Green supply chain management integrates environmental thinking into supply chain management. It aims to reduce the ecological impact of supply chains through approaches like sustainable product design, environmentally-friendly material sourcing, reducing emissions in manufacturing, and end-of-life product management. Major retailers are implementing green supply chain practices like reducing energy consumption in stores, using sustainable packaging, and reducing waste. While it provides benefits, green supply chain management also presents challenges for retailers around higher costs and complex franchise models.

1. GREEN SUPPLY
CHAIN
MANAGEMENT
Prepared By: Group 5
Kumar Abhishek (A001)
Prity Agarwal (A004)
Deeksha Aggarwal (A006)
Govind Krishnan (A030)
Mayank Kumar (A031)
Apoorva Parikh (A043)

2. Supply Chain
• Supply chain is a long channel stretching from
suppliers (raw materials, components) to
assemblers (finished goods), warehouse, retail
shops and final consumer. The supply chain is a
value delivery system and each firm in the chain
captures only certain percentage
• Supply Chain Management is the oversight of
materials, information and finances as they move
in a process from supplier to manufacturer to
wholesaler to retailer to customer

4. Green Supply Chain Management
“Integrating environment thinking into supply
chain management, including product design,
material sourcing and selection,
manufacturing processes, deliver of the final
product to the consumers, and end-of-life
management of the product after its useful
life”
SCM
Environmental
Concerns
GSCM

5. GSCM Vs Conventional SCM
Basis Green SCM Conventional SCM
Objective Economic and ecological Economic
Ecological Impact
Low impact; integrated
approach
High impact
Speed & flexibility Low High
Supplier selection criteria Long term relationships Short term relationships
Cost and pricing High Low
Consumer’s selection
criteria
Less preferable due to high
pricing
More preferable due to low
pricing

6. Benefits of GSCM

7. Why there is need for Green SCM?
• Corporate Social Responsibility
• Eco-Friendly
• Beneficial for Organization
• Evolving Consumer and Client Demand
• Increasing Environmental Constraints due to
Global Warming
• State Regulations
• Increasing Environmental awareness in
stakeholders

8. Areas to Green the Supply Chain
Designing of Products
An eco friendly design
approach leads:
•Less Material Usage
•Minimum Operations
Purchase
• Implementing green
purchase policies
•Technical support to
vendors to reduce
emissions
• Guidelines for less
hazardous usage
Production
• Achieving economies
of scale in production
•Lean Manufacturing
Approach
• Fuel efficient tools
and machines
•Selecting less carbon
intensive energy
sources
Packaging
•Mercury free
•Non toxic
•Recyclability
•Energy efficient
•Durability/Reusability
•Hazardous waste
considerations
Logistics
•Optimized truck loads
•Direct shipment to the
customer(Dell)
•Routing of distribution
•Reverse Logistics

9. GSCM - Nike
• Nike has joined an innovative partnership that can more quickly clean up its supply
chain by giving the company easy access to sustainable materials and chemicals.
• Tied up with Switzerland-based Bluesign Technologies -- which has created a tool for
improving supply chains in the textile industry
• Using the "bluefinder" tool, a supplier can access pre-screened and more sustainable
textile preparations -- including dye systems, detergents and other process chemicals
used in the manufacturing process. It enables suppliers to effectively manage
restricted substances and provides the opportunity to increase water and energy
efficiency.
• Another tool, "blueguide," gives Nike access to 30,000-plus materials that have been
produced using these sustainable chemicals.
• Before this, Nike had to go through the iterative process of assessing individual
factories and suppliers, which obviously takes many years and lots of investment and
time.

10. Current Best Practices
• Put your effort where it will do the most good: Large corporations often have tens of
thousands of suppliers. So in one form or another, most companies use a version of
what has been called the 80/20 Rule to decide where to focus their efforts. Walmart
began by pulling together its top 200 suppliers in China in 2008, which constitute 60%
to 80% of its total supply chain. GE takes a slightly different approach and uses Life
Cycle Analysis (LCA).
• Use suppliers as force multipliers: IBM rolled out its Social & Environmental
Management System program to its 28,000 first-tier suppliers in 2010. What makes
this program so potentially powerful are two additional requirements: Suppliers must
publicly disclose their metrics and results, and “cascade” the program to any suppliers
that are material to IBM’s products.
• Closed-loop supply chain: Xerox doesn’t sell their machines to companies. They lease
them, and they maintain and service them. So they know exactly what condition that
product is in at all times. they can then re-use parts from the machines they recover.
• Logistics Performance Index (LPI): It is a benchmarking tool developed by the World
Bank that measures performance along the logistics supply chain within a country.
Allowing for comparisons across 155 countries, the index can help countries identify
challenges and opportunities and improve their logistics performance.

11. Green Sigma
• Green Sigma™ is an IBM solution that applies Lean Six Sigma principles and
practices to energy, water, waste and GHG emissions throughout a company's
operations :
• Transportation Systems,
• Manufacturing and Distribution Centers,
• Office facilities,
• Retail space,
• Research and Development sites
• It combines real-time metering and monitoring with advanced analytics and
dashboards that allow clients to make better decisions that improve efficiency,
lower costs and reduce environmental impact.
• The key IT focus areas in GSCM that enable a transition to a green organization
are:
• Product Life Cycle Management
• Supply Chain Network and Logistics Optimization
• Process Optimization
• Green Reporting

12. GSCM by Retailers
Most retailers are feeling the pressure to turn their retail green and minimise
their carbon footprints. The various methods adopted by them are-
Reducing energy consumption at stores
 Green packaging
 Reduced wastages.
Drivers for participation of small and medium sized suppliers in GSCM:
Green Supply Chain Readiness
Buyer’s Preferences
Government Involvement
Evaluation of success factor of ISO-14001: ISO 14001 contributed to GSCM
practices.Companies which facilities with ISO 14001 are 40% more likely to
evaluate their suppliers’ environmental performance and 50% more likely to
ask their suppliers undertake specific environmental practices.

13. Problems in GSCM by retailers –
The higher costs associated with monitoring and managing
GSCM practices in multiple store locations.
A franchise ownership business model where decision making
is split between the franchisor and franchisees, obtaining
support for global initiatives such as GSCM may present a more
complex process.
Training on Sustainable Store Operations-
A series of training sessions for store managers has been
organized on “Green Retail”. One of the sessions were
conducted in Bengaluru, Mumbai and Delhi on 9th, 12th and
14th October 2015 to highlight the improvement areas like
conducting congratulatory programs on purchase of green
products.

14. Retailer Studied by us
Shoppers Stop: The various GSCM practices are
 Deployment of e-tool like social media platforms and
websites to move towards a digital omnipresence.
Shoppers Stop’s energy management policy is built on the
tenets of the 3 R’s ,i.e., Reduce, reuse , Recycle. It has deployed
systems such as Variable Frequency drives(VFD),eco-friendly
refrigerants in chillers, LED lights, etc.
Shoppers Stop introduced a unique energy management
initiative of using solar power at Andheri store in Mumbai. The
30 KW energy generated from these solar panels is utilised to
power the second floor of the store.

15. In the year 2006, Shoppers Stop also overtook the cause of Water
Conservation by adopting rainwater harvesting practices in select
stores such as Rajouri Garden (New Delhi) and Begumpet
(Hyderabad).
An interactive page on the intranet site Spandhan has been
activated to encourage employees to suggest and initiate activities
towards environment conservation.
Shoppers Stop’s popular youth exclusive brand Life in 2008
dedicated its Spring-Summer and Autumn –Winter collection to
sustainable environment. It was tagged with sachets of neem seeds.
3 lakh neem seeds were distributed with Life merchandise as part
of Think Green campaign.

16. References
• https://www.greenbiz.com/news/2013/03/25/nike-moves-faster-clean-its-supply-chain
• http://www.inboundlogistics.com/cms/article/g75-inbound-logistics-75-green-supply-chain-
partners/
• Initiative for Global Environmental Leadership (IGEL), Wharton University, June 2012, Special
Report-Greening the Supply Chain: Best Practices and Future Trends.
http://environment.wharton.upenn.edu/
• Ashish Kumar Bhateja, Rajesh Babbar, et al., 2011, International Journal of Computational
Engineering & Management, Study of Green Supply Chain Management in the Indian
Manufacturing Industries: A Literature Review cum an Analytical Approach for the
measurement of performance. http://www.ijcem.org/papers72011/72011_15.pdf
• Mohd Javaid, Mohd Shoeb, 2015, International Journal of Advanced Technology in
Engineering and Science, Benefits on implementation of green supply chain management in
manufacturing industries. http:// www.ijates.com/images/short_pdf/1434549119_P128-
132.pdf
• Ranjan Gupta ,2010 http://www.supplychainbrain.com/content/nc/general-scm/single-
article-page/article/challenges-and-opportunities-for-greener-supply-chain-management-in-
high-tech
• http://www-03.ibm.com/press/us/en/pressrelease/27814.wss