Professional Documents
Culture Documents
OF
INTERN
ET OF
THINGS
AND
GREEN
SUPPLY
CHAIN
MANAG
EMENT
Abstract
The objective of article is to present the Green Supply Chain Management (GSCM) practices
from a broad point of view and to examine the role of Internet of Things. some of litrarture is
being reviewed. Study shows significant impact of internet of thing on supply chain
management. Supply chain Activities performed under technologies such as wireless system,
RFID, clouding computing makes process eco-friendly, cost efficient, less risk.
Supply Chain
Management
Supply chain is a process involves flow of goods and
services from design raw material to manufacturing to
delivery to consumer. Supply chain Management
involves Strategic, Demand and Supply Planning,
Procurement, Manufacturing, Orders Fulfillment,
Warehousing and Transportation trade processes.
Improving the supply chain's resources utilization, enhancement of efficiency and reducing the
impact of manufacturing on the ecosystem.
To take the advantage from lower cost labor and material cost, a large number of western
manufacturers such as Apple, Nike, Del, and many other had moved their production based
industrial facilities in Asian region. Relocation of these manufacturers makes pressure on Asian
emerging economic countries to upgrade their supply chain from all dimensions.
Concept of Green supply chain management is elaborating as a main supply chain strategy for
sustainability in that market.
Pakistan is is affected by air pollution and two of its cities are in the list of 10 of world which are
affected.
Green supply chain is one of the most considered approaches in environmental management.
ISO 14001 environmental management system plays an vital role in integrating Green Supply
Chain Management into the organization's policies.
Internet allows the integrated components to communicate and share dynamic information..
From the survey there will be 25 billion devices connected to the Internet by 2015 and it will 50
billion by 2020.
However, implementation of certain IoT practices is nothing new to this sector. Implementing
RFID technology is one of the means of using IoT. RFID is a dynamic tool in logistics. Tracking of
logistics gateways plays vital role in logistic management.
IoT and GSCM
In the perception of Green supply chain of the internet of things, the Internet of things
composite the structure for green management the real world with the digital world without a
glitch.
The integrated networks of green supply chain consist of suppliers, buyer, producers,
distributors, wholesalers, retailers, recycler and end consumer. in duration of green life cycle of
any product and services, suppliers of material ,makers of intermediate/finished goods,
wholesalers, retailer, recyclers and end consumers are interrelated for interchange of product,
information and finance. Incorporation of green supply chain is difficult to achieve because of
different interlinked organizations may have different targets. Thus, supply chain stockholders
must be co-ordinate and co-operate to achieve a shared target. This incorporation advances the
product and services visibility in the green supply chain.
A model has been structured in green supply chain the basis on inventory management. The
behavior of sustainability is important in business increasing which come from supply chain
management (SCM).
Modeling the composite systems in green supply chain can be difficult in a computational
utilization and inventory management of relationships exists. Two problems of IoT system are
The Internet of Things (IoT) is the subsequent generation of internet linked information and
communication technologies. IoT classically interlink supply chain activities to boost GSC
performance. Since every business has different IoT capabilities in-contrast with other business.
The execution of an IoT system could decrease the consumption of organizational resources like
electricity, energy, and time and could increase the speed of operation to get the better,
initially, logistics and, ultimately, improved supply chain performance.
The logistics parts of supply chain are essential part of any business, organization up and down
streamlining. Upgrading of logistics can largely impact the organizations in an optimistic way.
Spare-part supply chain management had importance in many of industries due to the high cost
in supply, inventory and demand. Businesses in these industries are trying different
management methods to support and mange spare parts logistics. In this paper, Sihab Uddin
and Ahmed A A Al Sharif in 2016 discribed an integrated method based on Internet of Things
(IOT) idea to better forecast spare parts demand and improve supply chain efficiency.
Green Supply Chain Model And Analysis Under Revenue-Sharing
For cooperation among Manufacturer and Retailer revenue sharing contracts established.
Revenue-sharing contract can improve the greening dimension of items, and raise the profits of
maker and supply chain. Revenue-sharing contract is an essential method to advance the
collaboration among green supply chain members. In specific, the retail-led revenue-sharing
contract makes the profit of the producer, the retailer, and the supply chain all higher than the
profits under the decentralized control condition. It is important to make foundation and
collaboration of the green supply chain.
Bargain revenue sharing contract makes more profits than retail led revenue-sharing contract
but retailer earn less profit than under the decentralized control condition. In this way, taking
proper measures to compensate for the retailer's loss is of imperative significance during
establishment of Bargain revenue sharing contract.
( Huihui Song, Xuexian Gao 2017)
Environmental pollution is increasing day by day in our world. The main reason of this
environmental pollution is increase in Industrial Activities. To manage or control this Industrial
Environmental many tools and techniques have been developed. Green Supply is one of its
most important practice or technique. In countries like Pakistan the implementation of Green
Supply Chain is at the initiation stage i.e. the industries or people have very low knowledge on
its impact on economic performance.
Green Supply Chain has negative relationship between environmental pollution i.e.
implementing or enhancing Green Supply Chain practices can eliminate or reduce the
environmental pollution. Green Supply Chain also have negative relationship with operational
cost i.e. enhancing Green Supply Chain practices helps the firms to minimize or reduce the
operational cost.
(Ubaidullah Mumtaz a, Yousaf Ali b, Antonella Petrillo, 2018)
In order to beat their competitors through mass production and Low labor rates the
manufacturing companies in Asia ignores the issue regarding the safety of labour and product
safety. It means that the manufacturing firms don’t have the knowledge or recognized the
importance of Green Supply Chain and how much its practice can create positive impact on
their image of product and firm. It will also increase the social performance of firm by
protecting employees’ health and ensuring satisfaction and loyalty of Customers.
(Ruoqi Genga, S. Afshin Mansouria, Emel Aktasb, 2016)
GSCM and IoT MODEL
GSCM PRACTICES
• Green
Procurement
• Green
Manufacturing
• Green Distribution PERFORMANCE
• Green Logistics
• Economic
Performance
• Process
Optimization
INTERNET OF THINGS • Environmental
Performance
• Modified Information
• Radio Frequency
System
Identification • Social Performance
Device (RFID)
• Near Field
Communication
(NFC)
• Cloud Computing
• Wireless Sensor
Network
Technologies
Conclusion
This study aimed to understand relationship between Green Supply Chain management (GSCM)
and role internet of things (IoT). Green supply chain management leads to design eco-friendly
products with less material usage and minimum operations. IoT uses to reduced cost and
emphases the production, supply, distribution demand fulfillment in supply chain activities.
Improves Agility Green supply chain management integrates with IoT help to mitigate risks. IoT
enhance Supply Chain business process, negotiating policies with customers and suppliers,
results in better achievement. Increases Adaptability: Green supply chain batter analysis with
IoT innovative processes and continuous improvements.
Integrated Green supply chain and Internet of Things leads to ecological product and services. It
batter support to defend competitive strategy of companies. More integrated GSCM strategies
seem to be preferred mainly by organizations that see environmental effects as a basis of
competitive advantage.
Economic condition and environmental issues both are under significance of developing
countries. Practices of GSCM considered to reduce environmental pollution, operational cost
and to increase organizational flexibility.
IoT advance to analysis and mitigate the risk in inbound and out bound supply chain activities.
IoT plateform is batter option to achieve customer demand and customer satisfaction.