Importance Of Green Supply Chain

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As it has been widely observed nowadays, a major part of the world’s manufacturing have shifted to Southeast Asia and will continue to do so in the coming decade. Although this has created many opportunities in Asia, it has also brought substantial environmental burden.

The concept pertaining to Green Supply Chain Management is usually understood as doing business with suppliers that comply with regulatory standards. However, it is not limited to this. Over the years, the definition of Green Supply Chain have evolved to include working collaboratively with suppliers on green product designs, holding awareness seminars, and helping suppliers establish their own environmental programme.

Green Supply Chain in Asia

In Asia, there are several
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For example, Europe’s stringent Reduction Of Hazardous Substances (RoHS), Waste Electrical and Electronic Equipment (WEEE) and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulations have forced suppliers in Asia to change their processes while national governments try to harmonise their laws with commercial reality.

In order to be effective, green supply chain should be implemented in every stage of the SCOR (Supply-Chain-Operations-Reference) model.
In the planning stage, companies can start by using tools such as environmental cost accounting, environmental life cycle analysis and designing products that are environment friendly.

In the sourcing stage, procurement professionals can engage in environmental auditing by a 3rd party, and work with suppliers that have environmental certification, such as Green Seal or Blue Angel.

During the actual manufacturing process, companies should focus on implementing solutions to prevent pollution with use of tools such as the ISO 14000. This tool addresses various aspects of environmental management and provides practical tools for companies and organisations looking to identify and control their environmental impact and constantly improve their environmental
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Companies are torn between reducing environmental impact of business activities and increasing financial costs. Companies are conflicted as to whether they should pursue profits regardless, or pursue and environmentally responsible track at the cost of profit.

Another challenge is dealing with increased complexity due to sustainable development issues in supply chains. A dilemma exists between social and environmental sustainability where improvements in accessibility and infrastructure may increase mobility, but on the other hand, result in the deterioration of environmental sustainability due to increase logistics activity.
Therefore, a great challenge for supply chain management research is the development of new models and perspectives, which is essential in helping individuals and companies to grasp and deal with the increased complexity sustainable development brings.

Presently, greening the supply chain have started taking root in Asia. Data shows that 79 per cent of the leading edge ISO 14001 certified companies are holding awareness seminars for their suppliers, 76 per cent informing suppliers about the benefits of cleaner production and 71 per cent guiding their suppliers to set up their own environmental

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