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Bahir dar University faculty of business and economics


Department of logistics and supply chain management

Supply chain management and practice

Individual Article Review Assignment


Article Title- Green Supply Chain: Challenges and Practical Issues

Submitted for -Dr .Biruk


Prepared by- Tadele Biadgelegne
IDNo =BDU0905140
Date 02/05/09

Introduction
1

Starting from 21 C green eco- friendly business idea get special focus because
economic development sustainability

Soon after that increase awareness about environmental quality and push the
business to adopt the green strategy. (1) Many organization give high attention
for green S.C.M. approach implementing green S.C includes minimizing the
Negative impact on the environment [2] Green supply chain Involves to
collaboration from supplier and customer. [3] Green bus concept has
ambiguous definition founded in the literatures. In addition green bus
practices are still not applied by bus initiates world widely because of many
organization perceive green move increase cost in addition to cultural political
and economic issues [4] waste reduction and JIT principle are the conflicting
idea in the firm. Because Waste reduction in compatible in environment but
JIT is not compatible.

1.1 purpose of the article

Identify the green supply chain challenges and issues from different literature
and address that by research to assist in decision making

Research approach (methodology)

The Wide scope review of literature about green supply chain strategy from
different journal, books, articles and websites the source of this literature is
libraries, EBSCO Business source premier, JSTOR, emerald in sight etc.

The reviewed literature is analyzed by listing characteristic of green supply


chain presented by each author. The idea is that the challenges,
implementation and practically issues of executing green supply chain started
as the main focus

3. Literature review
2

The definition of green business is similar with sustainable survival and


resources are the main terms for define sustainability. For long term green
sustainability use natural resource effectively and eventual [5]

Brown and Rutledge – sustainable is by creating green output procedure,


promote the business sustainability every the long period of time because
resource are necessary for sustainability.

Mean while, define supply chain the relation of different organization for the
bus and deliver the good of service to the customer.

Markower and pyke green business is required high balanced commitment to


achieving profitability sustainability and humanity.

Generally supply chain is a network of activity between participants so


implementing green supply chain strategies in the all supply chain participant
working collaborate to providing implement positive impact the environment.

4. Green Business Challenges and practical issues

Necessity is the mostly of innovation an problem improve the method used to


solve and real high level of success in long run challenges the source of vision
strength.

4.1. Firm profitability

Applying green supply chain is affect profitability. From the research made over
the year green businesses have proven to influence the economic performance
as well as the environmental enhancement.

The implementation of green business required some challenges in the


business models. This is lead to major challenges so the firm invests more to
solve these challenges.

4.2. Market
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Before serving green product and services to the market perform market
research. There are four characteristics of green consumer futures that are
demographic, socio economic, psychographic and behavioral.

On the socio economic characteristics of green product attract high income and
well educated people. Consume behavior characteristics are influenced by
attitude and conveniences.

4.3. Government role

Government is regulated the citizen behavior, government has power to control,


governmental in compatible business by penalty and tax government also
develop policies and corporations to give advantage for green business
participant firm.

4.4. Conflict in activity strategic object

All business have its own objectives for the company success but because of
many participant in the supply chain some of those encounter conflict between
each other in attain their objective and meet of the green supply chain
objective. The green effect is put at risk when implementing. Each production
some manager have not skill and make effective solution so manager use
optimal guidelines and measurement technique are use to making and simplify
the analytical attempt. The manager should consider early decision well
influence the future performance

Discussion

This paper is briefly explain the changes of supply chain management to


implement green supply chin objective but still some limitation the area of
external operating factor it may be affect the outcome of green supply chain
practice. The literature has discussed about challenges and issues in the
business implementation but not focus on the application tools that can be
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utilized by implementing green supply chain practice can lead to business


efficiencies

The principle of green supply chain is may be broad and unclear but focus on
minimizing guar mental impact in the business activities collectively.

Agenda for future research

For future research suggested to include the limitation of this research that are
empirical measurement technique, clearly highlights the firm profitability by
applying green supply chain practice and make acceptance by making repeated
discussion about green supply chain practice.

Conclusion

Awareness about environment is increase across the world. So green supply


chain practice apply environmentally compatible practice to take advantage
from complex supply chain and compotators.

Generally to implement effective green supply chain practice the manager must
cooperate with other to reach the desired goal government could be highlight
guidelines and regulations to help the synchronization of the imitative
collectively. Finally green supply chain practice benefiters are not only the
business but also the environment in holistic manner.

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