Greening Supply Chain Management: Maximizing Sustainability through Innovation
Green supply chain management which is also known as GSCM and indicates the merging of supply chain management or the SCM with the elements; those support the sustainability of the environment. The GSCM includes redefining the designing of products and way of delivering the products so that it maintain the sustainability of the environment (Fahimnia, Sarkis & Davarzani, 2015). The maximization of the sustainability can be achieved through the SCM and the development of concept is carried throughout the life cycle of the development of products. The primary objective of this discussion is to gather information about innovation and transformation in cultural aspects in GSCM and its impact on increasing efficiency, competitiveness and responsibility of the entire business.
Most of the companies are targeting to increase the profit for overall production of the services. One of the way to achieve the goal is to keep the focus on the controlling of the cost and the supply chain management. In order to achieve this application of the green supply chain management is done. Green supply chain management is a global supply chain management which promotes sustainability of the environment and is based on Porter’s value chain model. Van Der Linde and Porter have discussed the importance of the movement for the GSCM. This SCM promotes the mitigation of the wastage in the production system (Govindan, Khodaverdi & Vafadarnikjoo, 2015). This also helps to enhance the savings in supply and increase the productivity. There are three advancement in GSCM – reactive, proactive and value-seeking. Proactive approach is done at the midlevel of the organization and it helps to invest the capital to achieve self-regulation and focus on the design area for creation of more greener products (Govindan et al.,2016). The reactive approach searches the ways which will help the products to have least impact on the environment and the upgrade the products to meet the sustainability (Luthra, Garg & Haleem, 2015). The value seeking is involved with projection of the design which supports ISO standards and approach to the GSCM.
In Green Global SCM product life cycle has its importance in the projection of the GSCM (Teixeira et al., 2016). However, it has been discussed that the performance in the business and the economic condition of the market also plays the indicator in the waste management of the company and the requirement s for the packing of the products. There is the link between superior performance and operational management which was discussed in the earlier discussion of the green global management (Brondoni, 2015). However, leaders in this case have faced the inconsistency in implementation of this supply chain management. The concept regarding reverse logistics has been implemented in order to resolve this inconsistency.
The Advancements in Green Supply Chain Management Processes
The expansion developed by Nagureney and Toyasaki (2015) has developed a framework which is focused on the design which incorporates network equilibrium and helps to develop the logistical operational model which supports green supply management. Multiple utility theory is an important concept regarding the green supply management (Luken et al., 2016). It is a structured methodology which will help to create the design capable of handling the trade-offs between multiple objectives of the business (Wang et al., 2016). It is a way of quantifying the preferences of individuals (Glesk & Davidson, 2015). The framework can be assigned in such a way that its working will include the use of recycling of return and production of the end market life cycle.
There are certain theories regarding the supply chain management. Some of these significant theories are-
- System Theory
- Explanatory Structural Modelling
- Over-all Interpretive Structural Modelling
There are certain factors those are making the organizations to implement the green global supply chain management. One of the main factors is this supply chain management is increasing the efficiency and the branding image of the company.
Using green supply chain management as strategic tools many of the organizations are increasing their brand value. In this case, the example of Greening of Wal-Mart can be taken. There are certain significance of implementation of green supply chain technology. This system is eco-friendly and saves money (Ivanov, Tsipoulanidis & Schönberger, 2017). The consumers are getting concern about the surroundings and environment. The eco-friendly way of processing the products through the green supply chain management will help to make the products attractive to the consumers. It also helps to create green infrastructure.
The importance of the GSCM is increasing rapidly as taking the green and environment friendly way in the production will not be an option, but will become necessary for all the companies in future (Liou et al., 2016). Certain amount of sustainability and formal direction is needed to implement the whole system. However, it has been seen the some of the companies are lacking the sustainability and direction for implementation of the green supply management (Fr?ckiewicz, 2016). The proper integration and implementation of green supply chain management includes designing of the products, sourcing and the selection of material, process of manufacturing, final delivery of the products to the consumers and end-of- product management in the life cycle.
On the other hand using green global supply chain also supports the CSR (Corporate Social Responsibility) for the company. In case, if the organizations are adopting green global supply chain management for the delivery of the products the conservation of the energy can be achieved. On the other hand green global supply chain provides the option for recycling. The recycling and using bio degradable products will contribute in maintaining the sustainability of the energy (Anttiroiko, Laine & Lönnqvist, 2016). Apart from that the use of this technology can contribute in various social causes. The use of green global chain supply will lower the cost of the productivity for the organization. The organization can sell products in lower cost which will eventually help financially weaken people to buy and use those products.
Conclusion
The competitiveness of the companies can be affected positively through the isle of green global chain of supply. This technology is relatively new in the business market. Adopting this technology will bring the limelight for the organization (Fahimnia, Sarkis & Davarzani, 2015). People will become interested about the products of the company using global supply chain which will eventually increase the demands of the products of respective companies. Apart from that the enhancement of the efficiency of the company will help to produce more innovative things in a relatively low cost which will make the market more competitive.
A distribution centre can be explained as an interconnected group of storage facility that helps in the process of the distribution from one place to other. The systems Reponses in such a way that the store houses receives goods from one place stores them and then further forwards them other locations. The distribution centre global networking is one of the key advantage for the distributors. In other words it can be explained as an intermediate point between the manufacturing organisation and the end user (Thrift & Amin, 2017). The global supply chain managing is one of the key tasks for the car manufacturing organisations. It can be said that without proper distribution centres it will become hard for the car manufacturers to deliver the cars in such a global scale (Whitehead et al., 2014). With the help of the global networking it has helped the process of interconnections of the global distribution centres a lot.
There are various advantages when an organisation uses the process of the global networking distribution centres. When a certain organisation uses the global networking and distribution centre it have an immediate effect in the in gaining a competitive advantage in the business (Griffin et al., 2015). The supply chain management is one of the most important thing to be done is to optimizing the operation speed and increase both the speed and efficiency. The distribution centres help in the process of storing the items for a long duration or short duration of time and later use deliver them at the require space. With the help of the global distribution centres it has helped all the processes of logistics like the picking up goods, storing them, delivering them among others (Parola & Musso, 2017). The use of the technology has also helped a lot in the process of the storing and keeping record of items. Now a days the distribution centres have a central internet connections, which helps in the process of keeping the records of the items in detail like which item is coming in, what is going out. Thus making the process of keeping records of the items much easier. While in the process of delivering also much simpler. If one has to deliver a single item to a place it becomes tough and costly for the process of delivery, but with the introduction of the delivery system a lump sum amount of goods can be loaded and delivered for a single location, thus making the process of delivery less costly. One of the major organisation that is using the global delivery system in a very effective way is Hyundai (Chou & Liao, 2017). The organisation uses the technique of global distribution centre in a very well processed way. The organisation has almost 10 global distribution centres all over the world and all are in different parts of the world. The main centre is the Beijing centre which is the core of all the other distribution centres (Magee, 2016). With the help of the global networking system all the centres are globally connected and a single system keeps the record of all the processes that are happening in all the other global systems (Smits, 2016). Two of the major components of the distribution centres are the cycle time and lead time.
The Competitive Edge of Global Networking Distribution Centers
The cycle time can be explained as the time taken for a distribution system to take an order from the customer and time taken to process the same order. While the lead time can be said as the time taken to complete a specific order. Classification of the distribution channels can be done there different ways, that is the one way distribution centres, basic distribution centres and the distribution nets (Manuela & Manfred, 2014). The work of the one way channel is only to transfer goods from the positions from where the product have been manufactured. Major factors that effects a distribution systems working are:
- Position of distribution elements in space: This factor denotes the storage place and the amount of the place the specific distribution have. This is one of the major factor that helps in the process of the global systems.
- Maximal distribution time: This factor is responsible for the amount of time the specific distribution centres take to deliver a specific shipment(Bennell, 2015). This is one of the other major factor that is responsible for shipment process and the delivery systems.
- Places priority in distribution structure: The location of the distribution centre is one of the other major factor(Anttiroiko, Laine & Lönnqvist, 2016). Is a certain delivery system is out of the scope of the normal transport route then it cannot help the manufactures to earn profits. Thus having a distribution centre where it is easy to transport goods is an advantage for the organisation.
- Means of transport capacity: This factor is related to the place or the location or of distribution system(Ena, Chulok & Shashnov, 2017). A well accessed distribution centre is one where all the means of transport are easily available. Thus making some of the major factor in the process of the distribution centres.
Conclusion
Thus, it can be said that Distribution Centres with global networking is one of the revolutionary idea for the purpose of developing the concept of distribution of goods from one centralised location. This has not only helped the manufacturers like the Hyundai to control the entire market of the cars and deliver huge consignments at time. Thus making it easier for the organisation to store products at a specific location. This has also helped in the process of the customer satisfaction as the customers gets the delivery on time and hence gets satisfied with the delivery system. Other than some of other major benefits are the organisation can look up easily if there is any defective product in the lot and it can be easily spotted with the global networking system. Thus, it can be said that the Distribution Centres with global networking has become a must thing for every product based business organisation.
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Advantages of Using Global Networking Distribution Centers
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