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Green Supply Chains (part 1)  

Green is the new tag everyone – products, corporations, even countries – is seeking to acquire in today’s environmentally aware world. This consciousness isn’t brand new, but it is only recently that being environmentally responsible has begun to occupy a lot of mindshare among governments, business leaders and most importantly, consumers.


Being Green quite simply means minimizing the environmental cost of doing business or operations. Environmental cost primarily includes 

a) energy and natural resources depleted; 

 

b) waste and pollution generated. 

 

 

It needs to be understood that this has been a constant feature since mankind came into existence, however the rushed pace of industrialization in the past few hundred years has resulted in resource depletion and waste/pollution generation at a rate much faster than what earth’s recycling process can handle on its own. This has resulted in an ecological imbalance that threatens to alter our life drastically unless steps are taken to alleviate it.

This consumer awareness presents a business opportunity for companies and many have already started using Green in the marketplace, either to charge a premium or to differentiate themselves – notice organic veggies prices vis-à-vis the regular ones, Nokia’s phone recycling program, Toyota’s Prius, Reva electric car, 3M’s GreenGuard certification, handmade paper etc. It is fashionable to be environmentally conscious and this trend isn’t missed by smart corporations; leading to a wide range of Green products available in the market today. This trend is forcing companies to become more environmentally responsible in their operations. And after embarking on this journey, many have realized that the path to Green is also the one that delivers significant cost and operational efficiencies.

Supply chains operations are likely to be one of the first business processes that come under scrutiny when companies start assessing their carbon footprints. This is because manufacturing, transportation and logistics represent the highest energy consuming activities of a product lifecycle, and thus present a large opportunity for reducing carbon footprint. What this means is that supply chain operations are the likely target of the first set of Green initiatives a firm would commission.


 

 

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Feb 22

Written by: Yashish Sahoo:Supply Chain Stuff
2/22/2010 1:44 PM


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