Best practice report: Green Supply Chain Management

July 18, 2014 by Limited

Summary of Best Practices

The following is a summary of the best practices and/or insights on Green Supply Chain Management (GrSCM):

  1. When selecting products and services for your organisation, use green purchasing and procurement practices to minimise potential negative impacts over an entire product lifecycle. These can include using recyclable materials, and avoiding materials that are hazardous or environmentally damaging.
  2. Employ green manufacturing practices within your organisation to obtain lower raw material costs, production efficiency gains, and an improved corporate image. These practices include improved waste management and end-of-life planning, and reduced product size or mass.
  3. Use green distribution, packaging, and logistics systems—such as improved environmental design and packaging—to gain the benefits derived from less materials, better use of space, and reduced handling.
  4. Reduce your transportation-related emissions by:
    • using vehicle fleets that operate with increased fuel efficiency;
    • optimising route planning; and
    • choosing or mixing modes of transportation (by selecting between shipping, air freight, road, and rail transportation).
  5. Monitor and reduce carbon footprints to eliminate waste—and reduce costs—by carrying out a detailed carbon footprint analysis (as outlined in the Measures section of this Best Practice Report).
  6. Gain commitment to GrSCM by comparing your current supply chain with a green supply chain, and calculating the differences in cost, environmental impact, and sales, as a result of improved brand loyalty or marketing opportunities.
  7. Maximise the use of reverse logistics by encouraging reuse, remanufacturing, and recycling.
  8. Provide incentives for consumers to return products that are no longer required.
  9. Enhance corporate brands and reputations by publishing actual performance achievements relating to green objectives and benchmarks that have been based on world-class standards.
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