Catena AureaII

8/3/2019 Catena AureaII

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Knowledge Partner:

With the growing environmental concerns and rampantindustrialization, corporations across the globe are trying to bemore judicious in their use of natural resources and are looking atintroducing environment friendly processes in their dailyoperations. The theme for this edition of the magazine is `Green

Supply Chain Management'

TEAM OPTUMIZ

NMIMS


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Table of Contents

Foreword ................................................................................................... 2

GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS

INDUSTRY................................................................................................. 4

Manoj Bisht NMIMS Mumbai ............................................................................................................. 4

GREEN CONSTRUCTION ........................................................................ 12

Prasad Madhusudan, Saurabh Shah NMIMS ....................................................................................... 12

Occupant Health and Safety................................................................................................................ 15

Building Operation and Maintenance .................................................................................................. 16

GREEN SUPPLY CHAIN MANAGEMENT SCENARIO ........................... 19

Vishal Arora and Ankit Bansal, NMIMS............................................................................................. 19

ECONOMIC FEASIBILITY OF GREEN TECHNOLOGY........................ 23

Mehul Jain, NMIMS .......................................................................................................................... 23

GREENING THE SUPPLY CHAIN .......................................................... 28

Naresh Chandak and Ann Varghese,NMIMS ..................................................................................... 28

GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS

INDUSTRY................................................................................................33

Ganesh Iyyapan and Dhiren Chaudhary ............................................................................................. 33

Quotable Quotes ..................................................................................... 38


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Foreword

There are great expectations from the

management school graduates as

increasingly large number of qualified

students having diverse educational

backgrounds enrol in management schools

to sharpen their skills. Over a considerable

period of time, the industry has partnered

the institution in setting up the syllabus

according to the industrial requirements and

also by absorbing students during campus

selection.

The necessity to improve the teaching &

learning methodology has resulted in a novel

learning process- the case study approach

wherein the involvement of the students

themselves becomes the key to learning. The

quest for improvement and innovation never

stopped and in August 2007 at the

NMIMS we saw a new beginning or rather a

new approach to learning with the inception

of the OPTUMIZ cell, taking learning

beyond the classrooms walls.

The OPTUMIZ initiative has been gaining

momentum every year since then,

recognizing the need to integrate various

organizational functions such as IT, Finance

& marketing with the efforts of organized

operations for optimum & sustained success.

The cell has now put together articles in a

Newsletter titled Catena Aurea which means

crisp, clear & easy to read highlighting the

current operational management issues. Thearticles in the present edition, for instance,

are all related to Green Supply Chain

management. Initiatives such as these

contribute to the continuous improvement in

learning. My heartfelt wishes to the success

of the initiative.

Prof Shailaja Rego Head of Department, Operations

School of Business Management

Narsee Monjee Institute of Management

Studies


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GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY

Manoj Bisht NMIMS Mumbai

Supply Chain

While the term Supply Chain implies a linear relationship, it is more accurate to say thatsupply chain is a complex network of activities that includes performing functions of

procurement of materials, transformation of these materials into intermediate and finished products, and distribution of these finished products to customers. Thereby, supply chainmanagement (SCM) is the process of planning, implementing, and controlling the operations ofthe supply chain as efficiently as possible.

Green supply chain management (GrSCM)

Adding the Green concept to the Supply Chain concept adds a new dimension to it

whereby the supply chain has an Environment factor additionally attached. This is an altogether

novel concept because the basic definition of Supply chain, in an operational sense, is aboutextracting and exploiting raw materials from the natural environment. So the idea of GrSCM is

to eliminate or minimize waste along the supply chain.

There are two main aspects that differentiate green supply chains from traditional supply chains -1) Green supply chain aims to improve the environmental performance of its existing supply

chain through environmental monitoring.2) The supply chain is augmented to include reverse supply chain management that builds a

closed-loop system for the products.


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Innumerable industries have made enormous financial profits by switching to thissustainable developmental model.

Few Green-Profit success stories include -

x Dell saves over $20mn annually as a result of supply chain and packaging improvements.x Texas Instruments saves $8mn each year by reducing its transit packaging budget for its

semiconductor business through source reduction, recycling, and use of reusable

packaging systems.

x Pepsi-Cola saved $44mn by switching from corrugated to reusable plastic shippingcontainers.

x Dow Corning saved $2.3mn by using reconditioned steel drums and conserved 7.8mnpounds of steel.

x Commonwealth Edison managed to generate $50 million in financial benefits by usingmaterials and equipment using life-cycle management approach.

GrSCM in the Electronics Industry

To reduce the environmental impact of the waste of electrical and electronic equipment(WEEE), the EU implemented Waste Electrical and Electronic Equipment (WEEE) directive inAugust 2005. This directive stresses upon the need of recycling, reuse and recovery of the inputsused in the making of the goods. The main objective of the WEEE directive is to reduceenvironmental damage by reusing and recycling electrical and electronic equipment, by whichthe volume and the capacity required for handling waste electrical and electronic equipment canbe reduced. Similar regulations have been implemented in the US, China, Japan, Korea etc.


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Also, the ROHS (Restriction of Hazardous Substances) directive prohibits electrical andelectronic equipment containing lead, mercury, cadmium, hexavalent chromium, polybrominatedbiphenyls (PBB) and polybrominated diphenylethers (PBDE).

GrSCM has been adopted as a proactive strategy by leading electronic companies like Dell,HP, IBM, Sony, Panasonic etc. For example, ACER, has established a green product supplychain management system for its global operations. TATUNG has established a green supplychain to meet the demands of its clients green procurement standard to ensure that its export to

the European market is unhindered. ASUS provides its suppliers with ASUS e-Green forregistration and evaluation to determine the capability of suppliers.

Most electrical and electronics manufacturers are involved in Original EquipmentManufacturing (OEM) and Original Design Manufacturing (ODM). These companies playimportant roles in global markets as their products share a substantial portion in market.

The key themes that emerge from GrSCM literature for the electronic industry include -

1) Green procurement - defined as an environmental purchasing consisting of involvementin activities that include the reduction, reuse and recycling of materials in the process ofpurchasing.

2) Green manufacturing - defined as production processes which use inputs with relativelylow environmental impacts, which are highly efficient, and which generate little or nowaste or pollution.


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3) Green distribution consists of green packaging and green logistics. Packagingcharacteristics such as size, shape, and materials have an impact on distribution becausethey affect the transport characteristics of the product. Green Package intends toimplement Green Package Designing, optimize packing structure, and reduce packingmaterials.

4) Reverse logistics - defined as the process of retrieving the product from the end consumerfor the purposes of capturing value or proper disposal. Activities here include collection,selection, sorting, re-processing, redistribution and disposal.


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The Cisco-Green Initiative

Cisco implemented foundational changes in the Reverse Supply Chain space to unlock

the value from product returns with focus on changes in Asset Recovery, Receiving andDisposition, Recycling, and Order Management processes.

Cisco has developed Proactive Asset Recovery capabilities to help the customer in returningthe used-material. By creating this tool, product return rates increased dramatically to over 80%.This has helped reduce grey market and brand protection risks. Cisco recycles about 22 million pounds of returned material through environmental friendly processes. Improved Process forProduct Reuse reduced operating expenses from 119% to 29% from 2005 to 2009. Also, theReuse factor has shot up from 5% to 44%. By redeploying products after return, the businessincreased its bottom-line by $147 million.

Increase in Reverse Supply Chain Contribution Reduction in Operational

Expenses

A recent green packaging pilot program reduced packaging materials by 77%, saving over3.7 million pounds from going into landfill. This pilot program itself lead to annual savings ofover $24 million. One of the product lines reduced packaging by 33 percent and increasedtransportation load utilization by 50 percent resulting in $1.3 million annual savings.

x By reducing carbon emissions, waste production, and natural resource demand, Cisco'sGlobal Supply Chain Management realized over US$3 million in annual cost savings

through manufacturing efficiency in 2008.

x By regrinding the excess plastic produced during the manufacturing process, Ciscorecycles approximately 13 per cent of the plastic used in its IP phones, conservingmaterials and saving US$880,000 per year.

x Converting product documentation from paper manuals to CDs saves 2.7 million sheetsof paper a year and roughly US$1.2 million

x By changing the format and reducing the font, Cisco saves 22 million sheets of paperannually thereby making savings of approximately US$1 million in printing costs.


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The Kodak Perfect Green-ProfitPicture

Industry sources estimate that 1.5 billion One-Time Use Cameras (OTUCs) have beenreclaimed for recycling with the rate of recycling of OTUCs going up from 75% to 84% withinhalf a decade.

Of the 1.5 billion cameras recycled, it is estimated that nearly 1 billion are of Kodakbrand. Started in 1990, the Kodak OTUC program works with photofinishing outlets to returnused cameras to Kodak sorting centers, from where they are routed for recycling. Just the factthat if these 1.5 billion cameras are laid one beside the other they would stretch 120,000 miles,

which is enough to circle the earth five times or reach more than halfway to the moon signifieshow much waste has been prevented from reaching landfills.

In 2005, Kodak as an eco-friendly initiative recycled and reused, more than 750 millionpounds of scrap materials, including solvents, plastics, wood, metals, and other by-products ofmanufacturing, making Kodak Park one of the largest recyclers in New York State.

According to Kodak, 80% of the weight of their cameras will be used or recycled and acamera can have as many as nine lives. Nearly every piece of the camera is either recycled orreused in the ongoing production of more OTUCs, bringing down costs for consumers andkeeping huge amounts of waste out of landfills. Kodak has recycled more than 650 million of


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these cameras and in the past five years alone, the recycling program prevented about 16 millionpounds of mixed plastics and 9 million pounds of circuit boards from entering the waste stream.Kodak has diverted more than 9.8 million pounds of waste from landfills by recycling one-time-

use cameras. This is equivalent to 774 tractor trailer loads of waste.

Apart from this, though the company uses millions of pounds of the chemicals, more than99 percent is reused over and over again. This has been a major step to help decrease airborneemissions caused by methylene chloride by 96% in the last quarter of the century.

Dells roadmap to the elusive Zero Footprint

Dell Corp. claims to be the first company to join the global carbon-neutral initiative thataims to offset the carbon dioxide produced when customers power their computer systems. Dell

has already collected about 484 million pounds (220 kilograms) of computer equipment since2006 and offered free recycling of PCs and related accessories to consumers.

In 2008, Dell recycled about 290 million pounds of electronics, about 10 percent morethan its goal, and aims to recycle a billion pounds per year by 2014. Dell has also banned theexport of electronic waste including non-working electronics to developing countries as a part ofits global policy on responsible electronics disposal.

In terms of packaging, Dells goal is to eliminate the use of approximately 20 millionpounds of packaging materials by 2012. Dell also became the first PC maker to create packagingfrom bamboo last year, and shipped products built with more than 7.2 million pounds of post-

consumer recycled plastic. It aims to achieve 75 percent curbside recyclability of packagingcomponents.

Dell is also striving to make its operations more energy efficient. Over the past threeyears, such upgrades have reduced energy usage by 36 million kWh, prevent 21,000 metric tonsof greenhouse gas (GHG) emissions, and save roughly $5.8 million each year. By applying itsgreen efficiency approach, Dell IT has achieved more than $29 million in energy savings. Dellis working to reduce global greenhouse gas (GHG) emissions by 15 percent per dollar of revenuefrom 2007 to 2012, achieve net zero global GHG emissions by calendar year 2008 and maintainthat level through calendar year 2012. According to Dell, 25 million tons of GHG emissions can be reduced through improved product performance and preconfigured systems with Energy

Smart Operational Settings.

Conclusion

GrSCM can reduce the environmental impact of industrial activity without sacrificingquality, cost, reliability, performance or efficiency. So implementing the Green Supply Chain

certainly drives Real business value.

However, there are areas in Green Supply Chain Management that require further studyand the field is yet quite open. Moreover, the inherent complexity of the environmental issue - its


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multiple stakeholders, uncertain implications for competitiveness etc. - presents significant andnew challenges. New research initiatives are needed to cover this gap.

I feel that, Eco-Design of the Supply Chain to maintain and sustain good environmentalquality is becoming a vital component of business organization and will be a key sought-out-forgoal of the entire business chain and not only the Electronics Industry in the 21st century.

References

1) The International Journal of Logistics Management.2) Reverse Logistics magazine, Reverse Logistics Association.3) Supply Chain Digest.4) Hsu, C. W.; Hu, A. H., (2007). Green supply chain management in the electronic

industry. Int. J. Environ. Sci. Tech., 5 (2), 205-216.

5) Ninlawan C., Seksan P., Tossapol K., and Pilada W., The Implementation of GreenSupply ChainManagement Practices in Electronics Industry.

6) M. K. Chien; L. H. Shih, An empirical study of the implementation of green supply chainmanagement practices in the electrical and electronic industry and their relation to

organizational performances.

7) Jamal Fortes, Green Supply Chain Management: A Literature Review, OtagoManagement Graduate Review, Volume 7, 2009.

8) Blogs: 2Sustain and ThinkOR.9) L. K. Toke et al, Green Supply Chain Management; Critical Research and Practices,

International Conference on Industrial Engineering and Operations Management.

10)Letcia Labegalini, Green Supply Chain Management: the state-of-the-art literaturereview on production, logistics and operations international journals, Abstract number:015-0844.

11)Series of Internet websites and Web News releases.


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GREEN CONSTRUCTION

Prasad Madhusudan, Saurabh Shah NMIMS

Imagine working in an office that uses sunlight instead of artificial lights for illumination and

that has in place central air conditioning instead of the split or window air conditioners. In an

increasing revolt against over-urbanization, companies are opting for eco-friendly options. The

concept of environment-friendly buildings, or green buildings as they are popularly known, is

catching on in India. While the green building movement has been around globally since the

1970s, it has picked up momentum in India only in the last couple of years.

Buildings account for one-sixth of the world's fresh water withdrawals, one-quarter of its wood

harvest, and two-fifths of its material and energy flows. Building "green" is an opportunity to use

our resources efficiently while creating healthier buildings that improve human health, build a

better environment, and provide cost savings. Green construction does not only reduce wastage

but also boosts the profits. A similar concept is natural building, which is usually on a smaller

scale and tends to focus on the use of natural materials that are available locally.

Green buildings are steadily increasing their footprint in India with an increase from 6,000 sq. m

of green space in 2003 to 304,800 sq. m expected by the end of 2008, according to the Indian

Green Building Council, which is promoting the green building movement in India. The Indian

Green Building Council estimates the demand for green building materials and equipment will

reach $4 billion (Rs15,720 crore) every year by 2010.

In most case, the external appearance of green buildings does not differ very much from that of

normal buildings. The first green building in India was the CII-Sohrabji Godrej Green Business

Centre in Hyderabad. Kolkatas Technopolis lays claim to be the countrys first green building

for information technology. A mix of green building projects is coming up in the country, which

includes residential, commercial and hotel properties. As cities get hemmed in by concrete

buildings and green spaces rapidly disappear, companies are looking at green buildings to do

their bit for the environment. In turn, some of them can earn carbon credits for the clean

buildings.


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About 2-3% of all construction in India is green, as good as (in) the US. In the next two or three

years, Indian Green Building Council (IGBC), wants to bring it up to 10%, which will put India

on top. Indian Green Building Council (IGBC) is a body that certifies green constructions.

Effective green building can lead to

x Reduced operating costs by increasing productivity and using less energy and waterx Improved public and occupant health due to improved indoor air qualityx Reduced environmental impacts by, for example, lessening storm water runoff and the

heat island effect.

Green Building

A green building is a structure that is designed, built, renovated, operated, or reused in an

ecological and resource-efficient manner. Green buildings are designed to meet certain

objectives such as protecting occupant health; improving employee productivity; using energy,

water, and other resources more efficiently; and reducing the overall impact to the environment.

Elements of Green Buildings

Right from the design to implementation phase , new systems have been brought to minimize

wastage. Below given is how green construction practice can be implemented

Design Phase

A formal design is come up with standard building material sizes in mind. Then Specific waste

reduction goals are set at the beginning of the project, target specific materials and activities.

This is followed by analysis of where maximum waste is generated

On Site Construction

Construction sites generate massive amounts of waste. Suppliers are asked to buy back unused

items, replace all damaged materials & deliver materials in returnable pallets and containers. All

the material storage practices are reassessed to prevent loss due to weather.

Reusing and recycling also reduces waste to a great extent


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A special designated area is made for onsite-reused materials including lumber for fire blocking

and spacers, scraps of drywall for filler in hidden areas, etc. Chunks, broken bricks, blocks and

other masonry rubble are saved for backfill. Cleared brush and trees chipped are used for mulch.

Contractors use joint compound buckets for other materials and tools. They also use sawdust for

mulching landscape, path ways. Instead of throwing always excess insulation, they are installed

in interior walls or on top of attic insulation for added protection.

Implementation of Green Security

Instead of the usual cameras now builders are attaching solar powered cameras.

Jobsite Water run off

Jobsite runoff is very expensive. Thus the practitioners prevent potential fines, injunctions and

restraining orders by preventing runoff. Stabilization is attained by planting rye grass. All drain

inlets, outlets are protected with rock arranged in check dam formation AND silt fencing.

Vehicles are monitored for leaks and spill kits are kept on hand.

Now we come to how efficiency can be brought in energy and water usage

Energy Efficiency

Most buildings can reach energy efficiency levels far beyond California Title 24 standards, yet

most only strive to meet the standard. It is reasonable to strive for 40 percent less energy than

Title 24 standards. The following strategies contribute to this goal.

x Passive design strategies can dramatically affect building energy performance. Thesemeasures include building shape and orientation, passive solar design, and the use ofnatural lighting.

x Develop strategies to provide natural lighting. Studies have shown that it has a positiveimpact on productivity and well being.

x Install high-efficiency lighting systems with advanced lighting controls. Include motionsensors tied to dimmable lighting controls. Task lighting reduces general overhead light

levels.


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x Use a properly sized and energy-efficient heat/cooling system in conjunction with athermally efficient building shell. Maximize light colors for roofing and wall finish

materials; install high R-value wall and ceiling insulation; and use minimal glass on east

and west exposures.

x Minimize the electric loads from lighting, equipment, and appliances.x Consider alternative energy sources such as photovoltaics and fuel cells that are now

available in new products and applications. Renewable energy sources provide a great

symbol of emerging technologies for the future.

x Computer modeling is an extremely useful tool in optimizing design of electrical andmechanical systems and the building shell

Water Efficiency

x Design for dual plumbing to use recycled water for toilet flushing or a gray water systemthat recovers rainwater or other nonpotable water for site irrigation.

x Minimize wastewater by using ultra low-flush toilets, low-flow shower heads, and otherwater conserving fixtures.

xUse recirculating systems for centralized hot water distribution.

x Install point-of-use hot water heating systems for more distant locations.x Use a water budget approach that schedules irrigation using the California Irrigation

Management Information System data for landscaping.

x Meter the landscape separately from buildings. Use micro-irrigation (which excludessprinklers and high-pressure sprayers) to supply water in non - turf areas.

x Use state-of-the-art irrigation controllers and self-closing nozzles on hoses.

Occupant Health and Safety

Recent studies reveal that buildings with good overall environmental quality can reduce the rate

of respiratory disease, allergy, asthma, sick building symptoms, and enhance worker

performance. The potential financial benefits of improving indoor environments exceed costs by

a factor of 8 and 14


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Zero or Low emission construction materials and interior finish products to improve indoor air

quality. Many building materials and cleaning/maintenance products emit toxic gases, such as

volatile organic compounds (VOC) and formaldehyde. These gases can have a detrimental

impact on occupants' health and productivity.

Adequate ventilation and a high-efficiency, in-duct filtration systems are provided. Heating and

cooling systems that ensure adequate ventilation and proper filtration has a dramatic and positive

impact on indoor air quality. Contractors try to prevent indoor microbial contamination through

selection of materials resistant to microbial growth.

Building Operation and Maintenance

Green building measures cannot achieve their goals unless they work as intended. Building

commissioning includes testing and adjusting the mechanical, electrical, and plumbing systems

to ensure that all equipment meets design criteria. It also includes instructing the staff on the

operation and maintenance of equipment.

Over time, building performance can be assured through measurement, adjustment, and

upgrading. Proper maintenance ensures that a building continues to perform as designed and

commissioned.

Examples

The Good Earth Orchard, a colony of 60 homes, Bengaluru

There is an overgrowth of reeds which is actually part of a labyrinthine water-treatment system.

Gallons of used water from the colony enter it every day to be pumped out for reuse a week later,good enough at least to water the bushes.

Other Green Practices & Implementations

Green construction in India uses a liberal mix of modern science and methods that are nearly 400

years old. Take wind towers, for example, a system used for decades by Arabs in West Asian

deserts to keep buildings cool. The Confederation of Indian Industrys (CII) Institute of Quality


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in Bangalore uses this technology to continuously supply air in the building. So do the office of

the inspector general of police (IGP) in Gulbarga, and Aquamall Water Solutions building in

Dehradun. Wind towers are a series of concrete or fly ash towers. Every morning, these draw in

hot air, which passes through channels splashed with water at night so cooled air is circulated

through a building. The combination of increased airflow and contact with water brings down the

temperature by 8-10 degrees Celsius, which in cities such as Bangalore does away with the need

of air conditioning. Warmer cities like Hyderabad can use hybrid systems

Wind towers were often augmented in Persian architecture with geothermal systems that exploit

the difference in temperature between the earths surface and 5-6 m below. At this depth, across

the planet, temperature is almost constant in a range of 10-15 degree Celsius. Towers connected

to underground pipes would cool air even further beyond plain-vanilla wind towers.

The physics of geothermal energy is tweaked in many ways by modern air conditioning systems

in Indian green buildingsanother throwback to an ancient practice. Both cooling and heating

can be achieved, though heating often requires a supplemental system. Geothermal systems are a

major money-saver because almost 70% of the energy used by most buildings is for air

conditioning.

Conventional technologies have also kept pace. Efficiencies, or the ability of air conditioning

systems to convert electricity into cooling power, are far higher today than a decade ago. Today,

the focus is on part-load efficiency of an air conditioner when we certify a green building. Part-

load refers to the time of the day when cooling requirements are not the highest. This is the case

for most part of the day, and therefore, air conditioning efficiency during this time is more

crucial than during peak-load hours.

Over the years, with more green construction happening in India, an industry catering to this has

sprung up. High performance glass, which can arrest almost 30% of heat in windows, is

manufactured by Saint-Gobain and Asahi (India Glass Ltd), while waterless urinals, which use

concepts of specific gravity, are manufactured by Parryware, Hindware, etc.


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As demand grows, these technologies get cheaper. Waterless urinals now cost only Rs6,000 a

piece compared with Rs15,000-16,000 some years ago. Its a virtuous cycle.As the tech gets

cheaper, adoption will rise.

References

www.livemint.com/2010/12/.../Green-construction-gaining-tra.html

http://en.wikipedia.org/wiki/Green_building

www.teriin.org/events/DSDS/Sus_bldg_paper.pdf

construction.indiabizclub.com/info/types/green_building

www.calrecycle.ca.gov/Greenbuilding/- United States

www.livemint.com/2007/.../Ecofriendly-construction-catc.html

donnamacdougall.wikispaces.com/file/.../What+Makes+a+Building+Green.doc


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GREEN SUPPLY CHAIN MANAGEMENT SCENARIO

Vishal Arora and Ankit Bansal, NMIMS

Introduction

We all are aware about the present day world scenario in which environment has become a

critical factor for our future survival. Depleting non-renewable resources and natural resources,

increased global warming and other environmental issues due to industrial development needs to

be addressed effectively. There is a need for a collaborative approach throughout the supply

chain to tackle these issues. This leads to the concept called as Green Supply Chain

Management(GSCM).

The degradation of environment can take place at any level of supply chain; be it raw material,

manufacturing or distribution or even disposal. Hence, it becomes imperative to implement green

methods at all levels of supply chain. GSCM aims to optimize both economic and ecological

impact of all the inputs used to produce the required output.

A company can save a lot if it reduces the environmental impact of its business process. By re-

assessing the companys supply chain right from purchasing to the final delivery, savings are

often seen as a benefit resulting from implementation of green policies. Improved environmental

performance and financial gains are the two sides of the same coin.

Financial benefits resulting from using sustainable techniques , push from various stakeholders

and the changing regulatory and environmental requirements are the main drivers which compel

a company to adopt Green Measures in all its day-to-day processes.

Examples:

There are many examples in the present scenario where companies have seriously taken up the

Green Cause to save the Earth for future generations.

IBM, which is known for its software technologies worldwide , has attached itself with Green

Sigma Coalition which is an alliance among high-technology related companies. Green Sigma is

a well known approach which involves the application of Lean Six Sigma principles and various

practices to water, energy ,waste and greenhouse gas emissions throughout the operations carried

out by a company. It includes procurement of raw material, conversion of raw material into

finished goods, transportation and distribution operations which together constitute a products

value chain.


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Coca-Cola which is a giant in beverage industry has 9 million coolers and vending machines

which lead to greenhouse gas emissions. It has set out norms to phase out refrigerators which use

hydrofluorocarbons which add up to global warming.

In addition ,there are many companies which are keeping a track of the environmental impacts of

the various transporatation vehicles like trucks, trains, planes and ships which are used to carry

out their products.

PepsiCo and Walmart which are well known names are endorsing GSCM big time.They are

asking for sustainability data from their suppliers which require the suppliers to ask from their

suppliers and so on right down the chain. This may pose as a challenge to the companies which

are small as they find it tough to justify the costs of sustainability reporting as compared to the

big companies. On the other hand, there are big companies which although have made many

sustainability promises but have the most complex supply chains to manage.

These pressures will make the companies invest in software which will merge energy efficiency,

regulatory compliance, carbon accounting and financial reporting.

Challenges to Green Supply Chain Management:

Despite knowing the importance of Green Supply Chain Management, many companies are still

turning a blind eye to these critical issues. They are not ready to accept the fact that if there is an

improvement in environmental performance, it would lead to lower material costs, lower waste-

disposal and training costs and fewer environmental permitting fees.

Other challenges are:

Numerous Standards :

There are many standards and rules available for GSCM, hence it often becomes tough for a

company to implement all of them .Companies find it difficult to prioritize the standards and

hence may not implement those standards which are of utmost importance to them.

Hence, first of all ,a company should try to understand which standards or rules are applicable to

its current scenario. This will provide organizational direction and is a first step towards GSCM.

Lack of Awareness:

Green awareness is improving but is still a challenge. More awareness needs to be created which

poses a major challenge.

Business Case Development:

Competitive pressures and Corporate Social Responsibility are major forces which will

determine an organizations future course of action. Also, how effective limited capital can be


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deployed will be another crucial aspect which will make the strategic planners to struggle with

business cases as best practices are shared.

Sustainability Program Implementation:

Implementation is a big challenge as organizations keep on procrastinating whenever Green

initiatives are being talked about.

Communication Planning:

The green space is very broad. It encompasses everything from renewable energy to industry

specific operational definitions. Organizations need to develop a communication strategy early in

Green Supply Chain Planning process to drive long term compliance and reduce emissions.

Recommendations:

1. We know that organizations are driven by profit. If the vision of different departmentslike sales, marketing and supply chain vary, then the supply chain organization needs to

take a more measured approach.

2. Sustainability and Supply Chain Deployment planning should be integrated. It involvesworking with supply chain organizations and with sustainability groups using a formal

project implementation plan with a full length protocol.

3. Another important point is to understand what is the right implementation methodologyfor the organization. The first step is planning, the second one being measurement and

analysis followed by implementing solutions and last step is control.

4. A score card should be developed with appropriate metrics for the sustainability andsupply chain teams alongwith a talent development plan.

5. Each organization has their own communication models and best methods. Defining theright communication tool and model is key for long term success.

6. IT solutions can provide the required foundation to support the business processes andprovide tools to measure, contain, mitigate and solve environmental problems which is

critical to a sustainable future.

Conclusion:

Green practices and a green supply chain is the need of the hour. They have become a necessity

as there are compelling pressures from the regulatory bodies and no doubt, there are hidden

economic benefits as well. The companies are now increasingly trying to give a greener shade to

their different brands. This will help in promoting loyalty of customers who are getting more

aware about the socio-ecological implications of businesses.

Thus, it becomes the responsibility of companies to implement GSCM in their processes to save

the environment and do their Bit for the society.


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References:

1. http://theenergycollective.com/davemeyer/45450/green-supply-chain-management-requires-less-procrastination-more-innovation-leading-

2. http://www.greentechmedia.com/articles/read/the-green-supply-chain-challenge/3. http://www.supplychainbrain.com/content/nc/industry-verticals/high-

techelectronics/single-article-page/article/challenges-and-opportunities-for-greener-

supply-chain-management-in-high-tech/

4. http://logistics.about.com/od/greensupplychain/a/green_intro.htm


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ECONOMIC FEASIBILITY OF GREEN TECHNOLOGY

Mehul Jain, NMIMS

Abstract

When we consider a purchase, do we mull over a product's quality and its durability? Do we

spend more money now on that pricey, well-forged suitcase rather than replacing it a couple of

times as substandard ones wear out? Green technologies are no different. We can pay more for a

solar heating appliance now and enjoy the benefits of reduced power consumption over a number

of years to come. The perception that green technology is expensive is in fact, a wrong notion. It

is less expensive when we get smarter, simpler products with optimum resource utilization while

conserving invaluable resources. In addition to this, we can alleviate the impact of consumerism

on the Earth. If this is your mindset, then you belong to a small section of futuristic visionaries

who wish to live in a green world.

Green technology puts into practice environmental science to conserve the natural assets and

resources, and to inhibit the negative impacts of human action. It is a big boost to the

environment. A simple step of replacing fluorescent bulbs with energy-efficient lights can lessen

the number of burnt bulbs dumped into landfills and help reduce the already huge heap of e-

waste. Most eco-friendly technology devices are energy- efficient. And in a business, this

translates to lesser electricity bills. Companies are beginning to mould their strategies to have

minimum impact on the environment. They are upgrading their businesses to function more

efficiently and preserve resources while retaining economic feasibility.

Moore's Law produces really fast devices but it's incredibly harsh on the environment.

Greenpeace says transition in technology generates 4,000 tons of e-waste per hour, which is

conveniently dumped into garbage gardens of India, Africa and China. But finally Dell is leading

the way with its take-back programs in which the PC maker recovers tons of unwanted

equipment from its customers to recycle the parts for new gadgets. MNC's like Timberland, BOA

and Google prize their employees who buy hybrid cars with cash incentives and prime parking

spots. Tesco, the British grocery chain has created a database of its customers and offers

discounts to shoppers who bring reusable bags to their stores.


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For years, skeptics have argued that green operations cannot co-exist with business growth. But

Bank of America silenced them when the company reduced paper use despite a healthy growth in

their customer base. As if this wasn't enough, BOA also recycles 30,000 tons of paper each year,

saving nearly 2 lakh trees. Since 2006, GE has sold its Ecomagination products worth billions-

transforming this world green.Wal-mart, which in all probability would head the most hated list

by green movement, is set to make its doubters eat their words as it plans to power all its stores

by renewable energy in the near future. It is also funding truck manufacturers like ArvinMeritor

and Eaton to develop heavy duty hybrid vehicles. STAR TVs Hong Kong headquarter reduced

the lighting by one-third trimming its CO2 emissions by 18000 pounds per year. The hottest zone

of an office is the server room. The water that cools these hot mean machines generally gowasted. But at Intel's new data centre in Haifa, Israel, this hot water is recycled to heat the

showers in gym and to keep the buildings warm during winters.

Constructing eco-friendly house is no more expensive today. The domestic market offers a

gamut of green energy solutions for households at bargain prices. Setting up solar water heater,

placement of solar photovoltaic panels on the roof of the house, use of bricks made of insulated

material, building a compost pit in the garden to recycle biodegradable kitchen waste and make

garden greener and fecund are some easy ways to build an eco-friendly society.

As politicians and business leaders continue to debate on the economic viability of clean

technology, a green revolution is taking place all over the world. Zhang Chengui, a leader of a

village in northwest Chinas Yunnan province installed a solar water heater, energy-efficient

stove, tank to collect rain water and an autoclave that transforms human and animal waste to

clean gas that can be used for household purposes such as cooking, lighting and heating. Zhang

also used slurry from the biogas digester to fertilize his crops. He thus reduced his dependency

on firewood, freed more of his time for farming, and tripled his annual income. Zhang could

educate his children. Today his son works as an editor for a magazine and his daughter is a

government official. Credit goes to innovative financing by GreenVillage credit program-part of

United Nations Environment Programmes CREED initiative that provides micro loans and

technical help to families investing in green technology. With strong focus on micro-finance,

rural development and corporate social responsibility, India is primed to benefit with similar

initiatives.


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Several thousand villages all over the nation are still disconnected with the Indian National Grid.

Putting up a small wind turbine in such areas would mean electricity to cover the basic needs of a

household. For example, cooking and lighting can be achieved pretty easily with a small wind

turbine. Heavy transmission lines to carry electricity from centralized power plants to these rural

areas could then be done away with. Indias Tata Group, which heralded a new era with its

amazingly cheap Tata Nano, is hoping to start bringing the one-turbine-per-house project to these

rural areas.

Stadiums no longer solely focus on sports; indeed, they now also host business meetings,

concerts, conclaves or other events. They are gradually transforming into multifunctional

buildings. Hence, there is heightening need for total solutions that make stadiums green.

Imtechs green stadium philosophy is an energy saving concept that will reduce power

consumption in the Hamburg football stadium by some 3,500 MWh and lower CO2 emissions by

1,200 tons, making football more and more green. No wonder why the home base of the top

European football club HSV in Hamburg was recently rechristened Imtech Arena.In India, RIL

Solar Group, successfully licensed Indias first 1MW solar plant at Thyagaraj Stadium in New

Delhi for the Commonwealth games. A similar plant was installed in the R K Khanna Tennis

Complex. Commonwealth Games Village was illuminated by Solar LED street lights and garden

lights, clearly defining the way forward for green sports in India.

The recently launched Volkswagen Polo 1.4 TDI BlueMotion, a fuel efficient diesel car that

emits only 99g/km of carbon dioxide has become the new flavour of the Indian automobile

market. VW have fitted their green diesel cars with advanced filters that remove from the

exhaust gases every trace of particulate that can cause asthma in young people. The cars may be

highly priced but the value of their clean technology is higher still.This statement is justified byits impressive growth in the New Year when VW sold 5,601 vehicles in the month of January

alone. Out of these, over 5000 were the awards winning Polo and Vento. Sales shot up more than

10 times over the same month last year.

For two decades now, the Indian IT industry has diverted all their energy in achieving greater

processing power and creating persistent long term data storage facilities. Today, they face a new


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challenge of minimizing the energy used to power their IT infrastructure. The trends to cloud

computing can be an elixir to this industry as it helps outside the server room as well. Why do I

require a Core i7 C02 producing system, when a simple, small, Atom-based net book consumes

less than half the power when running, and demands far less raw materials to fabricate. The

power of the processor, hard disk space and lack of a never-used DVD drive becomes largely

irrelevant, when most of the work in web-based. When we add this to the bottom-line of the

companies, it seems that IT has been spending money at wasteful servers and desktops for too

long. Toxics Link, a Delhi based NGO reports that India annually accounts for $1.5 billion worth

of e-waste domestically, with the flourishing IT sector being the biggest contributor, as 30

percent of its machines degenerate annually. Cloud computing and software as a service (SaaS)solutions brings a golden chance for companies to cut their investment and maintenance cost not

just in the server room, but across the entire IT infrastructure.

Solar energy does not releases noxious gases in the atmosphere and requires little maintenance

once installed. However, its manufacturing and operational costs have been quite high. Soon this

might be a thing of the past as nanosolar Inc. has successfully engineered the most cost efficient

solar energy source to date, bringing down the production costs from $3 per watt to 30 cents per

watt. They use an innovative technology which coats metal sheets, as thin as aluminum foil, with

a microscopic layer of printer ink that contain minuscule solar cells. Since these panels do not

require silicon they can transfer maximum sunlight into power. This piece of innovation can be

of immense importance to India as it plans to provide thousands of students with solar powered

laptops costing as low as $20.

A report from International Energy Agency indicates that by 2030, the world will spend more

than $16 trillion on development and installation of smart grids. These smart grids will integrate

alternative energy sources, including wind and solar and employ an advanced infrastructure for

measurement purposes. This system will help power companies to identify peaks and lags in

consumption, limit electricity theft and losses and enable them to distribute loads more

efficiently.


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India intends to increase its share of grid connected inexhaustible energy to 10 per cent in next

two years. In Budget 2010-11, the Government announced its plans to introduce a National

Clean Energy Fund. The budget also introduced some subsidies on production of photovoltaic

plates for solar lamps and other products. These are welcome steps as they will invite more

investment for a green economy.

The challenge posed by the twenty first century is achieving sustainable and inclusive growth.

Hence, going green should not be viewed as an impediment to growth. Both developed and

developing nations have to voluntarily adopt a green path to live a better future. Researchers

posit that, over the next ten years, the cost of fossil fuels will increase due to restricted supplies

and the cost of alternative energy will decrease due to improved technology and greater

availability. Fossil fuels cannot be relied upon for future use for comforting our home. It is time

we start utilizing the endless opportunities offered by clean technology and paint this knowledge

economy green.

REFERENCES

www.about.com

www.imtech.eu

www.ril.com

http://www.solarpowerenergygeneration.com

http://en.wikipedia.org/

www.eta.co.uk

http://www.environmentalgraffiti.com

www.iea.org


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GREENING THE SUPPLY CHAIN

Naresh Chandak and Ann Varghese,NMIMS

With the public becoming more aware of environmental issues and global warming, consumersare asking more questions about the products they are purchasing. Questions are being askedabout how green their manufacturing processes and supply chain are, about their carbon footprintand how they recycle. Public opinion is shifting and people are demanding increasedenvironmental friendliness from the corporate world. In order to satisfy customer demand,companies are being pressured to consider the areas where they impact the environment most,very often in transportation or agriculture.

Old Thinking: Companies have long mistakenly thought that adopting environmentallyfriendly processes adds costs.

New Thinking: Green practices like recycling, reusing and reducing waste can cut costsbecause they make a company more efficient.

In addition, governments are rewarding companies that adopt green strategies and are creatingnew regulations that penalize those companies that do not. These regulations may be dependenton country or region and, consequently, companies operating globally face different compliancestandards and regulations potentially increasing the complexity and cost of doing business.Companies traditionally viewed as the worst environmental offenders have responded with anarray of green initiatives, which benefit the companys public image as well as the environment.

However, with neck breaking competition, its often difficult convincing companies to adoptgreen modes of operations which do not add business value. The prevailing question: How can acompany use these initiatives to reduce their supply chain cost in addition to minimizing theirenvironmental impact?

Answer: Green Supply Chain.

"Green Supply Chain Management is 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."


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Green supply chain management (GSCM) has emerged as a key approach for enterprises seekingto become environmentally sustainable. The notion of Green Supply Chain Management impliesthe insertion of environmental decisions within the traditional concept of Supply Chain

Management.

Lets recap the basics concepts of supply chain first.

A Supply Chain is defined as a set of three or more companies (of a company, an immediate

supplier and an immediate customer) directly linked by one or more of the upstream anddownstream flows of products, services, finances and information from a source to a customer.

Supply Chain Management (SCM) is the systematic, strategic coordination of the traditionalbusiness functions within a particular company and across business within the supply chain, for

the purposes of improving the long term performance of the individual companies and the supply

chain as a whole.

GSCM addresses the four interrelated areas of the supply chain: upstream, downstream, withinthe organization, and logistics.

x Upstream activities of the organization include evaluation criteria of suppliers'environmental performance.

Companies reviewing their business processes should look beyond their factory walls.When reviewing purchasing processes the aim of any company, looking to transition to agreen supply chain, should be to find suppliers who have minimized their environmental

impact without reducing the quality of their product or significantly raising costs. Bypurchasing products from green suppliers businesses can then begin their green supplychain before any material reaches their site.

x Downstream, usually comprises activities related to the disposal and sale of excess stock,including recovery and recycling opportunities.

Companies do not often change their business processes and it is this attitude that allowsinefficient processes to continue unabated causing unnecessary waste and pollution. For exampleineffective processes in the US automotive industry allowed the innovative Japanese automakersto become market leaders. Businesses that want to transition to a green supply chain should take

the opportunity to review all their business processes to identify areas where adopting a greeneroutlook can actually improve their business. Companies should review each process along thesupply chain to identify if more environmentally sound approach will help cure the inefficienciesthat occur. Many companies that have been through this exercise have identified processes whereraw materials were wasted; resources underutilized and unnecessary energy used due toinefficient equipment.

x Within the organization, supply chain management might include involvement with"design for the environment"


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Interface Corporation is a leading maker of materials for commercial interiors. In its newShanghi carpet factory a liquid had to be circulated through a standard pumping loopsimilar to those used in nearly all industries.

A top European company designed the system to use pumps requiring a total of 95horsepower. The Interface engineer working on the project re-designed the system byusing "fatter pipes" and straightening/shortening the length of the pipes used in thesystem. The overall horsepower requirement was now 7 horsepower or a 92 percentreduction. His re-designed system cost less to build, involved no new technology andworked better in all respects. This engineer used whole system thinking which can helpmanagers find small changes that lead to big savings that are cheap and free

x In logistics, activities such as just in time or quality management intertwine withenvironmental criteria.

Just in time production can have both positive and negative effects on the environment. Becausein JIT we produce the good only when required, we save a lot in the form of reduced wastage.But on the other hand JIT also involves more transportation cost as compared to ordinaryproduction methods. Hence a company must assess these points before going for JIT production.

Benefits of Green Supply Chain Management

Organisations can enjoy several benefits by greening their Supply chain, such as;

Sustainability Of Resources - GSCM helps in proper and effective utilisation of available

productive resources of organisations. Organisations will purchase 'green' input resources forenvironmental friendly production process to produce desired outputs.

Lowered Costs/Increased Efficiency - Effective management of suppliers can reducetransaction costs and promote recycling and reuse of raw materials. Also, the production of wasteand hazardous substances can be cut, preventing corporations from being fined as a result ofviolating environmental regulations. Consequently, the relevant handling and operational costinvolved can be further reduced and, in the mean time, the efficiency of using resources can beenhanced.

Product Differentiation And Competitive Advantage - It helps the organisation in positioning

its product differently in customer's mind. Besides attracting new profitable customers fororganisation, it will give competitive edge over competitors in market place. It will strengthenthe brand image and reputation in market place.

Adapting to Regulation and Reducing Risk - Organisations adopting GSCM practices canreduce the chances of being prosecuted for anti-environmental and unethical practices.

Improved quality and products Organization will produce products which aretechnologically advanced and environment friendly. This will enhance the brand image andbrand reputation in customers' mind.


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Examples of Green Supply chain initiatives

Texas Instruments: Saves $8 million each year by reducing its transit packaging budget for itssemiconductor business through source reduction, recycling, and use of reusable packagingsystems (20% annual savings).

Pepsi-Cola: Saved $44 million by switching from corrugated to reusable plastic shippingcontainers for one litre and 20-ounce bottles, conserving 196

Million pounds of corrugated material.

Commonwealth Edison: Produced $50 million in financial benefits from managing materials andequipment with a life-cycle management approach.

Dow Corning: Saved $2.3 million by using reconditioned steel drums in 1995. It also conserved7.8 million pounds of steel.

These green initiatives benefit the company in more than one way, not only do they help in

improving the supply chain and reducing environment impact but they also help in developingbetter perception of the company by the public and shareholders alike.

While green initiatives can lead to better supply chain efficiencies, the key to extracting businessvalue lies in establishing a long-term green strategy that is aligned with corporate strategy andapproached top-downwith strong sponsorship. When putting a long-term strategy in place,companies need to be aware that a full-blown green implementation could prove costly and itmay have a negative impact on the companys bottom line in the short term. That is preciselywhy com panies must keep in mind that greening is best accomplished in smaller steps. Forexample, green initiatives can start in areas that have the greatest business and environmentalimpact, and companies can look for quick wins before moving forward. . Such green initiatives


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also require a strong business case that highlights a prioritized list of targeted opportunities and aphased adoption roadmap. Finally, the initiatives need to be integrated with other companywideprojects to ensure that one does not compromise another.

Green Synergies Are Not Without Challenges

While going green can prove a critical source of competitive advantage, its easier said than

done. To achieve real financial benefits companies need to follow certain key practices. Aboveall, they must commit to a green philosophy and incorporate environmentally sustainablepractices into their product lifecycle and supply chain operations. Still such an approach is notwithout its fare share of problems.

1) Green strategies that require just-in-time delivery of small lot sizes require increasedtransportation, packaging, and handling that may contradict a green approach.Introducing global supply chain management into the green and lean equation increasesthe potential conflict between the green and lean initiatives.

2) Such initiatives require revamping the existing supply chain. Usually very few companieshave the funds available to go in for such overhauling of the system.

Conclusion

Companies which adopt green supply chain methods are usually recognised by the industry asthose doing so to improve their corporate image and also tending to do the right thingHowever, adopting environmentally sustainable business practices also yields measurablefinancial benefits. Becoming green is no longer an end in and of itself, but the by product ofoptimizing a supply chain. Transitioning to a Green Supply Chain while also maximizingefficiency is not a clear-cut process, and opportunities to implement green initiatives require acomprehensive understanding of the entire supply chain. Ultimately, each green opportunityshould positively contribute to the value of the firm and environment.

References

http://logistics.about.com/od/greensupplychain/Implementing_a_Green_Supply_Chain.htm

http://www.ehow.com/how_2106433_build-green-supply-chain.html

http://www.articlesbase.com/corporate-articles/best-practices-in-green-supply-chain-management-1422520.html

http://www.diamond consultants.com


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GREEN SUPPLY CHAIN MANAGEMENT IN ELECTRONICS INDUSTRY

Ganesh Iyyapan and Dhiren Chaudhary

ABSTRACT: Green supply chain management has emerged as a proactive approach forimproving environmental performance of processes and products in accordance with therequirements of environmental regulations. This research examines the challenges andopportunities in the electronics industry and the implementation of green supply chainmanagement in Taiwanese electronic industry.

Introduction

Supply chain management is the coordination and management of a complex network ofactivities involved in delivering a finished product to the end-user or customer. All stages of a products life cycle will influence a supply chains environment burden, from resourceextraction, to manufacturing, use and reuse, final recycling, or disposal.

Green Supply Chain Management basically refers to the use of the use of Green Procurement,Green Manufacturing, Green Distribution and Reverse Logistics. The Key idea behind all this isto minimise wastes along the Supply Chain by the process of using environmentally friendlyinputs and transforming these inputs into outputs that can be reclaimed and re-used at the end oftheir lifecycle thus, creating a sustainable supply chain.

Key Terms

Green ProcurementGreen procurement is defined as an environmental purchasing consisting of involvement inactivities that include the reduction, reuse and recycling of materials in the process of purchasing. Besides green procurement is a solution for environmentally concerned andeconomically conservative business, and a concept of acquiring a selection of products andservices that minimizes environmental impact.

Green Manufacturing

Green manufacturing is defined as production processes which use inputs with relatively lowenvironmental impacts, which are highly efficient, and which generate little or no waste orpollution. Green manufacturing can lead to lower raw material costs, production efficiency gains,reduced environmental and occupational safety expenses, and improved corporate image.

Green DistributionGreen distribution are consists of green packaging and green logistics. Packaging characteristicssuch as size, shape, and materials have an impact on distribution because of their affect on thetransport characteristics of the product. Better packaging, along with rearranged loading patterns,


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can reduce materials usage, increase space utilization in the warehouse and in the trailer, andreduce the amount of handling required.

Reverse LogisticsReverse logistics is the process of retrieving the product from the end consumer for the purposesof capturing value or proper disposal .Activities include collection, combinedinspection/selection/sorting, re-processing/direct recovery, redistribution, and disposal.

Need for Green Supply Chain Management

The world today is beset with dangerous environmental changes. We are noticing turbulentweather patterns ranging from record heat waves to snowfall and hurricanes. Global warming is

another pressing issue: every single year since 1993 has been in the top 20 warmest years onrecord. Apart from extreme environmental changes many countries are now facing resourcedepletion. Although, India and China are growing economically at double digit rates, they arealready facing resource depletion .According to the World Bank 80 countries now have watershortages that threaten health and economies while 40 percent of the world have no access toclean water or sanitation. At present rates of use and degradation, we will be little left with verylittle Natural resources at the end of the next century. Moreover, consumers are becomingincreasingly aware of health & safety issues and corporations run the risk of public backlash iftheir supply chain causes poor environmental impact. Also, the regulatory environment worldover are becoming extremely stringent. In wake of these changes Green Supply ChainManagement (GSCM) seems the way ahead. GSCM can help address the issues of

environmental concerns while simultaneously reducing costs.

Challenges and Opportunities for GSCM in the Global Electronics Industry

The Electronics industry operates in a competitive environment with a complex and long value

chain that has become increasingly dynamic. The changing regulatory and environmental

requirements and the push from stakeholder groups for accountability and transparency in

practices are a few of the key drivers in this environment. Financial benefits accruing from

sustainable practices are other drivers. Thus, the players in the Electronics industry have nowembarked on a path towards achieving a Green Enterprise. However, the road map towards a

greener supply chain is full of challenges that each organization has to overcome.

The Key focus areas for Green SCM are as follows:

Product Life Cycle Management

Supply Chain Network and Logistics Optimization

Process Optimization

Product Life Cycle Management


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Electronics industry is facing the challenge of ever increasing demand for innovative new

products at lower prices but of improved quality while ensuring regulatory compliance. To meet

these demands and maintain profitability, electronics and high-tech companies must relentlesslyaccelerate product innovation and introduction, minimize costs, and manage risks arising due to

a changing regulatory scenario. One of the prominent trends in the Electronics industry is the

increasing amount of regulation that can slow down the time to market of new products or in

worst-case scenarios threaten the product life cycle itself.

There are several pieces of environmental legislation that are aimed at reduction of hazardous

materials included in many products. Some of the key regulations are the Restriction of

Hazardous Substances (RoHS) directive and the Waste Electrical and Electronic Equipment

(WEEE) in manufacturing and electronics industry; IMDS (International Material Data Systems)

reporting; and ELV (End-of-Life Vehicle) in the automotive sector. According to the EuropeanUnion more than 80 percent of a products environmental impact is determined in the product

conception phase. Hence, companies failing to efficiently manage product compliance across the

range of regulatory bodies can suffer costly business interruptions such as product redesigns,

delayed market launches, product returns and recalls.

Supply Chain Network and Logistics Optimization

In the Electronics supply chain, Transportation is a significant component after manufacturing.

This is because the chain itself has a high number of players like Semiconductor Players,

Component Manufacturers, Component Distributors, Electronics Manufacturing Services (EMS),Original Equipment Manufacturers (OEMs), Product Distributors, Software and Service

Providers and End Customers. Inefficient transportation methods in the modern supply chain

represent a significant part of the ecological problem. Certain reports suggest that as much as 75

per cent of a company's carbon footprint comes from transportation and logistics alone.

Moreover, stricter norms on disposition of goods in the Electronics industry, makes reverse

logistics a very strategic area as implementing reverse logistics can reduce the waste dumped as

well as increase opportunities to re-introduce returned products to Market.

Process Optimization

Process Optimization can be attained with the help of Lean Manufacturing and Lean

Procurement. Electronic companies have embraced the principles of lean manufacturing, to

improve the synchronization of production with customer demand and supplier capacity. The

focal areas of green manufacturing are reduction in energy consumption, waste (both hazardous

and non-hazardous Waste) and emissions which are part of manufacturing processes. Lean

Procurement means a procurement process that cuts out waste, seeks innovative procurement

solutions which are environmental friendly.


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Green SCM in The Taiwanese Electronics Industry

With increase in environmental concerns during the past decade, a consensus is growing that

environmental pollution issues accompanying industrial development should be addressedtogether with supply chain management, thereby contributing to green supply chain management(GSCM) . Since the Waste Electrical and Electronic Equipment (WEEE), Restriction ofHazardous Substances (RoHS) and Ecodesign for Energy using Products (EuP) directives werepassed by the European Union (EU), GSCM has been adopted as a proactive strategy by leadingelectronic industry companies, including Dell, HP, IBM, Motorola, Sony, Panasonic, NEC,Fujitsu and Toshiba. Nowadays, similar regulation has been spread throughout the world in theUS, China, Japan and Korea; the emerging issue of green product seems to be quickly picked upin Asia. Some countries such Japan, Taiwan and Korea are the heralds in terms of greenelectronic products.

The issue of GSCM is pertinent for Taiwans electronics industry as recent studies have shownthat most of the worlds manufacturing will be relocated to Asia within the nexttwo decades .Therefore, GSCM is an operational initiative on the part of many organizations,including those in Asia and South Asian region which are adopting to address suchenvironmental issues. Taiwan is one of the most industrialized countries in the Asia-Pacificregion. Most electrical and electronics manufacturers in Taiwan are involved in OriginalEquipment Manufacturing (OEM) and Original Design Manufacturing (ODM). These companies play important roles in global markets as their products share a substantial portion in marketthese industries are subject to customer requests for green products and green manufacturing thatcomply with emerging environmental directives (such as WEEE, RoHS and EuP).

Green SCM at ACER in Taiwan

To meet international expectations and demand for environmental protection, many Taiwanesecompanies have already implemented GSCM practices. ACER, has been the pioneer in green product supply chain management system in Taiwan, including green product specification,green products compliance data, an auditing management mechanism, and a green procurementsystem. The environmental management covers environmental accounting, life cycle assessment,green procurement and reduction of greenhouse emissions. ACER has also implementedmeasures to ensure that no prohibited substances as defined by the EC are present in their products. Apart from meeting the demands of its clients, ASUS has also taken initiatives to

understand the difficulties faced by its suppliers and provide them with necessary informationand services. ASUS also provides their suppliers with ASUS e-Green for registration andevaluation to ensure the capability of suppliers through the mechanism of a part approvalprocess. Finally, the company has established an auditing mechanism for the green managementsystem to ensure that their suppliers conform to green management, thus establishing incentiveand elimination mechanisms for green procurement. In summary, ASUS promotes greenengineering by implementing green design, green procurement, green production, greenmarketing and green services in order to conserve natural resources. To ensure that its export tothe European market is unhindered, its upstream suppliers are requested to provide a guarantee,evaluation report and inspection of hazardous substance management, to assess the suppliers and


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strengthen the existing supply chain, in order to be able to supply its downstream clients with products conforming to the green procurement standard and the EU ROHS directive .It hasestablished a control list of environmentally hazardous substances and profiles for raw materials

containing no prohibited substances, as well as having developed an environmental managementtable to evaluate the environmental protection performance of its suppliers. The company hasalso included suppliers environmental information into its e-management of suppliers andprovides necessary training to relevant personnel to enhance their awareness of environmentalprotection.

The green supply chain practices adopted by companies in Taiwan in response to green issuesand experts opinions can be divided into green procurement practices, including establishing a

control list of environmentally hazardous substances, profiles for raw materials containing noprohibited substances, assessment tables for the environmental management of suppliers, green product approval data, and an auditing mechanism for green management, and green

manufacturing practices, which include green design, manufacturing of green products, recoveryand reuse of used products and green products standards.

Conclusion

With the onset of Green Futuristic demands the need for Green Supply Chain Management willincrease with the onset of new technologies. Moreover Supply Chain in realistic terms occupiesan important section of the organization, so the need to focus on the Green Supply Chain willincrease. Because of Green Supply Chain there is not only change in the operational activities ofthe organization but also for the associated distribution activities, this creates an opportunity for

the organization to get First Mover Advantage in its own sector. Hence the need for theorganizations to develop a sustainable model for future will inculcate Green Supply Chain and sothe Green Supply Chain will be the need of the future.


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Quotable Quotes

Bill Gates

Analytical software enables you to shift human resources from rote data collection to value-

added customer service and support where the human touch makes a profound difference.

W. Edwards Deming

Profit in business comes from repeat customers, customers that boast about your project or

service, and that bring friends with them.

Peter F. Drucker

The aim of marketing is to know and understand the customer so well the product or service fits

him and sells itself.

Michael LeBoeuf

A satisfied customer is the best business strategy of all.

Henry Ford

It is not the employer who pays the wages. Employers only handle the money. It is the customer

who pays the wages.

Zig Ziglar

Statistics suggest that when customers complain, business owners and managers ought to get

excited about it. The complaining customer represents a huge opportunity for more business.


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Quotable Quotes

Peter Drucker

The purpose of a business is to create a customer.

Bill Gates

Your most unhappy customers are your greatest source of learning.

Walt Disney

Do what you do so well that they will want to see it again and bring their friends.

Jonathan Alter

If Franz Kafka were alive today he'd be writing about customer service.

Peter Drucker

Quality in a service or product is not what you put into it. It is what the client or customer gets

out of it.

Peter Drucker

The single most important thing to remember about any enterprise is that there are no results

inside its walls. The result of a business is a satisfied customer.


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