Being Green in Supply Chain Management

¶ … green supply chain operations are important in today's marketplace. Sustainable growth and development is at the top of the news today, for a number of reasons. More people are developing an awareness of green issues and sustainability, and more people are demanding a greener footprint from the industries they do business with or purchase their products. Because supply chains are such an important part of most businesses, it is important for supply chain management to recognize the many benefits of going green with their supply chains.

Going green has become an important business issue for a number of reasons. First, a swell of public opinion is pushing businesses to go green, because of concern for business' contribution to climate change and other global environmental problems. In addition, green living has become much more common and trendy, and informed consumers are demanding more accountability for the companies where they purchase goods and services. One supply chain expert notes, "Public pressure clearly is playing a greater role in pushing companies toward meeting broader social obligations as well. In a recent survey, […] 95% of the respondents acknowledged that society has higher expectations for how companies will meet 'public responsibilities' than five years ago" (Reese). Supply chain management needs to recognize the importance of public pressure to go green, because if customers view their industry as not socially conscious and involved in the green movement, other companies and individuals may not do business with them. In fact, it is not uncommon to see consumer publications that tell consumers what socially conscious products to buy, and what to avoid, as in the article "Empowered Shopping: Tips from the Green Side of the Aisle," noted in the references for this paper. In addition, going green is the socially and morally right thing to do, especially if they are involved in high-polluting type industries, which use a variety of chemicals and other products in their supply chain. Finally, as people become more aware of the dangers of chemicals and business practices, they are placing more pressure on the government to control these problems, and new government controls could be stricter, creating larger problems for companies that do not go green on their own.

Some businesses might see green supply chains as a burden to avoid at all costs, but in reality, creating a green supply chain can lead to greater purchasing and production efficiency, and it can lead to lower costs, as well. Many companies have revised their supply chains because they see a cost savings (see Andersen Windows, below), and many others have found that going green has given them a competitive advantage and cost savings. A group of authors note, "Indeed, provisions are made that the customer returns the product back through the supply chain to the manufacturer for ultimate disposal or recycling" (Boyson, Harrington, and Corsi 21). The customer receives better service and does not have to worry about disposal of recyclable or hazardous products, and the manufacturer builds a reputation for community care, which can lead to increased business, but also can lead to cost savings, especially if they recycle the customers' returns for financial gain. Thus, rather than being a burden, an effective green supply chain can give a company a distinct advantage over non-green competitors.