Green Supply Chain Management and Reverse Logistics

GREEN SUPPLY CHAIN MANAGEMENT AND REVERSE LOGISTICS

Presented By:

Gurpreet Singh(21/015)

Jasanpreet Kaur(21/016)

Neha Diwakar(21/020)

WHAT IS SUPPLY CHAIN MANAGEMENT?

Supply chain management (SCM) is the oversight of

materials, information, and finances as they move in a

process from supplier to manufacturer to wholesaler to

retailer to consumer.

WHAT IS GREEN SUPPLY CHAIN MANAGEMENT

“Integrating environment thinking into supply chain management, including product design, material sourcing and selection, manufacturing processes, delivery of the final product to the consumers, and end-of-life management of the product after its useful life".

SUCCESS STORIES:

Texas Instruments: saves 8 million dollars every year by reducing its transit packaging budget for its semiconductor

business through source reduction recycling and use of reusable

packaging systems.

Commonwealth Edison: Produced $50 million in financial benefits from managing materials and equipments with Life Cycle

Management Approach.

Pepsi/Coke: Saved $44 million by switching from corrugated to

reusable plastic shipping containers for 1litre and 20 ounce

bottles ,conserving 196 million pounds of corrugated material.

Dow Corning: Saved $2.3 million by using reconditioned steel steel drums in 1995.Also conserved 7.8

million pounds of steels.

POLLUTION PREVENTION HIERARCHY

WHY THERE IS NEED FOR GREEN SCM?

Increasing Environmental Constraints due to Global Warming

Corporate Social Responsibility Beneficial for Organization Eco-friendly Increasing Environmental awareness in

stakeholders Evolving Consumer and Client Demand Response to increasing fuel prices

AREAS TO GREEN THE SUPPLY CHAIN

Designing Of Products Production Material Purchase Packaging Warehousing Logistics & Reverse Logistics

DESIGNING OF PRODUCTS

An eco friendly design approach leads

1] Less material usage

2] Minimum Operations

3] Proper use of Computational fluid dynamics tools can used to reduce the exhaust emissions at designing level

PURCHASE

Implementing Green purchasing policies

Technical support to vendors to reduce the emissions

Guidelines for usage of less hazardous materials

PRODUCTION

Achieving Economies of scale in production Lean manufacturing approach Fuel efficient tools and machines Selecting less carbon intensive energy sources

PACKAGING

Mercury free Non toxic (minimize toxicity) PVC or DEHP free Recyclability Hazardous waste considerations Durability/Reusability Energy efficient

BENEFITS OF GREEN SCM

Driving the truck the opposite wayTrash to Cash

WHAT IS LOGISTICS ?

“Process of planning, implementing and controlling

the efficient, cost-effective flow of raw materials, in

process inventory, finished goods and relatedinformation from the point of origin to the point ofconsumption for the purpose of conforming tocustomer requirements”

WHAT IS REVERSE LOGISTICS ?

“Process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal”

ACTIVITIES OF REVERSE LOGISTICS

Handling of returned merchandise Recycling and reuse Hazardous materials disposition

REVERSE LOGISTIC PROCESS

STRATEGIC USE

Strategic Weapon

Competitive Reasons

Good Corporate Citizenship

Clean Channel

Recapture Value and Recover Assets

Legal Disposal Issues

CHALLENGES

Retailer – Manufacturer Conflict

Problem Return Symptoms

Cause and Effect

Reactive Response

GENCO

Service Offering:-

Return center operations 

Return-to-vendor management 

Product recall management 

Test, repair and refurbishment 

Product recycling