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Green Supply Chain Management
Lecturer: David Staš Summer School 2015 ŠKODA AUTO University Mladá Boleslav Czech Republic
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Lecture Content Why go the green way?
What is green supply chain management? Green design in supply chain management Example of green supply chain management activities Lecture Content During this presentation we will first introduce reasons: Why go to green way? Then we will talk about: What is the Green supply chain management? We will show how looks: Green design in supply chain management And finally we will look at: Example of Green supply chain management activities
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Why go the green way? Environmental concerns
Regulation Shareholder or public pressure Improving corporate image Cutting costs
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Why go the green way? The Conventional Supply Chain Raw Material
Manufacturing Distribution Consumption
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Landfill / Incinerator
Why go the green way? The Conventional Supply Chain But as a product moves through conventional supply, chain waste and other problems occurs: Raw Material Manufacturing Distribution Consumption Waste discharge Landfill / Incinerator
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Why go the green way? The Green Supply Chain Raw Material
Manufacturing Distribution Consumption The green supply chain modifies conventional supply chain in two ways: The 1st is an initial focus on ensuring that for each stage of the supply chain environmentally friendly process are optimised. The 2nd modification on the conventional supply chain involves an entirely new reverse supply chain (recover, refurbish, recycle).
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What is green supply chain management?
One of the possible definitions: The alignment of sourcing, manufacturing, distribution, transportation and remanufacturing/recycling processes with the goal of reducing a company’s carbon footprint. Used in many business sectors Government Manufacturing Education Services
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What is green supply chain management?
Benefits: Reducing the consumption of toxic chemicals Less waste Sustainability of natural resources Lowered costs Increased efficiency Brand reputation Reducing risk Employee morale Ethics
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What is green supply chain management?
Implementation: Recycling Product design Change in raw materials Increase manufacturing effectiveness Reduce energy consumption Environmental initiatives Renewable energy Reduction of waste Use of environmentally friendly products → Starts with daily operation
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What is green supply chain management?
Barriers Customer preference Suppliers adapting to change Cost of implementing processes No concrete way to measure return on investment
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Green design in supply chain management
One of the possible definitions of green design for four aspects with lower environmental impact: Green Raw materials Development of green technologies & materials Improvement of material recycling ratio Elimination of resource waste Green production - Manufacturing Reduction of energy consumption Clean technology Reduction of production waste Efficient planning around electricity demand peak times Green design Green Product Recovery Increasing the percentage of recycled inputs Reuse of products Use of ecological alternatives as a part of Corporate Social Responsibility Eco-design Green design in supply chain management now we will see: One of the possible definition Green design on four aspects with lower environmental impact: the first area: Green Raw materials - Examples of activities are: XXX the second area: Green production – Manufacturing - Examples of activities are: XXX the third area: Green logistics – Transport – There it´s Examples of activities: XXX fourth area: Green Product Recovery - Examples of activities are: XXX And now I want to show you one very short film presenting some principles of green activities. I believe that you liked this film and we can continue. And because I'm from the Department of Logistics, let's look at the area of green logistics a little closer Green logistics - Transport Use of eco packaging to maximise logistic efficiency Configure efficient global logistic system to lower the use of fuels Optimising delivery schedules Use of light weight trailers
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Example of Green supply chain management activities
Firms focus mainly on green logistics activities Transportation Warehousing Packaging Reverse Logistics Fields of the Green transport practices
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Example of green supply chain management activities
Green Logistics - technical solution Effective deployment of innovative elements in the transport of components Hydraulic opening sidewalls of the truck SWING TOP LIFTER Increasing productivity Reducing the number of trucks
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Example of green supply chain management activities
Green Logistics - technical solution Effective deployment of innovative elements in the transport of components project EDIS (Ecological Transport Internal Skoda) Deployment AKU-trucks instead of trucks with diesel engines Direct supply to the precise time windows EDIS (AKU – truck + sidecars)
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Thanks for your attention
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