manufacturing and production changes are perceived and regarded as organizations harming the environment regarding waste formation, natural resources depletion, and ecosystem disturbance, many Manufacturing and production organizations have begun to enforce green supply chain management (GSCM) practices.
The implementation of GSCM procedures is expected to positively influence sustainability, as measured by liquid waste, environmental pollutants, organic waste, and dangerous substances usage. In a word, distribution network success adds to overall company success. Customer agencies and the Governments have begun to demand environmentally friendly materials, processes, and goods; therefore, leadership must develop and implement environmental conservation policies that span the entire distribution network. Consequently, the focus on environmental preservation has transferred from the corporation to the distribution system. According to Choi and Hwang, following the research done by Phuoc Nguyen Van et al., GSCM approaches can assist a company in improving its economic and environmental performances. As a critical new strategy, GSCM helps firms accomplish economic and financial goals by reducing environmental expenses while maintaining environmentally friendly processes. Adopting GSCM can benefit the company because it generates income.
Why GSCM Should be applied in the companies
Majumdar et al. set out to establish principles critical to the successful implementation of the GSCM technique in company emissions. According to these authors, the carbon (ii) oxide equivalent (CO2e) is the sole unit for measuring various greenhouse gases. Nonetheless, a corporation can emit one or more greenhouse gases which include CO2 (carbon dioxide), CH4 (methane), N2O (nitrogen oxide), and fluorinated gases) based on its operation or goods. As a result, the first stage in implementing a carbon policy is to determine which types of pollutants are associated with the company’s operations.
Following the definition of operational and organizational boundaries, a corporation should set a base year and begin measuring its reduction in emissions. This phase should include describing the method for computing carbon emissions per area and deciding which carbon pollution coefficients should be utilized. Monitoring and analyzing present performance and determining future emissions and capital spending are all part of performance statistics.
Setting carbon emission objectives demonstrates leadership performance and motivates employees across the organization to achieve actual carbon reduction emissions. Carbon pollution objectives should be matched with current corporate goals to guarantee the operation’s effectiveness. Properly establishing emissions standards will enable cost-effective mitigation of potential hazards and organizational efficiencies to be identified (Cordero). Carbon goals can be calculated by inefficiency and absolute carbon base. The second is total carbon emissions, expressed in kilos or tons of CO2. The efficiency base considers total carbon emissions as a proportion indicator that includes a business parameter. The relationship between carbon emissions and finished products delivered, revenue volume overall, or turnovers may be the relationship.
Identifying Carbon Reduction Opportunities
Identifying suitable options that can help meet carbon neutrality is among the most critical corporate Carbon strategy processes. The organization should produce a range of suggested and acceptable options per distribution network region in this stage. According to the literature analysis, there are numerous options in the transportation sector, such as multimodal transportation, alternative fuel (CNG, biodiesel); hybrid vehicles, and electric vehicles) and car design (Hashim et al.). Options in production can be related to innovations (Biomass, CHP), designing and implementation (certification schemes like Breeam or Leed), or technological advances (Carbon Capture Technology).
In contrast, warehouse operations can be associated with achieving maximum daylight utilization, smart lighting, and light sources (Hashim et al.). Warehousing and Manufacturing can benefit from advancements in sustainable power (solar electricity, wind power, fuel cells, and solar water heating). Some choices in purchasing are connected to the selection of the supplier and the parameters utilized. Waste management, green certification, stock longevity, and other demands of the vendors are among them. Every prospective option should have its cost, CO2 quantity, and commercial impact assessed or approximated (Lee). Developing parameters for the organization to utilize to prefer one choice over others is also encouraged; these criteria could include (investment/cost, Carbon dioxide savings, commercial impact, and so on).
Supply Network Projects
The logistics system re-structure option will be implemented in 2019. Consequently, there is a huge decrease in carbon emissions in mobility, both indirect (35% decrease) and direct (35% decrease) (45 percent) (Lee). It is primarily due to the number of kilometers traveled, with 31 percent less indirect and 45 percent less indirect transportation. The business planned to construct a new facility in Germany in 2020. This choice is premised on the reality that European production and other businesses are more environmentally friendly and have a lower carbon footprint than those in the United States.
Biomass Technology and Wind Energy Manufacturing Projects: Wind power is a viable alternative for adoption in 2021 as part of Germany’s upcoming factory enhancements. This method is focused on the prospect of signing a deal with a sustainable energy organization that will deliver approved energy. The idea for the U.S. facility in 2022, on the other hand, is to use Biomass technology (Lee). Old scrap wood and pallets from the furniture sector are fed into the biogas plant. However, the manufacturer should only use sustainable biomass from authentic “end of life” materials that do not conflict with crops.
Transportation Projects: Intermodal Water-Road and CNG
Because of the versatility of this form of transportation, the plan for secondary transportation is to employ it. Nevertheless, the concept is to apply compressed natural gas (CNG) only for connections linking California DC and merchants at the start of the plan in 2018 and expand this coverage to all secondary transportation in 2024 (Insight). Effective from 2023, the intermodal waterway would be included in the principal route plan. The deployment of these options will result in a 36 percent reduction in carbon emissions per kilogram sold. The options are separated into power management, alternative energies, multimodal transportation, and system design projects. The AHP approach was used to come up with a carbon reduction plan. The application of this Methodology has recommended a plan that will minimize carbon emissions by 36% in units of Kg CO2 for every kilogram sold during the next seven years (Insight). The process chose six options, which were then assigned to the roadmap based on the company’s objectives.
Conclusion
This study provides a carbon reduction plan for a supply chain reaction to industrial needs. This technique aims to walk businesses through the process of constructing a Green Supply Chain Strategy, establishing an emissions reduction pathway, outlining the approach to be pursued, leveraging progress, and essentially meeting their carbon reduction goals. The Green Supply Chain Strategy attempts to strengthen the supply chain while lowering the environmental effect. Various possibilities, such as the placement of warehouses and factories and production and logistics initiatives, are evaluated using the AHP technique as an element of the operation’s plan. Consequently, a strategy is developed that balances economic and environmental goals.
Work Cited
Cordero, Pilar. “Carbon Footprint Estimation For A Sustainable Improvement Of Supply Chains: State Of The Art.” Journal Of Industrial Engineering And Management, vol 6, no. 3, 2013. Omnia Publisher SL, https://doi.org/10.3926/jiem.570.
Dhull, Sunil, and M.S. Narwal. “Drivers And Barriers In Green Supply Chain Management Adaptation: A State-Of-Art Review .”Uncertain Supply Chain Management, 2016, pp. 61-76. Growing Science, https://doi.org/10.5267/j.uscm.2015.7.003.
Hashim, Muhammad, et al. “Application Of Multi-Objective Optimization Based On Genetic Algorithm For Sustainable Strategic Supplier Selection Under Fuzzy Environment .”Journal Of Industrial Engineering And Management, vol 10, no. 2, 2017, p. 188. Omnia Publisher SL, https://doi.org/10.3926/jiem.2078.
Insight, Business. “Green Energy in the U.S.” Business Insights Ltd.: London, UK (2007).
Lee, Su-Yol. “Corporate Carbon Strategies In Responding To Climate Change .”Business Strategy And The Environment, vol 21, no. 1, 2011, pp. 33-48. Wiley, https://doi.org/10.1002/bse.711.
Phuoc Nguyen Van et al. “Green Supply Chain Management Practices And Environmental Performance: An Empirical Study Of Manufacturing Industry In Vietnam .”International Journal Of Supply Chain Management, vol 7, no. 2, 2017. New Century Publications Ltd., https://doi.org/10.53384/ijoscm.2051377120177125.
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