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GREEN SUPPLY CHAIN MANAGEMENT

Article in Central European Journal of Management · April 2023

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 Central European Management Journal ISSN:2336-2693 | E-ISSN:2336-4890
Vol. 31 Iss. 2 (2023)

GREEN SUPPLY CHAIN MANAGEMENT

Mrs.Kavita Rohan Patil

Assistant Professor, Lala Lajpatrai institute of management, University of Mumbai

Dr Neethu Ann Georgie

Associate Professor, MACFAST

Brajesh Choubey
Registrar, Sikkim Skill University

Dr.Navaneet D.Deshpande
Accredited Management Teacher, All India Management Association, South Region,Bangalore-
94, India

Dr. R.Sudha
Assistant Professor, Department of Commerce, PSG College of Arts & Science, Coimbatore

Dr.P.Nithya Priya
Assistant Professor, Department of Commence, PSG College of Arts & Science, Coimbatore.

Abstract—The term "green supply chain management" refers to the practice of employing user
inputs that are less detrimental to the environment and changing them into outputs that can be
recovered but instead repurposed at the end of their existence. Using user inputs that are less
hazardous to people is another example of green supply chain management. Green supply chain
management is another term for sustainability management of supply networks.. This is done by
the use of components that are "greener" in their inherent characteristics. The execution of this
approach results in the formation of a supply chain that is not only sustainable but also considerate
of the natural environment in its immediate vicinity. Another term for this procedure is "green
input transformation," which is also used to refer to it. "Global supply chain management," which
is the phrase that is used to describe innovation, is one of the more recent inventions that has been
established to enhance the capabilities of supply chain management. Innovation is sometimes
referred to by the phrase "supply chain management," which is also a word in its own right
(GSCM). The purpose of this inquiry is to provide an overview of the work that has been done
on the topic of green supply chain management (GSCM) that has been published over through
the course of the last three decades (GSCM). Following an examination of the relevant literature,
a broad variety of significant activities were found to exist, including some that includes green
design, green management, green waste treatment, and reverse logistics. The list that follows
contains entries for the many pursuits that are in dispute. This research also investigates the
primary factors, such as regulatory compliance and advancements in consumer and public
relations, that are promoting environmentally conscious behaviours.
Keywords— Sustainable Development, Green Supply Chain, Buying Green, Designing Green,
Reverse Logistics, Manufacturing Green, And Packaging Green.

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I. INTRODUCTION
Consumers will have a higher interest in knowing more about environmental concerns and the
implications of global warming as more people become aware of environmental issues and the
effects of global warming. It is not unreasonable to assume that you will be questioned about the
recycling programmes, carbon footprint, and environmentally responsible manufacturing
techniques used by a corporation. As a direct outcome of sustainable development, the field of
operations management as well as the supply chain have made remarkable strides in embracing
environmental and social sustainability. One definition of sustainable development is "growth
that fulfils the needs of the present without compromising the capacity of future generations." In
other words, sustainable development is development that takes into account both the present and
the future. This idea emphasizes how important it is to protect the natural environment that we
live in. The situation that is referred to as "sustainability" is one in which the economy, nature,
and society are all in a state of equilibrium with one another. An project that seeks to lessen the
overall negative effect that supply networks have on the surrounding environment is referred to
as "green supply chain management" (GSCM). [1]

The decision of a company to implement GSCM may be influenced by a number of factors,

including legal requirements, a desire to differentiate themselves from competitors in the industry
by demonstrating their commitment to sustainability, and the requirement to keep up with the
competition if they have not already done so if the company has not already implemented GSCM.
In an era of growing consumer awareness and more severe government rules, companies who
have adopted environmentally friendly means of supply chain management will have a
competitive edge over their contemporaries. This advantage will allow them to compete more
effectively. As a result of this, the goal of GSCM has shifted from only increasing profits to now
now include the creation of value for customers and shareholders. [2]

FIGURE 1. SEM OF GREEN SUPPLY CHAIN MANAGEMENT

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II. OBJECTIVE
The research aimed to fulfill the following objectives:
● To Research the management of green supply chains.
● the benefits of green supply chain management
● To study green supply chain and its impact on sustainability
● To study the Disadvantages of Green Supply Chain Management
● To study concepts that have emerged from green supply chain
● The sustainable supply chain: the way of the future
III. METHODOLOGY
Management of a company's supply chain with minimal long-term environmental effect is the
goal of green supply chain management (GSCM). New developments in supply chain
management include green buying, green production/materials administration, green distribution,
including reverse logistics, all of which work together to lessen the negative effects on the
environment.
Several businesses now see considerable worth - and economic potential - in becoming green in
response to the growing desire among customers, particularly millennials, for environmentally
friendly goods.
Each supply chain consists of many modules, such as transportation, storage, waste management,
and packaging; transportation is particularly important since it is a major contributor to the rise
in world CO2 emissions. When it comes to transportation, becoming green means using
alternative fuels and technologies like compressed natural gas (CNG), hybrid cars, electric
vehicles (EVs), and battery-powered tools and machinery.
IV. GREEN SUPPLY CHAIN MANAGEMENT
It is necessary to assume responsibility for activities that are carried out both inside and outside
of the organization to manage an eco-friendly supply chain. These activities might be carried out
anywhere in the world.
According to a statement issued by the United Nations, "a company's whole supply chain may
have the potential to have the power to have a major effect on the advancement of human rights,
fair labor standards, environmental improvements, and anti-corruption measures."

Despite this, practically all firms agree that the supply chain is the most challenging component
of their attempts to enhance the overall sustainability of their operations. The management of
environmental, social, and economic repercussions, in addition to the promotion of good
governance principles throughout an entire supply chain that consists of dozens of nodes and
thousands of partners, suppliers, customers, and shareholders, is without a doubt a herculean
undertaking. This is because supply chains typically consist of a large number of partners,
suppliers, customers, and shareholders. This is since the supply chain in issue is composed of
every one of these components. [3]
As a direct consequence of this, there is an urgent desire for a wide range of green supply chain
management (GSCM) solutions to meet the needs of the requirements of the demands of today's
ever-growing supply chain issues. The acronym GSCM stands for "green supply chain
management." "Green supply chain management"

The top three reasons for moving toward a sustainable supply chain are shown in table no 1: -

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Top Reasons For Moving Toward A Sustainable Supply Chain

Cost Saving 29 %

Brand And Reputation Management 18%

Competitive 13%
Difference
Risk Management 19%

Innovation Opportunity 6%

V. SPECIFIC REQUIREMENTS FOR A SUSTAINABLE SUPPLY CHAIN

MANAGEMENT
Specific conditions must be met to ensure sustainable management of the supply chain:
Green procurement. Make sure that the suppliers and the supply chain collaborate to accomplish
the same environmentally responsible objectives in the logistics industry.[4]

Sustainable production practices. Ensure that your manufacturing method has the fewest adverse
effects on the surrounding ecosystem as possible.

The dispersion of green. Determine the best methods of packing and delivery that will have the
least amount of influence on the environment, and put them into practice.

The process of remanufacturing and reverse logistics. Ensure that the waste products generated
by your manufacturing process are converted to a "new" condition in which they may once again
be used in the production process.

Processing of discarded electronic equipment Reduces the negative effects on the environment
by ensuring that all electronic items that are getting close to the end of their useful lives are either
recycled or disposed of responsibly.[5]

As can be seen, there is a significant amount of green. Greening refers to the process of applying
methods that, on several levels, reduce or eliminate the negative effects that human activities have
on the environment. But is "greening" enough?

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FIGURE 2. SOME POPULAR GREEN PRACTICES

VI. THE BENEFITS OF GREEN SUPPLY CHAIN MANAGEMENT

Green supply chain management is not just about reducing the environmental effect of the supply
chain; it can also provide value-driven possibilities for development and innovation. This is
because green supply chain management focuses on reducing the environmental impact of the
supply chain.[6]

⬥ To put it another way, if you work hard enough to cut down on CO2 emissions, you will
eventually become aware of other real advantages, which may include but are not limited to the
following:
⬥ a better level of asset efficiency, which results in reduced waste creation and buildup.
⬥ Economic savings in manufacturing as well as increased profits may be achieved by
recycling and reusing raw materials.
⬥ a more favorable impression of the extra value within the customer base
⬥ adherence to the norms and criteria established by international organizations
⬥ You should disregard the concerns of investors over issues like human rights, fair labor
standards, and the environment.
⬥ good image of the brand as customer support for environmental protection increases,
infusing the business with new values and ambitions that may foster innovation.

It is impossible to have a successful GSCM without the participation of all of the partners,
shareholders, and suppliers. Even bringing up the concept of "green supply chain management"
forces us to take into account the importance of cooperation, transparency, and integration with
all of the partners in the supply chain. [7]

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FIGURE 3. SUPPLY CHAIN MANAGEMENT PROCESS

VII. GREEN SUPPLY CHAIN AND ITS IMPACT ON SUSTAINABILITY

The importance of the environmentally responsible supply chain in determining the degree of
environmental sustainability

The role that companies play in laying the foundation for and sustaining a supply chain that is
capable of meeting the demands of the future is an extremely important one. Businesses have the
opportunity to create greener supply chains by making modifications to their operations and
goods, which is beneficial not just for society but also for the environment and their bottom lines.
To put it another way, this will assist the company in establishing a supply chain that is
environmentally friendly. The sustainable concept of "cleaner production," which was introduced
by the United Nations Environment Program (UNEP) in 1989, was the only basis on which the
influence on the environment was considered prior to the adoption of eco-friendly techniques.
This was done in order to measure the impact on the environment. This was done in the days
before more environmentally responsible practises were put into place.[8]

In the context of industrial production, the term "cleaner production" refers to the process of
making efficient use of resources and energy, as well as the elimination of hazardous inputs and
the reduction of the harmful effects of emissions and waste products. Cleaner production also
reduces the number of hazardous inputs used in production. The following are some of the
advantages that are associated with the use of production techniques that are friendlier to the
natural world:
The adoption of production practises that are gentler on the natural world brings with it a plethora
of benefits, some of which are as follows:

⮚ It enhances societal, economic, and environmental progress;

⮚ This results in an increase in the effectiveness of the cost-effective conservation of raw

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materials and energy;

⮚ enhancing both the ecosystem and conformity with the requirements of the market;
⮚ It gives workers with harmonious working environments.; and
⮚ It helps to promote a positive image of the organization to the general public [9]

VIII. DISADVANTAGES OF GREEN SUPPLY CHAIN MANAGEMENT

Disadvantages Associated with the Management of Green Supply Chains

The process of turning green is helpful to the preservation of the earth's natural ecology, but also
requires companies to bear the expense of greater overhead.

Investing in wind power energy or making the move to solar power may be costly for your
organization and may result in a higher total cost.

The threat to your data comes straight from being entirely paperless, which puts your record-
keeping at risk. A breakdown of the system, the theft of computers, the spread of viruses, or the
hacking of crucial information may have devastating repercussions. [10]

The usage of environmentally friendly components in your facility or manufacturing process may
result in an increase in expenses, which may be passed on to customers in the form of higher
product prices or absorbed by the firm itself as an extra investment.
Consumer backlash: if consumers realize that a corporation is involved in greenwashing, it may
hurt the company's brand and diminish its degree of environmental responsibility. Greenwashing
is the practice of a corporation making deceptive statements about the environmental friendliness
of its product to acquire greater market share. [11]

IX. CONCEPTS THAT HAVE EMERGED FROM GREEN SUPPLY CHAIN

Buying Green: Choosing "environmentally preferable products and services" is what's meant by
"green purchasing." Green purchasing is widely recognized as an efficient strategy for promoting
products and services that have a low environmental impact. Moreover, it contributes to the
upliftment of consumer eco-awareness. Example: Recycled paper purchases

Second, the term "Green Design" describes the process of developing products and services that
are friendlier to the natural world and its ecosystems. Eco-design, design for the environment,
and life-cycle design are some of the other terms for what is often referred to as "green design."
The primary objective of environmentally responsible product design is to develop products that
can be recycled or repurposed without causing damage to the natural environment.[12]

Third, LCA is a process for "assessing and evaluating the environmental, occupational health,
and resource consequences of a product through all phases of its life, including extraction and
processing of raw materials, production, transportation and distribution, use, remanufacturing,
recycling, and final disposal."

The fourth kind of logistics is called "reverse logistics," and it differs from traditional logistics in
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that it focuses on managing the reverse flow of raw materials rather than their forward movement.
Transporting spent things back to the original manufacturer for the purpose of additional
processing, refilling, repairs, recycling, or disposal is what is known as "reverse logistics."[13]

GREEN SUPPLY CHAIN MANAGEMENT IN TABLE NO.2: -

Green supply chain Explanations
management
Green Procurement Montage- MRB's (MRB). It determines whether Subcontractor materials or
products satisfy Montage or client standards. It verifies whether materials
or items are from "Green Partners" who fulfill environmental quality
guidelines and pass a contamination audit. R&D, Sales Marketing, and
Operations specialists may be on a panel.

Green Product Development Montage-Tech creates high-performance, low-power products. This may
increase gadget life and save energy costs. Customers benefit from
decreased power usage and extended product life. It reduces STB power
requirements, saves money, and protects the environment.

Green Manufacturing Montage-Tech has subcontractor selection and management processes.

Subcontractors must produce competent goods. Montage-Tech evaluates
subcontractors' sustainability. Montage-Tech subcontractor UMC. UMC
advances the worldwide eco-friendly movement via human orientation,
environmental coexistence, and social responsibility.

Green Operation Montage-Tech created an intranet for information exchange and

departmental collaboration. The Operations Department changes the
number of finished items, and the Finance Department may subsequently
record the Inventory Account. Operation Department may utilize the
subcontractor's intranet to outsource. Cost-effective, energy-efficient, and
eco-friendly.

X. GREEN SUPPLY CHAIN – FUTURE OF NEW ERA

The fourth industrial revolution and its focus on artificial intelligence are having new implications
on the future of the green supply chain. This is because the fourth industrial revolution marks the
beginning of a new era in the management of supply chains. A whole new age has begun as a
direct result of these novel impacts. These unanticipated effects are the direct result of the fourth
industrial revolution, which is now taking place and will continue to do so in the foreseeable
future. There is a chance that cyber-physical technologies, the internet of things, and the internet
of services will all find a place for the green supply chain.. The emphasis has moved away from
the interactions that take place between people and machines and instead is placed on the
connections that take place between the machines themselves. The innovations that contributed
to the Fourth Industrial Revolution increased the speed, flexibility, and reliability of operations
while at the same time reducing the quantity of energy that was necessary. Cloud computing and
other data management technologies, for example, are extending the number of ways in which
the concept of a green supply chain may be applied in previously unimaginable ways. The Fourth
Industrial Revolution is going to have an impact on the green supply chain, which in turn will
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have ramifications for the conception of companies, the commencement of enterprises, the
operation of businesses, and the management of goods at the end of their useful life.[14]

Interorganizational and intraorganizational supply chain practices would, following the green
supply chain, place less of an emphasis on just monitoring environmental compliance and more
of an emphasis on taking a proactive position based on a number of different Rs. The terms
"Repair," "Reuse," "Reduce," "Recycle," "Refurbish," and "Remanufacture" are also included in
this list. The green supply chain is novel in that it incorporates proactive sustainability thinking
into the design and execution that goes into the structure of an organization. This is important
both today and in the long run. This is due to the fact that the green supply chain is vital to the
present and the future. It helps business owners and innovators in anticipating and making plans
for the expenses associated with meeting rising environmental demands for sustainable growth
from both customers and regulatory bodies. This is due to the fact that the idea encourages
business owners and creators to care more about the planet. This is because the concept helps
entrepreneurs and innovators to become more environmentally conscious. This line of thinking
is founded on the fact that there has been a long tradition of corporate resistance to adopting
environmental recommendations because doing so would increase the costs incurred by the
business as well as the amount of time it would take to produce the good or service in question.

On the other hand, the introduction of the idea of Green Supply Chain Management has helped
to firmly establish the Green Supply Chain as a distinct phenomenon (GSCM). To ensure
conformity with the Green Supply Chain, this concept calls on the company's upper management
to commit to instituting organizational reforms and setting up assessment and oversight
procedures. This involves incorporating legal as well as auditing environmental requirements,
obtaining ISO certification, and choosing partners and clients that are environmentally friendly,
as well as eliminating harmful materials in the design, manufacturing, and disposal processes.
Selling scrap metal, old machinery, or even used materials could count as one of the requirements
for GSCM.[15]

CONCLUSION
GSCM has the potential to lessen the damaging effects that industry has on the natural world
without compromising aspects like as cost-effectiveness, quality, dependability, performance, or
the efficiency with which it uses energy. In the field of GSCM, professionals, academics, and
researchers face a wide range of obstacles and difficulties. This study's objective is to conduct a
comprehensive examination of the information currently available on green supply chains.
According to the findings of this research, GSCM has contributed to the reduction of some of the
environmental harm produced by industry. GSCM has been explained in a variety of different
ways by a number of distinguished scholars. The literature on GSCM during the last two decades
has given rise to a number of major ideas, some of the most important of which include
sustainable practises. These practises include carbon neutrality, eco-friendly materials, waste
reduction, and environmentally friendly manufacturing. Many research, management classes, and
real-world applications highlight the need of shielding the operations function from external
impacts such as the weather, lowering costs, and raising quality standards. It is challenging to do
research on environmental problems due to the large number of parties that are engaged, the lack

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Central European Management Journal ISSN:2336-2693 | E-ISSN:2336-4890

Vol. 31 Iss. 2 (2023)

of transparency on their effect on competitiveness, and the fact that many of these issues have a
worldwide relevance. A substantial amount of further research is necessary to support the change
in business behaviours towards greening the whole supply chain. Throughout the whole supply
chain, it is essential to have ways that are both effective and efficient for exchanging information.

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