What is Greening of the Supply Chain?
The greening of the supply chain is a practice involved in producing goods and services using sustainable methods. There are many emerging challenges such as carbon emissions and resultant climate change. It has become important for companies to adopt changes with minimal environmental impact.
The greening of the supply chain is not only to reduce the negative impact but also to develop sustainable means of production. These methods must also be cost-efficient. The movement from raw materials to the end consumer can have a significant carbon footprint. To reduce this impact, we can use various strategies.
What are the elements of a Supply Chain
As described in the book Marketing of High-Technology Products and Innovations, the supply chain includes all parts of the process, such as:
- Product design, source material used, etc.
- Manufacturing processes such as energy use, waste management, waste reduction, and recycling
- Adoption of reverse logistics
- It also includes other production steps such as warehousing and transportation
Policy changes for Sustainable Supply Chain
The policy changes to bring about difference may consist of:
- Optimizing transport services
- Process redesign
- Efficient packaging and
- Reducing waste generated in production and usage
Policy changes can also include several strategies that companies can adopt. One strategy for greening of the supply chain is reducing transportation’s carbon footprint. We can achieve this through the use of
- more fuel-efficient vehicles,
- consolidating shipments to reduce the number of trips, and
- using alternative modes of transportation such as rail or sea shipping
Information technology can also help optimize transportation routes. This is achieved in the form of reducing distance goods need to travel.
Sustainable Packaging practices
Another approach to greening of the supply chain is to use more environment friendly packaging materials. Traditional packaging materials like plastic and Styrofoam are non-biodegradable and harm the environment. Switching to sustainable options like cardboard, paper, and bioplastics, can help businesses reduce negative environmental impact.
Companies are increasingly inclined to work with suppliers who have sustainable environmental practices. By partnering with suppliers committed to reducing their environmental impact, businesses can help ensure that their products are made with materials and processes that have a minimal effect on the environment.
Strategies for Greening of the Supply Chain
Overall, greening of the supply chain is an important step that businesses can take to reduce their environmental impact. This will help them contribute to a more sustainable future. By implementing strategies such as:
- Reducing the carbon footprint of transportation,
- Using more environmentally friendly packaging materials, and
- Partnering with suppliers who have sustainable practices,
- Businesses can help move goods from raw materials to the end-consumer more environment friendly
