Operations Management 2023

Assignment on Trends in SCM

Sai Dora Babu Bandi
M22MS021

Topic: Greening the supply chain.

Greening the supply chain refers to the process of adopting environmentally sustainable practices
in the procurement, production, and distribution of goods and services. The goal of greening the
supply chain is to reduce the environmental impact of the entire supply chain while improving
efficiency and profitability. This includes minimizing the use of natural resources, reducing
waste, and cutting carbon emissions. By implementing green supply chain practices, companies
can benefit from reduced costs, improved reputation, and increased customer loyalty.

An example of a company that has successfully greened its supply chain is Nestlé. In 2018,
Nestlé announced its goal to make 100% of its packaging recyclable or reusable by 2025. To
achieve this, the company has implemented various green supply chain initiatives. For instance,
Nestlé has partnered with waste management companies to collect and recycle its packaging
waste. The company has also invested in sustainable packaging materials, such as biodegradable
plastics made from plant-based sources. Additionally, Nestlé has adopted energy-efficient
practices in its manufacturing facilities, such as installing solar panels and using renewable
energy sources.

Nestlé's efforts to green its supply chain have earned it recognition from various stakeholders. In
2021, the company was ranked first in the Dow Jones Sustainability Index for the food and
beverage industry. The index assesses companies based on their environmental, social, and
governance practices. Nestlé's green supply chain practices have also been covered in various
news articles and journals. For instance, a 2020 article in Forbes discussed the company's efforts
to reduce plastic waste through innovative packaging solutions.

Another example of a company that has embraced green supply chain practices is UPS. In 2020,
UPS announced its goal to reach net-zero emissions by 2050. To achieve this, the company has
invested in alternative fuel vehicles and renewable energy sources, such as solar and wind power.
UPS has also implemented sustainable packaging practices, such as using recycled materials and
designing packages to be more compact and lightweight. Additionally, the company has
launched various green supply chain initiatives, such as the UPS Carbon Neutral program, which
allows customers to offset the carbon emissions generated by their shipments.

UPS's green supply chain practices have been widely covered in the media. In 2021, an article in
Supply Chain Dive discussed the company's efforts to reduce emissions through the use of
electric vehicles and renewable energy. Similarly, a 2020 article in Forbes highlighted UPS's
commitment to sustainability and its goal to become a leader in green logistics.
So to add up the whole we can say that greening the supply chain is a critical aspect of corporate
sustainability. By adopting green supply chain practices, companies can reduce their
environmental impact while also benefiting from cost savings and improved reputation. Nestlé
and UPS are two examples of companies that have successfully implemented green supply chain
initiatives, but there are many other companies that are also making progress in this area. As
consumers become increasingly concerned about the environment, greening the supply chain will
become even more important for companies looking to remain competitive in the marketplace.

References:

1. Nestlé’s Sustainable Packaging Initiative: An Exclusive Interview With Véronique

Cremades-Mathis. (2020, February 7). Forbes. Retrieved from
https://www.forbes.com/sites/jeffkart/2020/02/07/nestles-sustainable-packaging-initiative
-an-exclusive-interview-with-vronique-cremades-mathis/?sh=5d200aa96c85
2. Nestlé Leads Food & Beverage Industry in Dow Jones Sustainability Index. (2021,
November 15). Nestlé Global. Retrieved from
https://www.nestle.com/media/news/nestle-leads-food-beverage-industry-dow-jones-sust
ainability-index
3. The Race to Zero Emissions: Inside UPS's Global Sustainability Journey. (2020, August)