Integrate environmental considerations into supply chain management, including eco-design of products, purchase of environmentally friendly materials and components, redesign of manufacturing steps towards environmentally friendly logistics management and retrospective of the product according to its useful life. The CO2 footprint is much more than just a tool for measuring CO2 emissions from supply chain operations. It highlights the measures to be taken to control environmental impacts and optimize operating costs. Four-fifths (80%) of companies that calculated their carbon footprint saw concrete improvements, including reducing resource consumption and waste reduction. We also asked companies why they want to calculate a carbon footprint: a number of published research has shown that competence and relevant elements can play a role in implementing green practices in their supply chain [22, 23]. Competitiveness was seen as an important factor in implementing green practices and not as the desire of organizations to protect environmental sustainability. The implementation of environmentally friendly practices in companies` business activities can also be attributed to other voluntary competitive factors . From sustainability to the green supply chain, multinational companies are also hampered by ignorance. Often, they don`t even know who their subordinate suppliers are, let alone where they are or what skills they have (or don`t have). Many of the 22 subordinate suppliers in our study are small or medium-sized private companies that provide little information to the public – characteristics that make them almost invisible. Several directors of the three multinationals we studied saw this as a big problem. „The demon in this place,“ said one of them, „are the [subordinate] suppliers I know the least.“ Another said, „I have no control over those who are at the highest risk, so I lose sleep on them.“ Sustainability practices in the supply chain, to be successful, must improve environmental performance in a financially viable operational construction.
European companies now see that a green supply chain can create long-term value for their business. However, they need to move away from the classic customer-supplier relationship model and think about new forms of internal and external cooperation. Become a leading green player in your industry European countries` standards, regulations and levels of supply chain intervention are not yet harmonised. Actively participating and participating in influential groups in your industry could help you anticipate future environmental standards for what you do. Isn`t that the hallmark of frames? Manufacturing companies play a central role in improving supplier sustainability performance. Improving supplier performance, or at least achieving an acceptable level of performance, is a key objective of supply chain management (Gold et al., 2010a). The textile industry has often been criticized for contributing to toxic pollution. In response, Greenpeace developed the Detox My Fashion campaign to end the use of chemicals in garment production.
As a result, many companies have signed up and cleaned up their supply chains, including Burberry, Nike, and Puma. Large companies go even further by assessing a larger footprint that takes into account all greenhouse gases: CO, CO2, NO, NO2, SO2 etc., and all their toxic industrial waste. This anticipates future laws and gives an intelligent economic and imageistic meaning. To understand the situation and come up with ideas to address it, we conducted a study of three supply networks. Each of them was led by a multinational company considered a „sustainability leader“ – one in the automotive industry, one in electronics and one in pharmaceuticals and consumer goods. (Specific selection criteria can be found in the „About Search“ sidebar.) We also looked at a cross-section of suppliers from each multinational – a total of nine leading suppliers and 22 low-tier suppliers with different headquarters in Mexico, China, Taiwan and the United States. What we found was that many violated the standards that multinationals expected of them. The hoped-for cascade effect rarely occurred. The green procurement process is more efficient if suppliers are directly involved at an early stage. Supplier participation in green procurement initiatives is often based on the joint development of new products.
It also allows both parties to improve their environmental performance. After optimizing your upstream and downstream supply chain, get ready to test the second life of your products. A company that masters the recycling chain of its products can reap two major benefits: different returns on the product and new development opportunities. Some companies even have a share in the repair of their products or on the second-hand market. While the automotive industry has long since integrated such practices, new industries such as the consumer goods market are now taking over. These officials should take a hands-on approach to collecting data on supplier capacity, monitoring their sustainability performance indicators, and working with them on continuous improvement projects. Multinational enterprises should also work directly with their suppliers` contracting entities to find the best ways to disseminate sustainability requirements in their supply networks. The danger of not acting is clear: a supply chain is only as strong as its weakest link. Fig.
14.5 illustrates the green supply chain process with the benefits that each function brings to the supply chain community. The green supply chain encourages suppliers to use less toxic and sustainable materials. In the production environment, a green process can be implemented to reduce energy consumption or recover energy by reusing it in another form. Logistics plays a key role in the green supply chain as it contributes to a significant carbon footprint. Therefore, logistics management must be planned correctly to avoid unnecessary material movements. In addition to environmentally friendly logistics practices, the common supply chain can also help reduce fuel consumption. Reverse logistics will help to recover and plan used products, according to the 6R principle (Bhardwaj, 2016; Chin, Tat and Sulaiman, 2015). In addition, the three multinationals are working with their major suppliers to map connections and interdependencies in their supply networks, including those at the lower level. This allows them to identify potentially risky subordinate suppliers and work with key suppliers to deploy tailored risk mitigation programs as needed. This chapter discusses the lack of knowledge, how environmental and social sustainability practices are disseminated through performance evaluation across the supplier base, and the organizational factors that influence this goal. To try to answer these questions, a conceptual framework is proposed and then tested by case application.
The factors were rigorously identified and provided guidance for disseminating environmental and social sustainability practices based on different conditions and objectives (e.g. B, risk management, product improvement, relationship building, collaborative approaches). Beyond the requirements that procurement departments have traditionally promoted over the years, such as compliance. B working conditions and non-discrimination, there are new problems to strengthen environmental requirements for suppliers. According to the survey, two-thirds of companies have implemented or plan to implement a „green“ policy for their purchases. .