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The "Green" Concept of Environmentalism and the Supply Chain

1. How has the "green" concept of environmentalism impacted your organization's supply chain? Explain the impact on the process of reverse/return logistics. Give an example of an organization that has turned this constraint into a competitive advantage. How have they accomplished this? (100-150 word).

2. What would your approach be if you were asked by your CEO to evaluate the impact of a large purchase from a supplier of your organization? Would your approach change if the supplier was overseas and in the same country as one of your largest customers? (100-150 word).

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Hi,

Interesting questions! Let's take a closer look.

RESPONSE:

1. How has the "green" concept of environmentalism impacted your organization's supply chain?

Design for the Environment (DfE) is a concept that is taking on greater significance in helping to 'green' the supply chain. One way the "green" concept impacts the supply chain is through purposeful incorporating design elements that minimize energy usage, toxic materials, and waste-generating production processes. However, DfE also helps enable the establishment of 'closed loop' supply chains by encouraging that products be designed for disassembly and recyclability. This also impacts the supply chain. For example, products that are modular in design, that minimize the use of adhesives or other coatings, and that can be taken apart with common hand tools allow for efficient disassembly into core components and materials at the end of its useful life. These materials can then be recycled and reused into new or updated products, thereby reducing the harvest and consumption of virgin materials. There are also new forms of supply chain collaboration. For example, to reduce costs and improve environmental performance, companies are joining industry groups or creating supply chain collaborations to adopt and support environmentally sound business processes that strengthen the entire supply chain. These joint efforts can dramatically increase benefits by ensuring that every member of the supply chain supports a common set of environmentally sound business practices. http://www.ariba.com/monitor/SupplyWatch_Q306/featured_article.htm

Greening your suppliers is an effective new ways to improve your procurement performance and align it with your company's environmental strategy. For example, General Motors has partnered with US Environmental Protection Agency to form a Supplier's Partnership for the Environment that will enable automotive equipment manufacturers to ...

Solution Summary

By example, this solution explores how the "green" concept of environmentalism has impacted an organization's supply chain on the process of reverse/return logistics and how to evaluate the impact of a large purchase from a supplier of the organization e.g. both domestically and over seas customers. Supplemented with information on the impact of green and integrating supply and purchasing.

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