For Office Use:

Grade

INSTITUTE OF MANAGEMENT
NIRMA UNIVERSITY

MBA (FT) 2017-19

OPERATIONS MANAGEMENT II
GROUP ASSIGNMENT
“Green Supply Chain in Automobile Industry”

Submitted to: Dr. Diljeetkaur Makhija

Group No: 8

Submitted By:

NAME ROLL NO.

Heena Rajpal 171219
Raheen Taj 171236
Ruchita Shah 171241
Saloni Agarwal 171243
Nishant Agrawal 173103

Date: 2nd December 2017

 Green Supply Chain in Automobile Industry

Green Supply Chain management talks about supply of goods and services right from
the raw materials suppliers to the customers such that the entire material flow,
information flow etc. is concerned about the environment. It is basically about
integrating environmental aspect in our SCM throughout the set of processes involved
in production like design, manufacture, delivery and service. The use of green or
environmental friendly methods for the supply chain management is looked upon as an
opportunity by many organizations to cut down costs, increase revenues and take care
of the environment at the same time.

Traditional ways of supply chain management were centered on delivering total quality
at optimum costs while adopting certain environmental-friendly activities. Today, it has
already become quite mandatory to add at least some environmental approach,
innovation or idea to every stage of the supply chain. Lean manufacturing is also greatly
adopted because it works on elimination of waste at every point in the supply chain
such that inventory costs are reduced, disposal of unnecessary items that could harm
the environment doesn’t take place anymore and customer expectations are exceeded
by giving them the most environment friendly products. Hence, lean manufacturing also
contributes to going green.

The various ways that help in building a green supply chain include:

 Design of the product should take place keeping in mind that it should minimize
pollution and usage of energy and it should be safe to use for people and
environment. It shouldn’t cause any kind of hazards in terms of transportation
and storage as well as disposal. The concept called Design for Environment
should be implemented so that the product is good for the environment as well
as human beings and cost effective as well.
 The production strategy should also be decided while keeping in mind that it
must reduce energy consumption being effective and efficient at the same time.
Reduction of waste materials as well as emissions to water and air must be
reduced. Recycling of any kind of materials especially scrap must be
implemented.
 The partners for the business must also be selected keeping in mind such
practices on lean manufacturing and the green approach. Partners like vendors
 and suppliers must also be involved when the product is designed and
conceptualized so that they can not only share their practices but align how they
are planning to deal with the product with the environmental friendly approach
by the company. If the entire supply chain implements these practices, it will not
only be extremely beneficial to the environment but also lead to customer
delight.
 For logistics, efforts should be made to minimize fuel consumption. Transport by
rail or water ways should be preferred over air travels. Space utilization and fleet
management should be efficient for which logistics partners need to be involved
in product design phase
 Materials that are used for packaging must also be eco-friendly, preferably
reusable and recyclable.
 Green approach to IT must also be adopted by various processes that are
automated and can reduce carbon footprints. The use of paper can be avoided
greatly by using digital means.
 Green practices can also be implemented in buildings during construction and
maintenance. Energy efficient resources for lighting or opportunities for natural
lighting can save a lot.

Review of literature

Various literature reviews are available on the Green Supply where researchers
are talking about how company can take initiative for this and implement Green Supply.
So some of the most important literature reviews are as follow:
 Jain and Sharma (2012) studies Green Supply Chain Management practices from
literature and combine common practices in automobile industry through questioner
This study was primary study where author developed questionnaire of 26 Green
Supply Chain Management. This paper combine issues related to supply chain
management with Green aspects and total 10 organizations was selected for this study.
Author has filled the questioner from Supply chain / purchasing / production
department and manager of the company. Because these are the people who know
Green Supply chain practices in the company as compare to other people. For this study
author used convenient sampling and directly interacted with the organizations’
Managers/ employees. Organization from Pithampur and Dewas (M.P., India) had
participated in filling questioner. Study also covers Green Supply Chain Practice in
context of Green activities across the organization like IT, logistics, and transportation
with green. Intensity of Green activities in IT department is very good where company
is using SAP, ERP software which 81.25%. While green logistics (43.75%), transport
greening (56.25%) and green purchasing (50%). The company which responded and
component industries are not practicing Eco-labelling (43.75%). As it is not common
practice as compare to eco design (87.50%). Eco design is to use disposal of product is
less harmful for environment. Out of 10 companies author study only 5 companies were
ISO 14001 certified. Author also studies some of the barriers to implement the green
supply chain practices in automobile industry where commitments from Top
management play an important role.
 Sanghavi et al (2015) study green supply chain management practice in
automobile industry. Author focuses on green design and green operations. With the
help of green supply chain management automobile is trying to achieve higher
efficiency. There are so many barriers to implement practices in the company. Green
operations include green manufacturing, reverse logistic and waste management. The
strategies under green design adopted by sector were environment conscious design
(ECD) and life cycle analysis (LCA). They suggested company can optimize procurement
on raw material and distribution can be optimizing through green supply chain
management. They suggested Implementation of GSCM in automobile. They make the
relationships between knowledge transfer and green management performance. Author
studies detail analysis of green operations of the companies BMW, Toyota, Ford and
BYD. Companies like BMW, Toyota, and Ford are practices green supply chain activities
like Life cycle assessment design, recycling, inventory management, inspecting and
sorting Pollution prevention and Disposal. Author also discuses some of the barrier to
environment supply chain management practices.

Even Green Supply chain practices help the company to increase efficiency and
cost benefit but there are so many barriers associated with it. Author combines Barrier
to Implement GSCM in Indian Automobile Industry from literature and finds total 11
barriers where management and government should focus. Green design and Green
Operation focus in this research paper where green design include product made from
recycled , Products that can be reused , Products made from organic components and
Products with environment friendly packaging. Green Operations which include Green
Manufacturing and re-manufacturing, Reverse Logistics and network design, Waste
Management.
 Luthra et al. (2011) studies barrier to implement green supply chain
management in automobile industry. This research paper has identified relation
between barrier and contextual relationship among the identical barriers. Author
identified 11 barriers from literature and discussion with expert from academia and
industry. Initially author explains difference between conventional supply chain and
green supply chain. As Automobile industry is one of the most responsible industries to
spread population then Green Supply Chain management practice will one of the best
efficient techniques to implement to protect our environment. Green Supply Chain
Management implementation is one of the best strategies to give challenge carbon
emission. In this research major activates of supply chain include enable to help
implement GSCM and how different companies are changing their prospective towards
Green supply chain. Author used objectives, ecological optimization, supplier selection
criteria, cost pressure, flexibility and speed for the difference between conventional and
GSCM. Some of barrier has been identified by author are Lack of IT system , poor quality
of Human resource , lack of government support , lack of top management commitment ,
cost implication. It discussed conceptual basic model of green management system and
also discussed factors which affect green management. A major barrier of GSCM in
automobile industry is lack of awareness of customers about benefit of using green
product. So removal of this entire barrier will help the practices of green supply chain
management.

Author also explained Green Supply Chain management using seven stage where
they consider variable affecting the system and it also explain Green supply chain
management using matrix and give ranking to different parameter.
 Shankar Sarkis and Hasan (2007) design a structured diagram of environment
aware manufacturing plant. Yu (2007) deliberate factors three factors named
technology, organization and environment influence the acceptance of green supply
chain practices in Taiwan. They divided barriers into two types- internal barriers and
external barriers’. Yu and Hui (2008) examined six factors influencing adoption of green
innovations for logistics service providers. Zhu, Sarkis and Lai (2008a) surveyed to
evaluate their perceived green supply chain practice and narrate them to close the
supply chain loop with manufacturers in four characteristic Chinese industries'. Zhu,
Sarkis and Lai (2008b) designed a measurement model for green supply chain
practices implementation between the manufacturers. Mudgal, Shankar, Talib and RaJ
(2009) give clarity on ISM based model for green supply chain in Indian manufacturing
industries'

In India Automobile Industry is one of the biggest in the world and one of fastest
growing globally. Tremendous growth has been observed in this industry in last
few years. Indian automobile manufacturer manufacture over 11 million vehicle s and
export around 2 million every year. There are fifteen important enablers to implement
Green supply chain management practices in Indian automobile industry have been
identified. Automobile sector is responsible for more than 70% of total air pollution.

Automobile sector is responsible for 80% of total carbon oxide emission,

Environment Management system tried to protect environment and maximum utilize of
natural resources. In Green Supply Chain management there are so many different
activities include like Green Packaging, Green Manufacturing, Reduce waste, recycle the
product, Green Distribution and green warehousing.

Identification of enablers to implement green supply chain management in Indian

automobile industry

Indian automobile manufacturer manufacture over 11 million (including 2

wheeled and 4 wheeled) Vehicles and export around 2 million every year. In the year
2009, India appeared as Asia’s fourth major exporter of passenger cars, behind Japan,
South Korea and Thailand. Fifteen important enablers to implement GSCM practices in
Indian automobile industry have been identified. These enablers have been identified
through extensive literature review, discussion with middle level engineers. Enables the
implement Green Supply Chain management in Indian automobile industry reported in
literature are briefly explained in table:
Sr. Enablers to Brief Description Researchers
no implement GSCM
1. Information An efficient information Jharkharia and
Technology technological system is necessary for Shankar;Ravi and
Enablement effective communication and Shankar ;sarkis
supporting the GSCM et.al;
2. Technology Technology advancement and Gant; Digalwar and
advancement and organization adoption is Metri; Yu; Yu and
Organization advancements in machinery and Hui; Mudgal et. al.
adoption equipment to improve the products
and services to increase the
environmental performance to
achieve GSCM
3. Organization Organization encouragement is to Sarkis et. al, Yu ;
Encouragement motivate the employees by providing Hsu and Hu ;Singh
incentives or other benefits to and Kant ;
achieve efficient GSCM
4. Quality of human Quality of human resources means Ravi and Sankar ;
Resources well qualified and professionals to Sarkiset. al.; Mugdal
implement effective green practices. et. al.; Luthra et. al.
5. Government Government sets the environmental Scupola;Yu ; Yu and
Support systems regulations for industry government Hui; MudgaL et. Al;
support system means industry Luthre et. al
friendly governmental policies to
promote GSCM.
6. Innovative green Innovative green practices means use Yu; Zhu et. al. ; Hsu
practices of those practices which are not/less and Hu; Mudgal et.
harmful to the environment e.g green al.; Luthra et. al.
design, green manufacturing etc.
7. Top management Top management commitment is Hamel and
commitment dedication to empower people to Prahalad; Digalwar
change, the progress to ensure core and Metri; Ravi and
manufacturing strategies and Shankar;
 business strategies.
8. International An international environment Chien and Shih; Yu;
agreement agreements means green practices Chien and Shih; Yu
should be promote at international and Hui;Luthra et.
platforms e.g SAARC,WHO etc. al.

9. Supplier Motivation Involvement of the suppliers in Digawar and

design process and technology affects Metri;Ravi and
overall performance of whole chain. Shankar;Sarkar and
mohapatra
10. Awareness level of Customer’s awareness means if Lamming and
customers customer wants green products; the hamapson ;Duber
company has to change technology Smith;zhu and
for innovative green products. sarkis;Mudgal et.
al.; Luthra et. al.
11. Environment Environment literacy is the Revell, and
Literacy among understanding of environmental Rutherford; Mudgal
supply chain issues to implement GSCM et. al. ;
distribution
networks
12. Supportive Supportive company policies means Mudgal et. al.; Yan
Company Policies policies that encourage or motivate
towards GSCM to implement GSCM
13. Economic Interests Economic interests means lowering Lamming and
costs by reducing waste and reducing Hamapson; stevels;
environmental compliance costs Duber Smith; Zhu
14. Competitiveness Competitiveness is supremacy, Chen et. al.; Mudgal
standing out from others
15. Proper strategic Strategic planning gives the course of Hsu and
Panning the action for implementation of Hu;Simpson and
GSCM. Samson;Mudgal et.
al.
GREEN INITIATIVES BY VARIOUS COMPANIES

1) MARUTI SUZUKI

Maruti Suzuki, the leader in the Indian automotive industry, owns the country's
largest production facility. With both production facilities running at full capacity, the
company ensures that it does not damage or destroy the environment. Over the years,
MSIL has taken special steps to minimize the carbon footprint of its manufacturing
facilities, products and supply chain operations. The company believes that investing
in environmental technology is of commercial significance as it will yield good results
in the medium to long term. To maintain this vision, MSIL has maintained leading
environmental regulations and improved its product, manufacturing and supply
chain operations to minimize the environmental impact of its operations on society.
The country's industrial ecosystem is relatively young, but given the promise of rapid
growth, the company chose a sensible path. The company is investing in
environmental technologies and waste reduction to make its business more greener.
Although the initial investment is high, but the company has realized that in the long
run, the return on investment is better. The company is investing in and
implementing such initiatives / processes in its production facilities in various
vertical industries. Maruti Suzuki was fortunate to be the first car company in India to
register a Clean Development Mechanism (CDM) project on the UN Framework
Convention on Climate Change (UNFCCC).

Green Manufacturing

As manufacturing is a core part of the company, the company has been paying
particular attention to this. MSIL follows the basic philosophy of SMC's smaller,
lighter, shorter, tidy facility. The company identified five priority areas for protecting
the environment and optimizing the use of resources.
The steps taken can be broadly divided into the following aspects:

 Material use and weight reduction

 Energy conservation
 Water conservation
  Air emissions reduction
 Waste management

 Material use and weight reduction

MSIL has started to improve the process of effective use of resources. It continues to
implement the "one gram, one point" plan to reduce material consumption by
retrofitting and designing existing vehicles. With this plan, MSIL's goal is to reduce
raw material consumption. The savings and efficient use of raw materials do not stop
there, and MSIL has further implemented a system that makes use of the waste
produced by the press shop. Scrap generated during stamping and casting operations
is sent to suppliers who make components for children or make related products.
Companies focus on improving production, save resources. This activity extends from
traditional sheet metal to plastic, electrical and casting operations. In 2011-12, a total
of 287 production improvement projects were completed, saving a total of 2,000 tons
or more.

 Energy Conservation

In any manufacturing plant, energy consumption is the main vertical direction of cost
and carbon footprint. Even in this regard, MSIL has been taking steps to reduce costs
and carbon footprint. Both facilities operate on self-contained power plants that use
natural gas, clean and green fuels. Manesar recently commissioned a factory designed
to maximize the use of natural light, thereby reducing the need for lighting during the
day. Specific to the Gurgaon factory, has taken the following steps:

1) Installation of waste heat recovery boilers and steam turbine generators to

generate electricity from waste heat recovered from existing gas turbines in Gurgaon.
2) Introduces a new generation of Electrode position (ED) paint coatings that operate
at low voltages and consume less energy in paint operations.
3) Aerodynamic energy-efficient fibre-reinforced plastic (FRP) blades replace
standard blades on cooling towers to reduce energy consumption.
4) The shop floor voltage is optimized for lighting and motor load.
5) Introducing desiccant air dryer to reduce energy consumption.
At Manesar, the following steps were taken:

1) The LED lamp was installed at the newly-started second factory, making it the first
automobile manufacturing plant in India to fully utilize LED technology. (Ordinary
down lights use 50 watts of electricity, initial purchase cost is about 60 rupees, LED
lights use 22 watts of electricity, the cost of 1,500 rupees or so). By initially investing
high, LED lights consume half the power of ordinary fluorescent lamps. After Manesar
saw the success of this move, Gurgaon also installed LED lights
2) A gravity conveyor was installed in the second factory's workshop to deliver the
body panels, eliminating the need for a motor. In addition, energy-efficient motors
installed on utility equipment.
3) Regular energy audits of suppliers to reduce energy consumption and costs by
sharing best practices and benchmarks.

 Water Consumption

Water is another scarce resource and MSIL is doing its best to protect and
promote its effective use. Since 2003-04, the company has achieved "zero emissions"
status in Gurgaon and in Manesar since 2006-07. The company uses canal water to
conserve groundwater during most of its production. The total water consumption
for the Gurgaon and Manesar plants in 2011-12 is 1801,322 cubic meters, including
1,495,754 cubic meters of canal water, 305,018 cubic meters of well water and 550
cubic meters of rainwater. Other company water saving measures include:
In 2011-12, a total of 1,234,767 cubic meters of water were recovered and
reused, accounting for 41% of the total water consumption of the two production
facilities.
The company's production equipment to zero waste water discharge status.
Introduce air conditioning direct cooling system. Use air-cooled dryers instead of
water-cooled dryers in compressed air plants. The paint shop in Gurgaon uses
recycled water instead of raw water.
Air-cooled condensers were installed in Gurgaon and Manesar plants instead of
water-cooled condensers. In 2011-12, a total of 1,234,767 cubic meters of water were
recovered and reused, accounting for 41% of the total water consumption of the two
plants. The proportion of reclaimed water used at the Gurgaon plant in the reporting
year increased from 41% to 44%. After securing the required water quality standards
for gardening, the Company used 462,049 cubic meters of treated sewage. Waste
minimization and process innovations have led to a 61% drop in unit vehicle water
usage at the Gurgaon plant over the past decade, and a drop of about 56% in vehicle
use at the Manesar plant over the past five years. The chart above provides an index
of water usage per car per plant over the years

 Air emissions reduction

Maruti Suzuki's greenhouse gas (GHG) emissions mainly come from the
combustion of power generation and process fuels, accounting for more than 90% of
the company's total greenhouse gas emissions. The total greenhouse gas emissions of
the two plants in 2011-12 were 3,14,355 T (CO2). Greenhouse gas reporting follows
Scope 1 and 2 of the WBCSD / WRI Protocol. Ambient air quality and chimney
emissions parameters (SOx NOx, SPM, etc.) are regularly monitored by government-
approved external agencies. The monitoring value is completely within the limits set
by the Pollution Control Committee.
The emission reduction measures adopted in the reporting year include:
A special fluidised bed incinerator was installed to clean the paint grille instead of a
direct incinerator
Improve gas turbine operating efficiency.

 Waste Management

Hazardous waste as a by-product of Maruti Suzuki's manufacturing operations

includes paint, phosphate and sewage treatment plant (ETP) sludge, incinerator ash
and used oil. Waste oil sold to authorize recyclers. Since 2010, Maruti Suzuki has
been sending paint, phosphate and ETP sludge to the cement industry for co-
processing. This has eliminated the need for burning and filling. Sellable solid waste
such as metal scrap and glass waste are sold to recyclers. All WIP-related EWG can
only be handled by authorized recyclers.

In the reporting year, 4227 tons of hazardous wastes and 406 tons of used oil
were produced. Existing landfills are gradually sending the rubbish to the cement
industry. In the reporting year, a total of 5,663 tons of hazardous wastes were
transported to the cement industry for co-processing. There were no major leaks
inside the factory as the secondary containment would be provided whenever there
was a possibility of a leak

As a responsible business, Maruti Suzuki strongly believes that now is the right time
to step down and expand its plan for sustainable growth. In order to make the
company and its value chain more sustainable, the company will move on.

2) TATA MOTORS

TATA Automotive is working with channel partners to reduce the impact of

climate change on its supply chain. TATA Motor has taken up a unique initiative - a
Green Dealership that builds awareness in the supply chain and promotes good
environmental practices and management systems. The initiative aims to disseminate
information on energy efficiency and subsequent reductions in greenhouse gas
emissions, providing potential financial savings for channel partners.

TATA Motor Company has estimated the carbon footprint of its tier one supply chain
and started a carbon dioxide mitigation program at the supplier level. Here are some of
their key milestones:

(1) Increasing supplier awareness of climate change through the science, impact, causes
and mitigation information modules of a 20-minute climate change and its associated
impacts;

(2) Sharing the concept of energy efficiency;

(3) Collect environmental and energy-related data from Tier 1 suppliers and estimate
the footprint of Tata Motors' related businesses.

Tata Motors believes in the technology of the future. It’s annual R & D expenditure
accounts for about 2% of our turnover. Its products are environmentally friendly in a
variety of ways. These include the reduction of hazardous substances in vehicle
components, the development of lubricants, liquids and ozone-friendly refrigerants for
extended life. Tata Motors has been committed to implementing a variety of
environmentally sensitive technologies in the manufacturing process.

Tata Motors' concerns are reflected in a dual approach -

 Reduce environmental pollution and regular pollution control

 Restore the ecological balance

In the first approach to reduce pollution, Tata Motors also invested in establishing
an advanced emission testing laboratory. To protect the environment, Tata Motors has
raised the performance of all its four- and six-cylinder engines to international emission
standards. All this is done with the help of world-renowned engine consultants such as
Ricardo and AVL. These engines are used in the Indian market, Tata Motors and more
than 70 export markets. Tata Motors is constantly working on developing alternative
fuel engine technologies. It manufactured a CNG version of the bus and equipped it with
a CNG-Electric hybrid bus, which is a benchmark for emissions quality. It recently
demonstrated its superior technology in the form of a fuel cell bus. This eco-friendly bus
uses only water as a by-product, thus eliminating emissions.

To restore ecological balance, Tata Motors has set up sewage treatment facilities at
its plant to prevent polluting water from entering the ecosystem. In Pune, treated water
is kept in lakes, attracting birds of any kind from all over the world, turning this space
into a green belt. Planted trees involving villagers and Tata Motors employees have
turned barren villages green. Tata Motors has planted 80,000 trees and planted more
than 2.4 million trees in Jamshedpur. More than 500,000 trees have been planted in
Pune. Tata Motors has instructed all suppliers to package the product as a substitute for
wood instead of wood.

 Efficiency Building:
Like water, TML is aware of its power of use. The company generates its own power,
which means there is an automatic cap on consumption.

Part of the coke used as fuel in the TML blast furnace is used for chemical reactions. The
other part from the roof is called blast furnace gas. This is used to generate electricity
because it still has some potential heat and unused fuel. Unconsumed fuel is used to
generate electricity while about 600-700 kcal / standard cubic meters (Nm3) of heat is
recycled to remove moisture from the coke or act as a fuel in the boiler to reduce high-
speed diesel consumption.

After generating as much power as needed the remaining gas is used to provide thermal
energy to TMKPL. TML is also monitoring energy consumption and greenhouse gas
emissions.

Through all these initiatives, TML has clearly expressed its commitment to the Earth.
Companies deserve commendation for economic development that is compatible with
environmental protection.

3) HERO MOTOCORP
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India and
also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar
year. Hero MotoCorp Ltd. continues to maintain this position till date. The story of Hero
Honda began with a simple vision - the vision of a mobile and an empowered India,
powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects its
commitment towards providing world class mobility solutions with renewed focus on
expanding company's footprint in the global arena. The Company believes in sound and
sustainable environmental practices. Since its inception, four-stroke motorcycles have
been introduced in the era of popularity of two-stroke two-wheelers to care for the
environment. In this endeavor, they have long been the blessing and guidance of
honorary Chairman, Dr. Brijmohan Lal, who must repay their wealth-creating society.
As a leader in the automotive industry, they fully recognize their sense of responsibility
for a rapidly changing industry environment and their role in sustainable development.
Heroes MotoCorp has introduced green initiatives in the organization of product
development, manufacturing, supply chain and all functions. Heroes, they have taken
some measures to reduce carbon, water and waste emissions. Following measures have
been taken by the company as part of its green supply chain:

Green Building

Their latest plant was developed on the green building concept, Neemrana
Manufacturing Plant, GPC, HGCIT Facilities in Jaipur, and LEED IGBC Certification, all of
which are Hero's unique garden plants. From efficient building envelopes to bigmouth
treatment systems to water and energy optimization - the Garden Plant shows HMCL's
environmental appeal.

Green roof

Putting all the factories together, it includes 1,165,000 square meters of green roofs, the
nearest 25,000 square meters. On the 2016-17 day in Vadodara. The hero's green roof
helps save energy by lowering the temperature of the roof and the surrounding area.
This also helps to significantly reduce storm runoff and peak flow. Green roofs restore
the aesthetic and ecological value of open urban spaces. In addition, it protects the
traditional roofing system by doubling the service life of the waterproofing membrane
below.

Green Bio walls and Green Houses

Their latest plantings are green houses with green roofs, and practical farming with
hydroponics techniques, which only require 2% water compared to. By recycling carbon
dioxide into the greenhouse, they increase photosynthesis in plants. The green walls
generate oxygen and return to work.

Sewage Treatment Plant

Hero ensures that the effluent is treated to biological effectiveness. The plant is
designed to hold up to 6 hours of insulation and to ensure that the sewage is 100%
treated and recycled to the soft water used in the cooling tower.

Zero Liquid Discharge Plant

To prevent water pollution, Hero also invested in a wastewater treatment plant that can
process wastewater containing degreasing chemicals, acid / alkaline, electroplating
waste, heavy metals and waste oil. Wastewater can be reused during normal activities
or recycled back to the process with reverse osmosis and multi-effect evaporators,
reducing the freshwater footprint. They use 90% of their wastewater to recycle to the
process using a zero liquid discharge platform. The balance of 10% is being re-used for
gardening activities.

Rain Water Harvesting

All the factories are equipped with an efficient rainwater harvesting system that
captures stormwater runoff and recharges aquifers, raising groundwater levels with a
total catchment potential of 250,000 cubic meters, far exceeding annual water
requirements. Rainwater harvesting programs extend to surrounding communities and
villages with the aim of controlling stormwater runoff and maintaining groundwater
tables, thereby improving water safety and reducing flooding / flooding.

Waste Food Recycling

Hero uses their organic waste converters to ensure sanitary treatment of municipal
waste, which in turn generates manure. This waste is treated for 15 minutes and then
homogenized and tasteless. In the next two weeks it became compost and can
eventually be used for greening and greenery. Waste treatment helps prevent the
generation of methane, which generates 25 times more global warming potential than
carbon dioxide.

Paint Conservation

Hero MotoCorp makes every effort to prevent the release of airborne pollutants while
preventing water pollution. The company is gradually adopting water-based coating
system and advanced robotic coating system to improve the paint transfer efficiency.
Their latest Vadodara plant uses the concept of a regenerative thermal oxidizer (RTO)
to provide VOC-unique control in a paint shop to handle VOCs before being discharged
into the environment.

Energy Conservation

In 2016-17, the company took various measures to conserve energy and reduce carbon
emissions

• The company aggressively expanded its plan to renew its energy base with a total
capacity of 5.6 megawatts of solar photovoltaic power generation. In 2016-2017 itself,
they added 3.0 megawatts of solar power, of which the roof of the Vadodara plant
generates 2.0 megawatts of power and a 1 megawatt solar power plant at Haridwar
plant. This will have a positive impact on carbon dioxide emissions.

• All of our newest plants have 100% LED lights installed, and 40% of the traditional
lights in the existing plant have been changed to LEDs.

• Enclosed cooling towers at Dharuhera plant have an efficient cooling system that
reduces energy consumption by 36%, regardless of environmental conditions. Save 1.17
LAT KWH / year

• The Dharuhera plant is equipped with a small-capacity centrifugal compressor to

replace the screw compressor and save 33% of energy (saving 5 kWh annually).

• Energy Saving at Gurgaon Plant Increased VAM by 150 TR, replacing AC with five-star
and VFD by adding LED lights, occupancy sensors in toilet, trip circuit of ideal treadmill.
• Reduced power consumption through RTCs in the canteen and management block
VRV control and installed air-saving systems in the Plant Utility system at the Neemrana
plant, saving 16.4LK KWH

Green Vendor Development Programme

• Hero MotoCorp's actions to protect and protect the environment Rapid

industrialization and advanced technological change have led to rapid economic growth
in India. However, such developments have posed unprecedented challenges to
humankind in terms of climate and environmental degradation. Therefore, people and
governments of all countries have come forward to deal with environmental threats.
Many opportunities have also been explored to solve environmental problems and
create a sustainable environmental future for all.

• Motocorp MotoCorp is constantly pursuing the synergies between technology, systems

and human resources, delivering products and services that meet the wishes of their
valued customers and demonstrating their "WE CARE" philosophy. In doing so, they
maintain the highest standards of ethics and social responsibility, innovate products
and processes, and collaborate with suppliers to bring new and significant
organizational accomplishments to the table. They think their suppliers and distributors
are key stakeholders and partners to achieve the goal of sustainable development.

• Green Supplier Development Plan refers to the way organizations can consider
innovating industrial supply chain management in an environmentally context.
Organizations that are pro-active not only need to be identified, but also to implement
actions in their processes / operations to address environmental issues.

• The Green Supplier Development Program (GVDP) encourages a collaborative effort

between hero MotoCorp and its suppliers to achieve MotoGH's overall corporate
environmental goals. GVDP called on partner companies to demonstrate their
commitment to improving environmental performance and continuous improvement.

• The six pillars of the GVDP model are energy management, water resource
management, waste minimization, pollution prevention, hazardous chemical
substitution and environmental compliance management. Partner vendors have
conducted specific training on the six pillars of GVDP and charted processes /
equipment based on logical analysis to identify gaps or significant environmental
factors to improve project implementation. This procedure applies to the PDCA method.

• HMCL is also committed to providing suppliers with a platform to share

environmental achievements and issues they encountered during the implementation of
green supplier programs. The purpose of this meeting is to share success stories in
environmental improvement that can be replicated in other vendor's facilities. This
platform has laid the foundation for a mutually beneficial ecological future.

• They understand that environmental protection is their responsibility to future

generations and therefore ensure that environmental protection is of the utmost
importance in providing our customers with the highest quality products and services.
They will continue to take the initiative to protect the environment and put all their
business decisions on the basis of environmental considerations.

Hero MotoCorp Green Supplier Development Program is a supply chain initiative that
extends corporate environmental responsibility into the supply chain. This is based on a
one-to-many mentoring program. With the addition of Hero's MotoCorp production
equipment, manufacturers' manufacturing activities have increased in the same
proportion, resulting in environmental impact.

In order to improve the environmental performance of suppliers MotoCorp has

developed this exclusive supplier development plan, which is a collaborative effort
between the heroic MotoCorp environmental group and the materials department to
influence suppliers' adoption of pre-specified environmental requirements and
commitment to environmental initiatives.
4) Ashok Leyland

Ashok Leyland is an Indian carmaker headquartered in Chennai, India. It is owned by

the Hinduja Group. For decades, its focus has been on fuel efficiency and emissions. In
1987, legislation was passed to limit vehicle emissions and its vehicle was ready to
meet. In 1992, it introduced stricter gas emission standards and provided
environmentally friendly engine technologies due to timely technical cooperation. In
1996, they reached the norms when the allowable emissions of gaseous emissions were
tightened.

India's first CNG power bus was launched in Mumbai in 1997. Today, there are more
than 6,500 CNG buses on the roads in Delhi, Ahmedabad, Vijayawada and Mumbai.

India's first hybrid electric vehicle debuted in 2002, marking another alternative car
technology.

The first hybrid plug-in bus using CNG and electricity in India was launched in 2010 and
is in service during the Commonwealth Games in New Delhi.
The country's first Hythane engine was developed in 2009. 20% of the hydrogen added
to the CNG makes the engine more fuel-efficient and has emits less than conventional
CNG engines.

It’s also the first company in India to develop a common rail engine for commercial
vehicles.

 Process:

The company attaches great importance to the protection of the environment and it
goes beyond legal requirements by incorporating sound environmental practices into
the business decisions and processes. The continuous review of the process has led to
changes and substitutions in environmentally friendly products.

India's first ISO 14001 certified commercial vehicle manufacturer - reflects the
commitment of all of the manufacturing units to follow the environmental management
system. The first is zero-water balance: - through various water-saving methods,
including rainwater harvesting, recycling and sewage treatment. Waste treatment:
Waste treatment to produce usable by-products and safe disposal of unused waste are
the twin goals of the wastewater treatment plant. All units, including Ennore, recover
1.28 million litters of water per day from the wastewater.

More examples of process changes:

Shot blasting to sand blasting to steel shots: Surface cleaning at Ennore Rough materials
and heat treatment scale, eliminating the possibility of silicosis. The blasting dust from
the machine is collected by a heavy dust collector and enters the manufacturing
chimney.

Paint particles containment: In the modern paint shop in Hosur II, the paint particles in
the paint booth are immediately collected by the scrubber to avoid exposure and
adverse reactions. Direct Induction Quenching to eliminate pre-carburized camshaft
copper plating.

Increase green belt: More than 250,000 trees have been planted and the company's
various plants have more than 162,000 meters of grassland.

 Wind energy:
As early as 1995, they got involved in the development of wind power with 11 wind
turbines (2.55 MW). Currently, with a continuous increase in production capacity, wind
power installed capacity is 63.175 MW and wind power installed capacity ranges from
225 kW to 1250 kW, with a total of 240 wind turbines. The wind farm is located in
Tamil Nadu. Generating 100 million cubic meters of wind energy each year, the entire
energy is spent on Hinduja Foundries and their natural consumption. More than 60% of
the electricity demand is satisfied by wind energy.

Independent companies have been formed in the name of Ashok Leyland Wind Energy
Co. to release the value of the wind energy business. The company focused on wind farm
development, operation and maintenance, with dedicated and experienced staff.

5) Eicher Motor

VE Commercial Vehicles Ltd

Touted to be the first platinum-rated Green Factory Building in Madhya Pradesh and the
first bus plant to have a Green Building certification in the country, it is surrounded by
greenery. The plant is said to be near waterless set up by the company. A joint venture
between Volvo Group (Volvo) and Eicher Automotive Ltd. (EML), the plant's design
concept is "zero" emissions. The factory also took another measure that could easily
become the first in the industry - zero water discharge.

Waterless processes

Their paint shop is completely waterless. Water is only used in the air supply unit and
for human intake throughout the factory. The discharge from this operation is
treated and 69 per cent of it is used for gardening (in their landscaped areas) and 31 per
cent for flushing the toilets in the building. The plant has a 32 per cent green zone that
nurtures a majority of drought plant species that need negligible water.

No hammer sounds

Their auto parts are made to such size perfection that they interlock into each other,
thereby drastically decreasing the sound of the hammer. Quality evaluation is done on
the spot and all material sourced locally comes on trolleys to eliminate the use of
packing material.

Energy Conservation
The plant packs a punch when it comes to energy saving with an energy efficient
building envelope, sky-lighting for enclosed areas and separate metering devices for all
process and non-process loads. It’s HVAC (heating, ventilation, and air conditioning)
systems are CFC free, while renewable energy accounts for 28 per cent of the total
energy use for which solar PV panels of 24 kWp are set up, that generate hundred units
of power every day.

Bit by bit, daylight harvesting has been done across the interiors of the plant, which has
led to a dramatic cut in energy use and carbon dioxide emissions. Rain water harvesting
is done in the outdoor areas to enhance the water table.

Clean-up Act in Pithampur

To initiate the clean-up act, the Eicher Truck and Bus unit (ETB) embraced the GRIA
principle that stands for Go to basics; Reduce waste; Improve efficiency; and Alternate
technology. For a start, the 340,000 sq metre factory shifted its energy source to
renewable. Tapping local sources, 49 per cent of its energy comes from solar and a mini
hydel power plant.

ETB has also shifted to solar-thermal hybrid air conditioners for office air conditioning,
which allows for more efficiency and reduction in energy use. To create a congenial
atmosphere in the shop floor, eco-friendly evaporative coolers have been put in place
that lowers the temperature in the workspace by almost 7 to 9 degrees centigrade.

At the paint shop they have installed a heat recovery system through which they
recover heat from the exhaust, thereby conserving the LNG used for the heating
application.

Recycling waste

To tackle waste several measures have been introduced. For instance, the thinner that is
used for painting applications in the plant is recycled and reused for degreasing and
washing solvents. Waste from the workers canteens and garden trimmings are run
through an organic waste converter to be turned into manure.

Hazardous waste disposal

All hazardous wastes generated in the process are disposed only
through government registered recyclers and re-processors that are certified to dispose
responsibly.

CONCLUSION

Many organizations have been adopting GSCM today. There are various benefits of
switching to green supply chain management. They include:

 Competitive advantage to attract new customers.

 Increased utilization of resources.
 Reduced production costs leading to improved financial performance.
 Improved efficiency.
 Reduced risk since any hazardous substance is avoided.
 Overall customer delight through highly improved quality.

Of course, a lot of challenges wait on the way while trying to implement green supply
chain management. One of the major issues that companies come across is the
unpredictability of the market scenario. Going green doesn’t always guarantee greater
profits. Managers are often concerned that implementing these practices can be way
more costly than the practices prevailing in market. Stakeholders are concerned about
profits more than anything else. However, there are many government initiatives all
around the globe which promote green practices by giving exemptions in taxes to the
ones who are implementing these practices. Also, when the target is to deliver to the
customers what and when they need by paying as less as possible, bringing in expensive
practices doesn’t always go down with the management. However, in industries like
shipping, cost reduction is synonymous to reduction in consumption of fuels and using
better and cheaper lights instead of old lightbulbs. This automatically makes the
industry more eco-friendly whenever it tends to reduce costs.

Hence, we can say that GSCM practices bring along with it a lot of benefits and a few
challenges as well. However, if a well-designed and well-thought plan is used to
implement these practices in the industry along with the wise advices from the experts,
the outcome can be very fruitful to the company and the environment at the same time.
Since many customers and governments have been appreciating and rewarding these
practices, using GSCM ends up with not only giving the brand a better picture in the
society but also various benefits as a token of appreciation from the government. Also,
taking care of the environment is the only way that we can sustain and last long in the
industry on the whole.

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