University of Mumbai

A project report on

GREEN SUPPLY CHAIN PRACTICES

Submitted by,

ROSHAN ROBERT LEWIS

ROLL NO- 21

PGDLM 2018-2019

GARWARE INSTITUTE OF CARRIER

EDUCATION & DEVELOPMENT

1
 Declaration

I hereby declare that the project entitled “GREEN SUPPLY CHAIN

PRACTICE” submitted for the fulfillment of Post Graduate Diploma in
Logistic and Supply Chain Management into Garware Institute of
Carrier Education and Development, University of Mumbai.

ROSHAN ROBERT LEWIS

Place: Mumbai PGDLM SEM-II

2
 INDEX

Sr. Contents Page

No

1 INTRODUCTION 4

2 IMPROVEMENTS BY GREEN SUPPLY CHAIN 12

MANAGEMENT

3 NEED FOR GREEN SUPPLY CHAIN 14

MANAGEMENT

4 GREEN SCM METHODS 18

5 INDIAN MARKETS AND WORLDWIDE 46

IMPLEMENTATION

6 CHALLENGES 53

7 CONCLUSION 55

8 BIBLOGRAPHY 57

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 1. INTRODUCTION

What is Supply Chain management?

Supply chain management (SCM) is the broad range of

activities required to plan, control and execute a product's
flow, from acquiring raw materials and production through
distribution to the final customer, in the most streamlined and
cost-effective way possible.

SCM encompasses the integrated planning and execution of

processes required to optimize the flow of materials,
information and financial capital in the areas that broadly
include demand planning, sourcing, production, inventory
management and storage, transportation -- or logistics -- and
return for excess or defective products. Both business
strategy and specialized software are used in these
endeavors to create a competitive advantage.

Supply chain management is an expansive, complex

undertaking that relies on each partner -- from suppliers to
manufacturers and beyond -- to run well. Because of this,
effective supply chain management also requires change

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management, collaboration and risk management to create
alignment and communication between all the entities.

In addition, supply chain sustainability -- which covers

environmental, social and legal issues, in addition
to sustainable procurement -- and the closely related concept
of corporate social responsibility -- which evaluates a
company's effect on the environment and social well-being --
are areas of major concern for today's companies.

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What Is Green Supply Chain
Management

Around the world, interest in protecting the environment and

in purchasing Green products is becoming more and more
popular. In 2012 earth summit held at Rio de Janerio, Brazil,
the prime focus was given to “sustainable economic
development”. To protect the environment from getting
despoiled, the international companies along with the
governments from different countries came to a common
page and recognized the need for taking corrective action.
Carbon emissions are considered to be a single biggest factor
when it comes to making economic development sustainable.
In this context the waste and emissions caused by the supply
chain has become one of the main sources of serious
environmental problems. Green supply chain (GSCM) has
come into existence as one of the recent innovations to
preserve the environment. It not only helps in improving the
efficiency of the organisation but profitability as well.
Therefore there exists a vast scope in developing countries
such as India to adopt GSCM practices and achieve
organisational excellence. GSCM practice should be a part of
a company’s DNA – right from the blueprint and creativity of a

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product to its distribution and consumption and lastly to its
recycling. Fig.1 shows the life cycle of the GSCM activity from
the conceptual stage till the recycling of the product. GSCM
can become a source of competitive advantage for
organisations through improvement in the environmental
performance. Organisations can adopt the best ecofriendly
practices and can create a benchmark for other non-green
organisations to follow. While sustainable supply chain
objectives are becoming more crucial, the emphasis on value
for money, bottom line, risk, delivery times and flexibility are
not diminishing. In fact environmental conscientiousness has
become a crucial part of an organisation’s operations in
realizing their business goals.

Green supply chain management 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.

Sustainability can be maximized throughout the supply chain,

beginning with concept and development then continuing
through all phases of production and final customer
distribution. Articles here focus on efforts by materials
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suppliers, product manufacturers and retailers to increase
sustainability. These increased sustainability efforts are made
to decrease the impact of the supply chain on future
generations.

Patrick Penfield of the Whiteman School of Management very

appropriately defines Green Supply Chain Management as
“the process of using environmentally friendly inputs and
transforming these inputs into outputs that can be reclaimed
and re-used at the end of their life cycle thus, creating a
sustainable supply chain”. Organisations worldwide continue
to use toxic chemicals, wasteful packaging, and
transportation practices that produce clouds of gases that
contribute to global warming. However, from materials
acquisition and manufacturing to packaging, logistics, and
distribution, every stage of Green Supply Chain Management
in India - An Overview 15 the supply chain offers
opportunities to reduce waste and pollution at every stage of
the cycle there is pollution in terms of air, water and waste.
Here recycling and effective and efficient use of the resources
can drastically help in reducing the pollution. The companies
should take note of the fact that GSCM measures can not
only improve their performance levels but also help in
protecting the environment. With the help of GSCM
operational effi ciencies can be improved. Following are some
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of the benefi ts that can be realized out of this initiative which
is termed as CI benefi ts:-  (CI) Continuous Innovations– It
helps to alleviate risk and gives momentum to innovations. 
(CI) Continuous Improvements– Analyzing GSCM activities
generally leads to innovative processes and regular
improvements  (CI) Continuous Interactions – It involves
negotiating policies with all the stakeholders like suppliers
and customers, resulting into better alignment of business
processes and principles. It also aims to create a synergy
among the supplier community to purchase environmentally
superior products and reduce reduction of waste.

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OBJECTIVES
The rapid and continuous growth of Indian Industries be it
manufacturing, IT, chemical etc. have brought great
challenges towards energy resource security. Industry’s
concern towards environment is comparatively very low and
the knowledge on GSCM practices limited. There are a
handful of Indian companies which follow an environment-
friendly GSCM initiative. The diversity in the adoption rates
has seen some manufacturing supply chain companies
proactively implementing environmental strategies such as
green purchasing and eco-design. Indian manufacturing
companies have experienced increasing environmental
pressure while simultaneously recognizing various benefi ts
and incentives to green their supply chains. Thus, GSCM
practices have emerged as a systematic approach in India to
balance the economic and environmental sustainability of fi
rms. The study tries to point out the benefi ts of implementing
the concept of GSCM. It also tries to recognize the need to
encourage and facilitate the implementation of GSCM
projects to enhance the competitiveness of the Indian
industries. A study of selective implementation of GSCM
initiatives has been carried out pertaining to national and
international companies for GSCM strategy formulation. And
lastly the objective is to understand the problems, recent
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trends and challenges associated with GSCM and the related
benefi ts for the participating stakeholders.

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 2. Improvements By Green Supply
Chain Management

Improves operations by employing an environmental solution

Improves Agility: Green supply chain management help

mitigate risks and speed innovations

Increases Adaptability: Green supply chain analysis often

leads to innovative processes and continuous improvements

Promotes Alignment: involves negotiating policies with

suppliers and customers, which results in better alignment of
business processes and principles

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Pollution Prevention Hierarchy

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3. Need for Green Supply Chain
Management

 Increasing Environmental Constraints due to

 Global Warming
 Corporate Social Responsibility
 Beneficial for Organization
 Eco-friendly
 Increasing Environmental awareness in
 stakeholders
 Evolving Consumer and Client Demand
 Response to increasing fuel prices.

 India, an elite member of the trillion dollar club, has

already evolved to become one of the largest economies
in the world. The unprecedented growth in rural as well
as in urban sector will continue to touch newer heights.
In this scenario the rise in consumption and demand for
energy, increase in greenhouse emissions, and
constraints on critical natural resources such as land,
water and oil have hit the ecology and environment hard.
These issues need to be addressed on priority and right
away. There is a growing curiosity among the
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consumers in India regarding the protection of the
environment. Consumers in today’s age of technology
are actively involved and informed on ecological issues
and are thus changing their behaviour pattern so as to
accommodate a socially responsible lifestyle.
Companies that are going green will not only generate
profi ts in the long term but will also help in conserving
the ecology and reduce environmental impact. Moreover
the media also creates a valuable publicity for the
companies who implement green initiatives. Positive
publicity for going green can do a world of good for the
company’s corporate image. Hence companies that are
proactively involved in going green will gain visibility and
earn credibility. Implementing a green initiative program
also ensures companies to meet current and future
environmental regulations or legislation. Green Supply
Chain Management (GSCM) is thus gaining signifi cance
due to diminishing raw materials, deterioration of
environment, swarming waste lands and ever-increasing
levels of pollution. In today’s competitive world, it is not
only about being having better business sense and profi
ts but also about environment friendliness. Green SCM
can help organisations in the following ways:-

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 Savings: There are long term savings opportunities
through green movement. Companies need to show
some long term appetite by holding into the GSCM
investment. At least in the short term they could reach a
stage of a revenue neutral level. The corporate should
not expect huge benefi ts upon implementing Green
SCM immediately but it can defi nitely proclaim to
become a competitive advantage for fi rms marketing
goods with environmental characteristics.
 Lower risk: By buying greener products or services,
organisations can avoid risks which often translate into fi
nancial costs or losses. There are large numbers of
cases propping up wherein the suppliers and vendors of
a company are using illegal means to supply/ extract raw
materials thus hitting the corporate image. In fact some
of the supplier communities have very poor
environmental track records. These risks can be
sidelined by using and adhering to environmental
friendly practices.
 Increase in revenue: Companies are competing to
improve effi ciency of their business processes and
reduce energy and material consumption by utilizing
instruments like green supply-chain management.
Industry has been the prime investor in energy effi

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 ciency, renewable energy and green building projects
thus satisfying stakeholder demands, enhance brand
image, and improve customer loyalty.
 Indirect yield: - Being environmental-friendly,
organisation can reduce considerable waste and protect
the natural resources. It can enhance the brand image of
the company and will indirectly benefi t the motivational
levels of the employees, suppliers and other
stakeholders.

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 4. SOME GREEN SUPPLY CHAIN
METHODS THAT COULD BE USED
ARE GIVEN BELOW:

GREEN PROCUREMENT

Green Procurement means purchasing products and services

that cause minimal adverse environmental impacts. It
incorporates human health and environmental concerns into
the search for high quality products and services at
competitive prices.

As early as year 2000, the Government amended its

procurement regulations to require bureaux and departments
to take into account environmental considerations when
procuring goods and services. Specifically, bureaux and
departments are encouraged to avoid single-use disposable
items, and purchase products:

 with improved recyclability, high recycled content, reduced

packing and greater durability;
 with greater energy efficiency;
 utilizing clean technology and/or clean fuels;

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 which result in reduced water consumption;
 which emit fewer irritating or toxic substances during
installation or use; or
 which result in smaller production of toxic substances, or of
less toxic substance, upon disposal.

Organizations may choose to pursue a green purchasing

policy for several reasons. Green purchasing can help an
enterprise economically as well as lighten its environmental
impacts. Green purchasing also can help organizations
improve their efficiency, reduce liabilities, and gain
competitive advantage. The fact is that a green purchasing
program is an excellent way of finding products with a high
price-performance ratio and with improved use rates.

Reduced Total Costs

A green purchasing program has several advantages for the

business community. Reduced costs are high on the list.
Green purchasing strategies can save organizations money
on supplies they need to stay in business.

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Organizations that implement a green purchasing program
have achieved the following cost savings:

 Reduced hazardous management costs (e.g. using less

toxic products).
 Reduced operational costs (energy savings from efficient
equipment).
 Reduced disposal costs (hazardous and solid waste) by
generating less waste and using longer lasting products.
 Reduced repair and replacement costs when using more
durable and repairable equipment.
 Reduced employee safety and health costs at the facility
with reduced potential liability by improving the work
environment and minimizing risks to workers
 Reduced material and energy consumption.

Evaluating a potential purchase by first cost alone can

actually incur greater total costs for an organization. An
organization's green purchasing program can help identify
and reduce hidden costs and develop cost reduction
strategies for the entire organization.

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Enhanced market position:

Many organizations have also adopted environmental

purchasing policies for traditional business reasons such as:

 Recognizing market preferences, and serving customers

who have a stated interest in "environmentally friendly"
products and practices
 Distinguishing an organization and its products from
competitors
 Increasing operating efficiency
 Joining an industry or international market trend to
capture market share
 Improved compliance with environmental regulations

Government agencies may be subject to funding incentives.

Federal agencies have the incentives provided by Executive
Order 13101 and some regulations.

Ease of implementation:

A green purchasing strategy is compatible with existing

purchasing programs. Minor policy changes can produce
great effects for an organization that is not currently
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considering long-term costs for each purchase. What
purchaser would argue with eliminating unnecessary
purchases or reducing overall costs?

Organizations can easily try implementation on a limited

basis. Organizations can utilize a step-wise approach to
implementation. As the results for early changes are
measured and understood, it will be easier to spread the
practice to other products and services. Purchasing
professionals have tremendous influence in the market.
Suppliers who value your business will do what they can to
accommodate environmental standards you set for the
products you purchase.

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GREEN PRODUCTIONS
Green production is a business strategy that focuses on
profitability through environmentally friendly operating
processes. Proponents of this
management philosophy contend that green production is a
sensible course to follow not only because of the benefits that
it bestows on the natural environment, but also because of its
fundamental strategic soundness. As Stuart Hart, director of
the University of Michigan's Corporate Environmental
Management Program (CEMP), indicated in Northwest
Environmental Journal, "green business strategies based on
the principle of environmental sustainability may constitute a
key basis for competitive advantage in the coming decades."
Other business observers concur with this evaluation. Writing
in Business Horizons, J. Stephen Shi and Jane M. Kane
asserted that many companies that take a proactive stance
toward environmental improvements in production have a
decided advantage over businesses that are indifferent to—or
actively oppose—new standards: "First, they gain a 'greener'
image in the public eye. Second, because adopting new
standards takes time and money, they have more time to
develop methods for reducing waste and can do so on their
own schedule. Companies that wait until they are forced to
change often find themselves in an expensive, last-minute
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scramble to meet the requirements. As a result, they end up
throwing more money at the problem for a less effective
solution than their more proactive counterparts."

a process of green production can be defined as the clean

production system that reduce or ultimately, eliminate
polluting substances harmful for the environment. This type of
system is oriented towards the improvement of productivity,
reduction of energy consumption, and conservation of
resources. Some authors argue that the use of products
respectful with the environment can be the driving force
behind the generation of added value and cost reduction to
the SC. For the achievement of this purpose, the
environmental elements should be taken into 2 Green
Production Attributes and Its Impact … 25 consideration from
the stage of product design up to the final product distribution,
in order to make effective use of resources and to reduce the
basic environmental pollution.

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 Green Manufacturing

Green manufacturing is the renewal of production processes

and the establishment of environmentally-friendly operations
within the manufacturing field. Essentially, it is the “greening”
of manufacturing, in which workers use fewer natural
resources, reduce pollution and waste, recycle and reuse
materials, and moderate emissions in their processes.

Green manufacturers research, develop, or utilize

technologies and practices to lessen their impact on the
environment. As detailed by the Bureau of Labor Statistics,
workers at green companies must have
specific manufacturing training in green technologies and
practices such as:

1. Energy from renewable sources. Workers may generate

electricity, heat, or fuel from renewable sources for use within
their establishment. These sources may include wind,
biomass, geothermal, solar, ocean, hydropower, landfill gas
and municipal solid waste.

2. Energy efficiency. Workers will utilize specific

technologies and practices to improve energy efficiency within
their establishment.

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3. Pollution reduction and removal, greenhouse gas
reduction, and recycling. Workers will use green technologies
and practices to:
 Reduce or remove the creation or release of pollutants
in their operations
 Reduce greenhouse gas emissions
 Reduce or eliminate the creation of waste materials
 Collect, reuse, recycle or compost waste materials

4. Natural resources conservation. Workers will use

specific technologies and practices to conserve natural
resources, such as those related to organic agriculture, land
management, and soil, water, or wildlife conservation.

How is Green Manufacturing Beneficial?

Not only does green manufacturing benefit the environment,

but growing numbers of businesses throughout the country
are finding that a focus on recycling and the reduction of
waste can benefit their business as a whole. Business owners
are seeing improved bottom line and employees are seeing

an increase in motivation, morale, and public relations.

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Green Packaging
There are many millions of packaged items shipped
throughout the world on a daily basis. Each and every one of
these creates waste, and many conventional packing
materials cannot be recycled. With the huge amount of
companies transporting goods from factories to warehouses
and then to retailers, as well as the huge amount of online
orders placed daily, there is a hugely wasteful amount of
plastics, Styrofoam, cardboard, and paper used in the
process. Thankfully, sustainable packaging offers a solution
to this problem.

Green packaging, also known as sustainable packaging, is

the use of materials and manufacturing methods for the
packaging of goods that has a low impact on both energy
consumption and on the environment. Sustainable packaging
is created in an environmentally aware manner, using
biodegradable and recyclable materials, and is energy
efficient.

What Materials are Used in Green Packaging?

By using sustainable packaging, it is possible for

manufacturers and consumers to eliminate the contaminants
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 and chemicals that destroy the water, soil, and atmosphere of
our planet. This can be achieved by creating biodegradable
and recyclable packaging. Green packaging also has a lower
packaging content, and alternative energy sources such as
bio fuels, wind, and solar energy are used in the production
and transport process. Here are some of the materials used in
green packaging:

 Biodegradable plastics
 Plant-based plastics
 Recycled products
 Alternative energy sources
 Post-consumer recycled polyethylene bags made from
recycled waste
 Recycled molded packaging for eggs and more

The Four Main Types of Green Packaging Solutions

Looking at green packaging in general terms, there are four

main types of green packaging solutions.

 Renewable resource-based packaging. Starch-derived PLA

(lactic acid) is 90 percent biodegraded within nine months

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 when placed in an industrial composting facility. PLA comes
from sugar cane, potatoes, corn or other starchy foods.
 Packaging with additives. There are currently two types of
additives on the packaging market – OXO and BIO additives.
These are added in order to make the packaging degradable.
 Packaging optimization. Packaging reduction, while
retaining product protection, is a prime area on which many
companies have their focus.
 Recycled materials. Recycling materials is a familiar concept
for us all, and remains a staple process within the green
packaging industry.

What Materials are Not Used in Green Packaging?

The importance of green packaging to both the environment

and to humans is incalculable. A huge amount of energy is
needed for the production of traditional packaging like plastic
bags, corrugated boxes ,and plastics.

More often than not, the energy source is fossil fuels which
add millions of metric tons of methane and carbon dioxide
into the atmosphere on an annual basis. The discarded
traditional packaging eventually ends up in oceans or landfills,
causing untold contamination and damage to the eco-system.

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 There are various non-green packaging materials. These
include:

 Plastics made from polyethylene

 Styrofoam
 Multi-layered packaging
 polystyrene
 Fossil fuel energy
 And more

Key Benefits of Green Packaging

To reduce the environmental impact of traditional packaging

methods and materials, there is a wide variety of alternatives.
Each of these has its own benefits.

Material Reduction

 Ensure all paper material used in printing makes the best use
of space
 Resize packaging to fit the contents. Many conventional
packages are far bigger than requirements

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 Increase Recycled Content

 Use 100% PCW paper

 Source recycled plastic tubing

Waste Reduction

 Shred old paper sheets, and cut up waste to use as packing

material
 Use thinner plastic packaging and lower weight paper

Increase Recycling

 Redesign packaging to exclude non-recyclables such as

plastic lids
 Have informative recycling labels on packaging

Cleaner Production

 Ensure ingredients used in materials do not contribute to or

cause environmental degradation
 Recycle all waste water

Energy Conservation

 Use green power certified materials

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 Source production from alternative energy-powered or
energy-efficient facilities

Efficient Transport

 Source a packing manufacturer close to the manufacturer of

the product
 Only use fulfillment companies located within the primary
market

Increase Use of Renewable Material

 Use agri-fiber paper rather than tree-derived

 Design packaging for reuse and tell this to the consumer

Recent Trends in Sustainable Packaging

Fast-food giant, McDonald’s, recently pledged to source 100

percent of all fiber-based packaging from recycled or certified
sources by 2020. To stay current within the green packaging
market, many major and smaller companies are coming up
with their own interesting, and at times novel, sustainable
packaging ideas, such as:

1. Edible packaging. In an attempt to reduce paper and plastic

waste, edible packaging has become a manufacturing talking
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 point. However, its creation and use would be problematic
due to hygiene and logistical issues.

2. Downstream supply chain professionals measuring and

auditing upstream suppliers. Companies are requiring and
requesting more measurements, audits, and a better
understanding of supply chain performance. In time,
meaningful business decisions will likely be made based on
the environmental preferability of upstream suppliers.

3. Shrinking carbon footprints. Reductions in carbon

footprints generally accompany reductions in other negative
environmental issues, therefore shrinking carbon footprints is
important to focus on.

4. 100 percent bio-based PET. Since 2009, Coca-Cola has

been producing a partially bio-based PlantBottle. In 2015, the
company announced the production of the first
demonstration-scale 100 percent bio-based PlantBottle in the
world. It is expected that the company will make more
announcements relating to the PlantBottle over the months
ahead.

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5. Better bioplastics. It is hoped that 2016 will be the year in
which the barrier, thermal, and mechanical properties of
bioplastic will be improved. One issue with bioplastics is that
products which are required to be heated or sterilized via
heat, were unable to be packaged in this manner. However,
continued innovation means that some bio-based packaging
can withstand very hot temperatures. More high performance
bioplastics are expected throughout 2016.

6. Waste reduction. By no means a new or novel concept,

waste reduction will always be a sustainable packaging trend.
Recyclable packaging is both good for business and for the
environment. Therefore, “zero waste” is still the most common
buzz-phrase in the manufacturing industry today.
Green packaging, in addition to the uses and materials that
make it sustainable, is an environmentally sound choice. It is
also increasingly economically appealing for both consumers
and manufacturers. In addition to this, sustainable packaging
helps to ensure a cleaner environment for ourselves and our
children

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GREEN WAREHOUSING

Sustainable warehouse is about integrating, balancing and

managing the economic, environmental and social inputs and
outputs of the warehouse operations. Sustainability is a core
value to many businesses but they find it hard to implement in
their current business setting especially when they use third
party logistics management system like warehousing and
distribution in their supply chain business network.

There are several benefits to “going green” in your

warehouse: from reducing utility bills and increasing
sustainability to reducing your carbon footprint and providing
your employees with an eco-friendly business they are proud
to be a part of. For many business owners, though, thinking
about going green is more than a little overwhelming.
Knowing where to start and what upgrades will have the most
impact challenges many owners.

There are several ways your warehouse can go green,

and there is no “right” or “wrong” way to do it. Even making
small changes to make your warehouse more environmentally
friendly is a big step in the right direction. Going green doesn’t

35
have to be difficult. Here are a few simple ways your
warehouse can go green.

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Upgrade Your Lighting

Changing your lighting is one of the easiest ways to make any

warehouse more environmentally friendly. Switch out your
old-fashioned light bulbs for more eco-friendly options, like
LED. While they may cost a bit more upfront than traditional
light bulbs, they last significantly longer and use less energy.
You will save on your electric bill while taking a big step
toward lowering your impact on the environment. In large
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warehouses, this one simple change can make a huge
difference.

Invest in Energy Efficient Equipment

If you own a warehouse, chances are you work with
equipment that runs on electricity or petroleum. As this
equipment needs to be replaced, look for options that are
more energy-efficient. Pay close attention to things like
gallons per hour, miles per gallon and how much wattage a
particular item uses. When upgrading, make sure that the
new product still functions as you need it to and keep up with
regular maintenance to ensure maximum efficiency. Keeping
up with maintenance also extends the life of many products
and reduces the waste of needing to frequently upgrade.

Think About Your Packaging

Using less packaging cuts down on waste. More efficient
packaging also weighs less and costs less to ship. Consider
switching from traditional packing materials to products that
are biodegradable. While packing materials made from
synthetic plastics can take hundreds of years to break down
in landfills, biodegradable materials degrade within just a
couple of years. Many biodegradable materials are also
compostable. All in all, making your packing more efficient

38
and switching to biodegradable packing materials significantly
reduces waste and decreases your carbon footprint.

Recycle
If your warehouse doesn’t already recycle, start now.
Warehouses are typically well-suited to recycling and making
a conscious effort to do so is a huge step in going green.
Cardboard and paper make up the vast majority of waste in
many warehouses, and if you are not recycling efficiently, you
could be sending way more waste to the landfill than
necessary. Set up an effective recycling plan and stick to it.

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Reuse

Warehouses can reuse many materials. From corrugated

boxes to pallets, several products can be used several times.
While not commonly reused, packing materials are costly to
manufacture. Opting to recycle them saves money and
reduces the environmental impact of manufacturing. Whether
you reuse packaging sent to you by suppliers or you
encourage customers to return packing for reuse, doing so is
a small step toward reducing your business’ impact on the
environment.

Make Sure the Facility Is Properly Insulated

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Poor or insufficient insulation allows warmed or cooled air to
escape from your building. This drives up your heating and
cooling bills and increases your facility’s impact on the
environment. Make sure your warehouse is properly insulated
to help keep climate-controlled air inside where it belongs. In
addition to keeping your employees comfortable, doing so
reduces wear and tear on your HVAC system and reduces
your energy bills.

Contact an HVAC Expert

Your heating and cooling system uses a lot of energy. Hiring
an HVAC expert to audit the system could help you save on
your utility expenses. If the system is not operating as
efficiently as it should, it could be driving up your monthly bill
and wasting a lot of energy. An experienced HVAC technician
will help you identify inefficiencies with the system and
recommend changes that could save you money and reduce
your environmental impact.

Build Up Instead of Out

As your warehouse expands, consider practices and
equipment that allow you to build upward instead of outward.
Building upward requires less horizontal space, and doing so
could allow you to put off relocating to a larger warehouse.

41
Expanding upward allows you to maximize the space you
already have.

Opt for a Cool Roof

Your building’s roof may not be something you give much
thought, but the right roof can actually help your business go
green. By coating your warehouse’s roof in bright, reflective
paint, you allow it to reflect the sun’s light rather than
absorbing it. This could drastically reduce your cooling costs
during the summer months, and it is yet another easy way to
make your warehouse more “green.”

Get a Large Fan

Destratification fans are huge fans that can improve heating
and cooling efficiency in your warehouse. They work by
circulating air throughout the entire warehouse, and they
create a much more even temperature. This cuts down on
energy usage and heating and cooling bills.

Employ Green Business Strategies

42
While many changes can be made in a warehouse
environment, there are also several ways to go green in your
office and throughout the rest of your business. One of the
best ways to do this is to invest in technology that allows you
to go paperless. When you do need to use paper, look for
recycled materials. Implement a system for recycling as much
waste as possible. Office waste, warehouse waste, glass and
plastic bottles, etc. can all be recycled.
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Upgrade to more energy-efficient electronics, and switch them
off when they are not in use. Since many devices and
electronics draw power even when they are turned off and not
being used, it’s also a good idea to unplug them. Install solar
panels to generate electricity and use solar-powered chargers
for your company’s electronics.

44
GREEN LOGISTICS

Green logistics describes all attempts to measure and

minimize the ecological impact of logistics activities. This
includes all activities of the forward and reverse flows of
products, information and services between the point of origin
and the point of consumption. It is the aim to create a
sustainable company value using a balance of economic and
environmental efficiency. Green logistics has its origin in the
mid 1980s and was a concept to characterize logistics
systems and approaches that use advanced technology and
equipment to minimize environmental damage during
operations

45
Green Transportation

Distribution is managing the movements of all the materials in

the value chain from the beginning to the end. Business
managers responsible from distribution observe the
relationship
between competitive advantage with the environmental
factors. Distribution does have considerable effects on
environment. For example, in Britain, exhaust fumes of
vehicles are among the important causes of environmental
pollution (Ar, 2011). Through green production,the damage to
the environment will be brought down to the minimum, while
all business costs are being reduced and profits will be
increased.

46
 5. INDIAN MARKETS AND
WORLDWIDE IMPLEMENTATION:

The largest retail giant in the world launched an extensive

business sustainability strategy in 2005. Wal-Mart, a
behemoth in retail industry had a huge problem relating to
waste through packaging. It came to an understanding that if
there is a 5% reduction in packaging it could save around 6.5
metric tons of carbon dioxide from entering the atmosphere
and around $10 billion dollar of savings as well. The company
decided to implement the strategy and benefi ted from it.
Many MNCs are trying to target for “zero waste for disposal”.
This Swiss multinational food and beverage company is
striving for the same goal. Nestlé the company under
discussion tries to address the concerns related to rural
communities, safety of soil, water and air through effi cient
use of water disposal techniques. Due to their sustainability
efforts around 35+ factories of Nestle have generated zero
waste for disposal in 2012. Heineken has implemented a
program named “Aware of Energy”. Through this program the
company creates awareness related to energy among its
employees. The company focuses on conserving waste heat,
use of renewable energy etc. The company has saved 17
percent of energy per hectoliter of beer. It is also aiming to
47
reduce 50 percent carbon footprint by 2020 on its installed
fridge base. Talking about the neighboring country China,
which is the third largest economy in the world is facing a big
challenge in terms of tons of solid waste. The country has
taken a major step in waste to energy capacity (WTE). From 2
million tons to 14 million tons of WTE capacity, China has
become the fourth largest user of WTE. According to
estimates there were 66 WTE plants in 2007 which is now
increased to 100+. Through this China has been able to
generate $30 per MWH of electricity. Little far off in the heart
of Abu Dhabi the city has been chosen to be the
headquarters of International Renewable Energy Agency
(IRENA). An investment of $22 billion has been made to
develop Masdar city which will be powered entirely by
renewable energy. More than 1500 companies will be part of
the city. Their main focus will be to fund the research and
development activities and help in creating new and
sustainable technologies. A carbon neutral zero waste city will
come into existence where no automobiles will be allowed to
run and solar powered desalination plant will help in providing
the water supply to the whole city. Also due to large open
areas land and its exposure to direct sunlight Saudi Arabia is
poised to become the largest exporter of solar energy in the
world. A lot of emphasis has been given to sustainability and

48
the issue has become part of boardroom discussions. Due to
growing population and usage of energy global warming has
become a growing concern. To create an eco-friendly
environment the companies have started branding their
internal initiatives.

ITC
ITC is a much diversifi ed business house, ranging from
FMCG to hotels, paper and packaging to agribusiness and so
on. With an annual turnover of about $8 billion it is a part of
the famed Forbes 2000 list. The company is leading by
example in many green initiatives some of being the use ECF
(Elemental Chlorine Free) technology, Ozone bleaching,
energy and water management techniques 18 Journal of
Supply Chain Management Systems Volume 3 Issue 1
January 2014 Figure 3: Branding of different companies
Sources: Company Websides, Annual Reports, CSR Reports,
RT, Booz & Company Analysis Figure 4: Progress in India in
terms of sustainable and environmental issues Green Supply
Chain Management in India - An Overview 19 and recently
incepted the green boiler mechanism. By implementing the
mentioned green techniques the company is able to reduce
its dependence on fossil fuels like coal by over 100000 tons
per annum. The recycling of waste materials has helped ITC
49
to manufacture paperboards for packaging purposes.
Through the use of e-choupals, ITC has built a signifi cant
advantage in raw material sustainability and thus is reaping
benefi ts out of it. The company has therefore become a
frontrunner in Green management initiatives and is committed
to reduce carbon footprints.

DR REDDYS

Dr Reddy’s Pharmaceutical industry in India is facing a lot of

heat from consumers as well as from regulators to reduce the
environmental impact of its actions. In this scenario the supply
chain of pharmaceutical companies has come under a lot of
scanner. Dr. Reddy’s is one such company that gives
emphasis on sustainable sourcing. They have initiated a
process of interaction with all the business partners known as
“mentoring” in which all the stakeholders are guided about
following good sustainable practices. The company also
focuses on periodical training on quality to all its vendors
especially for those who have recently become business
partners. These kinds of half-yearly activities help the
company to convey to all its partners their business
processes and culture.

50
TCS
Tata Consultancy Services (TCS) is committed to use
environment friendly components in all its processes. Starting
from the infrastructure, TCS has increased the usage of
renewable energy in its offi ces. As of 2012- 13 data the solar
water capacity is around 86,600 litres per day which is an
increase of 55% from the previous year’s fi gures. The
company is also focusing on green procurement from its
suppliers. It has given emphasis on procuring energy star
rated equipment. The company has initiated various drives
and internal communications among its employees regarding
energy saving benefi ts. Some of the fundamental things like
switching off the computers at the end of the day, minimizing
the usage of lights to more technical like installing variable
frequency drives. With the implementation of rain water
harvesting, sewage treatment plants and other water
management techniques TCS is able to reduce the use of
fresh water by over 13% as compared to 2008 fi gures. A
major challenge for all the IT majors is the issue of e-waste.
The defunct/ obsolete computers are being legally disposed-
off through government authorized recyclers. Promotion of
video conferencing is done in all the TCS facilities to reduce
the travelling of employees to client locations through
automobiles, thus reducing the greenhouse gas emission.
51
STATE BANK OF INDIA

“Green channel counter”, a fi rst of its kind initiative by SBI

bank, has given a new dimension to paperless banking. An
account holder can transfer fund, withdraw money and even
deposit money to another account without fi lling any physical
forms. A mere swipe of card can do all these transactions.
The bank has also launched solar powered ATM machines in
remote areas which not only help in extending their customer
base but reduces the power consumption by 1000 watts as
compared to the conventional ATM machines.

L&T

Larsen & Toubro Limited (L&T) is an engineering and

construction company with an annual turnover of about $14
billion. The company is massively involved in construction,
hydrocarbon, heavy engineering, power, infotech etc. It is the
fi rst company in India to start reporting about sustainability.
The company in its various initiatives has implemented 3R
principle i.e. Reduce, Recycle and Reuse. Due to this L&T is
able to harvest more than 23 million liters of rainwater. There
is an overall reduction of 6% in water consumption and 16
campuses have witnessed zero wastewater discharge. In

52
terms of infrastructure they have built energy effi cient offi ces
and extensive usage of renewable energies like wind and
solar power across its facilities. The company uses recycled
materials like fl y ash, crush sand etc. as an input to its raw
material requirements. In fact the company is regularly
involved in stakeholder (internal and external) engagement to
identify key material issues. The organisation also
encourages usage of video conferencing for internal meetings
so that traveling of the employees can be reduced and
indirectly minimize the usage of automobiles.

ONGC

India’s largest oil producer, ONGC has partnered with

Mokshda Paryavaran Evam Van Suraksha Samiti to develop
an energy-effi cient green crematorium. This will change the
traditional system of burning. The new invention will help in
reducing the wood consumption by 60% and will also signifi
cantly minimize the air and water pollution.

53
 6. CHALLENGES:

Implementing GSCM is not so easy. Organisations are likely

to face certain challenges some of which include:

 Cost is professed as the biggest predicamentin

implementing Green SCM.

 Companies generally implement any new technology or

process when it can see the results in quantifi able terms. But
as GSCM is a naïve concept it has become relatively diffi cult
to exploit any measurable data to check the value chain
effectiveness.

 There is a need to have a proper technology in place to

compliment business with the Green Practices.

 Lack of green architects, consultants, green developers,

contractors in the region. Due to lack of green practitioners
available, the organisations are apprehensive to go ahead
with the investment.

 An important aspect of GSCM is integration of recycling of

the products. It is a major challenge for many companies to
integrate the waste (recycling) as raw materials to again be
used in manufacturing unit.

54
Another challenge is the fear of failure. The organisations are
not confi dent whether the Green initiative will lead to success
or a major failure.

 Lack of awareness regarding the implementation process,

regulations and best practices.

 A critical factor in implementing a GSCM initiative is the

support and commitment from the top level management but
unfortunately due to lack of confi dence on the concept and
high initial investment, the top management becomes
apprehensive in implementation of green practices.

 As supply chain has lot of participating

stakeholders,anyone’s reluctance to accept and get involved
in the design process and technology affects the overall
performance of the whole chain.

 Lastly, due to lack of customer awareness towards GSCM

and Green products the companies are hesitant to go ahead
with the implementation.

55
 7. CONCLUSION:
Green is a journey and not a destination. Greening the supply
chain is an industry issue that will only gain importance over
the years to come. Continuous time and effort is required to
implement and enhance the green capabilities. The current
system of operations in the organisations, not only in India but
around the world, is damaging the environment and soon a
day will come when the damages done to our earth will
become irreversible. GSCM is foreseeable if the earth is to be
kept green. There is a huge pressure on the organisations to
supply products that are environmentally friendly in their
sourcing, production, delivery, usage and disposal. In the
coming years organisations will be investing immensely on
network design, cross functional collaboration, sourcing,
procurement, packaging changes and innovative methods
with an emphasis on reducing carbon footprints at every
stage of supply chain. As some of the industries are nearing
saturation point brand building will become a top incentive of
implementing green SCM. From the myriad of parameters
affecting implementation of GSCM, cost of technology and
complexity of processes are perceived to be as the major
obstacle to implementing Green SCM, which therefore draws
attention towards the need for costeffective and easy to
implement solutions. Another important factor that affects
56
manufacturing companies is the recycling of raw materials.
The companies are putting a lot of effort in green production
facilities. Implementation of green warehouses and
distribution initiatives has resulted into companies being more
lean and effi cient. As the concept is still at a very nascent
stage in India the awareness about green SCM is not that
visible. A framework needs to be established to create
awareness and spread the knowledge regarding GSCM
practices showcasing the cost and effi ciency benefi ts for the
companies. Supply chain comprises of partners and a greater
and transparent collaboration among them will result into a
successful and sustainable GSCM implementation. While the
challenges might change but the fundamentals of doing good
business will remain the same.The leaders should see the
green supply chain management as a core part of the
business that can result in cost competitiveness and value
creation in longer duration.

57
 BIBLOGRAPHY

https://en.wikipedia.org/wiki/Supply-chain_sustainability

https://www.epd.gov.hk/epd/english/how_help/green_procure/gr
een_procure.html

https://www.referenceforbusiness.com/small/Eq-Inc/Green-
Production.html

https://www.goodwin.edu/enews/what-is-green-manufacturing/

https://www.allthingssupplychain.com/11-simple-ways-your-
warehouse-can-go-green/

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