STUDY ON GREEN SUPPLY CHAIN MANAGEMENT AND ITS

IMPLEMENTATION

SUBMITTED BY

ZUHAIB KHURSHEED

MBA(General) 4th SEM

Under the guides of:

PROFESSOR

ANIL KUMAR SHARMA

AMITYBUSINESS SCHOOL (Lucknow)

(DISSERTATION REPORT IN PARTIAL FULFILLMENT OF

THE AWARD OF FULL TIME MASTERS IN BUSINESS
ADMINISTRATION (2011-13)
 STUDENT’S CERTIFICATE

Certified that this report is prepared by ZuhaibKhursheed, under the guidance of Prof Anil
Kumar Sharma, in partial fulfillment of the requirement for award of degree of Master of Business
Administration (MBA) from-General Amity University, Uttar Pradesh.

Date.______________

Signature Signature Signature

ZuhaibKhursheed Prof. Anil Kumar Sharma Prof. V. P.Sahi

Student Faculty Guide Director (ABS)

FACULTY CERTIFICATE

Forwarded here with a Dissertation report on “Study on Potentials for Berger Paints in Lucknow City and
Suburbs” submitted by Ayoush Singh Kalhans, Enrollment NO A700, student of MBA (General)4th
Semester (2011-13).

This project work is for the partial fulfillment of the requirement for the degree of Master in Business
Administration from Amity University Lucknow Campus, Uttar Pradesh.

Prof. Anil Kumar Sharma

AMITY UNIVERSITY,

LUCKNOW CAMPUS

UTTAR PRADESH
 ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to hon’ble, Prof. Anil Kumar Sharma, for whose
kindness I got the opportunity to undergo on the Research Project.Under her brilliant untiring
guidance I could complete the project being undertaken on the “Study on Green Supply Chain
Management and its implementation” successfully in time. His meticulous attention and
invaluable suggestions have helped me in simplifying the problem involved in the work. I would
also like to thank the overwhelming support of all the people who gave me an opportunity to
learn and gain knowledge about the various aspects of the industry. I am also thankful to my
friends for helping me in many ways.
Last but not the least, I would like to thank the management of Amity University Lucknow
campus for their kind guidance and help at every step of the project.

Zuhaib Khursheed
MBA (General)
4-Sem
Enrollment no: A7001911080
SYNOPSIS

1. Title of the Project: -

Study on Green Supply Management and its implementation

2. Statement of the Problem:-

Green supply refers to the way in which innovations in supply chain management and industrial
purchasing may be considered in the context of the environment. Environmental supply chain
management consists of the purchasing function’s involvement in activities that include reduction,
recycling, reuse and the substitution of materials. The practice of monitoring and improving
environmental performance in the supply chain. Integrating environmental thinking into a supply chain
management, including product design, material resourcing and selection, manufacturing processes,
delivery of the final product to the consumer as well as end-of-life management of the product after its
useful life. From these four definitions we see that there is a range of author focus and purpose on green
supply chains and their management. The lack of consensus in practice and definition of green supply
chain is not surprising, since its foundational elements of corporate environmental management and
supply chain management are both relatively new areas of study and practice.
 CONTENTS
Contents (i)
Certificate (ii)
Acknowledgement (iii)
Chapter-1 Introduction 1-9
1.1 Introduction to Supply Chain Management 1-3
1.2 Green Supply Chain Management 3-8
1.3 Traditional versus Green Supply Chains 8-9
Chapter-2 Literature Review and Research Methodology 10-17
2.1 Literature Review 10-17
2.2 Objective of Study 17-17
2.3 Research Methodology 17-17
Chapter-3 Case Analysis and Findings 18-30
3.1 Case Analysis 18-28
3.2 Findings 28-30
Chapter-4 Conclusion and Limitations 31-32
4.1 Conclusion 31-31
4.2 Limitations 32-32
4.3 Further Scope of Study 32-38
References 39
 CHAPTER-1

INTRODUCTION

1.1 Introduction to supply chain management:

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer’s
request. The supply chain not only includes the manufacturer and suppliers, but also transporters,
warehouses, retailers, and customers themselves. Within each organization, such as
manufacturer, the supply chain includes all functions involved in receiving and filling a customer
request. These functions include, but are not limited to, new product development, marketing,
operations, distribution, finance, and customer service. A supply chain is defined as a set of three
or more companies directly linked by one or more of the upstream and downstream flows of
products, services, finances and information from a source to a customer.
A basic supply chain consists of a company, an immediate supplier, and downstream flows of
products, services, finances, and information.The green supply chain management (GSCM) is a
powerful way to differentiate a company from its competitors and it cangreatly influence the plan
success. With increased awareness to corporate responsibility and the requirement to meet the
termswith environmental policy, green supply chain management (GSCM) is becoming
increasingly important for Indianmanufacturers. Companies that have adopted GSCM practices
with a focus on distribution activities have successfully improvedtheir business and
environmental performance on many levels. Today’s also some of remaining companies have not
adoptedgreen supply chain management, due to this environmental performance index (EPI)
ranking of India is not good.Green supply refers to the way in which innovations in supplychain
management and industrial purchasing may be consideredin the context of the environment.
Environmental supply chainmanagement consists of the purchasing function’s involvementin
activities that include reduction, recycling, reuse and the substitution of materials. The practice
of monitoring andimproving environmental performance in the supply chain.

Integrating environmental thinking into a supply chainmanagement, including product design,

material resourcing andselection, manufacturing processes, delivery of the final productto the
consumer as well as end-of-life management of theproduct after its useful life. From these four
definitions we see that there is a range of author focus and purpose on green supply
chains and their management. The lack of consensus in practice and definition of green supply
chain is not surprising, since its foundational elements of corporate environmental management

and supply chain management are both relatively new areas ofstudy and practice.

GSCM = Green purchasing + Green manufacturing/materials

management + Green Distribution / marketing + Reverse

logistics.

supplier focal firm customer

Fig. 1: Basic supply chain

An extended supply chain includes suppliers of the immediate supplier and customers of the
immediate customers, all linked by one or more of the upstream and downstream flows of
products, services, finances, and information.

supplier's supplier supplier focal firm customer customer's customer

Fig. 2: extended supply chain

An ultimate supply chain includes all the companies involved in all the upstream and
downstream flow of product, services, finances, and information from the initial supplier to
ultimate customer.

3rd party logistics

supplier

Initial Supplier Focal firm Customer Ultimate

supplier customer

Financial Market research

provider
 Fig. 3: Ultimate supply chain

Supply chain thus, encompasses all activities associated with the flow of goods and services,
from the procurement of raw materials to the consumption of final good by the end customer, as
well as associated information flow both up and down the supply chain. The activities in the
supply chain management includes transportation, information system, sourcing and
procurement, production scheduling, manufacturing, order processing, inventory and material
handling, packaging, distribution of finished products, forecasting, customer services, marketing
and disposal of packaging.

A typical supply chain may involve a variety of stages. These supply chain stages include:

• Customers
• Retailers
• Wholesalers/Distributors
• Manufacturers
• Component/Raw material suppliers

Each stage need not be presented in a supply chain. The appropriate design of the supply chain
will depend on both the customer’s needs and the roles of the stages involved.
In a typical supply chain, raw materials are procured and items are produced at one or more
factories, shipped to warehouses for intermediate storage, and then shipped to retailers or
customers. Consequently, to reduce cost and improve service levels, effective supply chain
strategies must take into account the interactions at the various levels in the supply chain. The
supply chain, which is also referred to as the logisticsnetwork, consists of suppliers,
manufacturing centers, warehouses, distribution centers, and retail outlets, as well as raw
materials, work-in-process inventory, and finished products that flow between the facilities
Supply chain management is a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the
right quantities, to the right locations, and at the right time, in order to minimize system wide
costs while satisfying service level requirements.
supply chain management takes into consideration every facility that has an impact on cost and
plays a role inmaking the product conform to customer requirements: from supplier and
manufacturing facilities through warehouses and distribution centers to retailers and stores.
Indeed, in some supply chain analysis, it is necessary to account for the suppliers’ suppliers and
the customers’ customers because they have an impact on Supply chain performance.
The objective of supply chain management is to be efficient and cost-effectiveacross the entire
system; total system wide costs, from transportation and distribution to inventories of raw
materials, work in process, and finished goods, are to be minimized. Thus, the emphasis is not on
simply minimizing transportation cost orreducing inventories but, rather, on taking a systems
approach to supply chain management.
Finally, because supply chain management revolves around efficient integration of suppliers,
manufacturers, warehouses, and stores, it encompasses the firm’s activities at many levels, from
the strategic level through the tactical to the operational level.
1.2 Green supply chain management:
The concept of Green supply chain is related to the concept of sustainable development which
provides a framework for the efficient use of resources, effective development of infrastructure,
protecting and enhancement of quality of life, economic or business development along with
protecting the environment.
Environmental concerns grew in 1960s because of increase in levels of pollution, which is
considered as a sign of both environmental and economic inefficiency, occurs at various stages
of the business operations.
Green supply chain management (GSCM) is considered as a process of integrating the
environmental concerns, values and thinking into supply chain. It can be defined as a
phenomenon where environmental innovations diffuse from a customer firm to a supplier firm,
with environmental innovation defined as being aproduct, process, technology or technique
developed to reduce environmental impact. Adding green component to supply chain
management involves addressing the influence and relationship between supply chain
management and natural environment. Green supply chain management is also known as
environmental supply chain management (ESCM) or sustainable supply chain management
(SSCM). It includes green purchasing, green manufacturing/ material management, green
distribution/ marketing and reverse logistics. Under its broadest definition, GSCM could also be
aligned with contemporary environmentalism, which views nature as a ‘biotic community’.
GSCM is also rooted in the idea of corporate social responsibility (CSR) which calls for and
facilitates organizations to make all operations and supply chain decisions within the context of
environmental concerns. GSCM is also an umbrella concept for environmental concerns within
supply chain.
Some of the important elements of green supply chain management approach are:
 A strategic driven programme from customer to supplier containing full integration of
environmental quality in supply chains.
 Technological innovations in supply chain based on environmental issues.
 Awareness in customer-supplier relations which can form a basis for sustainability in
business.
 Providing attention to material content of products./components and the production
processes.
The aim of organizations adopting GSCM practices is to enhance their environmental and
financial performance, investment recovery and eco-design or design for environmental
practices.
Global interest in environmental issues is percolating in India as well. There has been growing
interest over environmental issues in the past few years in India. The save Narmada campaign,
campaign against Enron project, Ganges action plan, ban on use of plastic bags, implementation
of Euro norms for automobiles, use of CNG fuel, judgments of supreme court relating to
environmental issues and those against the unfriendly actions against environment in
procurement of raw materials, manufacturing of goods, their transportation, consumption and
disposal etc. are examples of growing environmental concerns in the country.
GSCM finds its definition in the supply chain management. Adding the green component to
supply chain management involves addressing the influence and relationships of supply chain
management to the natural environment.
GSCM = Green purchasing/procurement + Green manufacturing/materials management +
Green Distribution / marketing + Reverse logistics.
A. Green Procurement
Green procurement is defined as an environmentalpurchasing consisting of involvement in
activities thatinclude the reduction, reuse and recycling of materials in theprocess of purchasing.
Besides green procurement is asolution for environmentally concerned and
economicallyconservative business, and a concept of acquiring a selectionof products and
services that minimizes environmental impact. The activities involved in green procurement are
as follows:
• Supplier selection:
(1) Purchase materials or partsonly from “Green Partners” who satisfy environmental quality
standards.
(2) Consider suppliers who acquire ISO14000, OHSAS18000and/or RoHS directives
(3) Select suppliers who controlhazardous substances in company’s standard lists and
obtaingreen certificate achievements
• 3Rs in procurement process:
(1) Reuse or recycle –paper, parts container (plastic box/bag)
(2) Order via email(paperless)
B. Green Manufacturing
Green manufacturing is defined as production processeswhich use inputs with relatively low
environmental impacts,which are highly efficient, and which generate little or nowaste or
pollution. Green manufacturing can lead to lowerraw material costs, production efficiency gains,
reducedenvironmental and occupational safety expenses, andimproved corporate image.The
activities involved in green manufacturing areas follows:
• Hazardous substance control:
(1) Lead free – replaceother substances such as bismuth, silver, tin, gold, copper
(2)Rinse parts with clean water instead of using chemicals andreuse water
(3) Quality control in inputs at vendor site andrecheck before processing
• Energy-efficient technology:
(1) Reduce powerconsumption in products such as ramps load/unloadtechnology.
(2) Increase product life-span resulting inhigher efficiency and productivity.
(3) Improve machineuptime.
(4) Improve machine performance.
(5) Design product, for example compact design withimproved features yet using fewer
resources to produce.
Strive for higher %recyclability and % recoverability forproducts as stipulated by WEEE
directive, product exterior
Using bio-based plastics achieves high level of fire retardancy
• 3Rs and waste minimization:
(1) promotes reuse/recycle of parts
(2) Enhance environmental consciousnessvia 3Rs activities
(3) Reduce indirect materials such as epoxyglue

C. Green Distribution
Green distribution are consists of green packaging andgreen logistics. Packaging characteristics
such as size, shape,and materials have an impact on distribution because of theiraffect on the
transport characteristics of the product. Betterpackaging, along with rearranged loading patterns,
canreduce materials usage, increase space utilization in thewarehouse and in the trailer, and
reduce the amount ofhandling required.The activities involved are as follows:
• Green packaging:
(1) Downsize packaging
(2) Use“green” packaging materials
(3) Cooperate with vendor tostandardize packaging
(4) Minimize material uses and time tounpack
(5) Encourage and adopt returnable packagingmethods
(6) Promote recycling and reuse programs
• Green logistics/transportation:
(1) Deliver directly touser site
(2) Use alternative fuel vehicles
(3) Distributeproducts together, rather than in smaller batches
(4) Change to modal shift

D. Reverse Logistics
Reverse logistics is the process of retrieving the productfrom the end consumer for the purposes
of capturing value orproper disposal. Activities include collection, combined inspection/
selection/sorting, re-processing/direct recovery,redistribution, and disposal.
The green sourcing wave has begun to roll with an increasing number of companies beginning to
catch on and ride the wave in an effort to proactively manage a new era of customer needs,
environmental regulations and competitive realities that will ultimately impact the business.
Companies that want to get ahead of the curve and stay there need to begin thinking green now
and develop an approach to sourcing and supply chain management that factors this new reality
into their plans. One of the ways to know where your organization stands by carbon footprint
study or an assessment of your organization's “green” status. “How to improve end – of – life of
product management & how your organization is going to get there plan”?

Source: adapted from Hervani et al. (2005)

The above given figure represents a general view of GSCM, where reverse logistics closes the
loop of a typical forward supply chain and includes reuse, manufacturing, and/or recycling of
materials or other products with value in the market place. The idea is to eliminate or minimize
waste (energy, emission, chemical/hazardous, solid wastes). The figure typifies a single
organization’s internal supply chain, its major operational elements and their linkage to external
organizations. A number of environmentally conscious practices are evident throughout the
supply chain ranging from Green design (marketing & engineering), Green procurement
(certifying suppliers & purchasing environmental friendly products/ raw materials), total quality
environmental management (internal performance measurement & pollution prevention)
environmental friendly packaging and transportation.Expanding this figure results in a number of
organizational relationships at various stages of model including customers and their chains as
well as suppliers and their chains, forming webs of relationships (Hervani et al. 2005).

1.3 Traditional versus green supply chain:

In a traditional supply chain, the flow of materials and/or information is linear and from one end
to the other. There is a limited collaboration and visibility. Each supply chain partner has limited
information regarding, for example, the carbon footprint and greenhouse gas emission of the
other partners. Hence, each player may be concerned about his own footprint and may try to
reduce this, irrespective of the impact on upstream and downstream supply chain. There may be
some focus on end-to-end supply chain costs but due to limitations of information sharing, the
costs are far from optimized in most cases. In contrast, Green Supply Chains consider the
environmental effects of all processes of supply chain from the extraction of raw materials to the
final disposal of goods. Within the GreenSupply Chain each player motivates other players to go
Greenand provides the necessary information, support, and guidance,for example, through
supplier’s development programs or customer support. Environment objectives and performance
measurement are then integrated with financial and operationalobjectives. With this integration,
the Green Supply Chains then willstrive to achieve what any individual organization on its
owncould not possibly achieve: minimized waste, minimizedenvironmental impact while
assuring maximized consumersatisfaction, and healthy profits. As consumers have becomemore
aware of environmental issues, such as global warming,they have now started asking questions
about the products theyare purchasing. Nowadays, organizations routinely facequeries about how
Green their manufacturing processes andsupply chain are, how wide the carbon footprint is,
howwasteful their packaging is, and how they will recycle. Some organizations have been able to
convert the public`s interest in Green issues into increased profits. A number of projects within
organizations have shown that there is a clear link between improved environmental performance
and financial gains. Organizations that have looked to their supply chain have discovered areas
where operational and environmental improvements can produce profits. For example, General
Motors was reported to reduce disposal costs by $12 million by establishing a reusable container
programme with their suppliers. While the motivation for this project may have been a desire to
reduce costs, GM found that the environmental cleanup that resulted was actually a very
marketable message for the public and policy makers.

Traditional supply chain

Green supply chain

Fig. 5: Traditional Supply Chain Management vs. Green Supply Chain Management

Chapter 2

Literature Review and Research Methodology

2.1 Literature Review:

This literature review has primarily three sections. First, a review of studies under broad themes
ofenvironmental strategies. Thereafter, a review of studies on manufacturing organizations has
been carried out through some national and international case studies, issues related to their
greening has specifically been pursued and later the literature has been reviewed on key business
processes in which special focus is given on those processes that have greater relevance in
greening the supply chain of manufacturing industries.

Previous studies:
There are only a few studies related to green supply chain management. Approaches towards
Green Supply Chain Management (GSCM) practice have been identified by various researches;
they are briefly outlined below. Shang et al. (2010) conducted a study based on six dimension of
green supply chain management i.e. eco design, green manufacturing and packaging,
environmental participation, green marketing, stock and suppliers. The results inferred that the
firms which were focusing on green marketing had been successful competitors against the
rivals. Lamming and Hampson (1996) explored the concepts of environmentally sound
management and linked them to supply chain management practices such as vendor assessment,
collaborative supply strategies, establishing environmental procurement policy and working with
suppliers to enable improvements. A decision model to measure environmental practice of
suppliers using a multi attribute utility theory approach developed by Handfield et al. (2002) and
Walton et al. (1998 identified several dimensions of change to increase the impact of
procurement on environmental results. Quinghu Zhu et al (2008) conceptualize Green Supply
Chain Management practices implementation as encompassing different dimensions of practices
including Green Procurement, Internal Environmental Management, Eco Design, Customer
Cooperation, and Investment Recovery. Ramudhin A., et al. (2010) proposed a strategic planning
model and insisted that internal and external control mechanism are of great importance to
decision makers while designing sustainable supply chain network.

2.1.1 Environmental strategies:

Governmental role:
Governmental role in greening the supply chain through environmental laws and regulations are
an important framework, within which the companies must operate. These are also important
means to introduce sustainable development and cleaner production methods within a society.
Soon after the3 Stockholm conference on human environment in 1972, India developed its own
environmental control system, laws and policies; the first environmental law passed in India was
water act of 1974 which provided for the establishment of central and state pollution control
boards to deal with water related problems. This act was followed by the enactment of many
other acts such as Air act of 1981 and the Environment protection act of1986. Subsequently, in
response to growing worldwide concern regarding the state of environment, including pollution
and resource conservation, Government of India has enacted various environment legislations.
Some of them are presented in the table below.

S.NO. Legislation
1 The Water (Prevention &Control of Pollution) Act, 1974 Amendment in 1988
2 The Water (Prevention & Control of Pollution) Cess Act,1977 Amendment in 2003
3 The Air (Prevention & Control of Pollution) Act,1981 Amendment in 1987
4 The Environmental (Protection) Act,1986
5 The Motor Vehicle Act, 1988 & Rules 1989
6 The Hazardous Waste (Management & Handling) Rules,1989 Amendments in 2000&
2003
7 Manufacture, Storage & Import of Hazardous Chemical Rules, 1989 Amendment in
2004
8 Manufacture, Use, Import, Export & Storage of Hazardous Micro Organisms,
Genetically Engineered Organisms or Cell Rules, 1989
9 The Public Liability Insurance Act,1991
10 The National Environment Tribunal Act, 1995
11 The Bio Medical Wastages (Management & Handling) Act, 1998
12 Re-cycled Plastics Manufacture and Usage Rules, 1999
13 Noise Pollution (Regulation & Control) Rules,2000
14 Ozone Depleting Substances (Regulation & Control) Rules, 2000
15 Delhi Plastic Bag (Manufacture, Sales & Usage) and Non-Biodegradable Garbage
(Control) Act, 2000
16 Batteries (Management & Handling) Rules, 2001
17 DG-set Noise Rules, 2002
Table-1 legislations by Indian government on issues of environmental protection, Source: self prepared
Besides these legislations, the Supreme Court of India has also, from time to time pronounced
judgments to protect the citizens’ right to a healthy and natural environment.
However effective integration of environmental concerns in business processesand
implementation of GSCM programs and policies requires involvement of firms out of their
genuine concern for the environment and not only out of compulsions to abide by environmental
laws.
Eco-labeling:
Eco-labeling is another regulatory scheme supported by the government that encourages a cradle
to grave approach. These schemes may have some potential for aiding buyers identify
organizations, materials and products that are green, thus lessening the need for certification of
suppliers, etc. various countries have their own specific labeling schemes such as EU Ecolabel
for the European Union, Blue Angel and Green Dot in Germany and Ecomark in India and
Japan.
In order to increase consumer awareness and promote the use of eco-friendly products in the
country, the government of India has launched the eco-labeling scheme known as scheme of
labeling of environment friendly products, (ECO-MARKS) in 1991. Jain &kaur (2004) have
reported that this scheme provide an incentive for manufacturers and importers to reduce adverse
environmental impact of products; rewards genuine initiatives by companies to reduce adverse
environmental impacts of their products.
World commission on environment and development (1987) defined sustainable development in
manufacturing industries as the strategies adopted in supply chain process which meets the needs
of present without compromising the ability of future generations to meet their own needs, right
from the procurement of raw material to the distribution of finished products.
2.1.2 Studies on manufacturing organizations of India:
This section contains literature review about the various sectors of the Indian manufacturing
industry comprises of many different sectors,each of which is influenced by the overall
manufacturingclimate, but each of which also has its own ups anddowns. From Indian
perspective, the major manufacturingsectors are machinery, automobile, electronics, and
processindustries. The study is based on the journals and research papers and provides a glimpse
of existing supply chain management in different sectors of Indian manufacturing
industries.automotive industryoccupies a prominent place.A sound transportation system plays a
pivotal role in thecountry’s rapid economic and industrial development. Thewell-developed
Indian automotive industry ably fulfils thiscatalytic role by producing a wide variety of vehicles:
passengercars, light, medium and heavy commercial vehicles,multi-utility vehicles such as jeeps,
scooters, motorcycles,mopeds, three wheelers, tractors etc.Automotive Industry comprises of
automobile and autocomponent sectors and is one of the key drivers of the nationaleconomy as it
provides large-scale employment, havinga strong multiplier effect. Being one of the largest
industriesin India, this industry has been witnessing impressivegrowth during the last two
decades. It has been able to restructureitself, absorb newer technology, align itself to theglobal
developments and realize its potential. This has significantlyincreased automotive industry’s
contribution tooverall industrial growth in the country.
Machinery sector firms produces power presses, weighing machines, computer numerical control
machines, pumps, air conditioners, compressors, agricultural machines and material handling
equipment.
Heavy Industry in India comprises of the heavy engineering industry, machine tool industry,
heavy electrical industry, industrial machinery and auto-industry. These industries provide goods
and services for almost all sectors of the economy, including power, rail and road transport. The
machine building industry caters the requirements of equipment for basic industries such as steel,
ferrous metals, fertilizers, refineries, petrochemicals, shipping, paper, cement, sugar, etc.
Companies in “process sector” produces drugs, paints, and medicines, tyre, steel, cement,
petroleum products, textile fabrics, fertilizers and chemicals. Cement is one of the core industries
which plays a vital role in the growth and expansion of a nation. It is basically a mixture of
compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium
oxide, silica, aluminum oxide and iron oxide. The demand for cement depends primarily on the
pace of activities in the business, financial, real estate and infrastructure sectors of the economy.
Cement is considered preferred building material and is used worldwide for all construction
works such as housing and industrial construction, as well as for creation of infrastructures like
ports, roads, power plants, etc. Indian cement industry is globally competitive because the
industry has witnessed healthy trends such as cost control and continuous technology up
gradation.
Electronics sector includes firms manufacturing telephones, electronic circuits, control panels,
computer peripherals, insulators and domestic electronic appliances. In electronics industry,
entry of multinational companies such as Samsung, LG, Sony, Daewoo, Aiwa, etc. raised the
competition level in the domestic market of India. Domestic electronic appliances are now in the
reach of middle class consumer due to competitive prices and easily available financial schemes,
which has increased the demand for a variety of appliances. A typical middle class consumer in
India wants to have his own television, washing machine, music system, videocassette recorder
etc.
2.1.3 Studies on integrating Environmental concerns in key business process:
In this section the literature review is related to the key business processes and their integration
with environment. The key business processes are:
 Product development;
 Purchasing;
 Manufacturing;
 Reverse logistics;
 Environmental performance evaluation.
Product development:
Fields of economics (Lancaster, 1996) and psychology (Fishbein, 1967) defines the products as
bundles of attributes/qualities. According to the U.S. EPA (1991 & 2007), the environmental
attributes of a product have become one of the most important factor that effect green customers’
buying decisions in today’s customer market. DeCicco and Thomas (1999) listed some of the
typical environmental attributes as: recyclability recycled content, fuel and energy efficiency,
toxic content reduction and emission related performance. Mackenzie (1997) reported that
inclusion of environmental attributes as an integral part of product development has become one
of the most important and challenging task of the manufacturers.

Purchasing:
Min and Galle (2001) have defined green purchasing as an environmentally-conscious
purchasing that reduces sources of waste and promotes recycling and reclamation of purchased
materials without adversely affecting performance requirement of such materials. Purchasing
function is placed in an advantageous position to implement waste reduction strategies Porter
(1995)& Carter (1998).purchasers can improve the environmental preferences through green
procurement. Lamming & Lloyd (1999) have suggested a number of environmental based
initiatives that may be incorporated into the purchasing function, these initiatives are:
S.No. Initiatives
1 Supplier environmental questionnaires
2 Supplier environmental audits and assessments
3 Require supplier to undertake independent environmental certification
4 Jointly developing cleaner technology with supplier
5 Engaging supplier in designing environmental friendly product
6 Reduce packaging waste at the customer/supplier interface
7 Reuse initiatives (including Buy-backs and leasing)
8 Conducting LCA with cooperation from suppliers
9 Seek to influence legislation in cooperation with suppliers
10 Create supply ‘club’ to collaborate on environmental issues
11 Coordinate minimization of environmental impact over full supply chain
12 Recycling of materials in cooperation with suppliers
13 Building environmental criteria in contract with supplier.
Table-2 list of some environmental based initiatives to be incorporated in purchasing function, Source: Based on Lamming et
al. (1999) and Lloyd (1994).

Many of these measures are proactive but some are reactive also. To successfully manage most
of these initiatives a number of factors are need to be included in managing the supplier-
customer relationship as theses relationships have great impact on supply chain performance and
determines the greening of supply chain. Materials and vendors selection is another central issue
in purchasing, as it determines that who is environmental friendly and who is not? As for
example the decision to choose for the purchase of materials that are less toxic versus that are
most energy efficient can not easily be determined.

Manufacturing:
Azzone and Bertele (1994) have pointed out that the production processes effect the environment
by affecting in two ways firstly, consumption of natural resources and then by the production of
pollutants. Pollution reduces efficiency and increases costs because discharged waste contains
expensive materials, energy inputs, labour and overheads. Tan et al. (2002) described green
manufacturing as a mode that encompasses all the methods of manufacturing that are designed to
minimize the environmental impact, reduce waste and pollution and conserve resources. It also
helps in lowering the extensive amounts of trash in landfills, lays emphasis on reducing parts,
rationalizing materials, and reusing components, enabling the manufacturer of product more
efficient. Rao (2004) has reported three commonly used frameworks by the industry while
implementing green manufacturing in their firms as:
1. Cleaner production
2. Lean production
3. Eco-efficiency
Cleaner production as introduced by UNEP in 1989 is an integrated approach for reducing
environmental impacts from processes, products and services by using better management
strategies, methods and tools. Cleaner production approach includes:
 Good housekeeping with materials and energy
 Training of employees
 Better logistics
 Internal recycling
 Modifications of product to eliminate large impact on environment
Lean production is to generate a system that is efficient and well organized and is devoted to
continuous improvement and the elimination of all forms of waste. Lean production is
complementary to environmental performance and often lowered the marginal cost of pollution
reduction; practices of lean production hold great potential to improve environmental
performance of the firms through good housekeeping practices.
Eco-efficiency means producing more goods and services with less energy and fewer natural
resources. OECD (1998) defined eco-efficiency as the efficiency with which ecological
resources are used to meet human needs.
Eco-efficiency = economic value (added) / environmental impact (added)
Based on this equation eco-efficiency can be improved by reducing the environmental impact
added while maintaining or increasing the value of output produced.

Reverse logistics:
Reverse logistics stands for all the operations related to the reuse of used products, Martin (2003)
described reverse logistics as a way to maximize the value of residual assets. It requires return of
materials, components and products back into the forward logistics chain, it is the upstream
movement of materials resulting from reuse, recycling, or disposal with the minimization of
waste resulting in more efficient green forward and reverse distribution (logistics) processes.

2.2 objective of study:

 To study and understand current green initiatives in Indian manufacturing sector and to
understand green supply chain management.
 To identify the barriers and enablers impacting implementation of green supply chain
management.
 To study the effect of GSCM on performance of manufacturing sector.

2.3 Research methodology:

 The research is based on secondary data obtained by reviewing the literature available on
internet, research papers and journals
 In depth insight was gained by pursuing the articles and abstracts of the field in various e-
journals.
 Data is principally sourced from case studies in written form and through e-journals on
internet.

Chapter-3
Analysis and Findings

3.1 Case Analysis:

3.1.1 Analysis on GSCM practices in Indian electronics industry:
This case analysis aims to investigate the green supply chain management practices likely to be
adopted by the manufacturing industry of electrical and electronics products in India it tries to
find the relationship between green supply chain management practices and environmental
performance is. The study indicates the performance of eco procurement, eco accounting, eco
logistics design, eco product design, eco manufacturing, economic performance, etc practices in
response to the current wave of national & international green issues and also environmental
performances of the electrical and electronics industry. The study shows the Increasing
awareness about environmental protection in India and world, the green trend of conserving the
earth’s resources and protecting the environment is overwhelming, thereby exerting pressure on
industries in India and worldwide. India has gained its position among the top ten countries and
has become one of the largest manufacturing economies of the world (Chetan Kumar M. Sedani,
Ramesh R. Lakhe, 2011). The pressure and drive accompanying globalization has prompted
industries to improve their environmental performance. Consequently, industries have shown
growing concern for the environment over the last decade. Industrial environments have
experienced drastic change and face competitive challenges. Recently supply chain management
has directed its attention to the role of the supply chain in impacts to the natural environment.
The supply chain is an integrated manufacturing process wherein raw materials are converted
into final and finished products, then delivered to consumers or end user. An increasing number
of supply chains invest in recycling systems intended to retrieve waste or used product from
consumers. Green supply chain management, also known as ESCM (environmental supply chain
management)or SSCM (sustainable supply chain management), combines green procurement,
green manufacturing/materials management, eco accounting, green distribution/marketing and
reverse logistics. There are two basic processes in the supply chain: (1) production planning and
inventory control, and (2) distribution and logistics. Environmental protection and conservation
of natural resources has become an absolute necessity at national and international levels.
Management of hazardous waste is an important part in attaining environmental protection
throughout the world. Minimizing the generation of hazardous waste, recovery of valuable
materials from the waste and preventing the environmental deterioration are some complex
issues which require prime attention. The case analysis explains the practices and
implementation of green supply chain and environmental performance among electrical and
electronics products manufacturing industry located in India. Green Supply Chain Management
practices implementation as encompassing 5important factors including Eco-Procurement, Eco-
Logistics Design, Eco-Product Design, Eco-Manufacturing and Environmental Performance.
The questionnaire have been developed by the researcher and competitive mean scores have
been calculated for each factor using likert scale.
Dimension Mean Score
Provides design specification to suppliers that include environmental 1.775
requirements for purchased item

Co-operation with suppliers for environmental purchasing 2.208

Existence of cell for environmental audit for suppliers internal 1.750

management

Procurements mainly from ISO14000 certified suppliers 2.229

Second-tier supplier‘s environmentally friendly practice evaluation 1.729

Implementation of eco-labeling/eco-logo of products 1.729

Work with other business functions to discuss and improve purchasing 1.625
procedures.

Provision of education/assistance to suppliers on environmental matters in 1.687

order to increase supply chain efficiency.

Communication regarding environmental procurement 1.770

criteria/requirements to marketing staff, employees, stakeholders, and
customers

Co-operation with customers for environmental packaging 2.541

Table-3 Performance of Eco Procurement

The study indicates that the Eco Procurement/Green procurement which has 10 above given
dimensions the most important dimension is Co-operation with suppliers for environmental
packaging followed by Procurements mainly from ISO 14001 certified suppliers, Co-operation
with suppliers for environmental purchasing and the least important dimension is Work with
other business functions to discuss and improve purchasing procedures followed by Provision of
education/assistance to suppliers on environmental matters in order to increase supply chain
efficiency, Implementation of eco-labeling/eco-logo of products, Second-tier supplier‘s
environmentally friendly practice evaluation.
Dimension Mean Score
Design of products for optimum consumption of material/energy 2.320

Product designed for reuse, recycle, recovery of material, components parts 2.020

Design consideration of products to avoid or reduce use of hazardous of 1.767

products

Design of products to reduce waste & costs 2.271

Products are design & develop meet environmental regulation and safety 1.583
standards

Co-operation & feedback with customer in developing eco-design 1.812

Products are design & developed for ease in dismantling & 1.708
remanufacturing

Application of value engineering/analysis in the design of products 1.500

Evaluation of product durability 1.791

Possibility of eliminating secondary processes (polishing/painting etc.) 1.875

considered.

Table-4 Performance of Eco Product Design

Eco Product Design, which has 10 above given dimensions the most important dimension is
Design of products for optimum consumption of material/energy followed by Design of
products to reduce waste & costs, Product designed for reuse, recycle, recovery of material,
components parts and the least important dimension is Application of value engineering/analysis
in the design of products followed by Products are design & develop meet environmental
regulation and safety standards, Products are design & developed for ease in dismantling &
remanufacturing.
 Dimension Mean Score
Reverse logistics applied in stock planning 1.604

Application of environmental issues in the design of logistics management 1.583

Identification, Collection & distribution of products/parts that will be recycled, 1.645

reused

Recollection planning for packaging material 1.458

Minimizing the use of packaging considered 2.645

Table-5 Performance of Eco Logistics Design

Eco Logistics Design, which has 5 above given dimensions the most important dimension is
Minimizing the use of packaging considered followed by Identification, Collection &
distribution of products/parts that will be recycled, reused, and the least important dimension is
Recollection planning for packaging material, Application of environmental issues in the design
of logistics management.
Dimension Mean Score
Possibility of product being recyclable, reusable 1.791

Avoid or minimize the amount of hazardous material used in product production 2.437

Are designers using life cycle engineering to improve the environmental 1.791
performance and production efficiency of the products

Measures taken to reduce material, water & energy used in manufacturing 2.020

Optimizing the use of energy generated from renewable sources in 1.895

manufacturing operations

Inclusion of recycling program for manufacturing operation 1.137

Industry has established program to increase the service intensity of the products 1.291
Determination of environmental impacts and costs of the products throughout 1.500
their life-cycle

Minimizing toxic/hazardous waste during manufacturing 2.291

Optimum energy consumption during manufacturing process 2.291

Integrated environmental & efficiency criteria implementation in process design 1.416

Minimizing use of natural resources during manufacturing is considered 1.916

Consideration of environmental issue in the process of production planning and 1.416

control

Environmental issue considered during selection of manufacturing process 1.583

Reduced setup time 2.875

Table-6 Performance of Eco Manufacturing

Eco Manufacturing, which has 15 above given dimension the most important dimension is
Reduced setup time followed by Avoid or minimize the amount of hazardous material used in
product production, and the least important dimension is Inclusion of recycling program for
manufacturing operation followed by Industry has established program to increase the service
intensity of the products, Consideration of environmental issue in the process of production
planning and control, Integrated environmental & efficiency criteria implementation in process
design.
Dimension Mean Score
Waste discharge methodology for reducing cost 2.104

Reduction in cost for materials purchasing without affecting the quality of the 2.083
product

Reduction in cost of energy consumption 2.604

Effective waste treatment management for reducing cost 2.145

Reduction of the fine for environmental accidents 2.165

Table-7 performance of economic performance

Economic Performance, which has 5 above given dimension the most important dimension is
reduction in cost of energy consumption followed by Reduction of the fine for environmental
accidents and the least important dimension is Reduction in cost for materials purchasing without
affecting the quality of the product followed Waste discharge methodology for reducing cost.

3.1.2 Analysis on strategies for adoption of GSCM practices in Indian manufacturing

industries:
The study states that Green Supply Chain Management (GSCM) is one of the recent innovations
for the enhancement of capabilities of Supply Chain Management. The case analysisaims at
studying the various activities of the Supply Chain processes of the various Indian
Manufacturing Industries i.e. both SME’s (Small Manufacturing Enterprises)& Large Scale
Industries & finds how much eco-friendly they are (i.e. how much % of the green factor are
involved in their supply chain activities from the procurement of the raw material to the
transportation of the final product) for the purpose of metering the performance of the
manufacturing sectors has been studied. The major six activities of the supply chain; namely
Green Sourcing & Procurement, Green Manufacturing, Green Warehousing, Green Distribution,
Green Packaging, Green Transportation are being covered.The study states thatan
environmentally conscious supply chain, also called a green supply chain, is a new concept
appearing in recent literatures. Although this environmental issue has been realized very
important for business, its introduction to supply chain management has only been developed
recently. "Sustainable Development" was the key concept of the 1992 Earth Summit in Rio, as
governments and international organizations committed themselves to take action to protect the
environment as in integral part of long-term economic development. Environmentally-
responsible consumption and production is seen as an essential part of the strategy to improve
environmental quality, reduce poverty and bring about economic growth, with resultant
improvements in health, working conditions, and sustainability, and is today’s highlighted
Agenda. In particular, organizations were called upon to exercise leadership in the promotion of
environmentally sound goods and services. The study further states that there are five
fundamental questions that every environmentally pro-active leaders and managers needs to ask
about their Supply Chains that “How Green is their Supply Chain?”A recent analysis has
however revealed the following key additional points. Companies are still primarily focused only
on having environmentally conscious internal production. For example, any company can
become totally carbon neutral by outsourcing all its production, however, shifting the carbon
producing activity up or down the supply chains does nothing more than hide the dirt under
someone else’s carpet. A holistic approach to carbon management is required, and this is
provided by adoption of a Green Supply Chain methodology. Environmental pro-activism is
generally assumed to come at an additional cost to the corporations. It is widely thought that
going green is expensive. Background of the research and modeling indicates that adoption of
Green supply Chain methodology should result in overall cost reduction, providing this is done
in a thorough and logical manner. Most business models are focused on growing the volume of
their current offerings of goods or services to increase profits. A change in this focus towards
providing customer end outcomes will, not only, reduce the impact on the environment, but also
secure and/or increase market share whilst improving profitability. So it is clear that a move to
Green Supply Chains is not only necessary for sound environmental management, but it is also
profitable and makes sound financial management. How therefore can companies start making
the move. And therefore researcher tries to crystallize the action plans for going green through
followings five fundamental questions.
What are the tangible and intangible benefits of moving towards a Green Supply Chain?
What are the costs, both direct, and indirect?
What influence do we have over our suppliers, their suppliers and our customers (especially the
party with the most power in the supply chain) that would allow us to jointly work together and
move the supply chain towards a green supply chain?
How will we communicate and measure our progress towards the green supply chain to the key
stakeholders? How will we engage them?
What barriers to Green Supply Chains can be expected and how can these be overcome?
3.1.3 Analysis on GSCM implementation practices and challenges:
The analysis aims at the hanging climatic conditions and the impact of manufacturing processes
on the environment as in recent years climate changes such as global warming have been a topic
that has attracted a lot of interest world over. Such changes have necessitated the need to identify
the causes and solutions to these climatic changes. In an effort to mitigate these changes,
legislations and environmental requirements have been put forward by governments and
environmental agencies. The demand for environmentally friendly products has increased over
the years and so is the shifting of loyalty of consumers. Also, the ever increasing costs of energy
and inputs has forced businessto find new ways to reduce energy use in order to reduce costs.
The supply chain has been identified to have a significant impact on the natural environment As
a result, businesses are deeply trying to green their supply chain by introducing green strategies
in their organizations and in the supply chain. This has resulted in a growing need for integrating
environmental thinking into supply chain management and processes. It is in light of this
realization that the case analysistries, through a thorough literature review, to find the best
practices that can applied in green supply chain strategies. For this reason, four best approaches
were identified; Aligning the goals of the green supply chain with the goals of the business,
evaluating the supply chain as a single life cycle system, innovation using green supply chain
analysis, reducing of wastage at each supply chain stage. It was also identified that Lack of
appropriate technology in place to support companies and their efforts to go green and the trrade-
off between green requirements and lean practices among other factors act as challenges to green
efforts.
Align green supply chain goals with business goals:
Most businesses usually define green supply chain goals and business goals separately. This may
lead to businesses defining supply chain goals without a true understanding of the business case
and value propositions behind such goal in addition to leading to confusing or conflicting
communications to the organization where goals may be contradictory. For example a business
goal may be to use eco-friendlypackaging that cost more than the traditional packaging which
goes againstthe business goal of reducing cost. This does not support the infusion of green
supply chain goals into business goals. A supply chain goal should always support the attainment
of the business goals. A company should therefore look at its overall business goals and identify
how a transition to a green supply chain can help achieve those goals. For example if a company
wants to reduce its energy costs it should start by evaluating its energy consumption to establish
whether a reduction can be made by using energy efficient and environmentally friendly
equipments.

Evaluate the supply chain as a single life cycle system:

A typical supply chain has a number of different business process all linked together to form a
network, with one process leading to another forming a system. System thinking looks at the
supply chain as being composed of activities that have outputsserving as inputs to other activities
and thus providing a means of understanding systems at a deeper level in order to see the paths
available to bring about changes more effectively. A life cycle system allows a holistic view of
the supply chain from raw material extraction to final disposal of materials. This ensures full
visibility across the entire supply chain and an understanding of the end-to-end impact of green
supply chain management programs. In this way, it becomes easier to identify opportunities for
the program to deliver business value such as lower costs or improved competitive advantage.

Figure-6 environmental life cycle, source: Wilkerson (2003, 2005)

Use green supply chain analysis as a catalyst for innovation:

Green supply chain analysis provides an opportunity to review processes, materials, and
operational concepts. it targets wasted material, wasted energy or effort and under-utilized
resources it is observed that businesses that want to make a transition to a greener supply chain
should review all their business processes to identify areas where adopting a greener outlook can
actually improve their business. Since pollution and waste represent incomplete, ineffective, or
inefficient use of resources, businesses should review each process along the supply chain to
identify the sources then see if a more environmentally sound approach will drive waste from the
supply chain processes. This will ensure continuous improvement in all your supply chain
operations.

Focus on source reduction to reduce waste:

The recycle and re-use waste management programs focuses on management of waste after it has
been created. On the other hand Source Reduction focuses on the prevention or the reduction of
wastage during production rather than managing it after it has been generated with the aim of
efficiently utilizing resources by examining how business is conducted, how materials are used,
and what products are purchased.

3.1.4 Analysis on GSCM implementation and its relation to organizational performance:

The analysis aims at investigating the green supply chain management practices in electrical and
electronic industryof India and their relation to the organizational performance. With increasing
awareness of environmental protection worldwide, the green trend of conserving the Earth’s
resources and protecting the environment is overwhelming, thereby exerting pressure on
corporations in India. The pressure and drive accompanying globalization has prompted
enterprises to improve their environmental performance. Consequently, corporations have shown
growing concern for the environment over the past ten years .The pressure on corporations to
improve their environmental performances comes from globalization rather than localization.
Increasing environmental concern has gradually become part of the overall corporation culture
and, in turn, has helped to reengineer the strategies of corporations. To reduce the environmental
impact of the waste of electrical andelectronic equipment (WEEE), the EU implemented the
waste electrical and electronic equipment (WEEE) directive in August 2005. The primary goal of
the WEEE Indian customs, the total electrical and electronicproducts exported from India to the
rest of the world within the scope of the WEEE directive amounted to US$ 25.8 billion in 2005.
Consequently, corporations in India have to include the two directives into the design and
production of products and have responded byadopting GSCM (green supply chain management)
practices. Green supply chain management, also known as ESCM (environmental supply chain
management) or SSCM (sustainable supply chain management), combines green purchasing,
green manufacturing/materials management, green distribution/marketing and reverse logistics.
The aim of corporations implementing GSCM is to enhance environmental and financial
performance; however, the scope of GSCM practices is very wide and includes internal
environmental management, external GSCM, investment recovery and eco-design or design for
environmental practices. This study aims to investigate the GSCM practices likely to be adopted
by the electrical and electronic industry in India, which is dominated by OEM (original
equipment manufacturing) and ODM (original designing and manufacturing) manufacturers,
after the European Union implementation of the ROHS and WEEE directives.

3.2 Findings:
Green Supply Chain Management (GSCM) is a relatively new green issue for the majority of
Indian industries. The present study investigated the GSCM practices adopted by the electrical
and electronics product manufacturing industry in India. The pressures or drives to implement
GSCM practices and the relationship between GSCM practices as well as environmental
performance were also studied. This study also focused on the impact of environmental
collaboration in the supply chain on manufacturing and environmental performance. Importance
of approaches for green supply chain factors as shown in table 3 to 7. It also assess the relative
importance of identified approaches that would affect the green supply chain implementation and
the development The electrical and electronics products manufacturing vendors have to work
under hard time demands situation to meet these goals and have to follow latest & advanced
manufacturing technique. From the survey of the industry, the score is not up to the mark.
Industries should more concentrate their strategy. This will automatically improve the score card
and thereby performance. The results could represent the general status of GSCM
implementation in Indian electrical and electronics industries. As raw material costs increase and
environmental protection legislation becomes increasingly stringent, a focus on one industries
green operational excellence is becoming the norm in industries.
Indian manufacturing sectors Use electronic processes to create efficiencies in sourcing and
procurement. Cost and complexity are perceived as the biggest barriers to implementing Green
SCM, which highlights the need for cost effective and easy to implement solutions. Brand
building is one of the top incentives for green SCM, highlighting the importance of public
perception of how companies operate. Recycling of raw materials and component parts are the
top green manufacturing and production focused initiatives Adoption of green practices is
highest in those areas of the supply chain where there is a direct relation to cost savings and
efficiency, for example in inventory reduction, recycling of raw materials. Almost a third of
respondents are not collaborating with their extended supply chain on green practices.
Further by the case analysis it is found that for green supply chain implementation to be
successful and sustainable transparency collaboration and integration of systems between trading
partner s in the supply chain is required, senior management support is a must because not only
will the senior management play an important function in influencing the business’sattitude
towards green initiative, they can also dedicate resources in terms of time,personnel and finances
towards such initiatives, Green supply chain should closely align to customer needs which will
give the supply chain on the green product design that is required of them by the customer.
As GSCM is a relatively new green issue for the majority of Indian corporations. From the
perspective of management, GSCM is a management strategy, taking into account the effects of
the entire supply chain on environmental protection and economic development. However, the
feasibility of reaching the right balance between the environmental performance and financial
performance is a serious concern for corporations implementing GSCM. The present empirical
study investigated the GSCM practices adopted by the electrical and electronic industryin India
in response to the EU ROHS and WEEE directives.
Beside this there are certain barriers in implementing GSCM [practices in the Indian
manufacturing sector these barriers to implementation GSCM in Indian manufacturing industry
are:
Lack of IT Implementation;
Resistance to Technology Advancement Adoption;
Lack of Organization Encouragement;
Poor Quality of Human Resources;
Market Competition and Uncertainty;
Lack of Government Support System;
Lack of Implementing Green Practices;
Lack of Top Management Commitment;
Cost Implications;
Supplier Reluctance to Change towards GSCM and Unawareness of customers.
Generally it is found that reverse logistics practices are not being widely adopted in Indian
manufacturing sector and greening of suppliers is not a common practice in Indian
manufacturing sector.
The tendency is that in general most of the organizations are very much inclined to pursue
pollution control approach rather than adopting pollution prevention approach and this too just
because of governmental regulations and the demand of green products from customers. Modern
environmental techniques such as benchmarking, carbon trading, eco-labeling, life cycle
assessment (LCA), performance measurement scorecard, public environmental reporting,
product recovery after end-of-life are gradually and slowly being practiced by the organizations
now-a-days as the organizations knows that to remain in business in this era of globalization
where there is stiff competition and consumer is the king of the market they have to perform in
agreen manner as per the regulations and demand of the government and the consumer
respectively because firms will have to go out of the business arena if they perform against the
will of these two entities i.e., government and consumer.

Chapter-4
Conclusion and Limitations

4.1 Conclusion:
The integration of environmental concerns in various business processes and corporate practices
is emerging as a key issue and the challenge in the present era. Concerns such as increasing
pollution, depleting natural resources, loss of bio-diversity have created a pressure on corporate
sector to adopt an environmental friendly approach. Therefore, adoption of green business
practices is expected to gain even more momentum in the future. Companies need to prepare
proactively to meet these challenges in future. In order to do that, companies need to take a
holistic perspective, not departmental, when evaluating environmental concerns. Manufacturing
organizations will find that management of business practices and efficiencies will be central to
their environmental benign-ness. They shall be able to take advantage of many win-win
opportunities that environmentally safe practices offers, provided they are responsive to these
issues. Role of technology and management will be critical in the successful development,
implementation and maintenance of successful green business practices. To this end
manufacturing organizations are required to integrate a number of functions/resources within the
organizations from environmental perspectives. The development, integration and
implementation of green supply chain management (GSCM) practices are still relatively a
nascent idea among most of the Indian organizations. Organizations which adopt the green
practices such as learning and benchmarking and introduce these concepts in the organization
will surely successfully implement the green business practices. The long term sustainability of
the company will be dependent on the sustainability of the natural environment. Therefore, for
the cause of the Mother Nature that supports us, environmental concerns need to be fully
integrated in the business processes and green supply chain management (GSCM) activities
ought to be aggressively promoted and practiced by the companies.
However these days’ organizations are involved in most of the green supply chain practices
because of the mounting pressure from the government and its litigations and on the other hand
by the mounting pressure from the customers regarding the need and demand of the green
product to save the environment, earth, and to conserve the non-renewable natural resources.

3.2 Limitation of the Study:

 The study is mainly related to the implementation of green supply chain practices in
electrical and electronics industry and therefore does not reflect the picture of the entire
manufacturing sector of India.
 The study is based on the analysis of some of the case studies related to the
implementation of green supply chain practices in the Indian manufacturing sector and
hence may not present a current scenario of whole manufacturing industry.

3.3 Further Scope of Study:

  As the study is targeted to electrical and electronic industry mainly and therefore may not
represent the entire Indian manufacturing sector. So, studies may be carried out in other
industrial sectors.
 The study has not covered many issues such as environmental accounting, green
consumerism, green marketing, inbound and outbound logistics, storage and distribution
etc which may be relevant for further studies

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