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Green Supply Chain

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"Green Supply Chain"

Latest economic conditions changing views of companies to find sustainable green supply chain efficiencies. Green supply chain has got importance to reduce overall transaction costs, to lower inventory costs. Technological innovations lifting awareness of sustainable solutions to supply chain system and changing views with respect to quicker customer interaction to find appropriate changes in the market. Efficient ways which are used in Green Supply Chain: 1. Increasing company's revenue by reducing and recycling waste material / scrap, ultimately decreasing costs which are associated with waste and material losses. 2. Reducing material handling, training and transportation expenses 3. Decreasing usage industry specific hazardous chemicals and henceforth decreasing total carbon footprint. General Motors increased revenue by reducing disposal costs by $ 12 million with the help of reusable container program with GM's suppliers. 4. Recycling or refurbishment at end of product life disposal. 5. Role of third party logistics is necessary to reduce extra costs by shifting transportation modes, fing alternative solutions to relocate inventory to feasible locations as per business requirements. 6. Using sustainable packaging, repair solutions which can reduce wastes in supply chain cycle.

Walmart is working on reducing CO2 emission of its total supply chain by 20 million metric tons by end of 2015 which is equivalent to taking 3.8 million cars off the road. Kellog has set goals to reduce waste from 18% to 30% of its plants sending zero waste to landfills. Kellog installed solar panels, fuel cells and biomass boilers as sustainable solutions at their plant locations.

Samsung, BMW, Unilever have superior strategy to reduce their respective carbon footprint and innovating supply chain. Many times environmental costs are not allocated to respective products and processes which may give inaccurate costing data and ineffective decision making. Four steps are used to find a significant improvement in environmental costs. Identify costs-> Determine opportunities-> Calculate Benefits-> Decide, Implement & Monitor In 1997, PSE &G made savings of $ 2 million by reducing hazardous wastes and by implementation of material return policy. Electricity costs can also make a significant impact on reducing wastes. Energy efficient warehouses and office occupancy sensors, LED lighting, green space, recycling solutions are major factors which are considered for green warehousing.

After executing these efficiencies, companies still will be responsible for some level of carbon impact on environment. So, organizations are looking to reduce their impact further which can work with carriers and offer customers the ability to offset the impact of their shipments by investing in environmental projects.

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