GREEN SUPPLY

•
•
CHAINS
ANANDH SUNDAR
JALAJ DESAI
 Green Supply Chain - Facts and Myths
Facts Myths
• Affects the whole business • Limited to pollution control
• Reducing resource usage • Focus Is on carbon
• Everyone should pitch in • Operations is responsible
• Entire ecosystem should do. • Solo business effort
• Cost saving chance • 0 carbon credits-why care?
• Cooperation of customers • Partners will cooperate for
and suppliers is tricky the good of the planet!
 The New Paradigm
Traditional SCM Green SCM
Green SCM Framework
Green SCM through LCA approach
Green SCM: Overview
An efficient supply chain is a Green supply chain

• Design well. 70% of the cost of a supply chain is

fixed at the network design stage itself.
• Minimizing waste (time, resources, capacity)
within the supply chain will make the supply
chain GREEN.
Sustainability: Select MNC vs. Indian companies
Stages of Green
 Business opportunities
• Reverse logistics(recycling) can improve
customer loyalty, use of original replacement
• Solid Waste management-revenue from sale
of fertilizers/gas rather than tipping fees
• Not having to dispose of harmful by-products
• Decreasing the amount of money spent on
scrap
Examples of Indian green practices
• Annual reports by email w.e.f Apr-11
• Plastic bags are now charged for by retailers
• E-statements are on the increase
• Using carbon credits to replace bulb by CFL
• Eco-labeling under aegis of BIS
• Hero Honda Developed "Green Dealer Development
Program" for the front end and a "Green Vendor
Development Program" for the backend of the supply
chain.
JAIN IRRIGATION - GREENING THE AGRICULTURAL SUPPLY CHAIN
 What Finance can do
• Properly Allocate waste disposal, training expenses,
and other environmental cost to the responsible
products and processes
• Environmental Accounting tracks environmental
costs throughout the supply chain, e.g., costs
associated with management of hazardous materials
• Total Cost of Ownership/Life cycle costing Metric to
avoid short term view in decision making
 GSCM in Practice

• http://www.youtube.com/watch?v=nZ-_
M_rFOVM&feature=related

• http://
www.youtube.com/watch?v=9rG3SBQYOms&feature=bf_prev
&list=PL5058C8AEFFB46C05&lf=results_video

• http://
www.youtube.com/watch?v=M9WE-oeY3Ec&feature=related
 GSCM in Practice
• PurFresh: 20 percent to 40 percent of fresh food is lost to over-ripening or decay. 
PurFresh has a family of products that spans the food supply chain in pre-harvest,
post-harvest, transportation and retail to address this issue.  Their transport product
"snaps" into marine containers and kills mold, bacteria, viruses as well as eliminates
ethylene, which accelerates ripening. The unit also measures atmospheric and
physical conditions of the food environment, such as door breach, CO2, and O2, and
communicates this information via satellite. 

• Verdant Earth Technologies: Developed at the University of Arizona, Verdant’s system

is a controlled-environment high-yield agriculture process that will allow crops to be
grown anywhere, with no soil and little water, in shipping-type containers that provide
a growing environment for a variety of foods. The system can produce up to many
times more food per square foot than conventional farming methods.

• Local Dirt: An early-stage firm that matches producers of locally grown food with
buyers.
 References
• EPA Practical Guide on Lean and Green Supply Chain(

http://www.epa.gov/oppt/library/pubs/archive/acct-archive/pubs/lean.pdf)

• http://www.ijcem.org/papers72011/72011_15.pdf