Green Supply Chain in India : An Introduction Authors: 1) Ashish Kumar and K.

Manasa Students MBA Program Krupanidhi School of Management, #12/1, Chikkabellandur, Carmelaram Post, Varthur Hobli, Bangalore 560035 Ph. No.: 9845664105 2 ) Dr. Sneha Mankikar Assistant professor MBA Krupanidhi School of Management, #12/1, Chikkabellandur, Carmelaram Post, Varthur Hobli, Bangalore 560035 Ph. No.: 9845664105

Abstract This research paper aims to bring about the current scenario and plight of green supply chain management in India. Most of the BIC business are able to differentiate in the businesses based on the distribution channels, waste management systems etc. Main GSCM business drivers include the high cost of energy and a desire to have a competitive advantage over other firms. The reduction of energy consumption and lowered greenhouse gas (GHG) emissions in distribution activities are the two main environmental improvements arising from the adoption of GSCM practices. This research is review paper which brings about the application and importance of GSCM. The data used for this research was primarily secondary in nature. The research also advocates the use of contemporary supply chain methods like reverse SCM, cross docking etc. Key words: Green supply chain management, cross docking, reverse SCM, logistics

1.1 Introduction: In early environmental management frameworks, operating managers were involved at the organizational level. Specialized organizational unit shared the responsibility for ensuring environmental excellence in product development, process design, operations, logistics, marketing, regulatory compliance, and waste management.[1] In recent times, Green Supply Chain Management (Green SCM) is gaining significance among manufacturers due to the following reasons: Diminishing raw materials Deterioration of environment Overflowing waste lands Increasing levels of pollution

In todays competitive world, it is not only about being environment friendly but also about better business sense and profits. The Supply Chain System (SCM) includes purchasing, inbound logistics, production, distribution (outbound logistics and marketing), and reverse logistics. The first three categories are part of the well-known value chain concepts. The last functional element, reverse logistics is one of the most recent areas of focus in the supply chain.}

1.2 Research objectives: The main objective of this project is to develop a deep understanding of the relationships required for the compatibility of Resilient, Green (manufacturing) and lean production in order to contribute to better production systems and hence forth clean up the supply chains. To study the green supply chain process and its sustainability. Green Supply Chains GSC planning and management involves multiple objectives and tradeoffs including social, economic and environmental dimensions. To reduce cost of production using sustainable techniques and improve efficiency of supply chain process. To protect the environment and to strictly follow the environmental standard ISO-14000. To reduce wastage in the entire supply chain process by using green SCM techniques at each level stating from procurement of raw material to delivery of products to the customers. To contribute for the development of overall organization system based on a Lean, Agile, Resilience and Green management approach, green supply chain approach at each level in the organizations through this paper.

To develop a diagnostic framework based on actual models or methods used in various companies. To integrate various advanced tools and advanced techniques (reverse SCM, cross docking, farm to folk SCM etc.. ) in supply chain and work towards the achievement of green and clean supply chain systems. To create awareness among various organizations and help them reduce the carbon footprints.

1.3 Statement of the problem: The 2008 survey underlined that environmental regulations adopted in Europe (REACH, WEEE, ROHS, and European Union Emissions Trading Scheme (EUETS) created a sense of urgency. Because of the recently changed environmental requirements that affect manufacturing operations and transportation systems, growing attention Is given to the development of environment management strategies for supply chains. A green Supply chain aims at confining the wastes within the industrial system so as to conserve energy and prevent the dissipation of harmful materials into the environment. Several important Opportunities in green supply chain management in depth, including those in manufacturing, bio-waste, construction, and packaging. Each of the links in the supply chain can be a reason for pollution, waste, And other hazards to the environment.[2] (Jay Heavner, 2012)In 2005, the US Presidents Emergency Plan for AIDS Relief (PEPFAR) established the Supply Chain Management System (SCMS) to provide a flexible, reliable, cost-effective and secure supply of products for HIV/AIDS programs in 16 countries. Regarding raw materials, a company may use environmentally harmful materials such as lead. However, organizations can put pressures on Suppliers to use more environmentally friendly materials and processes. A green supply chains aims at confining the wastes within the industrial system in order to conserve energy and prevent the Dissipation of dangerous materials into the environment. It recognizes the disproportionate. Environmental impact of supply chain processes within an organization. Green, integrated, ecologically-optimized supply chains extend the Scope not only to human toxicological effects, but also to ecologically negative effects on the Natural environment, as well as the entire value-adding process, resulting in low ecological Impacts during production.[3] (Ravishankar)Green SCM is getting more attention as a sustainable development mode for modern enterprises and is increasingly a part of Corporate Social Responsibility (CSR) initiatives. Ecological requirements are considered as key criteria for products and productions, and at the same time the company must assure its economic sustainability by staying competitive and profitable.[4] (Meyer, 2009)Barriers to global trade brought on by increasing environmental regulations, more stringent restrictions on hazardous substances, greater emphasis on lean manufacturing, and increased supplier auditing and verification are creating the critical mass toward a new norm in supply chain management and expectations. Those who neglect to critical evaluate their operations from a sustainability point of view this year will be cast to the side. The World Resources Institute is completing

authoritative new supply chain and product lifecycle greenhouse gas protocols that will frame whats expected to be a burgeoning wave of value chain sustainability accounting and reporting.

1.4 Literature Review: Patrick penfield - A green supply chain can be defined as the process of using environmentally friendly inputs and transforming these inputs through change agents whose by products can be recycled within the existing environment. EPA US academy- For lean and green supply the first step is to identify environment costs within your Process or facility. Determine opportunities which would yield significant cost savings and reduce environment impact. calculate the benefits of yours proposed alternatives. Decide, implement and monitor your improvement solutions. Ellen MacArthur: He suggested that while rapid technological evolution across all major industry sectors,{was taking place] very little change within the economic model itself {has been occurring]. The economy is still based on a linear take, make and dispose model. Aron Cramer: the time for sustainable consumption is now. The need to develop new consumption patterns is the mother of all innovation challenges. The race to dematerialize is on. Some of this will come from the digital revolution, as newspapers can now be delivered wirelessly to e-readers instead of plopping dead trees on the doorstep. But some of the innovation will come from redesigning business models.

1.5 Companies following green supply chain: (By Inbound Logistics Staff, 2013)ABF FREIGHT SYSTEM By using liquefied petroleum gas-powered forklifts in all ABF facilities; recycling all used oil, antifreeze, cleaning solutions, and engine batteries; implementing alternative soil disposal options in lieu of land filling; and ensuring practices are in place to protect the environment, ABF has integrated environmental values into its decision-making processes. The carrier considers the environmental impact of any proposed actions. AL PALLET AL Pallet provides shippers with 100-percent recyclable or reusable aluminum pallets. The company also offers an incentive-based recycling program to encourage customers to recycle pallets instead of throwing them away. The lightweight pallets allow shippers to load more freight without exceeding weight limits, creating fewer shipments and reducing fuel consumption and carbon emissions. ALLIANCE SHIPPERS INC In support of its environmental efforts, Alliance Shippers Inc. installed a solar array on its Keasbey, N.J., facility, gaining 80-percent energy independence, and reducing carbon emissions at the site by 70 percent. The 3PL consolidates less-than-container load shipments into full

containers to further reduce its carbon footprint; it also moves shipments via intermodal. After a series of engine and reefer replacements, and new equipment purchases, the company's fleet is now 95-percent CARB-compliant. APL By 2015, APL plans to reduce its cargo transportation- and handling-related greenhouse gas emissions by 30 percent from 2009 levels. To this end, APL introduced 10 new environmentally friendly, energy-efficient vessels, with plans for another 22 to be delivered over the next two years. The ocean carrier also began testing an advanced emission-control technology known as a seawater scrubber, in which seawater is used to scrub contaminants from ship engines and boilers before exiting the ship's exhaust stack, drastically reducing greenhouse gas emissions. AVERITT EXPRESS A founding partner of the Smart Way program, Averitt Express consistently looks for creative ways to reduce its carbon footprint. Employees are rewarded with gift cards, new vehicles, and performance bonuses for their efforts to help the carrier with its sustainability program. Averitt makes new equipment purchases with fuel efficiency in mind, and all its facilities recycle as much paper, cardboard, oil, and filters as possible.

CARDINAL LOGISTICS MANAGEMENT CORPORATION Cardinal Logistics is committed to improving the environmental performance of its operations through initiatives that increase fuel efficiency, reduce greenhouse gas emissions, and improve air quality. The 3PL stands behind that commitment with investments in fuel-efficient equipment; testing programs with compressed natural gas-powered trucks; fleet modifications to increase miles per gallon; and fleet monitoring technology coupled with driver training in order to identify problems with specific trucks or drivers. CAT LIFT TRUCKS CAT's DP40N1-DP55N1 series lift trucks feature a new diesel engine that increases fuel efficiency by 22 percent and reduces emissions levels. The trucks also meet the Environmental Protection Agency's new Tier 4 Final standards for diesel exhaust, which govern diesel particulate and NOx emissions. CAT also provides a line of electric lift trucks that produce zero emissions. CELADON Celadon made myriad changes to its fleet to reduce emissions and fuel consumption. The carrier reduced the weight of 2,149 fleet trucks by 300 pounds each by converting them to aluminum wheels. It removed an additional 260 pounds from 1,899 of those trucks through other modifications. The company also switched its trailer fleet to lightweight trailers, introduced

biofuels into the fleet, installed auxiliary power units on all new fleet trucks, and equipped trucks and trailers with fuel-efficient tires. C.H. ROBINSON C.H. Robinson views sustainability as a way to add value, improve efficiencies, and invest in the long-term success of shippers, contract carriers, growers, employees, and communities. The 3PL offers services that optimize business processes to efficiently use transportation and distribution network resources, ultimately driving out costs and minimizing carbon emissions. For example, the company's produce-sourcing programs help reduce the distance from farm to table. Working directly with growers and retail customers allocates natural resources wisely and builds efficient farm-to-shelf distribution models. FEDEX In 2008, FedEx announced it would seek to reduce carbon emissions intensity from its FedEx Express aircraft and improve the fuel efficiency of its vehicle fleet 20 percent by 2020, compared to 2005 performance. Less than five years later, it has nearly achieved these goals. Now the company has increased its aircraft emissions goal to a 30-percent reduction by 2020. [5]

1.6 Data collection: Green Supply Chain Management GSCM= Green Purchasing + Green Manufacturing/Materials Management+ Green Distribution/Marketing + Reverse Logistics. A huge industry: The cost of logistics in the US was $1.1 trillion in 2009; 7.7% of gross domestic product (GDP), according to CSCMPs 21st Annual State of Logistics Report. US expenditures on logistics are larger than the national GDP of all but 12 countries.US expenditures on transportation alone ($688 billion) are larger than the GDPs of all but 16 countries (World Bank GDP data).[6] (BLS Employment Data Series, 2010)The transportation-related workforce in December 2010 totaled 4.24 million people, including those in warehousing, according to United States Bureau of Labor Statistics. This represents 3.2% of the total US workforce. An efficient industry [7](http://cscmp.org/, 2013)In 1980, logistics represented 17.9% of US GDP. Today, it is 7.7%.By comparison, estimated logistics costs represent 15 to16% of Chinas GDP and 11 to 13% of Indias GDP.Logistics costs in Europe are significantly lower due to a combination of less geography and long-established transportation infrastructure, including rail, rivers, and highways. On average, logistics costs represent 7.15% of European GDP.It is estimated that the total logistics costs associated with delivering a $3.60 box of cereal from the field to the consumers table is about $.37 in the US. The net retail profit is about $.05.

World Export Volumes (CIA World Fact Book, 2010) The leading exporter in 2010 was China with $1.51 trillion in exports. China was followed by Germany with $1.34 trillion, the US with $1.27 trillion, and Japan with $736 billion. China accounts for roughly 10% of all global exports, while the US accounts for 8.7%, and Japan accounts for nearly 5%. (World Trade Organization statistics through 2009).Total world exports exceeded $12.5 trillion in 2010.

1.7 Diagnostic model based on present scenario: Environmental performance indicators are described in ISO 14031(environmental management-environmental performance evaluation of the ISO 14001 accreditation guidelines). Using softwares like ERP and SAP so as to reduce the paper work and make supply chain cleaner and greener.The following is a list of environmental performance parameters ranging from air emissions to energy recovery and recycling on which companies need to work: fugitive non-point air emissions stack or point air emission discharges to receiving streams and water bodies underground injection on-site releases to land on-site discharges to publicly owned treatment works on-site and off-site energy recovery on-site and off-site recycling on-site or off-site treatment non-production releases source reduction activities spill and leak prevention inventory control process modications pollution prevention opportunity audits employee and participative management publicly available missions and values statement management systems pertaining to social and environmental performance magnitude and nature of penalties for non-compliance volume and nature of accidental or non-routine releases to land and wate. environmental liabilities under applicable laws and regulations Major activities that need to be taken care of in green supply chain: . total energy use . total electricity use . total fuel use . other energy use

. total materials use other than fuel . total water use Reuse procedures to assist product and service designers to create products or services with reduced adverse life cycle impact. Selected measures must be implemented within a framework much like thenstrategic planning model beginning with an organizations mission and vision as the leading point for developing appropriate measures.

Source: Green Supply Chain Management-Manufacturing A Canadian Perspective

1.8 Conclusion: Most Best-in-Class (BIC) businesses are able to better differentiate their distribution services, improve risk management, increase sales, and increase access to foreign markets, all while reducing distribution costs. Main GSCM business drivers include the high cost of energy and a desire to have a competitive advantage over other firms. The reduction of energy consumption and lowered greenhouse gas (GHG) emissions in distribution activities are the two main environmental improvements arising from the adoption of GSCM practices. Since many GSCM practices require limited investment, are low-risk, and offer short-term return-on-investment periods, businesses of all sizes are able to engage in these activities. Despite the large number of businesses that understand the importance of GSCM, the number of firms that actually engage in such practices is significantly lower.

References: 1. Green Supply Chain Management: Logistics and Distribution by Prabhakar Ravishankar 2. Saving Lives through Supply Chain Innovation: Jay Heavner, SCMS, David Jamieson, SCMS, Gordon Comstock, PFSCM, Hany Abdallah, SCMS 3. Green Supply Chain Management :Logistics and Distribution 4. Website:valuestream2009.wordpress.com by Meyer, Dave 5. Website:http://www.inboundlogistics.com By inbound logistic staff,2013 6. BLS employment data series 7. Website:http://cscmp.org/,2013-facts-global-supply-chain 8. Green Supply Chain Management-Manufacturing A Canadian Perspective