Vital to improving any green supply chain performance would be to understand the current level of efficiencies in materials management. Understanding the business processes that help support the complete cycle and material flow, from purchasing, to internal controls, and manufactured materials, through planning and controlling the work in progress, to warehousing, shipping, and distribution of finished products. Improving these functions is essential because the distribution and logistics functions contribute to the highest percent of carbon emissions reported to the EPA each year.
One of the most significant trends within a Green Supply Chain will be how effective a manager is at improving their materials management performance. This means they must first understand which decisions for improvements will affect the purchasing, storage, handling, and asset recovery movements throughout their organization. One area and key ...view middle of the document...
Businesses can significantly improve their performance by working with suppliers, shippers, distributors, and customers to improve its logistics activities. Businesses can further improve their supply chain operations by studying their environmental impact related to the bottom-line effects, their decisions and actions have on the environment. This will increase their effectiveness by improving and participating in environmental performance activities such as:
Reduce waste from maintenance, repair and operating (MRO) materials through enhanced tracking and inventory management practices. This significantly reducing the costs associated with waste and material losses. By reducing training, material handling, and other extra expenses associated with hazardous materials. This increases revenues by converting waste to by-products.
Reduce any hazardous material waste used throughout this process, thus improving timely and accurate materials tracking requisitions
Businesses can consider improvements like using alternative fuels, converting to vehicles that use alternative fuels, improving technology for tracking, and transit times, which reduce the length of travel and time materials or products, need to reach their final destination, thus significantly reducing carbon emissions, and improving their carbon footprint. Managing a Green Supply Chain, will mean that every level of the business understand the goals, and design of material flow, to optimize reducing waste. This process will need continual monitoring to ensure that the process improvement goals are met, or if any adjustments in the plan need to be modified. Each area of the supply chain needs to understand these goals and be accountable if these standards are not met.
These and other new emerging trends in Green Supply Chain operations will help shape the future of all supply chain operations that help to make our environment and business operations environmentally friendly. It makes a company customer friendly and more competitive and profitable by understanding current changes and trends in supply chain accountability. It just makes green sense.