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Green Supply Chain Management
Green Supply Chain Management
II, Harnessing green energy involves capturing and utilizing energy from renewable and environmentally friendly sources.
Green energy, also known as renewable energy, comes from natural processes that are replenished on a human timescale.
Solar Energy:
Wind Energy:
Hydropower:Water turbines
Biomass Energy. as organic materials like wood, agricultural residues, and waste, can be burned or converted into biofuels to
produce heat or electricity. Biomass power plants use the combustion process to generate energy.
Geothermal Energy:Geothermal energy is derived from the heat within the Earth.
Tidal and Wave Energy:
Hydrogen Energy:Hydrogen can be produced through electrolysis
Piezoelectric Energy:Piezoelectric materials generate electric power in response to mechanical stress or vibrations
II, Warehousing And other risks that can impact both the workforce and the surrounding community. Here are some
potential risks associated with warehousing:
Warehouse activities have a significant impact on the overall supply chain performance and the environment, due to their
heating, cooling, lighting, and material handling
• Risk from damage • E.g. Bunsfield oil fire in 2005 closed the warehouse • Impact on ASOS distribution centre • Ocado
warehouse on fire impacted their operations
Workplace Safety and Health:
Physical Hazards: heavy machinery, forklifts posing risks of accidents,injuries.
Chemical Exposure:
Labor Practices:
Working Conditions: Issues related to working conditions, including long hours, inadequate breaks, and insufficient rest
areas, can lead to worker dissatisfaction and health problems.
Wage and Employment Practices: Low wages, temporary employment, and lack of job security may contribute to social
and economic challenges for workers.
Supply Chain Ethics:
Ethical Sourcing: If warehouses store products from suppliers with unethical practices, it can reflect poorly on the warehouse
and its stakeholders.
Community Impact:
Traffic and Noise Pollution:
Land Use and Zoning Issues: Large warehouses may lead to disputes over land use and zoning regulations, especially in
residential or environmentally sensitive areas.
Technology and Automation: job displacement, raising concerns about unemployment and the need for retraining programs.
Security Concerns:Theft and VandalismRegulatory Compliance:
Health and Safety Regulations: Non-compliance with health and safety regulations can lead to legal and financial
consequences for warehouse operators.
Environmental Regulations: Failure to adhere to environmental regulations may result in fines and damage the reputation
of the warehouse.
Reducing the footprint of a warehouse involves optimizing space, improving efficiency, and adopting sustainable practices.
Here are some strategies to minimize the environmental and physical impact of a warehouse:
Space Optimization:
Vertical Storage: Utilize vertical space by implementing high-density storage systems, such as tall racks and shelving. This
can significantly increase storage capacity without expanding the physical footprint.
Compact Storage Solutions:
Inventory Management:
Just-In-Time Inventory: Adopt just-in-time inventory management to reduce the need for extensive storage space. This
approach helps minimize excess inventory and storage requirements.
ABC Analysis: Prioritize inventory based on its importance, with 'A' items being the most critical. This allows better
allocation of storage space for high-demand products.
Efficient Warehouse Layout:
Optimized Racking System: Design an efficient racking system that allows for easy access to products and minimizes
unnecessary movement within the warehouse.
Flow Racking: Implement flow racking systems to facilitate a first-in, first-out (FIFO) inventory flow, reducing the need for
excess aisles and improving efficiency.
Energy Efficiency:
Energy-Efficient Lighting: Upgrade to energy-efficient lighting systems, such as LED lights, to reduce energy consumption.
HVAC Systems: Optimize heating, ventilation, and air conditioning (HVAC) systems for energy efficiency to minimize
environmental impact.
Automation and Technology:
Warehouse Management Systems (WMS): Implement WMS to optimize inventory control, order processing, and overall
warehouse operations.
Automated Material Handling Systems: Introduce automated systems, such as conveyor belts or robotics, to improve
efficiency and reduce the need for excessive floor space.
Sustainable Practices:
Green Building Design: energy-efficient insulation, renewable energy sources, and sustainable materials.
Renewable Energy:
Transportation Efficiency:
Optimized Transportation: Streamline transportation and logistics to reduce the frequency of shipments, minimizing the
need for excess storage.
Last-Mile Delivery Solutions: Explore efficient last-mile delivery solutions to reduce the time and space required for final
product delivery.
Collaborative Supply Chain Practices:
Recycling and Waste Reduction:
Smarter supply chains will be inherently flexible. They will be composed of an interconnected network of suppliers, contract
manufacturers and service providers that can be tapped on demand as conditions change.
3D Printing: allows for on-demand and localized production, reducing the need for extensive transportation and minimizing
material waste.
Block chain Utilizing blockchain technology to provide transparent and traceable information about the origin, production
processes, and lifecycle of products. This fosters accountability and ensures adherence to sustainable and ethical practices.
Collaboration and Innovation Ecosystems:
Advanced Recycling Technologies: Chemical and robotic recycling
Responsive and Adaptive Materials: Developing materials that can adapt to environmental conditions or have responsive
properties, reducing the need for energy-intensive heating, cooling, or maintenance processes.
Closed-Loop Manufacturing:
Circular Economy Principles: Implementing a circular economy approach involves designing products with materials
that can be easily recycled or reused,
Remanufacturing: Designing products with components that can be easily disassembled and remanufactured
promotes resource efficiency and extends the lifecycle of products.
Smart data used
Community Engagement: , Education and Awareness: .Predictive Analytics, Real-Time Feedback, Smart Metering and
Monitoring:
Smart Appliances and Devices:
● Energy-Efficient Appliances: Integrate smart appliances that provide data on energy consumption and suggest
optimal usage times to minimize electricity demand during peak hours.
Smart grid: A "smart grid" in the context of a green supply chain refers to the integration of advanced technologies and
intelligent systems into the energy management infrastructure of the supply chain. The goal is to optimize energy consumption,
improve efficiency, and reduce the overall environmental impact of the supply chain operations
Renewable Energy Integration: // Demand Response Management: /// Energy Efficiency and Optimization:///Grid Resilience
and Reliability:///Real-Time Monitoring and Control: ///Predictive Analytics for Energy Planning: leverage predictive analytics to
forecast energy demand and supply patterns /// Carbon Footprint Reduction: /// Collaboration and Data Sharing:
Circular economy
The circular economy is an economic system designed to minimize waste and make the most of resources. It is an alternative
to the traditional linear economy, which follows a "take, make, dispose" model. In a circular economy, the emphasis is on
designing products that can be reused, repaired, remanufactured, and recycled to create a closed-loop system.
Design for Longevity: Products are designed to have a longer lifespan, be easily repairable, and upgradeable to
extend their usability.
Reuse: Emphasis is placed on using products and materials for as long as possible through activities such as sharing,
leasing, and second-hand markets.
Remanufacturing: Products are refurbished or remanufactured to extend their life and performance, reducing the need for
new resource extraction and manufacturing.
Recycling: Materials are recovered and recycled at the end of a product's life to create new products or components.
Waste Reduction: Minimizing the generation of waste and using waste as a resource through recycling and other means.
Circular economy principles (Ellen McArthur foundation)
• Preserve and enhance natural capital by controlling finite stocks ,balancing renewable resource flow
• Optimise resource yields by circulating products, components and materials
• Foster system effectiveness by revealing designing out negative externalities
Waste management
The hierarchy of waste management is a framework that prioritizes waste management strategies based on their environmental
impact and sustainability. The goal is to encourage the most environmentally friendly and economically viable methods for
handling and disposing of waste
Source Reduction/Prevention: This involves practices such as reducing packaging, promoting reusable products, and
implementing efficient manufacturing processes.
Reuse
Recycling
Recovery : The extraction of useful materials or energy from waste that cannot be recycled, Repair to working order • Refurbish
to specified quality • Remanufacture up to quality standard • Cannibalise to recover some reusable parts • Reuse materials from
used products or components • Upcycling to produce something new and better
Treatment and Disposal:
Landfilling
Reverse Logistics • Retailers manage product returns • OEM’S offer product return, repair or returns • Govt agencies offer
waste collection • Traders aggregate waste metal and other items from various organisations • Customers form important part
of closed loop by using reuse markets • Private waste management companies are 3PL for waste
Food waste inventory (Darlington,2009) Processing waste : Material losses Wastewater : Water at the end of food
processing or cleaning process from the production process due to poor handling Packaging waste : Materials disposed from
packaging and re-packaging processes Nonconformity waste : Edible food generated in the production process Overproduction
waste : Food that meets industry specifications but has to be scrapped because it no longer has a consumer
Common food loss causes in agricultural production and post- harvest • Preharvest – genetics, Environment and cultural
factors, poor market access, poor organisation • Harvest-early or late harvest, harvest method, lack of on farm packaging •
Handling and storage – inadequate drying of grain/cereal, improper packaging, poor transport infrastructure, poor storage
facilities • Processing and distribution – lack of inadequate processing facilities, delays in distribution
Impact to enviroment
Resource Depletion:
● The production of food involves the use of valuable natural resources such as water, land, and energy.
When food is wasted or lost, these resources are effectively squandered.
Greenhouse Gas Emissions:
● Decomposing food in landfills produces methane, a potent greenhouse gas that contributes to climate
change. The entire lifecycle of food, from production to disposal, also generates greenhouse gas
emissions. Wasting food means more emissions are released without benefiting anyone.
Deforestation:
● Expanding agricultural activities to meet the demand for food can lead to deforestation. When food is
wasted, it exacerbates the environmental impact of deforestation, as the resources used to produce that
food are wasted as well.
Biodiversity Loss:
● Agricultural practices, including those contributing to food production, can result in habitat destruction and
biodiversity loss. Wasting food intensifies the negative impact on ecosystems by increasing the demand for
agricultural land.
Water Pollution:
● The excessive use of water in food production contributes to water scarcity in many regions. Additionally,
when food waste ends up in landfills, it can contaminate soil and water with pollutants.
Energy Consumption:
● The entire food supply chain, from planting to transportation and processing, requires significant energy.
Wasting food means that all the energy invested in producing and transporting that food is also wasted.
Overfishing and Aquatic Ecosystem Degradation:
● Wasted seafood contributes to overfishing and the depletion of marine resources. This not only affects the
targeted species but also disrupts entire aquatic ecosystems.
Social and Economic Impacts:
● Food loss affects farmers and producers economically. When a significant portion of the harvest is lost, it
can lead to financial instability for those involved in food production.
Land Degradation:
● Agricultural practices, including those associated with food production, can contribute to soil erosion and
degradation. Wasting food intensifies these negative impacts on land quality.
Food Security Concerns:
● In a world where millions suffer from hunger and malnutrition, the wastage of edible food exacerbates
global food security concerns. Addressing food waste could help redirect resources to feed those in need.
Vulnerability of food systems: Climate Change, Pests and Diseases, Supply Chain Disruptions, Land use change