Green and Sustainable Supply Chain

Management
Climate change around the world has generated a movement to identify the causes of global
warming and develop solutions to end it before it is too late. In an effort to achieve this, many
countries are enacting laws and regulations with a specific purpose to reduce carbon emissions and
greenhouse gas emissions.

The truth is that environmental change has come to us. We face not only climate problems but also
resource depletion. As economies like India and China grow at double-digit rates, the world's
population continues to grow, creating many resource shortages that we use to ignore.

Many customers, stakeholders and businesses are becoming more and more involved in the growing
green business. Affected by the shift from consumer loyalty to eco-friendly products, businesses are
increasingly trying to green their supply chain by introducing sustainable strategies across their
organizations and supply relationships.

Recent focus on sustainability has been the growing need for integration into environmentally
secure selection chain management practices.

Green sustainable supply chain management GSCM concept can be defined as the process of using
eco-friendly applications, creating a sustainable supply chain and transforming their life cycle
through end-to-end reusable and reusable output agents. The overall idea of a sustainable supply
chain is to help the environment while reducing costs.

Sustainability and profitability

A green sustainable supply chain integrates environmental factors and supply chain management
principles to identify the environmental impact of supply chain processes in an organization.
Businesses are becoming aware of the importance of this integration in activating a sustainable
business strategy. Many people are now looking for solutions and guidelines on how to implement a
sustainable supply chain. A sustainable supply chain should not only be optimal for the organization,
but also optimal in terms of limited environmental impact.

The sustainable supply chain is no longer just about green issues, but also about generating
efficiency and controlling costs. The supply chain has become a key area of focus as organizations
restructure to reduce their company's environmental footprint.

Many people think that being eco-friendly increases costs. In the past, many companies focused on
reducing unit costs. Only then, can many companies make the change and instead look at the total
land cost with the start of global trade. Some companies began to look at the cost of use with a
piece of equipment - the total cost of owning a TCO.

Sustainability is a huge tool for companies to reduce their costs. There are many aspects to the
supply chain that can be improved from a sustainable perspective.

Consulting firm A.T. Kearney has released an analysis of businesses that provide information for the
carbon exposure project, which generates cost savings as a result of more than half of them - along
with 25 percent of their suppliers - adopting sustainable supply policies. It is a key action because
some global companies believe that at least half of the carbon emissions that can be attributed are
generated in their supply chain.

The Carbon Discovery Project 2011, which covers 57 global companies and their supply chain
partners, found that 86% of those companies gained value by addressing their supply chain
initiatives as part of a corporate sustainable initiative.

PepsiCo. A very good example of this is A.T. Kearney reports that as a result of the carbon
management associated with those activities, the company has saved more than $ 60 million per
unit through its beverage factories, a reduction of -16%.

Switching to corrugated plastic container containers for Pepsi-Co bottles saved about $ 44 million.

Other major companies have also reported significant savings due to a sustainable supply chain
strategy:

As a result of packaging upgrades, Dell exceeds $ 20 million annually. They achieved their carbon
neutralization target by 2008.

One of the Sherwin-Williams facilities reduced the cost of disposing of resources, repairing metal
containers, and disposing of fiber and steel from $ 95,000 to $ 39,150 in less than two years.

Texas Instruments saves $ 8 million a year by reducing its transit packaging budget for
semiconductor businesses by enabling source reduction, recycling and reusable packaging systems.

Raymour & Flanigan have saved more than 15 million pounds of waste after renovating a building to
serve as a furniture recycling center, and now have the ability to market old polystyrene, plastic film
and cardboard.