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Green Supply Chain Management
Initial understanding of the Supply chain Management has always been viewed as the extraction of raw material which is processed into end products then supplied to the end user. GSCM involves the observing and persistently improving environmental performance in the supply chain in perspective to how the environment is being impacted. The main efforts of this paper it to take an analytical look at the drivers affecting the Green Supply Chain Management cycle.
Drivers affecting the implementation of green supply chain management
Key factors affecting the Supply Chain Management are drastically changing its landscape due to the fact that Industries are facing a new challenges of being friendly to the environment as the create there end products. An affirmative rapport exists between the implementation of the GSCM system and the portfolio of industries will result in a high rating of an organization. Ideally this driver catapults the image of the company as well as its products from the local scene to the global market when it sells Green Products. This creates an edge in the competition and creating visibility for the industry.
Cost Reduction is a key determinant, it refers to real and permanent reduction in the unit cost of goods produced or services rendered without weakening their suitability for the use intended. This factor pushes up the implementation of the GSCM through improved methods by retaining the superior quality of the product, reduced excess. However the cost of reduction can either affect the end product or may not be sustainable.
The correlation between the Supplier and Manufacturer, though not as direct influencers can create an ideal platform where both can exchange ideas on how to effectively champion GSCM. Large and Thomsen recommended that the Supplier and Manufacturer relationship can have a significance impact on the environment especially on how the environment was managed. The main goal is to preserve energy and confine the wastes within the industrial environment.
More than often Government rules and Policies have always been the strongest advocate of the Green Supply Chain Management which enables the society to uphold them. Effective implementation of the Green supply chain of Management ensures that the Industrialists will become sensitive and gradually adopt the go green crusade in their portfolio as part of best business practices.
The GSCM is a worthy methodology being used to safeguard the environment and the natural resources. However the key industrialists are not embracing the whole idea in the best way possible hence it’s recommended the Government legislature and concerned stake holders strengthens policies to effect a responsible implementation.