Green Supply Chains Essay - 1925 Words

Green Supply Chains (Essay Sample) Content: Pros and Cons of Green Supply ChainsNameCourse NameInstructorDateGreen Supply ChainsThe supply chain or logistics network has been advancing over the years, with processes that are more efficient emerging. The entire supply chain management requires sustainability, especially in the modern world when most firms are adopting green technology. Sustainable supply chain, also known as green supply chain, is the adoption of environmentally friendly technology and processes throughout the life cycle of a product right from product design to product recovery. Green supply chain comes with a number of benefits just as it faces some challenges, especially in the implementation stage. Considering the need for environmental protection and the possible benefits of adopting green supply chain, it is advisable for most firms to adopt green supply chain in all their logistics networks (Palevich, 2012). In this regard, this paper explores the concept of green supply chain, particular ly its pros and cons in the contemporary world.Virtually all supply chains affect the environment significantly, considering the carbon footprint of all the logistics. Most products undergo numerous processes throughout the supply chain. In this regard, proper supply chain management is necessary in order to mitigate the adverse effects of supply chain. Unless sustainability is emphasized in supply chain management, then supply chain will be one of the major contributors to environmental degradation in the near future. Nonetheless, green supply management comes as a solution to the environmental problems experienced by the conventional supply management. Indeed, the need to think à ¢Ã¢â€š ¬Ã‹Å"greenà ¢Ã¢â€š ¬ ought to outweigh the urge for profitability in supply chain management (Palevich, 2012).In order for green supply chain to gain acceptability and effectiveness in any company, it must create value in every aspect. Right from product design to the product recovery, supply cha in plays an important role in ensuring efficiency in at all stages, especially at the manufacturing and logistics phases. Green energy ought not to simply appear to negate the adverse environmental impacts, but it must also add value to every stage along the supply chain. Although any green technology aims to cut down on carbon emission, the corporate world is also concerned about profitability in terms of asset utilization, greater product innovation, less production of waste, and easy/quick access to the market (Rao Holt, 2005).Companies need to understand the fundamentals of green supply chain in order to make the most out of it, particularly manufacturing and distribution firms. A company has to review its interactions with its trading partners both in downstream and upstream dimensions. It means that the extraction of a product from raw material throughout the life cycle of the product to the disposal stage involves many companies that offer different services along the supply chain. In this respect, a great deal of transparency and collaboration is required throughout the supply chain systems and processes. Green supply chain calls for concerted efforts among all the players in a productà ¢Ã¢â€š ¬s life cycle than has been previously (Palevich, 2012).One way of achieving green supply chain is innovation and automation along the supply chain processes. The adoption of equipment and products that consume less energy and technological innovation can help cut the carbon footprint of products along the life cycles of such products. Since supply chain primarily deals with the life of the product from the extraction stage to the sale to the final consumer, it is imperative to evaluate the efficiency and effectiveness of all the distribution channels. Business-to-business ecommerce is an effective way of promoting green supply chain since most of the supply chain operations are online hence less carbon footprint. The creation of global business communities at lower costs is another way of achieving excellent environmental outcomes while managing the supply chain (Zhu Sarkis, 2004).Pros Green Supply ChainA number of reasons exist to support the greening of supply chains, especially in the modern technological edge where supply chains are more sophisticated than before. Although it is difficult to abandon old ways of conducting business, it is important to adopt new ways if they are worthwhile. Most developed countries like Canada, Germany, U.K., and U.S. have enacted laws that require the use of green technology in all sectors, including supply chain management. In addition, global companies such as Unilever and Apple have embraced green supply chain management in their systems and operations. It is an indication that green supply chain management is the most palpable way of mitigating environmental challenges connected with supply chain management (Rao Holt, 2005).One of the primary reasons for adopting green supply chains is because i t resonates with international best practice. Currently, international environmental regulations require all companies involved in the supply chain to adopt green technology. The global business environment is characterized by heavy regulatory landscapes favor only the compliant companies. It is therefore important for companies to allow flexibility and adaptability to their operations in regards to green technology, which is more efficient, in their supply chains. They ought to liaise with other global companies in order to find better ways of mitigating environmental problems associated with supply chain management (Zhu Sarkis, 2004).According to Palevich (2012), greening all the processes and operations of an organization has a positive effect in the organization in the sense that it adds more value to the organizationà ¢Ã¢â€š ¬s brand. Green credentials are essential in attracting and retaining customers because most customers like to associate with companies and products that are environmentally friendly or compliant with the prevailing environmental regulations/legislations. Additionally, adopting green technology in supply chain management will boost the morale of the employees of a particular organization given that employees would like to be associated with the best organizations. Greening the supply chain is especially crucial in distribution and retail industries where business-to-business and business-to-consumer interactions thrive. Engaging in sustainable conduct will attract more investors to a company (Srivastava, 2007).Sustainability in supply chain comes with numerous cost saving rewards, depending on the extent to which an organization adopts green supply chain. When companies adopt green technology in their supply chain, they minimize environmental and other wastes that would have required extra costs for disposal. Furthermore, greening the supply chain will reduce the operational costs, especially where technology is used. For example, b usiness-to-business ecommerce can reduce waste and operational costs significantly. Hence, organizations can channel the extra money to other crucial sections of their operations or retain it as profits. In addition, organizations that adopt green supply chains will have reduce safety and health costs as compared to organizations managing their supply chains in the conventional ways (Rao Holt, 2005).Perhaps one merit of green supply chain is the liberty and benefits that come with compliance. Fundamentally, the world is going green and various treaties compliance penalties. Besides boosting the image of the organization, complying with the requirements of green supply chain management will foster investor confidence (Rao, 2008).ÂThe anticipated bottom line of every organization is profitability and green supply chain management strives to assist organization attain this objective. Regulatory compliance will automatically reduce the reliance on prices of resources, which are inc onsistent in most cases. Moreover, greening the supply chain will reduce operating costs such as water, transportation, energy, and labor costs. This massive reduction in cost is critical to a company that conducts large-scale operations because it will realize more revenue than it used to get previously. The automation of supply chain increases the motivation levels of logistics workers, leading to a rise in deal size by approximately 4% (Gupta Wang, 2011)Cons of Green Supply ChainsSince every technology and procedure that has benefits must have limitations, green supply chains also face quite a few challenges. Nonetheless, the merits of green supply chains outweigh its demerits. Perhaps the primary demerits of green supply chains are that they require high initial cost to adopt besides its disruptive nature. Some processes of the supply chain may need complete overhaul in order to adapt to the green technology. It may imply installation of new equipment that is environmentally fr iendly. Additionally, green supply chains are a disruptive technology much as they come with a number of benefits. Companies may need to retrain their employees and take them through change management. Some suppliers or distributions within the supply chain be reluctant to adopt green supply technology because of own interests and hence, the green supply chain may not be as effective as it was anticipated to be in some companies (Rao Holt, 2005)., legislations, and regulations have been enacted at various international and national forums to advance this great step. It means that companies that do not comply with green supply chain do not stand a chance in international business because most partners will shun such companies. By embracing sustainable methods of supply chain management, companies will obviate unnecessary and heftyWhen it comes to the job security of the players within the supply chain, it is...