Benefits of Samsung’s green logistics and supply chain

management

• In today’s world ‘logistics cost’ not only refers to money, it also includes the external costs of climate change,
air pollution, dumping of waste, soil degradation, noise, vibration and accidents. Reducing this cost is Green
Logistics.

• Green logistics is quickly gaining prominence throughout the logistics and supply chain industry as protection
of environment has appeared as one of the top rated objectives among the governing bodies all over the
world.

• Samsung is a transnational corporation that specializes in

manufacturing modern electronic devices. To decrease the
level of the planet’s pollution, managers of the firm decided to
use the strategy that allows its customers to take particular
items that satisfied other people for free. Also, the company is
using another method of recycling their raw materials.
 Samsung’s green supply chain management
Economic
We secure an all-encompassing
competitive edge in cost, delivery,
quality, technology, and human
resources in order to maximize
synergy, speed, and efficiency with
our suppliers and create a corporate
ecosystem that enables sustainable
growth.
Social
We request that international
standards and regulations be abided
by in the areas of human rights
management, work environment,
ethics, and conflict mineral issues
with an aim to build an open and
transparent management
accountability system that engages all
stakeholders along the supply chain
Environmental
We work solely with Eco Partner-
certified suppliers so that we can
assess and manage the
environmental impact that may
occur in their components, raw
materials, and manufacturing
process.
 Drivers of green logistics
• Increasing energy cost
Mounting power and fuel costs along with the cost of related raw materials required for
operating have brought into focus the need for a more cost effective green alternative
• Global alarm over Greenhouse Gas emission
Corporate policies are concentrating more on identifying and lowering the carbon
footprints caused by their IT equipment, infrastructure and people.
• Climate Change
Global warming is impacting the weather, ice caps and glaciers in both the northern and
southern hemisphere in a negative way. The rise in the sea level due to the reduction in the
ice caps and glaciers cover is turning out to be a primary cause of concern for the
environmentalists all over the world .
• Government and Environmental Protection Agency regulations
An organization need to follow certain specifications to obtain Energy Star Rating and
other environmental certifications. Penalization by policing agencies to implement carbon
credit obedience is another inspiring factor for Green IT initiatives .
• Improved environmental awareness among the community
Vendor selection based on Green IT practices, sharing of best practices in
companies across the supply chain, end to end obedience along the supply chain
are the instrumental factors behind a successful and flourishing Green IT strategy.
 Benefits of going green
Today, environmental responsibility has transformed from a corporate slogan to a business imperative. Early adopters of
Green SCM initiatives and environmental strategies enjoy the following benefits:

• Increase employee satisfaction and attract interest of top level customers

• Reduce operating costs

• Increase in adaptability

o Promote alignment with the suppliers

and customers thus becoming preferred
vendor in green supply chain
o Differentiating themselves from
competitors by creating brand distinction
and recognition
 IT solutions for going green
o Green IT solutions play a crucial role in checking for possible gaps
and filling them to ensure success of green supply chain initiatives
adopted by organizations. Implementing Green IT solutions in a
supply chain enables:
o Transportation route optimization which ensures energy efficient
and cost effective way of transportation of goods.
o Automation of transportation planning process which prepares in
advance for unanticipated events in the supply chain.
o Streamlining of business processes through automation and mobility
solutions and thereby helping organizations to reduce their expense
on natural resources by helping then to achieve paperless processes.
o Effective usage of collaborative planning and forecasting which in-
turn reduces the overall energy requirements of organizations.
 Word from the company
“The environmental, health and safety, and energy management systems maintain and manage a pleasant work
environment by minimizing the environmental impact and risks from our company's products, activities, and services, in
order to reach humanity's goal of sustainable development.
In collaboration with our suppliers across the globe, we are continually working towards a sustainable business
ecosystem based on a philosophy of fairness, openness, and co-prosperity. We provide support to our suppliers
to operate in adherence to global laws and standards to fulfill its environmental and social responsibilities. We
also operate a risk management system to minimize human rights infringements and environmental impacts in
the mining process in high-risk areas.

Going green will offer the biggest positive impact on the return of investment of a business. Logistics Service
Providers are acting on it now to ensure long term profitable growth.