Green Supply Chain Management-Issues and Challenges Dr P. CHANDIRAN Associate Professor Centre for Logistics and Supply Chain Management Loyola Institute of Business Administration, Chennai-34

Green SCM It involves traditional Supply chain management practices that integrate environmental aspects such as natural resource conservation, limiting on pollution, recycling used products and so on. Companies are under pressure to consider all environmental issues while designing their supply chain network

Supply chain activities which impact the environment Production Packaging Transportation Sourcing Location of facilities Disposal of products and recycling Product design

Some best practices on Green Supply Chain management Xerox remanufacture their own products for secondary marker Canon and Kodak reuse parts Exide use their smelting plant to recycle batteries in India ACC uses waste of other industries like paint and refinery sludge, soya husk, plastics, tyres etc to fire their kilns to generate energy. (?) and saves 41 crore of rupees. Usage of reusable Plastic shipping containers Location of Ponni sugars and SPP mill near to each other

Supply chain as Network Cust. Regions Suppliers Dist. Centers L.A. L.A. Plants Denver Baton Rouge Denver Dallas Houston Chicago Detroit New Suppliers: New Plants Pittsburgh New DCs New--Eastern US Baltimore Transportation mode or shipment size choice

Purchasing, Materials Management, Inbound Logistics Energy Energy Energy Closed-Loop Manufacturing, Demanufacturing, Source Reduction TQEM Disposal Location Analysis, Inventory Management, Warehousing Transportation Packaging External Transportation Internal Transportation Raw and Virgin Material Inventory Management Customer Relationships Green Marketing Product Stewardship Selection Fabrication Vendors New Components and Parts Storage Storage Distribution, Forward Logistics USE Assembly Recycled, Reused Material and Parts Purchasing, Materials Management, Inbound Logistics Outbound Logistics Production Energy Product/Process Design Reusable, Remanufacturable, Recyclable Materials and Components Waste Waste Waste Engineering Marketing Reverse Logistics Waste

Issues in Sourcing Environmental friendly process Packaging Certification Controlling emissions Vendor evaluation in terms of environmental performance

Issues in Transportation Infrastructure Outsourcing to nearest supplier Better maintenance Better routing and scheduling Synergy and save on environment with shared resources

Issues in Network design Co-location Co-processing Optimal location De-centralised locations in non-capital intensive facilities

Issues in Product design Design for remanufacturing Design for recycling and disposal Design with recycled and waste materials

Issues in disposal and recycling Redesign of network for collection and disposal Closed-loop supply chain Handling and storage Transportation Location of remanufacturing and recycling facilities Recovery portion of materials and components Economical network design Many reverse networks are Informal networks

Challenges-Two case studies Battery Industry Waste recycling network in Bangalore

Waste recycling SC in Bangalore There is a growing demand for solid waste materials Municipal corporations are responsible for collection and disposal of solid waste in cities They do very little Waste pickers collect all kinds of solid waste and help environment Their roles are not recognized

Junk Dealers- Small and Medium Waste Recycling Supply Chain Waste pickers employed by Junk Dealers Contractors with IT companies Waste Pickers-7 varieties Itinerary Buyers House maids & other collectors, direct suppliers Collection Sorting and Segregation Cleaning Junk Dealers- Small and Medium Storage Accumulation Uniformity Aggregation Packing Wholesalers and Big Dealers Storage High Uniformity Aggregation Packing Recylers Physical Flow Information Flow Financial Flow

Waste Recycling SC Different types of waste pickers Economically poor Living conditions are poor Most unhygienic conditions Sometimes organized under some entrepreneurs Do all segregation and sorting manually

Junk Dealers Buys materials from waste pickers Sells to wholesalers Roadside shops No taxes and registration Extra cost in terms of Money to corrupted officials

Wholesalers Specialized in one or two category of materials Sell to recyclers and manufacturers Have associations More organised Some machineries are used

Recyclers Some are in formal sectors Many in unorganized sectors Not all are eco-friend Supply materials to organized sector manufacturers

How to make it more formal Govt. role Companies role NGOs role