Best Practices in Green Supply Chain Management FINAL.pdfVIP

Best Practices in Implementing Green Supply Chains Best Practices in Implementing Green Supply Chains April 5, 2005 Green SCM integrates environmental and supply chain management. Green Supply Chain Management Plan P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver P5 Plan Returns s Source Make Deliver r e M1 Make-to-Stock D1 Deliver Stocked Products s i S1 Source Stocked Products r l p e p S2 Source MTO Products M2 Make-to-Order D2 Deliver MTO Products m u o S t s S3 Source ETO Products M3 Engineer-to-Order D3 Deliver ETO Products u C Return Return Deliver Supply Chain Source Environmental Enable Management Management Green Supply Chain Management Green SCM recognizes the Green SCM recognizes the disproportionate environmental disproportionate environmental impact of supply chain processes impact of supply chain processes in an organization. in an organization. P A G E 2 ? 2005 LMI Contents ? What is Green Supply Chain Management ? Green Supply Chain Management Principles ? Green Supply Chain Management Best Practices ? Implementing Best Practices ? Summary P A G E 3 ? 2005 LMI Green SCM leverages the role of the environment in SC value creation. Environmental Value Drivers Tangible Outcomes Profitability Green Supply Profitability Green Supply Chain Programs Chain Programs Asset Utilization Asset Utilization Supply Chain Supply Chain Value Value Service Level Service Level Employee Employee Satisfaction Satisfaction Customer Customer Environmental Stakeholder Environmental Sustainability Reputation Interests Sustainability Reputation Continuity Continuity Community Community Quality of Life Quality of Life Alliances Alliances Technology Technology Intangible Value Drivers Source: Forging New Links, GEMI, 2004 P A G E 4 ? 2005 LMI Commercial firms have had early success using Green SCM principles. Texas Instruments: Saves $8 Texas Instruments: Saves $8 million each year by reducing its Commonwealth Edison: Produ