Green supply chain management
Green or sustainable supply chain management. According to Ageron et al. (2011), green supply chain management is the transparent, strategic, integration and achievement of an organization’s social, environmental, and economic objectives in the systematic coordination of key inter-organization business performance of the firm and its supply chain partners. Ageron et al. (2011) argue that helping other players in the chain is an important as other players will understand the importance of resolving the environmental and social problems. Supporting each member in the supply chain is, therefore, important in any supply chain as all members of the chain will understand the chain and the players in the chain better.
Torres, None, Marques, and Evgenio (2004) found out that the main aim of GSCM is to confine the wastes within a supply system so as to conserve natural resources such as energy and prevent the chances of dissipation to the environment dangerous materials. According to Torres et al. (2004), GSCM is aimed at summing up of green; purchasing, manufacturing, packing, and marketing. The definition summed up the distribution channels of the product in any business setup. In a nutshell, all the channels in the market form up a chain. The chain formed should, therefore, maintain high standards of the environment.
(Hsu and Hu, 2008) defined GSCM as an approach to that is aimed at improving the performance of the process and the product in accordance to the requirement of the environment regulations. In this definition, what comes out clearly is that the life cycle of a product all the way from the producer to the time it is disposed of by the user; it should follow the environmental regulations. GSCM emerged in the last few years; it covers the levels of product’s lifecycle from the design level, production up to the supply level the chain goes up until the product reach the user to the time it is disposed of, (Borade and Bansod, 2007). Gilbert (2007) on the other hand defines GSCM as the integration of the environmental thoughtful into the supply chain management. The argument that revolves around all the argument on the definition of GSCM is the environment friendly supply chain. All the participants, for example, the customers, suppliers and the producers in any production chain should ensure an environmental friendly chain. For instance, if a producer or the manufacturer indicates that disposing of the product in fire is hazardous, then the consumer should go by that. The producer should also inform the customer of the side effects of the product and how to handle the product after use.
Implementation of GSCM has faced different barriers in the international limbo. According to Wu et al. (2009), lack of IT implementation is the main barrier that have faced the implementation of GSCM in any chain of supply. Slow, ineffective and the improper communication can be said to be as a result of poor IT implementation. The organization has a good IT implementation will find it easy to communicate and hence will be said to be implementing GSCM effectively. Alkhidir et al. (2009) supports this argument by saying that the resistance by different organizations to adopt the technological advancement is a barrier to GSCM implementation. A company can fail to adopt the usage of machineries that are environmental friendly, those which will lead to the production of eco-friendly products.
As a lot of research has been done in the developed countries on the GSCM, developing countries have done little to have a green chain of supply. An example of the developing countries involves the GCC. Dubai is a member of GCC. The following peer-reviewed journal talks about the direction the GCC have taken in terms of GSCM.
This is an international trade journal that talks about the contingency framework that investigates the demand and supply factors affecting the emerging markets of the Middle East countries. MNL methodology was used to come up with the findings in this article. It was found out that there are three factors that affect export in the GCC. Among the three factors were increasing growth, erratic growth and decreasing growth. The research done between 2000 and 2003 showed that the GCC were taking very little measures when it came to matter involving the GSCM. The Middle East countries are the highest oil exporters. The cases of the oil spills in the seas have formed the highest part of the discussion. What comes out clearly is that oil spills have had a negative impact on the environment with most of the marine life endangered. Instead of the council discussing such challenges, the article shows that few have been done about the GSCM in GCC. The article found out that lack of the government support and the marketing and exporting policies are the reasons behind the poor implementation of GSCM in the GCC states. Dubai was among the cities in Saudi Arabia that recorded a low level of implementation of GSCM.
Most of the GCC countries are realizing an improvement in their economy. The constructions in such countries such as Qatar and Dubai are, therefore, very high. According to UNEP (2007), the construction sector accounts for 30-40% of the world’s total carbon emission into the environment. The Middle East countries are forming the highest percentage of this number as construction forms 1.5% of such countries’ GDP. GHG emission has been high in the UEA countries with an increase in the construction. The GCC countries according to the UNEP (2011) are the highest emitters of carbon dioxide into the environment. This means that with the increase in the construction and most of the countries still relying on construction as a source of income, more harm will still be made on the environment.
According to Retab and Ben (2008), environmental conservation is a big challenge that is facing most of the Middle East companies. Such companies have failed to use the environmental friendly systems during construction. Retab et al. (2008) noted that the poor government support and lack of implementation of the new technologies are some of the reasons for the lack of GSCM application in GCC states. Srivastava (2007), during one of the research, realized that it is not only construction that leads to higher environmental degradation of the environment in most of the GCC countries. According Srivastava (2007), the kind of oil refining that most of the GCC countries are using are totally different from those of other countries. The study realized that the government never takes the required caution when it comes to oil use. This Zhu (2007) termed as the only place that most of the countries were failing to follow the conducts of GSCM.
At the end of these studies, a solution that could be adopted by GCC is provided. Amongst the solutions is the adoption of the eco-friendly source of energy instead of the oil that has had a negative impact to the environment. Apart from using the eco-friendly source of energy, the companies involved were also urged to adopt the technology in the daily activities of the companies.
These studies, however, had limitations. Most of the studies were based on ISM approach. The opinion of the experts might have been biased and thus, providing contradicting information on the impact the GCC countries has on the environment.
In conclusion, GSCM is the conservation of the environment through having a clean chain of production and supply of services. The players in this chain include the manufacturers, the suppliers and the consumers. GSCM is aimed at having a clean chain of product use where the customers will not dispose of the end product in a wrong way. The chain should act as a team where the participants in the chain help another so as to have a good and clean chain. An example of how the participants can help each other in the chain is when a producer gives the consumer the disposal directives. The customer, on the other hand, should respond by doing as requested by the producer. In the end, the chain will conserve the environment and the chain will keep moving.
The GCC, on the other hand, have taken the least steps in implementing the GSCM. Most of the countries do not take into consideration how the production and the distribution chain have cooperated to make sure there is a neat chain of production. The manner the supply chain has been managed in the Middle East countries has left a lot to be discussed. The challenge is, therefore, left to the GCC to come up with the ways of implementing the GSCM in their companies.
References
Aerts, W., Cormier, D., Magnan, M., 2006. Intra-industry imitation in corporate
Environmental reporting: An international perspective. Journal of Accounting and Public
Policy, 25(3), 299-331.
Ageron, B., Gunasekaran, A., and Spalanzani, A., “Sustainable Supply Chain Management: An Empirical Study,” International Journal of Production Economics, 111, 2011, 2-22.
Ahuja, G., 2000. Collaboration networks, structural holes, and innovation: A longitudinal
study. Administrative Science Quarterly, 45(3), 425-455.
Beamon, B. M., (1999) “Designing the green supply chain”, Logistics Information Management,
12(4), 332-342.
Fortes, J., (2009) “Green Supply Chain Management: A Literature Review”, Otago Management
Graduate Review, 7, pp 51-62.
Rao, P. & Holt, D., (2005) “Do green supply chains lead to competitiveness and economic
performance?”, International Journal of Operations and Production Management, Vol. 25(9), pp 898–916.
Srivastava, S.K., (2007) “Green supply-chain management: a state-of-the-art literature review”,
International Journal of Management Reviews, Vol. 9, No. 1, pp 53–80.
Shultz, C.J.II & Holbrook, M.B., (1999) “Marketing and Tragedy of the Commons: A Synthesis
Commentary and Analysis for Action”, Journal of Public Policy and Marketing, 18(2), pp 218-29.
Testa, F. and Iraldo, F., “Shadows and Lights of GSCM (Green Supply Chain Management): Determinants and Effects of These Practices Based on a Multi-City Study,” Journal of Cleaner Production, 18, 2010, 853-962.
Varma, A. and Clayton, A., “Moving Goods Sustainably in Surface Transportation,” Institute of Transportation Engjneers Journal, 80(3), 2010, 20-24.
Veleva, V., Hart, M., Greiner, T., and Crumbley, C., “Indicators for Measuring Environmental Sustainability: A Case Study of the Pharmaceutical Industry,” Benchmarking, 10(2), 2003, 107-119.
Walker, H., Di Sisto, L., and McBain, D., “Drivers and Barriers to Environmental Supply Chain Management Practices: Lessons from the Public and Private Sectors,” Journal of Purchasing and Supply Management, 14, 2008, 69-85.
Walton, S., Handefield, R., and Melnyk, S., “The Green Supply Chain: Integrating Suppliers into Environmental Management Practices,” International Journal of Purchasing and Materials Management, 34(2), 1998, 2-11.
Ninlawan, C., Seksan, P., Tossapol, K., & Pilada, W., (2011) “The Implementation of Green
Supply Chain Management Practices in Electronics Industry”, Proceedings of the International Multiconference of Engineers and Computer Scientists, 3.
Zhu, Q., Geng, Y., Fujita, T., & Hashimoto, S., (2010) “Green Supply Chain Management in
Leading Manufacturers: Case Studies in Japanese Large Companies”, Management Research Review, Vol. 33, No. 4, pp 380-392.
Zhu, Q. & Sarkis, J., (2004) “Relationships between operational practices and performance
among early adopters of green supply chain management practices in Chinese manufacturing Enterprises”, Journal of Operations Management, 22, pp 265-289.
