JOURNAL OF INFORMATION, KNOWLEDGE AND RESEARCH IN
MECHANICAL ENGINEERING
GREEN SUPPLY CHAIN MANAGEMENT ISSUES: A LITERATURE REVIEW APPROACH
1 SUNIL LUTHRA, 2 VINOD KUMAR, 3 SANJAY KUMAR, 4 ABID HALEEM
1, 2 Department of Mechanical Engineering, Thapar University, Patiala-147001, Punjab, India.
3 Department of Mechanical Engineering, C.B.S Group of Institutions, Jhajjar-124103, Hayana, India.
4 Department of Mechanical Engineering, Faculty of Engg and Tech, Jamia Millia Islamia, Delhi (India)
;,,
ABSTRACT: The rapid worldwide industrialization has led to the deterioration of environment in the recent years. Industrial effluents have severely damaged and polluted our environment and caused ozone depletion. Pollution not only affects the health of human beings but has also become a burden to global environment. In this paper, an attempt has been made to discuss various issues related to GSCM. Concept of GSCM, functional Model of an organization supply chain with environmentally influence , differences between conventional SCM and GSCM and models for implementation of GSCM registered in the literature have been discussed. Various approaches of GSCM, implementation of a Green Supply Chain and factors affecting GSCM have been also described
KEYWORDS: Supply Chain Management (SCM), Green Supply Chain Management (GSCM)
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1. INTRODUCTION
Environmental practices have been accepted and adopted in the world of business [6]. The numbers of organizations are contemplating to integrate environmental practices into their strategic plans and daily operations [21].According to Sean Gilbert, 2001, greening the supply chain is the process of incarnating environment criteria or concerns into organization purchasing decisions and long term relationship with suppliers [6]. GSCM is integrating environmental thinking into supply chain management. GSCM has emerged in last few years and covers all phases of product life cycle, from the production of raw material through design, production, distribution phases to use of products by the customers and its disposal at the end of product’s life cycle [1]. The concept of GSCM is shown as under in figure 1[6].
Figure 1: Concept of Green Supply Chain Management
In recent years many solutions have been put forward, one of which GSCM has tremendous practices. The research framework of GSCM practices are also depicted in figure 2 [23 and 24].
Figure 2: The research framework of GSCM practices in present study.
Functional Model of an Organizational Supply Chain with its influence on environment.
GSCM integrates traditional supply chain management practices and environmental criteria into organizational purchasing decision and long term relationship with the supplier [6, 19]. GSCM focuses on reduction of wastes of all industrial operations in order to conserve energy and prevent the dissipation of dangerous materials into the environment [19, 33 and 35].
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Figure 3: Functional Model of an Organizational Supply Chain with its influence on environment
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Difference between Conventional SCM and Green SCM
Conventional SCM usually concentrated on economy and control of the final product but seldom considers its ecological effects [6]. In comparison, GSCM is green, integrated, ecologically optimized and takes into consideration of human toxicological effects as well. Companies put ecological requirements as the main criteria for products and productions and ensure economic profitability and sustainability. Differences between conventional SCM and GSCM are summarized in table 1 [6, 19 and 21].
Table1: Difference between conventional and Green SCM
S.N. / Characteristics / Conventional SCM / Green SCM1 / Objectives Value / Economic / Ecological
2 / Ecological Optimization / Integrated Approach / High Ecological Impacts
3 / Supplier Selection Criteria / Price Switching Supplier
Short Term Relations / Eco logical Aspects
Long Term Relations
4 / Cost Prices / Low / High
5 / Speed and Flexibility / High / Low
2. MODELS FOR IMPLEMENTATION OF GSCM REGISTERED IN LITERATURE
Different concepts and models related to environmental issues have been suggested by different researchers. Some of them are briefly described hereunder-
Model 1: Supply Chain Operation Reference (SCOR) Model
Supply chain management systems can be obtained from the supply chain operations reference model for business applications advancement and practices. The reviews of literature have shown that very little research work has been done in the field of closed-loop supply chain modeling. Supply chain operation reference model can improve competitive advantage, communication, management and control and be altered to a specific purpose among the supply chain management processes. This helps organization capture the “as-is” state of a process with the objective of achieving the desired “to-be” future state. Admirable SCM systems can be obtained from SCOR for business applications, advancement and practices [12]. The SCOR model enables companies to communicate, compare and learn from competitors and companies both within and outside of their industry. It not only measures SCM but also the effectiveness of SC reengineering.
Model 2:Analytic Network Process(ANP) Model
The ANP strategic framework for green supply chain management considers product life cycle (PLC) influence, the impact of operational life cycle (OLC), organizational performance requirements (OPR) and environmentally influential organizational practices which constitute the clusters of ANP upon green supply chain alternatives, With the social dimension of sustainability [4]. Therefore the ANP strategic is a model for sustainable supply chain management. In addition, the decision framework is modeled and solved with an ANP. ANP has superiority over AHP (Analytic Hierarchy Process) since it can handle dependencies among factors. On the other hand ANP requires quite a few pair wise comparisons which could be quite time demanding from the decision makers [7].
Model 3: Closed Loop Supply Chain Model for overall optimization of eco-efficiency
A closed-loop supply chain can be defined as a system with no waste. Comparing with traditional supply chain which has open ends (Figure 4), a closed-loop supply chain put all outputs back to the system. In other words, a closed-loop supply chain is a conjunction of forward and reverse material flow. It completely reuses and recycles all materials and transforms waste to energy [35].
Closed loop GSCM is defined as a closed-loop supply chain model with major focus on handling wastes. Energy measures were left out but challenges in optimization of eco-efficiency are also discussed. The disadvantages of applying traditional supply chain models in managing overall optimization of eco-efficiency are analyzed [5, 34 and 35].
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Fig 4: Traditional supply chain model
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Model 4: Green Logistics Model
Along with rapid change in manufacturing, the trend of making environment friendly products is increasing. Due to changing environmental requirements affecting manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain [31]. This research is working on: (1) The environmental factors leading to the development of an extended environmental supply chain, (2) The elemental differences between the extended supply chain and the traditional supply chain, (3) Additional challenges presented by the extension, (4) Performance measures appropriate for the extended supply chain, and (5) A general procedure towards achieving and maintaining the green supply chain [5]. The ultimate objective of extending the traditional supply chain is to allow consideration of the total immediate and eventual environmental effects of all products and processes (known as product and process stewardship, respectively). The stewardship concept is based on the recognition that the environmental effects of an organization include the environmental impacts of goods and processes from the extraction of raw materials, to the use of goods produced, to the final disposal of those goods [30]. The evolution of manufacturing enterprises from traditional, problem-solving environmental management techniques to fully integrated environmental management is described in Table 2 [5] –
Table2: Stages of Environmental Management
Evolutionary Stage / Characteristics1.Problem Solving / Traditional approaches.
View regulatory compliance as a burdensome cost of doing Business.
2.Managing for Compliance / Primitive attempts at EM Coordination and integration.
Compliance-oriented.
3.Managing for Assurance / Visionary/long-range planners.
Utilize risk management to balance potential future environmental liabilities versus costs.
4.Managing for Eco-efficiency / Pollution prevention.
Waste minimization and source reduction.
5.Fully Integrated / Environmental quality viewed as an aspect of total quality of management.
Global concern about processes and entire product life cycle.
Model 5: Multi Objective Model for optimization of a GSCM
The global warming will continue to worsen as long as the energy demands are going to meet by the fossil fuels. There are a lot of factors to evaluate the performance of the supply chain such as customer service, quality, lead time, cost etc. but due to the environmental requirements, an increasing attention has to be given to develop environmental strategies [21]. If the environmental applications are considered in the conventional supply chain, then we call it Green supply chain [33]. As a traditional network design, we consider minimizing transportation cost and the raw material purchasing cost. To pay attention for the green impacts, different transportation choices are presented between echelons according to their CO2 emissions [32], a multi-objective linear programming model is developed.
Model 6: Decision Making Models
In this model, suppliers and buyers have been trying to establish the supply chain partnership which enables to coordinate and obtain the global optimum at which they maximize the supply chains total profit, whereas suppliers and buyers in the past just write to get the local optimum at which they maximize their individual profit without supply chain partnership. This model is extremely important to achieve competitiveness in current business environment and helps top management in making decisions [24, 27].
Model 7: CGPA Model (Corporate Govt. People Approach Model)
In this model, it is explained that economy and ecology can work hand in hand; environmental practices become more acceptable and relevant for all. CGPA model present the dynamics of ‘promoting green practices’ of a society by different forces. CGPA model is shown in figure 5 [22].
Figure 5: CGPA Model
As depicted in figure 5, O Zone is optimum zone from four perspectives: science, business, environment and spiritual.
Erlinch Equation for environment
I= PAT
I=Impact on environment
P=Population
T=Teaching coefficient
A=Affluence (consumption).
New Equation: I=PAT[22]
I=Same
P=Planning
(Protection and promotion for green practice)
A=Actions for green Practice
T=Technology usage for better green packs
Model 8:Advanced Green System Model(AGSCM)
AGSM developed a core list of elements that should be included in any comprehensive green manufacturing system. Regardless of the company’s approach to minimizing environmental waste, “all of these elements should be included in their program to assure success [16]. The common elements are:-
· Planning
· Leadership
· Metrics and goals Focus on results
· Information and analysis
· Process management
· Employee involvement (Participation)
· Focus on Interested Parties
All these are management system elements.
The separate models of green systems have many similarities, chiefly their reliance on management systems to drive waste identification within the organization and the implementation of a comprehensive list of waste reducing techniques to achieve desired business results. The AGSCM model is shown in figure6 [16].
Figure 6: Advanced Green System Model
Model 9: Conceptual Model
This model discusses basic factors involved in the adoption and maintenance of green management system. It is anticipated that if organizations ensure these factors, they will experience less resistance from their stakeholders and consequently, have a successful GM (green management) and GP (green productivity) implementation [3] Sustainable development, environment systems and green analysis are discussed. Effective factors are recognized and finally the conceptual model is provided in figure 7 [3].
Figure 7: Conceptual Model for Green Supply Chain Management
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Summary For Various Models of Green Supply Chain Management
Table 3 gives summary of various model discussed earlier.
Table3: Various Models of Green Supply Chain Management
S.N. / Model / Description / Reference
1 / Supply Chain operation reference model / Green Supply Chain
Management System in an enterprise: A SCOR reference model / [12]
2 / Analytic Network process
(ANP)/
Analytic Hierarchy Process
(AHP)
model / Using ANP/AHP for the
selection of Green Supply Chain Management strategies
Adoption of Green Supply Chain practices in Taiwan’s logistics industry / [4]
[7]
[10]
[11]
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3 / Closed loop supply chain model for overall optimization of efficiency / Designing the Green Supply ChainEconomics of cost of quality for green manufacturing Life cycle assessment approach / [5]
[8]
[11]
[13]
[34]
[35]
4 / Green logistics / The environment as a Supply Chain management
Issue for reverse logistic Systems Preliminary Model using UML for Green Supply Chain Management
A Theoretical approach adopt green innovations
An empirical study on logistics services / [2]
[5]
[6]
[9]
[30]
[31]
5 / Multi
objective model for optimization of a GSCM / The study of knowledge transfer and system An Exploratory Study of capabilities;
Electronics
Manufactures
Supply Chain Management Information
Green management performance in Green Supply Chain Management. / [17]
[21]
[23]
[24]
[32]
[33]
6. / Decision making
Models / Integrated Decision Making in global chains and networks / [15]
[24]
[26]
[27]
7 / CGPA Model (Corporate Govt. People Approach
Model / Go Green, Promote Green-CGPA Model / [22]
8 / Advanced Green System Model / Parallel Models for Lean and Green Operations / [16]
[35]
9 / Conceptual Model / Identification of Green Management of system’s factors:- A Conceptualized Model / [3]
[17]
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