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Paper for My Logistics Class

In: Business and Management

Submitted By googlescolar
Words 1529
Pages 7
Supply Chains going Green

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The discussion of supply chains going green has become a bone of contention among major stakeholders in the industry. The discussion started after the Carbon disclosure project released a report indicating that supply chains contributed greatly to the emission of carbon in the atmosphere. Due to the report, pressure has been mounting on the administration of supply chains to implement strategies on their carbon management. Analysts have however stated that there are various pros and cons of the supply chains going green, which have to be considered in the implementation of carbon management strategies. This paper analyzes the pros and cons of supply chains going green.

Advantages of supply chains going green

Improvement in financial performance over time

There are various benefits associated with companies going green. One of the benefits of supply chains going green is the positive impact that it has on the financial performance of the supply chain. Despite the myth that cutting carbon emissions increases expense, there is evidence that cutting on carbon emissions has a great impact on cutting expenses of the supply chains. Through a systematic approach to the manner in which the supply chains operate, it is possible for the administration to analyze how carbon management strategies will cut costs for their organization. Through empirical evidence from companies such as Wal-Mart that have already applied certain strategies in managing their carbon emissions, they have been able to improve their financial performance over time. It is however important for companies to understand that the improvement of financial performance as a result of going green is not immediate since the company has to adjust in its operations, which might take a while

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