Green Supply Chain Management in Small Medium Enterprises

Requirement

Question: Write about "GREEN SUPPLY CHAIN MANGEMENT IN SMALL MEDIUM ENTERPRISES"

Solution

1.    INTRODUCTION

1.1    SUPPLY CHAIN MANAGEMENT:
Supply chain management is that chain of management which takes place from initiation to consumption of a product. This process involves the movement of goods and services at all levels. All the tasks including procuring and storing the raw material, production of goods and services, storage of finished goods, distribution and consumption by consumers forms a supply chain. It takes place to create value at every level, for the company and to coordinate supply with demand. ("Supply chain management", 2016)
1.2    GREEN SUPPLY CHAIN MANAGEMENT:
Green supply chain management (GSCM) is an evolution of supply chain management. It was generated as a result of various types of pollution caused by the industries which were affecting the ozone layer. It focuses on carrying out the supply chain activities without harming the environment. And it also works on reducing the harmful effects or abolish the wastages like the solid & liquid waste, emissions, hazardous chemicals, harmful gasses, etc. done by the industries. It plays a very important role in influencing the impact of any firm performing supply chain management on the environment. (Chin, Tat, & Sulaiman, 2015)
GREEN SUPPLY CHAIN = procurement of raw material + storage of raw material + production of goods + storage of finished goods + marketing + distribution of final product
1.3    SMALL and MEDIUM ENTERPRISE:
SMEs are those businesses whose personnel number and capital investment fall under a certain limit. These enterprises are considered to play a vital role in developing economies. In many economies, SMEs are the main reason for high employment. As per Ayyagari et al. (2007), SMEs are a reason for contributing 50% of GDP on average in high-income countries.

At Allassignmenthelp.com, students can get excellent management assignment help from the best and most experienced writers. Whether you need supply chain management assignment help or logistic supply chain assignment help. We can provide you with comprehensive academic assistance at a low and affordable cost.

2.    STUDY

2.1 Practices that can be learned from theories and implementation of green supply chain in SMEs
Practices that can be learned from theories of green supply chain in SMEs:

Green supply chain gives a wider view for companies to work in an environment-friendly manner and the theories of GSCM educated the companies for why should they opt for a green supply chain. The theories teach us various forms or practices in which SMEs can implement GSCM into their businesses. By focusing on the environmental issues a company can differentiate from its customers and can gain the competitive advantage over its competitors, it also increases the awareness among the employees and workers of the company regarding the environmental and social responsibility. By incorporating green supply chain in any business's supply chain, there will be a great reduction of solid waste, hazardous gasses and greenhouse gas emissions within the supply chain.
The GSCM will help in improving the productivity of the company while improving the environment. Setting goals for the environment improvement will help in improving the company’s image as well as the economic growth. With more responsible consumption and production of products will help in the improvement of environment quality.
Practices that can be learned from implementation of green supply chain in SMEs:
Some practices are way beyond theories which means you'll not be able to understand certain situations until you experience them. So, the practices which we can learn by implementing the green supply chain include various situations and solutions for improving the environment and economy. The use of GSCM will help us in decreasing or abolishing the wastage done in the production process by utilizing all the resources optimally. The company must check with the other businesses it wants to deal with as the others including the suppliers and distributors must also focus on environmental issues. The awareness of supplier about the environment while performing the operations plays a vital role. 
SMEs can also go for the Alliance for producing new products and solutions for the environmental issues with a company also concerned about environmental protection, if they feel it will be much easier for them to perform such activities together as sometimes these activities cost higher than operating a traditional supply chain. With the increased awareness among business owners, the company must also concern about educating the employees and suppliers about the optimum utilization of resources, reducing the pollution, etc. So that the overall supply chain management must be a success regarding resolving the environmental issues that might have been occurred if the company was not aware of the green supply chain. At procurement level, the company must choose only the required number of raw material rather than order more than needed; at production level, the company must use optimum technology to use resources to the fullest and must also use recycled material, etc. The company should refine its suppliers to help the company in producing environment friendly products. This adoption of GSCM will help in economic growth and poverty reduction with improved health and safety of employees. ("GREEN SUPPLY CHAIN MANAGEMENT- A REVIEW", 2016)
2.2 Advantages and disadvantages for SME to implement Green Supply Chain Management:
Advantages for SME to implement Green Supply Chain Management:

  • Use of cleaner and better technology

  • Less or no wastage of resources

  • Reduction in number of accidents and health problems to workers

  • Increased awareness among employees and suppliers

  • Competitive advantage to the company

  • Better economic performance

  • Reduction in pollution and hazardous waste

Disadvantages for SME to implement Green Supply Chain Management:

  • Less number of suppliers available concerning environmental issues

  • Low knowledge of environmental concerns to employees

  • Lack of organizational acceptance

  • Resistance to new and advanced technology

  • Market uncertainty 

  • May require extensive cost

  • Lack of awareness among customers

2.3 ‘SME’ WHO IMPLEMENTED GREEN SUPPLY CHAIN:
SHAKLEE

Shaklee is a little-known company which produces nutrition products naturally and is considered to be the first SME to obtain Climate Neutral™ certification in the world and to eliminate the co2 emissions totally from their company which resulted in absolutely no impact on the environment. And this made SHAKLEE come up on any list related to businesses that focus on their supply chain. This company was initiated by Dr. Forrest C. Shaklee with a philosophy of living in a healthy environment with harmony to live healthily and happily. Shaklee is popular for going above industry standards to tackle carbon reduction to make sure green operations in the company. The company is only related and works with the businesses including the suppliers and distributors, with the world positive and environmental standards. ("Top 10 green supply chains", 2016)

3.    CONCLUSION

By conducting the above project, it can be undoubtedly said that small and medium enterprises are a great help for any economy especially developing economies to grow as they support a considerable amount to the GDP of an economy. And in such a scenario when the SMEs will start to adopt and implement a green supply chain management, the environmental growth with economic growth will also foster. GSCM are a great way and were initiated to prevent hazardous gasses, solid waste, green gas emissions, toxic waste, etc., that are done by various industries especially, manufacturing industries. It is a great way to help the environment by protecting the ozone layer and preventing global warming, and also to give the company a competitive advantage over others.

Place Order For A Top Grade Assignment Now

We have some amazing discount offers running for the students

Place Your Order

4.    REFERENCE

  • Supply chain management. (2016). Wikipedia. Retrieved 6 August 2016, from https://en.wikipedia.org/wiki/Supply_chain_management

  • Chin, T., Tat, H., & Sulaiman, Z. (2015). Green Supply Chain Management, Environmental Collaboration and Sustainability Performance. Procedia CIRP, 26, 695-699. http://dx.doi.org/10.1016/j.procir.2014.07.035

  • GREEN SUPPLY CHAIN MANAGEMENT- A REVIEW. (2016). Academia.edu. Retrieved 6 August 2016, from http://www.academia.edu/5285983/GREEN_SUPPLY_CHAIN_MANAGEMENT-_A_REVIEW

  • Top 10 green supply chains. (2016). Supplychaindigital.com. Retrieved 6 August 2016, from http://www.supplychaindigital.com/top10/2522/Top-10-green-supply-chains

Get Quality Assignment Without Paying Upfront

Hire World's #1 Assignment Help Company

Place Your Order