Supply chain management ensures that a business has the required materials for an effective production; in the wave of environmental conservation campaigns, organizations should ensure their procurement strategy complies with international standards of environmental conservation.
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It is ethical and morally right to protect the environment; organizations that have a green supply chain system are more likely to develop and maintain customer loyalty than their counterparts who care less about the environment (Kotabe and Helsen 46). This paper discusses how a business can use its supply chain management to facilitated sustainable development.
Green supply chain management and sustainability
A green supply chain has an integrated environmental approach where it aims at aligning all its operations to an environmentally friendly approach; it looks into the logistics methods and processes from the products procured to the means of transport that has been employed- all of them need to be environmentally friendly.
When adopting a green supply chain, the company ensures that it procures from reputable suppliers and cares for the environment when producing goods. For example Starbucks coffee company procures from those farmers that respect the environment, they have a higher cost for such coffee beans and encourages such production through their policy of fair trade (Chopra and Meindl 28).
Green supply framework starts from material sourcing/procurement and ends with final product wastes disposal; when getting the products, the company ensures that they can be recycled after use. Between material sourcing and final products disposal, there are manufacturing, distribution and delivery mechanisms, which also should be environmentally friendly, the processes should be vetted for environmental friendliness.
Mitsubishi Motor Company has one of the best recycling plants where it ensures that the wastes that come from the company are minimal and necessary; the management also engages in environmental conservation projects to save guide the environment.
The framework is not limited to environmentally friendly production only but also focuses on cost reduction methods such as recycling and energy conservation (Mentzer 78).
Different countries have different policies in regards to environmental conservation. One of the most prevalent ways of ensuring that companies produce environmentally friendly goods is by taxing them on pollution they produce when manufacturing, therefore if a company have adopted green technology in its methods then it will have a reduction in costs of operations.
When the issue of supplies is looked from a different angle, it means that the company should procure for machinery and producing equipments that are of high technology and emits less pollution to the environment. This approach addresses the internal processes of an organization that should be looked into to ensure there is minimal pollution.
For example, Toyota Motor Corporation has embarked on massive computerization of its products like machineries, and internal processes with the aim of emitting minimal pollution to the environment. Other than controlling pollution from internal processes, the company ensures it has made high fuel-efficient vehicles that can be considered as environmentally friendly (Blanchard 89).
In green supply chain, the effects on environment and consumers are crucial component of a supply. Other than having, the physical goods there should be of the right quality and quantity. Companies that adopt a green supply chain enjoys a wider customers base; it is facilitated further by customer enlighten on issues pertaining environmental conservation (Simchi-Levi, Kaminsky and Simchi-levi 12-34).
To operate businesses in an environmental sustainable manner, managers should look into their company’s supply chain management. They should ensure they adhere to the standards of green supply chain management in both procured products and process of production.
Blanchard, John. Supply chain management: best practices. New York: John Wiley and Sons, 2007.Print.
Chopra, Sunil, and Meindl Peter. Supply chain management: strategy, planning, and operation. London: Prentice hall.2007.Print.
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Kotabe, Masaki, and Helsen Kristiaan. Global Marketing Management.New York: John Wiley & Sons, 2004. Print.
Mentzer, John. Supply chain management. London: Sage, 2001.Print.
Simchi-Levi, David., Kaminsky Phillips, and Simchi-levi, Edith. Designing and Managing the Supply Chain. New York: Mcgraw Hill, 2003. Print