Integrating green supply chain (GSC) practices into the traditional supply chain management processes includes sustainability notions. It aims to help organisations decrease their carbon emissions and reduce waste while increasing profit. Every area of the supply chain offers green improvements, from manufacturing and buying to circulation, warehousing and transportation. So, in this blog, we will delve into the supply chain management meaning, details of green supply chain management processes and the benefits of integrating green practices into supply chain management processes.
Understanding the Supply Chain Management Meaning
Supply chain management (SCM) is the process of organising the movement of goods and services to and from a business. The SCM aims to operate all the supply chain activities of a company effectively to reduce waste, increase customer value and improve a competitive benefit in the market. Right from product development to production and logistics, it covers everything.
What is Green Supply Chain Management?
Green supply chain management means integrating environmental practices into the supply chain management processes, from obtaining and manufacturing to distribution and removal. By adopting green practices, industries can minimise their environmental impact, improve their brand image and attain long-term benefits.
Now that you know about green supply management, let’s explore how it is beneficial for your organisation.
Benefits of Green Supply Chain Management Processes
Here is a list of key benefits of green supply chain management processes:
- Cost Savings:
- Energy Efficiency: One of the main benefits of the green supply chain (GSC) is the saving in energy consumption through implementing energy-efficient transportation and facilities.
- Waste Reduction: Implementing green practices includes reducing waste through recycling and reusing materials. This not only provides environmental sustainability but also decreases disposal costs.
- Boost Corporate Image:
- Consumer Appeal: A GSC aligns with the increasing environmental awareness among customers. Organisations that promise sustainability frequently have enhanced consumer appeal, thus boosting their overall corporate image.
- Shareholder Trust: Investors and shareholders value organisations that prioritise environmental responsibility. A GSC promotes trust and loyalty among shareholders, providing the long-term accomplishment of the organisation.
- Regulatory Compliance:
- Adherence to Laws: Instigating green practices into supply chain management processes ensures compliance with environmental guidelines, protecting the organisation from legal issues and related penalties.
- Future-proofing: Adapting to growing environmental regulations puts an organisation to succeed in a fluctuating governing landscape, guaranteeing long-term sustainability.
- Risk Moderation:
- Resource Scarcity: Green supply chain management includes modifying sources and dropping dependency on rare resources, reducing risks related to resource shortages.
- Climate Resilience: With environmental sustainability practices, organisations are better positioned to resist the effect of climate transformation, shielding their supply chains from interruptions.
- Innovation and Competitiveness:
- Market Differentiation: If a company adopts green supply chain management processes, then it would be away from competitors, attracting environmentally sensible consumers and improving market affordability.
- Innovation Incentives: Sustainability often manages innovation, inspiring the development of new technologies and processes that can boost efficiency and decrease the environmental effects.
Final Words
In conclusion, it is essential to understand the green supply chain management processes for organisations aiming for sustainable development. By integrating green practices into supply chain management processes, companies highlight the significance of environmental management and social responsibility.
As there are numerous supply chain management courses available, it is crucial for you to choose one that helps you boost your career in the field of supply chain management.
For a successful supply chain and analytics career, enhance your knowledge and skills with the Advanced Certificate in Supply Chain Management and Analytics offered by CEC, IIT Roorkee in partnership with Imarticus Learning. Under the guidance of IIT Roorkee’s expert faculty, this 6-month long program helps you learn the skills that industry demands today, along with hands-on projects. Also, this program enables you to attain knowledge in data-driven decision-making and prepare for posts, like demand planner, data scientist, and supply and operations planner.
