The term 'green supply chain' is gaining popularity. Green companies have looked to their supply chain and seen areas where improvements in the way they operate can produce profits. But yet most companies are unaware of potential benefits. Companies can find cost savings by reducing the environmental impact of their business processes. But it's very important to align green supply chain goals with business goals and be concerned about primary requirements - quality, cost as well.
Companies reviewing their business processes should look beyond their factory walls. The list of Green Supply Chain Management Best Practices are:
1. Choosing a nearest vendor - whenever possible: No doubt it reduces transportation cost :)
2. Choosing green vendors: It's not just purchasing from nearest buyer but ensuring that the your vendors is also a green company. Being green always implies that vendors are open to improvements and striving for efficiency, which actually match your business goals.
3. Reusable packing materials: Most of the packing materials are used one time. At-least in B2B mode the packing materials - wrappers, carton boxes, are reused unless damaged. And also reusable & efficient packing materials to be used. For example, traditionally, companies have transported goods using timber pallets, but the disadvantages are timber pallets are naturally fragile and regularly need replacing and has very little use for recycling. And also timber pallets are relatively heavy themselves, so when multiplied on large shipments of goods, they can considerably add to the fuel needed to transport those goods.
4. Refurbishment program for products: At the opposite end of the supply chain businesses should look at their return process. Many businesses have not developed a successful refurbishment program for their products that have been returned or exchanged. By offering refurbished items businesses can increase purchasing options to their customers and widen their customer base, whilst improving the environmental impact of their products.
Companies reviewing their business processes should look beyond their factory walls. The list of Green Supply Chain Management Best Practices are:
1. Choosing a nearest vendor - whenever possible: No doubt it reduces transportation cost :)
2. Choosing green vendors: It's not just purchasing from nearest buyer but ensuring that the your vendors is also a green company. Being green always implies that vendors are open to improvements and striving for efficiency, which actually match your business goals.
3. Reusable packing materials: Most of the packing materials are used one time. At-least in B2B mode the packing materials - wrappers, carton boxes, are reused unless damaged. And also reusable & efficient packing materials to be used. For example, traditionally, companies have transported goods using timber pallets, but the disadvantages are timber pallets are naturally fragile and regularly need replacing and has very little use for recycling. And also timber pallets are relatively heavy themselves, so when multiplied on large shipments of goods, they can considerably add to the fuel needed to transport those goods.
4. Refurbishment program for products: At the opposite end of the supply chain businesses should look at their return process. Many businesses have not developed a successful refurbishment program for their products that have been returned or exchanged. By offering refurbished items businesses can increase purchasing options to their customers and widen their customer base, whilst improving the environmental impact of their products.
