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Green Supply Chain management – A literature review

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 International Journal of Computer Applications (0975 – 8887)
Green Supply Chain management – A literature review
Anil S. Dube
Associate Professor
Sandip Institute of
Engineering & Management,
Nashik
anildube100@gmail.
com
ABSTRACT
Green supply chain management is defined as "the process of
using environmentally friendly inputs and transforming these
inputs into outputs that can be reclaimed and re-used at the end
of their life cycle thus, creating a sustainable supply chain.
GSCM is one of the recent innovations for the enhancement of
capabilities of Supply Chain Management. The purpose of this
paper is to briefly review the literature of the green supply chain
management (GSCM) over the last thirty years. The major
activities that came out of the literature are: green operations,
green design, green manufacturing, reverse logistics and waste
management .This paper also discusses the key drivers for green
initiatives include government compliance, improved customer
and public relations.
Keywords Green supply chain, Sustainable Development
green purchasing, green design, reverse logistics , Green
Manufacturing, Green Packaging
INTRODUCTION
As the public becomes more aware of environmental issues and
global warming, consumers will be asking more questions about
the products they are purchasing. Companies will have to expect
questions about how green their manufacturing processes and
supply chain are, their carbon footprint and how they recycle[4] .
Sustainable development has made remarkable progress in
establishing environmental and social sustainability towards
operations management and the supply chain. Sustainable
development means “Development that meets the needs of the
present without compromising the ability of future generations”
Sustainability covers three aspects: economic, environmental
and social responsibility. Green supply chain management
(GSCM) is about making the entire supply chain more
environmental sustainable. Companies may choose to adopt
Volume *– No.*, ___________ 2011
Dr.R.R.Gawande
Associate Professor
B.D.COE Sewagram,
Wardha
wsbdcoe@rediffmail.
com
GSCM for many different reasons: one may be forced due to
laws and regulations, one may use GSCM to differentiate
oneself in a competitive industry by being environmentally
friendly and lastly one might need to implement GSCM to stay
competitive if your competitors already have adopted GSCM.
With Increasing customer awareness and regulatory norms,
organizations with greener supply chain management practices
will have a competitive advantage over companies that are
reluctant to embrace GSCM. Hence across industry there is shift
in the focus of GSCM creating value for customers and
shareholders. Examples like:
1. Dell saves over $20mn annually as a result of
supply chain and packaging improvements. In fact,
this market leader achieved its goal of becoming
carbon neutral by 2008.
2. Pepsi-Cola saved $44mn by switching from
corrugated to reusable plastic shipping containers for
one liter and 20-ounce bottles, conserving 196mn
pounds of corrugated material.[5]
Supply Chain Management:
The Supply Chain is the movement of materials as they move
from their source to the end customer. According to Christopher
the Supply Chain produce value in the form of products and
service to the end customers through different processes and
activities, which are performed by the network of organizations
from the upstream and downstream linkages. The network,
process and activities may consists of suppliers, purchasing,
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 International Journal of Computer Applications (0975 – 8887)
manufacturing centers, warehouses, transportation, distribution
centers, and retail outlets, as well as raw material, work-in-
process inventory, and finished products that flow between the
facilities.
Scope of GSCM:
GSCM scope ranges from implementing and monitoring of the
general environment management programmes to more creating
or controlling practices implemented through various Rs
(Reduce,Re-use, Rework, Refurbish, Reclaim, Recycle, Reman-
ufacture, Reverse logistics, etc.) towards attaining a GSCM
waste minimization is being considered as an important stra-
tegic. The waste, which is non-value adding activity, carried out
in any operation. The most commonly perceived enemy to envir-
onmental protection in manufacturing and production opera-
tions. That is, manufacturing and production processes are
viewed as the culprits in harming the environment, in the forms
of waste generation, ecosystem disruption, and depletion of nat-
ural resources.[2]
Chronology of GSCM:
The very first green supply chain came into context in 1989.
Kelle and Silver’s (1989) article was the first of this literature
that developed an optimal forecasting system for organizations
to use to forecast products that can be potentially be reused. This
forecasting system, however, was highly contentious because
returning individual containers is not usually known with
certainty, so therefore, their findings may somewhat be
incoherent.
The first green design literature came into context in 1991.
Navin- Chandra’s (1991) article was the first of the literature to
consider the need for a green design to reduce the impact of
product waste
GSCM has gained popularity with both academics and
practitioners to aim in reducing waste and preserving the quality
of product-life and the natural resources. Eco-efficiency and re
manufacturing processes are now important assets to achieve
best practice (Ashley, 1993; Srivastava, 2007).
Volume *– No.*, ___________ 2011
Global market demands and governmental pressures are pushing
businesses to become more sustainable (Guide & Srivastava,
1998; Gungor & Gupta,1999).
Walton, Handfield and Melynyk (1998) even claim that
“increasing government regulation and stronger public mandates
for environmental accountability have brought these issues into
the executive suites, and onto strategic planning agendas.” The
key themes that came out in the literature over the last twenty
years are the concepts of: green design, green operations,
reverse logistics waste management and green manufacturing
(Guide & Srivastava, 1998; Srivastava, 2007).
Works of Ashley (1993); Allenby and Richards (1994) and
Zhang, Kuo, Lu and Huang (1997) came into context and
expanded the framework of green design. Life-cycle analysis
was an example of a framework that came out of green design.
Works of Arena, Mastellone and Perugini (2003), Beamon
(1999) and De Ron Penev (1995) all discussed life-cycle
analysis as a framework.
Green Operations in terms of reverse logistics was an important
concept that came out of the GSCM literature. Apart from Kelle
and Silver’s (1989) article, works of Pohlen and Farris (1992);
Stock (1998) and Tibben and Limbke (2002) all provided case
studies on reverse logistics. The use of plastics and bottle
recycling are mentioned in some of these articles.
Waste management is another topic that came out of the GSCM
literature. This came into prominence with the work of Roy and
Whelan (1992). This article created a standardized model for
reducing electronic waste without harming the environment.
After this article, different waste management issues came into
context particularly around recycling and remanufacturing.
Green Manufacturing, on the other hand, was not conceptualized
until 1993 in the work of Crainic, Gendreau and Dejax (1993).
This article established a comprehensive green supply chain
model in terms of transporting containers from land to sea and
vice-versa. Ideas of green manufacturing were then developed
further by Van Der Laan and Salomon (1997); Guide and
Srivastava (1998).
There are other comprehensive reviews around GSCM, particu-
larly in the late 1990’s where issues such as green production
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 International Journal of Computer Applications (0975 – 8887)
and planning and manufacturing (Bras & McIntosh, 1999; Sar-
kis & Cordeiro, 2001; and product recovery (Gungor & Gupta,
1999) are discussed. Barros, Dekker, and Scholten (1998) dis-
cuss recycling in the supply chain and Darnall, Jolley,
Jason and Harnfield (2008) critique GSCM by saying that Envir-
onmental Management Systems (EMS) are making less progress
in reducing environmental harms. Some studies, however, are of
limited focus.Zhang et al. (1997) only discussed environmental
technologies and design.
Fiksel (1996) argues that organisations have definite potential to
become eco-friendly towards product re-manufacturing. Heavy
industries that have complex supply chains should take into con-
sideration the benefits of reverse logistics (RL). Beamon (1999)
acknowledged the development of ISO14000. This was intro-
duced as a result of the Rio Summit on the Environment in
1992.
Barros et al. (1998) proposed a two-level location model on
product recovery with the support of the Dutch government.
Johnson (1998) examined the role of purchasing in reverse lo-
gistics system and design. In this study, twelve American manu-
facturing plants participated and it appears that all of them were
in favour of reverse logistics without government legislation
having been imposed.
Life-cycle analysis is an important sub concept to Green Design.
Life-cycle analysis was introduced to measure environmental
and resource related products to the production process (Srivast-
ava, 2007). This measurement involves in stages from extraction
of raw materials, production, distribution, and remanufacturing,
recycling and final disposal. Gungor and Gupta (1999,p. 818)
comments that life cycle analysis “examines and quantifies the
energy and materials used and wasted and assesses the impact of
the product on the environment.” Government regulations are
also an added factor for organisations to work towards life-cycle
analysis. Works of Arena etal. (2003), Beamon (1999) and De
Ron Penev (1995) all discussed life-cycle analysis as a frame-
work.
Reverse Logistics (RL) is the opposite of traditional or forward
logistics (Beamon, 1999). Dowlatshahi (2000) and Carter and
Ellram (1998) define reverse logistics as a process where a man-
ufacturer accepts previously shipped products from the point for
Volume *– No.*, ___________ 2011
consumption for possible recycling and re-manufacturing. Bea-
mon (1999) illustrates the fundamentals of reverse logistics. The
diagram shows the works around RL involving managing the
flow of materials towards remanufacturing and recycling, which
in this sense reduces the costs of making new products.
Thierry, Wassenhove, Van Nunen and Salomon (1995) reports
that reverse logistics have been widely used in automobile in-
dustries such as BMW and General Motors. Other companies
such as Hewlett Packard, Storage Tek and TRW are also using
reverse logistics as a supply chain process.
Collection is the first stage in the recovery process. Products are
selected, collected and transported to facilities for remanufactur-
ing (Srivastava, 2007). Used products came from different
sources and should be brought to product recovery facility to be-
gin the converging process (Thierryet al., 1995). Sorting and Re-
cycling are also an important mechanism when sorting reusable
products. Cairn cross (1992) and Srivastava (2007) suggest that
collection schemes should be classified according to materials
whether separated by the consumer (separation at source) or
centralized (mixed waste). The goal is to sort products that can
be reused to reduce costs of making new products.
Qinghua Zhu in 2006 studied Green supply chain management:
pressures, practices and performance within the Chinese
automobile industry in which they observed that Increasing
pressures from a variety of directions have caused the Chinese
automobile supply chain managers to consider and initiate
implementation of green supply chain management (GSCM)
practices to improve both their economic and environmental
performance.
Chung-Hsiao in 2008 studied the Green supply chain
management in the electronic industry in which they mentioned
that there are various approaches for implementing green supply
chain management practices has been proposed and recognized
in previous literature according to the author, but there is yet no
investigation that identified the reliability and validity of such
approaches particularly in electronic industry. Author used the
fuzzy analytic hierarchy process method to prioritize the relative
importance of four dimensions and twenty approaches among
nine enterprises in electronic industry. The findings indicate that
these enterprises would emphasize on supplier management
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 International Journal of Computer Applications (0975 – 8887)
Volume *– No.*, ___________ 2011

performance in the crucial role of implementing green supply Rao and Holt (2005) pointed out that organizations adopting
chain management. GSCM in the South East Asian region ultimately enhanced both
competitiveness and economic performance.A study indicated
Fengfei Zhou in 2009 Study on the Implementation of Green
that environmental performance positively affected financial
Supply Chain Management in Textile Enterprises in which
performance of the firms through both increasing the market
according to the author The green supply chain management is a
share and decreasing cost (Klassen and Mclaughlin, 1996).
sort of modern management mode which could comprehensively
consider the environmental influence and resource utilization Key Themes of GSCM literature:
efficiency in the whole supply chain and how to implement the
green supply chain management in special industrial operation at Green Purchasing: GP is defined as an environmentally con-
present has become into one of hotspot problems. scious purchasing initiative that tries to ensure that purchased
products or materials meet environmental objectives set by the
In another study Ninlawan & Tossapol in 2010 works on the
purchasing firm, such as reducing the sources of wastage, pro-
Implementation of Green Supply Chain Management Practices
moting recycling, reuse,resource reduction, and substitution of
in Electronics Industry in which they aims to survey current
materials (Carter et al., 1998; Min and Galle, 2001;Zsidisin and
green activities in computer parts manufacturers in Thailand to
Siferd, 2001). GP ensures that purchasing or supply chain man-
evaluate green supply chain management and they survey
agers consider the issue of sustainability in the purchasing of in-
current green activities in computer parts manufacturers in
puts, in addition to the traditional purchasing criteria of cost,
Thailand, manufacturers are case studies who provide in-depth
quality, and delivery (Jimenez and Lorente, 2001 Kannan et
interview about green procurement, green manufacturing, green
distribution, and/or reverse logistics. To evaluate green supply al., 2008; Lambert and Cooper, 2000).[10]
chain management, the questionnaire related to investigate
Green Design: It is about designing a product or a service that
GSCM practices, measure GSCM performance, and explore
GSCM pressure/ driver within Thai electronics industry is used encourages environmental awareness. Fiksel (1996) argues that

to obtain survey results. Then suggestions to develop GSCM in organisations have definite potential to become eco-friendly to-

electronics industry are presented in the end. wards product re-manufacturing. Heavy industries that have
complex supply chains should take into consideration the bene-
Robert & Benjamin in 2010 Introducing Green Transportation
fits of reverse logistics (RL). Designers, mostly concerned with
Costs in Supply Chain Modeling in which they thinks that
product performance,must take into account also the effect of
Escalating environmental concerns with prevalent transportation
design details on energy/material requirements for manufactur-
modes has lead to an increased interest in the adoption of
ing,
“green”, sustainable practices in the area of supply chain
useand secondary use (repairability, remanufacturability and re-
management. As a part of an overall green supply chain strategy,
cyclability). Redesigned products will only be effective if they
the amount of carbon emissions resulting from the transportation
are able to provide at least the services of the products they re-
element of a supply chain is a growing concern for supply chain
place. By extending the useful life of equipment items, addition-
managers and corporate executives alike. In which authors tries
al raw materials are not needed to produce new items. Design
to review methods for quantifying carbon emissions and
and develop recoverable products, which are technically dur-
estimating the cost of going green in a select set of supply chain
able, repeatedly usable, harmlessly recoverable after use and en-
optimization models.
vironmentally compatible in disposal.(Gotzel C, Weidling J,
Zhu et al. (2007) indicates that enterprises implementing GSCM Heisig G, Inderfurth K. 1999)[9]
in China have only slightly improved environmental and
operational performance and GSCM practices have not resulted
Life-cycle analysis: Life-cycle analysis is an important sub-

in a significant economic performance improvement. concept to Green Design. Life-cycle analysis was introduced to

4
 International Journal of Computer Applications (0975 – 8887)
measure environmental and resource related products to the pro-
duction process (Srivastava, 2007). This measurement involves
in stages from extraction of raw materials, production, distribu-
tion,and re manufacturing, recycling and final disposal. Gungor
and Gupta (1999,p. 818) comments that life cycle analysis “ex-
amines and quantifies the energy and materials used and wasted
and assesses the impact of the product on the environment.”
Government regulations are also an added factor for organiza-
tions to work towards life-cycle analysis. Works of Arena etal.
(2003), Beamon (1999) and De Ron Penev (1995) all discussed
life-cycle analysis as a framework.[12]
Reverse Logistics:Reverse logistics activities differ from
those of traditional logistics (Carter and Ellram 1998).Reverse
logistics networks have some generic characteristics related to
the coordination requirement of two markets, supply uncer-
tainty,returns disposition decisions, postponement and specula-
tion (Blumberg 1999;Fleischmann et al. 2000; Hess and Mey-
hew1997; Jahre 1995; Krikke et al. 1999A, ) Dowlatshahi
(2000) and Carter and Ellram (1998) define reverse logistics as a
process where a manufacturer accepts previously shipped
products from the point for consumption for possible recycling
and re-manufacturing. Thierry, Wassenhove, Van Nunen and
Salomon (1995) reports that reverse logistics have been widely
used in automobile industries such as BMW and General Mo-
tors. Collection is the first stage in the recovery process.
Products are selected, collected and transported to facilities for
re manufacturing (Srivastava, 2007).[24]
Green Manufacturing:This is a very important area within
green operations. The techniques for minimum energy and re-
source consumption for flow systems in order to reduce the use
of virgin materials are based on three fields of study:pinch ana-
lysis (Linnhoff 1993), industrial energy (Boustead 1979) and en-
ergy and life cycle analysis (Lee et al. 1995).The wasting of ma-
terials and energy either due to inappropriate design, or due to
excessive number of defects should be avoided. Intel has worked
in increasing the number of transistors in a single chip, which
will result in fewer chips to build and fewer chips to
dispose(Gungor A, Gupta SM.1999)Using less energy is obvi-
ously good for the environment. It is also self-evidently good for
business because it cuts companies’ costs, and eventually avoids
Volume *– No.*, ___________ 2011
potential environmental liabilities. The identification of where
great amounts of energy are used could subsequently lead to re-
design of the product or its use in order to make significant en-
ergy reductions. Major improvements in energy efficiency can
often be achieved at little or no cost, even with net savings,
through the use of targeted programs.[7]
Green Packing: Packaging design is important for attaining a
company’s environmental objectives. Though it serves certain
needs related mainly to the distribution of the product, it is not
part of the actual service offered by the product. In any case, it
affects environment in many aspects. The following principles
may apply concerning packaging .Limit packaging to the neces-
sary size and Design packaging for refilling or recycling and use
standardized packaging when applicable .In re-organizing the
packaging policy, Xerox changed its packaging and established
packaging-reuse centers in the UK, the Netherlands,and the US.
In addition, it reduced the amount of internal packaging to min -
imize waste.[1]
KEY DRIVERS FOR GREEN INITIATIVES
1. Government Compliance
The climate change is happening faster and will bring bigger
changes quicker than anticipated. Ironically market and the
nature hitting the wall at once, is a sign that we need to find bet-
ter ways to be more sustainable. Whether the drive is to comply
with the government regulations or to meet the costumers’ ex-
pectations companies are finding motivation to go green. Going
green does not just impact company’s thinking and strategy but
influences supply chain as well. Righteously the focus is not just
to attain cleaner water consumption and alternative energy
sources for server farms, but to make supply chains more envir-
onmentally friendly. The movement toward green and sustain-
able business practices is the new frontier for
Manufacturers and “Going Green” is the next step in the lean,
just-in-time movement .
2. Financial ROI
The business leaders steering their companies through the reces-
sion of 2009 would look at their supply chains and assess wheth-
er their use of global, open supply-chain standards is sufficient
to maximize their return on investment and position themselves
for profitability. The futures of their businesses may depend on
it .More important, they are planning ahead for working with
5
 International Journal of Computer Applications (0975 – 8887)
Volume *– No.*, ___________ 2011

their trading partners, thinking globally by implementing data shareholders are turning to the International Organization for
sharing with partners everywhere across their operations and Standardization (ISO)
supply chains, so they have actionable visibility achievable for guidance with implementing green and CSR programs. Sim-
through standards. ilar to the ISO 9000 standard for quality, the ISO 14000 standard
3. Reverse Logistics for environmental management systems (EMS) establishes best
The purpose of the reverse logistics process is to ensure that practices and benchmarks for green initiatives, and the ISO
products/materials are returned from the user to the Producer in 26000 standard for corporate social responsibility establishes a
order to be recycled, reused or reconditioned. In reverse logistics framework for the development of CSR standards. Government
the chain is covered in the opposite direction. Reverse logistics agencies and companies concerned with sustainability issues
therefore denotes a set of planning, execution and flow control will adopt these standards and ask their suppliers and vendors to
measures for raw materials and finished products, with the aim follow suit. The green policy is to constantly look for ways in
of recovering and recycling those products or materials. Stand- which firm can improve green credentials as part of their con-
ardized reusable containers, good warehousing layouts, and easy tinuous process improvement under lean quality initiatives.[05
information access reduce storage and retrieval delays which
Conclusion: GSCM can reduce the ecological impact of in-
lead to savings in operating costs whilst being environmentally
dustrial activity without sacrificing quality, cost, reliability, per-
sound. Logistics involves a whole range of activities, including
formance or energy utilization efficiency. GSCM throws various
collection, sorting, processing and reconditioning .
challenges to practitioners ,academicians and researchers. The
4. Supply chain efficiency
purpose of this paper is to briefly provide an overview of the
Organizations are integrating their supply chains to reduce oper-
Green supply chain literature. This paper has indicates that
ating costs and improve their customer service Companies do
GSCM has helped to reduce the ecological impacts of industrial
not often change their businesses processes and it is this attitude
activity. Key academics have argued different angles to GSCM.
allows inefficient processes to continue unabated causing unne-
Works such as Carter and Ellram (1998);Srivastava and Srivast-
cessary waste and pollution. The most commonly perceived en-
ava (2005); Shih (2001); Nagorney and Toyasaki,(2005); and
emy to environmental protection is manufacturing and produc-
Min et al. (2006) discussed reverse logistics, whereas Arena et
tion operations. Businesses that want to transition to a green
al. (2003) and Beamon (1999) discussed life-cycle analysis. But
supply chain should take the opportunity to review all their busi-
the key themes that came out of the GSCM literature over the
ness processes to identify areas where adopting a greener out-
last twenty years are the concepts of green design, green opera -
look can actually improve their business. Companies should re-
tions, reverse logistics, waste management and green manufac-
view each process along the supply chain to identify if a more
turing. Much research, management education and many prac-
environmentally sound approach will help cure the inefficiencies
tical applications have focused on buffering the operations func-
that occur. Many companies that have been through this exercise
tion from external influences, including the natural environment,
have identified processes where raw materials were wasted; re-
in order to improve efficiencies, reduce cost and increase qual-
sources underutilized and unnecessary energy used due to ineffi-
ity. The inherent complexity of environmental issues – their
cient equipment. Product companies can adopt a number of
multiple stakeholders, uncertain implications for competitive-
business strategies that serve the dual purpose of environmental
ness and international importance – present significant chal-
stewardship and improving business results.
lenges to researchers. Much research is needed to support the
5. Corporate Responsibility
evolution in business practice towards greening along the entire
Green initiatives are tied to the larger issue of corporate so-
supply chain. Effective approaches for data sharing across the
cial responsibility (CSR), the idea that companies have oblig- supply chain need to be developed
ations not just to their investors but also to their stakeholders,
society, and the environment. Many corporations driven to com-
ply with increasing government regulations and pressure from

6
 International Journal of Computer Applications (0975 – 8887)
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