environment gscm report

8/7/2019 Environment GSCM Report

http://slidepdf.com/reader/full/environment-gscm-report 1/29

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Introduction

Years ago, the concept of environmental quality was almost non-existent. Then, the concept

came to mean cleaner air and cleaner water. Now, environmental quality has come to mean.

Safe drinking water, healthy ecosystems, safe food, toxic-free communities, safe wastemanagement, and the restoration of contaminated sites are practised.

Concurrently, there has been increasing public attention placed on the overall condition of the

natural environment. This attention may be largely attributed to information provided by the

media, through growing numbers of environmental and consumer interest groups.

The most commonly perceived enemy to environmental protection is manufacturing and

production operations. That is, manufacturing and production processes are viewed as the

culprits in harming the environment, in the forms of waste generation, ecosystem disruption,

and depletion of natural resources. Indeed, waste generation and natural resource use,

primarily attributed to manufacturing, contribute to environmental degradation by

outstripping the earth¶s ability to compensate and recover, and thus are not sustainable by the

earth¶s ecosystem.

The current state and trend of environmental degradation (from regulatory, consumer, and

moral Stand points) indicate a need for a change in manufacturing philosophy. That is, there

must be a fundamental shift in the way production systems operate. There must be a movetowards sustainability, achieved through vast reductions in resource use and waste

generation, and a move away from one-time use and product disposal. The first step in such a

move is to extend the structure of the current one-way supply chain to a closed loop,

including supply chain operations designed for end-of-life product and packaging recovery,

collection, and re-use (in the forms of recycling and/or remanufacturing).

The State of the Environment in India:

Solid and Hazardous Waste

Per capita waste generation is increasing by 1.3% per annum.

With urban population increasing between 3 ± 3.5% per annum.

Yearly increase in waste generation is around 5% annually.



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India produces 42.0 million tons of municipal solid waste annually at present. Per capita

generation of waste varies from 200 gm to 600 gm per capita / day. Average generation rate

at 0.4 kg per capita per day in 0.1 million plus towns. Collection efficiency ranges between

50% to 90% of the solid waste generated.

Industrial solid waste management problem greatly varies depending on the nature of the

industry, their location and mode of disposal of waste. There are no specific disposal sites

where industries can dispose their waste. Mostly, industries generating solid waste in city and

town limits are of small scale nature and even do not seek consents of SPCBs/PCCs.

Industries are located in non-conforming areas and as a result they cause water and air

pollution problems besides disposing solid waste. Industrial estates located in city limits do

not have adequate facilities so that. Industries can organize their collection, treatment and

disposal of liquid and solid waste.

There is no regular interaction between urban local bodies and SPCBs/PCCs to deal such

issues relating to treatment and disposal of waste and issuance of licenses in non-conforming

areas.

Storage of waste at source is lacking

Domestic waste thrown on streets

Trade waste on roads / streets

Construction debris left unattended

Bio-medical waste disposed in municipal waste stream

Industrial waste disposed of in open areas

Segregation of recyclable waste at source not done

Primary collection of waste not done at place of generation

Natural R esource Use

The continuation of widespread poverty apart, the biggest danger that India faces is the

destruction and degradation of all the country¶s natural resources and a growing,unsustainable, dependence on the use of hydrocarbon fuels. India is losing ten percent of

GDP as a result of the damage to and degradation of natural resources. But environmental

decision-making has not yet been merged with mainstream economic decision making.



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In the developed countries, environmental protection followed a path defined by the

Environmental Kuznets curve, involving significant increases in income and pollution levels

to a point where the trend changed.

A developing country like India cannot pursue the same path, and would need to set up a

governance structure and policy regime that allow the turning point to take place at

substantially lower levels of income. The internalization of social and environmental

externalities would ensure that resources are used in a sustainable and responsible manner. In

the matter of energy use, for instance, proactive policies²such as stress on renewable

sources and the rationalisation of subsidies²are needed to decrease the dependence on

unsustainable imports and to create the conditions under which the dispossessed and poor

sections of society are able to meet their basic energy needs. Blindly aping the consumerist

approach of the developed world, and neglecting the ecological footprint of lifestyles, couldprove disastrous for our populous country.

Water and Air Pollution

Without healthy water for drinking, cooking, fishing, and farming, the human race would

perish. Clean water is also necessary for recreational interests such as swimming, boating,

and water skiing. Yet, when Congress began assessing national water quality during the early

1970s, it found that much of the country's groundwater and surface water was contaminated

or severely compromised. Studies revealed that the nation's three primary sources of water

pollution²industry, agriculture, and municipalities²had been regularly discharging harmful

materials into water supplies throughout the country over a number of years.

These harmful materials included organic wastes, sediments, minerals, nutrients, thermal

pollutants, toxic chemicals, and other hazardous substances. Organic wastes are produced by

animals and humans, and include such things as faecal matter, crop debris, etc. Air Indian

cities are polluted by vehicles and industry emissions, road dust due to vehicles also

contributing up to 33% of pollution. In cities like Bangalore, around 50% of children suffer from asthma. India has emission standard of Bharat Stage II (Euro II) for vehicles since 2005.

One of the biggest causes of air pollution in India is from the transport system. Hundreds of

millions of old diesel engines continuously burning away diesel which has anything between

150 to 190 times the amounts of sulphur out European diesel has. Of course the biggest

problems are in the big cities where there are huge concentrations of these vehicles. On the



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positive side, the government appears to have noticed this massive problem and the

associated health risks for its people and is slowly but surely taking steps. The first of which

was in 2001 when it ruled that its entire public transport system, excluding the trains, be

converted from diesel to compressed gas (CPG). Electric rickshaws are being designed and

will be subsidised by the government. It also appeared that the excessive pollution was

having an adverse effect on the Taj Mahal. After a court ruling, all transport in the area was

shut down shortly followed by the closure of all industrial factories in the area. The air

pollution in the big cities is rising to such an extent that it is now 2.3 higher than the amount

recommended by WHO.

What is supply chain?

A supply chain is a system of organizations, people, technology, activities, information and

resources involved in moving a product or service from supplier to customer.

There are three phases to the flow of material. Raw material flow into a manufacturing

company from a physical supply system, they are processed by manufacturing and finally

finished goods are distributed to end consumers through a physical distribution system.

A typical supply chain may involve a variety of stages.

1. Customers

2. Retailers

3.

Wholesalers/distributors4. Manufacturers

5. Component/raw material suppliers



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There are a number of important factors in supply chain:

The supply chain includes all activities and processes to supply a product or service to

a final customer.

Any number of companies can be linked in the supply chain.

A customer can be a supplier to another customer so the total chain can have a

number of supplier/customer relationships.

While the distribution system can be direct from suppliers to customers, depending on

the products and markets, it can contain a number of intermediaries such as

wholesalers, warehouses and retailers.

Products or services usually flow from suppliers to customers and design and demand

information usually flows from customers to suppliers. Rarely is this not so.

There are Supply chain activities transform natural resources, raw materials and componentsinto a finished product that is delivered to the end customer. In sophisticated supply chain

systems, used products may re-enter the supply chain at any point where residual value is

recyclable. Supply chains link value chains.

Supply Chain Management encompasses the planning and management of all activities

involved in sourcing and procurement, conversion, and all logistics management activities.

Importantly, it also includes coordination and collaboration with channel partners, which can

be suppliers, intermediaries, third-party service providers, and customers. In essence, supply

chain management integrates supply and demand management within and across companies.

Supply Chain Management is an integrating function with primary responsibility for linking

major business functions and business processes within and across companies into a cohesive

and high-performing business model. It includes all of the logistics management activities

noted above, as well as manufacturing operations, and it drives coordination of processes and

activities with and across marketing, sales, product design, and finance and information

technology.´

A typical supply chain begins with ecological and biological regulation of natural resources,

followed by the human extraction of raw material, and includes several production links (e.g.,

component construction, assembly, and merging) before moving on to several layers of

storage facilities of ever-decreasing size and ever more remote geographical locations, and

finally reaching the consumer.



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Many of the exchanges encountered in the supply chain will therefore be between different

companies that will seek to maximize their revenue within their sphere of interest, but may

have little or no knowledge or interest in the remaining players in the supply chain. More

recently, the loosely coupled, self-organizing network of businesses that cooperates to

provide product and service offerings has been called the Extended Enterprise.

Current supply chain concept?

Companies currently adopting the supply chain view the entire set of activities from raw

material production to final customer purchase as a linked chain activities. To result in

optimal performance for customer service and cost, it is felt that the supply chain of activities

should be managed as an extension of the partnership. This implies many issues, but three

critical ones include:

1. Flow of material

2. Flow of information, mostly electronically.

3. Fund transfers

In addition, a new trend is to manage the recovery, recycling and reuse of material. The most

efficient and effective way to manage the activities along the chain is to view each separate

organization in the chain as an extension of one¶s own organization.

Carbon Emissions ± a Global Challenge:

With global warming being recognised as one of the largest challenges of this century, carbon

emissions are increasingly becoming the centre of attention.

Global warming is the result of increasing CO2 concentration in the atmosphere

Global warming is and will be one of the largest challenges of this century

Transportation activities are one of the main contributors to global warming



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A carbon footprint is a measure of the impact activities have on the environment, and inparticular climate change. It relates to the amount of greenhouse gases produced in day-to-

day lives through burning fossil fuels for electricity, heating and transportation etc. The

carbon footprint is a measurement of all greenhouse gases produced and has units of tonnes

(or kg) of carbon dioxide equivalent.

From a supply chain management point of view, energy is used during transportation and

manufacturing, and thus creates carbon emissions, also called greenhouse gases. The

challenge for companies to reduce their carbon footprint is whether they have ability to

quantity their current emission levels.

There are three key components in supply chain contributing to carbon emissions:

1. Movement

Any movement in supply chain, from inbound or outbound shipping to transferring products

in the warehouse or on the factory floor, consumes energy and directly produces carbon

emissions. Energy consumption is different based on different transportation modes,

distances and weights. The calculation can be based on gallons of fuel consumed for transportation, and hence the footprint measurement can be calculated at the unit level during

transportation.

2. Space

In supply chain, space such as office, factory and warehouse are used to support supply chain

activities. However, space consumes energy, such as electricity or heating oil. Excess or



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unnecessary space caused by supply chain inefficiency, such as excess inventory or poor

packaging design, not only increase supply chain costs, but also produces unnecessary carbon

emissions.

3. Material

Material will be more difficult to be directly measured than movement and space, especially

if the company is responsible for the end-of-life material management of toxics, hazardous

materials, and waste. So a good way to capture the carbon footprint caused by different

materials is to evaluate total energy consumed to process the material including its life cycle

production and the end-of-life waste management. For example, a new material might take a

longer time and more resources to produce from its raw components to finished goods, but it

might require very little energy to process its waste. Therefore the total size of the carbon

footprint for the new material is smaller.

For any company who is interested in taking actions to capture and quantify their carbon

footprint, as an easy way to begin with, they can start from collecting data in their end to end

supply chain, and convert those data into energy consumption and carbon emissions.

R educing Carbon Footprint-

A green supply chain is like a mystery. The idea always conjures images of a higher cost and

investment to the business. However, is that really the case? Will companies need to spend

more to be green? How can green initiatives drive financial and social benefits? Once



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quantifications done, then comes stage of measuring the carbon footprint of the company¶s

supply chain, there are ways to reduce it and measure their improvement.

The trend of reducing supply chain carbon footprint suggests that manufacturers should be

moved back to shorten the supply chain distance thus reducing the carbon footprint. A short

supply chain close to production or the end consumers can be beneficial in some cases, such

as the JIT practice.

However, International Energy Agency, international shipping accounts for approximately

2.7% of world CO2 emissions, which is small relative to the benefits brought by global

trade. Hence it¶s not the reason to prevent globalization and international trade. ³Green´

initiatives should focus on innovation and waste reduction, in either technology or process.

³Green´ shouldn¶t be used for a political reason and incur more costs for the whole society.

Practically, companies will be interested in the green initiatives only when they are able to

achieve a lower financial cost and a better customer satisfaction at the same time. That is true

that companies can develop products more environmentally friendly and some consumers are

willing to pay a premium for the green contents, such as for a Toyota Prius.

However, the majority of consumers are not ready to pay more for green, especially for

commodities. Hence, to enhance a company¶s competitiveness, the approaches to reduce the

carbon footprint of the supply chain should also aim to drive cost efficiency and customer

satisfaction. Just like the total cost analysis for supply chain, there are many trade-off

decisions to be made in green supply chain optimization, and the goal is to maximize carbon

emissions reduction.

The environmental initiatives from supply chain functions¶ point of view, represented in the

below matrix:



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Green supply Chain Management:

GSCM as integrating environment thinking into supply chain management, including product

design, material sourcing and selection, manufacturing processes, delivery of the final

product to the consumers, and end-of-life management of the product after its useful life.

According to this definition, GSCM relates to a wide-range of production from product

design to recycle or destroy, or from cradle to grave. This principal is similar to lifecycle of

product. Product lifecycle is an idea that products pass through a cycle of life, similar to

human, birth, maturity, death. The product lifecycle provides a degree of structure to the life

of products and thereby provides direction for the diverse functional efforts required to

produce and deliver product/service offerings.



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Towards the Green Supply Chain

In general, the impact of manufacturing operations on the environment may be categorized as

follows: (1) waste (all forms), (2) energy use, and (3) resource use (material consumption).

In order to achieve the green supply chain, manufacturing organizations must follow the basic

principles established by ISO 14000. In particular, organizations must develop procedures

that focus on operations analysis, continuous improvement, measurement, and objectives.

An implementation procedure for extending the supply chain includes the following tasks.

1. Identify Processes. For each product within the supply chain, identify all inputs,

outputs, by products and resources.

2. Develop a Performance Measurement System. Given the complexity of most

supply chains, a single performance measure will likely be inadequate in assessing the

true performance of the supply chain. Thus, a system of performance measures will benecessary. Such a performance measurement system must include measures for the

three environmental categories given above, as well as existing operational measures.

3. Measure the Supply Chain System. Calculate the actual composite performance at

each step in the supply chain process for each product. The composite performance,

as calculated at each supply chain process step, will be a function of the performance

measures developed above. The composite performance, therefore, may be a single

numerical value, or (more likely) a vector of numerical values.

4. Prioritize. After all processes for all products have been measured, prioritize the

process steps in order of increasing composite performance, as calculated above.

5. Develop Alternatives and Select Approach. Develop alternatives for performance

improvement (targeting first those process steps exhibiting the worst composite

performance, based on prioritization above), and select a preferred approach.

6. Establish Auditing and Improvement Procedures. Establish schedules and

procedures for auditing and continuous improvement, including emergency and non-

compliance procedures.

GREEN SUPPLY CHAIN MANAGEMENT IN INDIA:

There has been a lot of talk and discussions on GREEN supply chains, in the US and

Europe. What does GREEN Supply chain mean in the Indian context? What can we in India

do, to start the journey towards a GREEN supply chain?



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Problems with Green Supply Chain Management in India

Lack of Awareness ± SCM professionals and others parts of society are yet to be

made aware of advantages of such concept. This Creates a major hurdle for its

implementation.

Limited Access to Green Technology ± Most of the technological innovations in this

regards are made in developed countries, which are neither easily available nor affordable for

all Indian industries.

Lack of Expertise ± There is lack of professionals having knowledge of this domain.

Lack of Vision ± Limited vision of profit oriented organizations is a big blockage to

develop our minds towards sustainable growth. This issue is being picked up as a part of

social responsibility slowly but as of now most of the organizations follow environmental

norms just as a regulatory obligation.

What can be done?

Green supply chains are lean supply chains with minimal or zero waste. Although

India is yet to provide easy access to Green Transportation Technology , minimizing waste

within the supply chain will help in making the supply chain green. Now how can we reduce

waste in the supply chain?

Supply Chain Network: Getting the supply chain network right would reduce

transportation. The supply chain network implies location of plants, distribution centres,

warehouses and customization centres. As a thumb rule about 70% of the cost of a supply

chain is fixed at the network design stage itself. Network design and optimization should be

done whenever there is a change in the supply chain ± acquisition of a company, setting up a

new plant, changes in distribution structure.

For example, a lot of companies have recently moved to Baddi and Uttarnchal to take

advantage of the tax holidays that companies got by setting up factories there. This change in

the location of factories should have prompted companies to relook the complete supply

chain- relocating Distribution Centers, direct dispatch to some depots and eliminating

depots. With GST coming in and VAT being reduced/ eliminated companies will have to



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redesign their supply chains. Companies may decide not to have depots in every state and

consolidate depots into big mega Distribution Centres.

Transportation:

Companies should improve truck utilization. What this means is that the complete

weight and volume of the truck should be utilized. At the same time overloading should also

be avoided asiIt wrecks the roads and the underpowered Indian trucks have a tough time

negotiating even minor slopes and uphill gradients.

Example - A container is filled completely, yet the maximum permissible weight is

not reached. To maximize the utilization of the truck, products that cube-out and weigh-out

should be loaded together in a truck. Some products weigh-out, i.e. the truck reaches it¶s

maximum permissible weight while the maximum volume is not filled. There are software

available that help to maximize the capacity of the truck. For example one of the cost saving

ideas may be loading shampoos and diapers together in a truck rather than loading only

diapers or only shampoos. Trucks can also be designed so that truck¶s bodies maximize the

volume and weight.

Multi-modal transportation:

Use of railways instead of road. Rail is the most efficient means of transportation.

The coefficient of friction between metal and metal is lower than rubber and road. The

Railways has started becoming more customer friendly. Customers can own their

wagons. Wagons can be designed to meet the specific and special requirements of customers.

Goods can be loaded on parcel vans which travel at the same speed as mail and express

trains. For example a parcel van can be attached to the nightly express from Bhopal to New

Delhi, which reaches Delhi overnight. This is faster than a truck and at the same (if not lower

cost).

Coastal shipping:

Coastal shipping should be encouraged. Unfortunately for India, coastal shipping has

not caught on. This is because coastal shipping is discriminated against as compared to

foreign shipping.



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Inventory:

Eliminate damage and wastage. This means have good warehousing practices so that

damages are minimized. FollowFIFO (First In First Out) or FEFO (First Expiry First Out) so

that obsolescence is reduced. Have good pest control, fire prevention and fire control

systems. Keep inventory low as this reduces warehouse space required and consequently the

electricity bill and other expenditure related to maintaining a warehouse.

In all for India an efficient supply chain is a GREEN supply chain. And as the technology

spreads, we can shift to technologies being used in Developed nations.



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Green Procurement

Green purchasing means basing all purchasing decisions and allocation of contracts on

environmental criteria along with other criteria such as price and quality. Not only does green

purchasing positively contribute to environmental protection at a local level, it also creates apowerful market demand for greening the production and serves as a model to influence the

behaviour of companies, private institutions and households.

How to identify an ³environmentally pref erable product´?

Eco, green, greener, environmental, environmentally friendly, eco-responsible... The number

of qualifiers used to define products and services, which do not impact the environment as

strongly as their conventional counterparts, seems endless and confuses purchasers. On the

assumption that each product always impacts its environment, it is quite difficult to find a

definition to suit a substantial variety of goods and services.

Lif e Cycle Assessment (LCA), as the scientifically most reliable method, studies the

environmental impact of a product from its design to its disposal, taking into account all the

steps in between: raw material extraction, manufacturing, packaging, transport, storage and

utilisation. In this sense, an ³environmentally preferable product´ is a product which has an

overall minimum environmental impact throughout its lifespan, in comparison to other

products or services serving the same purpose and having the same functional qualities



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Eco-Friendly Manufacturing

Manufacturing industries account for a significant part of the world¶s consumption of

resources and generation of waste. Worldwide, the energy consumption of manufacturing

industries grew by 61% from 1971 to 2004 and accounts for nearly a third of today¶s globalenergy usage. Likewise, they are responsible for 36% of global carbon dioxide (CO2)

emissions.

Manufacturing industries nevertheless have the potential to become a driving force for the

creation of a sustainable society. They can design and implement integrated sustainable

practices and develop products and services that contribute to better environmental

performance. This requires a shift in the perception and understanding of industrial

production and the adoption of a more holistic approach to conducting business.

The environmental impact of industrial production has historically been dealt with by

dispersing pollution in less harmful or less apparent ways (UNEP and UNIDO, 2004). Driven

in part by stricter environmental regulations, industry has used various control and treatment

measures to reduce the amount of emissions and effluents. More recently, its efforts to

improve environmental performance have moved towards thinking in terms of lifecycles and



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integrated environmental strategies and management systems, and companies have also

begun to accept larger environmental responsibilities throughout their value chains.

The adoption of more integrated and systematic methods to improve sustainability

performance has laid the foundation for new business models or modes of provision whichcan potentially lead to significant environmental benefits. Efforts to create closed-loop,

circular production systems have particularly focused on revitalising disposed products into

new resources for production, for example by establishing eco-industrial parks where

economic and environmental synergies between traditionally unrelated industrial producers

can be harnessed (Figure 1 & 2).



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Eco Friendly Packaging

Since the late 1980s and the early 1990s the phrase "going green" has emerged as a term to

reckon with. Advances in industrial technology has led to a dump yard of toxic components

which is polluting the environment and disturbing our eco-system. More recently, countriesall over the world have woken up to the challenge of going green. Retailers have been the

first to respond by their introduction. The "Go Green" philosophy has forced us to re-think

even our methods of packaging and discover more eco-friendly ways to package our

products. Companies that have adopted such systems are making a loud and clear statement

to the world. These companies are saying they care for the future of our world and will do

their little bit to conserve the world's resources.

Definition: Eco-friendly packaging is packaging that uses environment-friendly materials in

its production. Most of the materials used are either recycled paper, or packaging that is

biodegradable.

Biodegradability means that substances can be broken down into more basic structures by

other living organisms acting upon them. Through these chemical reactions, the substance in

its original form no longer exists having been broken down into smaller substances which

naturally combine with the eco-system. Eco-friendly packaging is one of hottest ethical

global trends. Big-time companies in Europe, Japan, China and the United States now prefer

packaging made from recycled materials which are biodegradable. Now that bio-degradable

packaging has become cost-efficient with new technology and greater demand, most of these

companies are actually counting on boosting their sales because of their switch to

biodegradable packaging. Various studies show that consumers would be willing to pay a

little extra for packaging that is eco-friendly. Eco-friendly packaging also adds brand value to

a product. It shows that a company is willing to forfeit a part of its profit in order to preserve

the earth's resources. This is especially true if the product itself is eco-friendly. For example,

mineral water sold in biodegradable containers creates an impressive brand image. Cosmetics

and natural health products would also enhance their brand image by adopting eco-friendly

packaging. Some of the more popular eco-friendly packaging methods and materials are:

Biodegradable Plastics Plastic packaging, derived from petrochemicals, has significantly

contributed to our environmental crisis. As an alternative, bio-plastics are made from plants

sources like potatoes, wheat or corn. Bio-plastics are recyclable, unlike petrochemical



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plastics. Recycling of Paper Paper that has been recycled is also an option for eco-friendly

packaging, including 100% recycled boards. Metal Metal makes for stronger, durable

recyclable packaging material. Some of the more advanced alloys are light in weight and

more versatile for packaging purposes.

Minimizing Wastage Overpackaging has becoming an overnight no-no in the packaging

business. The bottom line is conservation of resources and too much packaging or packaging

a product more than is necessary, is considered downright wasting of the earth's resources.

Using Re-Usable Recyclable Packaging Not only is eco-friendly packaging made up of

materials that are bio-degradable, but the package itself should be recyclable for further use.

This is called Post Consumer Recycled (PCR). More companies that use eco-friendly

packaging prefer recyclable fibers.

Energy-Saving Bio-Friendly Packaging Manufacturers Packaging that has been manufactured

with renewable, pollution free energy is also given more preference by consumers. For

example: eco-friendly packaging manufacturers that work on wind generated power.

More Companies are Going for Eco-Friendly Packaging Chalone Vineyard based in Soledad,

California was one of the pioneer companies to adopt eco-friendly packaging in 2002,

receiving international awards for its achievements. Wild Oats began the trend of eco-

friendly packaging by being the first grocery store to use bio-degradable packing made from

corn, instead of petroleum. The famous chain store, Wal-Mart, is also using bio-degradable

packaging made from corn. Nordstorm and Macy's began producing 100% recyclable

shopping bags from April 208. In Europe, eco-friendly packaging was introduced in the

cosmetics industry from March 2006. Since then 600 products are using eco-friendly

packaging, as reported by Mintel's Global New Products Database. More companies are

using paper-pulp molds made from recycled cardboard, newspapers and cartons. This is used

as shock-proof packaging for packaging cameras, appliances, glassware, etc.

Rapid Expansion of Bio-Degradable Packaging This new trend in bio-degradable packaging

is seen in the rapid growth of bio-degradable packaging manufacturers, who are struggling to

keep up with the market demands. Cereplast, which is a bio-based cosmetics packager,

reported a 134% increase in their sales for the first quarter of 2008. Whether companies

report actual profits after adopting eco-friendly packaging is not the crucial question here.



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The importance is in joining forces with a worthy, worldwide cause for the future of our

generation, and of generations to come.

Today in every walk of life we talk in terms of Eco-friendly and Eco-labeling. The earlier

conference in Brazil on environment has highlighted the dwindling natural resources,pollution, acid rain etc. Subsequently, the Montreal Protocol had highlighted the effects on

Ozone Layer by the use of chlorofluro carbons. Earlier not much thought was given on

disposal of plastic material since it was mainly used for land filling. Subsequently it was

noticed that over long periods of time the plastics remain as such in the landfill and it was not

bio-degradable.

As a first step, considerable work was carried out by Scientists to develop bio-degradable

plastic. Though it has been successfully developed, at the moment it is uneconomical. As

such, more attention was given to make use of plastic waste which is eco-friendly from the

point of natural resources since the basic raw material is by-product of petroleum industry. In

addition the manufacture of plastics, consumes less energy and also it gives greater coverage

since it affords the desired protection in very low thickness. As such, there is considerable

savings in tare weight of packaging materials. Instead of removal of huge mass of garbage,

by segregation the respective materials is directly sent to the agency which recycles and

recovers and pays for the same. The funds thus generated meets the cost of disposal of

garbage. Examples are available where communities by co-operating in segregation of

packaging wastes, generate surplus funds in addition to meeting the cost of disposal.

It is the eco-labelling of plastics by way of accepted convention, the recovery and recycling

of plastics has been made easy. In advanced countries, on all plastic containers and bags there

is recycling sign below which there is a number which helps in identifying the plastics to

assist in recycling. In Germany, they have introduced the green dot sign by which the buyer is

able to identify the package which is eco-friendly.

Pierra J Louis, General Secretary, World Packaging Organisation, President, International

Packaging Club, IPC lists the following areas to achieve the above object.

1. Lowering the weight of packaging materials without decreasing the level of protection or

consumer safety.

2. Avoiding over-packaging.



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3. Developing new materials that are more easily recyclable.

4. Developing new recycling technologies.

5. Substitution for packages that will facilitate the collecting / sorting operations after use.

6. Switching to packaging materials and packages that can be incinerated easily without

generating hazardous substances.

7. Engineering new returnable packaging systems for both consumer and industrial goods.

It is about companies that choose to be kind to the environment and it's about consumers who

care enough for the environment to prefer products that are eco-friendly in every way. This is

the future trend, and those who miss out on this opportunity may get left behind.



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Green Transportation

What Is Green Transportation And Why Is It Important?

Wouldn¶t it be amazing to have a car that got over 100 miles to the gallon? Or better yet, to

have a car that didn¶t require any gas at all? The field of green transportation has grown by

leaps and bounds in the past few years, largely thanks to rising gas prices and increased

awareness.

According to the Energy Information Administration (EIA), the United States consumes 378

million gallons of gasoline every single day. And when it comes to our petroleum

consumption, we gobble down almost 19.5 million barrels every day. The statistics are

sobering. And it¶s even more sobering to think that this adds up to trillions of dollars that are

leaving our country each year, funding some governments and organizations that definitelydo not have our best interests at heart.

What Is Green Transportation?

Green transportation is any kind of transportation that doesn¶t negatively impact the

environment.

Types of Green Transportation

y Walking

y Bicycling

y Electric Scooters and bikes

y Green vehicles (powered by solar, electricity, hydrogen, wind, or biofuels)

y Car sharing

y Public transportation (buses, trains, subway)



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Why Switching To Green Transportation Methods Is So Important?

So, why does green transportation matter so much? Well, you¶ve probably already heard that

one day we¶re going to run out of fossil fuels (oil, natural gas, etc.). Fossil fuels, by their very

nature, are non-renewable because they take millions of years to form. So our Earth only has

a limited supply. And when are we going to run out? Well, that¶s anyone¶s guess.

Problem #1: PEAK Oil

Many people believe in the theory of Peak Oil, which says that there is a specific point in

time when our oil production will ³peak´, and then fall into permanent decline. But timing

that peak is difficult at best. Some experts believe that Peak has come and gone, and that

we¶re now in the ³twilight years´ of fossil fuel production.

For instance, oil magnate T. Boone Pickens believes that global oil production peaked in

2008, and he testified before the U.S. Senate Energy and Natural Resources Committee that

he thought we were now in a permanent decline.

Other experts believe we might have as many as 100 years before Peak Oil occurs. Whether

or not we¶re going to run out of oil is not the issue. As we said earlier, fossil fuels are non-

renewable, so we¶re going to run out someday.

The problem lies in the fact that our oil consumption is not slowing down. It¶s speeding up.

And thanks to the phenomenal growth of countries like India and China, we¶re consuming oil

at lightning speed. Which means if Peak Oil still is in the future, we¶re going to get there

sooner rather than later. If it¶s in the past, we¶ve really got to start scrambling to find a

replacement for our oil-addicted society.



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This is why getting´unaddicted´ to fossil fuels is so important. The less we rely on oil, the

less impacted we¶ll be when that Black Gold finally runs out. In fact, Sweden has become the

first country to announce a mission to break their country¶s addiction to fossil fuels by 2020.

Problem #2: Foreign Dependency

Another major problem with oil is where it¶s located. The majority of the world¶s oil is

controlled by countries that are unstable (like Venezuela and Saudi Arabia).

According to a study done by the RAND Corp., the greatest risk the United States faces when

it comes to depending on foreign oil is the risk of supply disruption.

All you have to do is remember back to the mid- 1970¶s (you can learn more about the 1973

Oil Crisishere). Our nation¶s oil supply was impacted by only 5% thanks to an OPEC

embargo. But that 5% decline sent prices through the roof (they quadrupled over just a few

months), and caused an intense panic through our society.

Can you imagine what would happen if OPEC did that again? Our nation is even more

addicted to oil than it was then. It would cause a major disruption, and panic, in our way of

life. This is just one of the risks with depending on foreign powers for our oil. Ultimately,

they have control. We don¶t.

What You Can Do?

The good news here is that we have the power to change. But, this change has to start on an

individual level. We all have to stop taking steps to green our transportation and use less oil

in our daily life.

y If you¶re in the market for buying a new car, think about getting a hybrid. Hybrids get

incredible gas milage because they use a combination of gas and electricity to move the

vehicle. They also produce cleaner emissions, which means fewer greenhouse gasses in the

atmosphere. And, take advantage of the tax credits our government is currently offering for

hybrid cars. You can find out more on the tax credits here.

y If you live close enough, walk or bike to work. These are the two greenest options to getaround: zero fossil fuels, and zero emissions! The second best option is to take public

transportation, or car pool with someone else.

Don¶t just drive mindlessly. Be aware of how much gas you¶re using! Combine shopping

trips so you only go out once, and walk or bike whenever you can.



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3R (R educe, R euse, recycle) of green supply chain management

³Reduce, Reuse, Recycle´ which has been used for many years to describe waste control

options other than straight disposal , What many people do not realize is that this phrase

represents a hierarchy of activities, starting with the most beneficial and moving to the least

attractive.

1. R educe- Source reduction is the most powerful and effective thing we can do to manage

waste. By designing systems and policies to prevent, minimize, or avoid waste in the first

place, when we prevent waste, we aren¶t spending money on raw materials that would

otherwise go in the garbage. At the same time, we¶re saving money on labor costs associated

with handling or processing these materials. We¶re also avoiding hauling and landfill fees

(and carbon emissions) associated with recycling, composting tor disposing of the waste.

2. R euse- Reuse is next best option after source reduction. With reuse, you find a secondary

way to obtain value from an item that would otherwise be wasted. In foodservice, the most

common reuse opportunities involve 1) redeploying overproduced food elsewhere on the

menu (provided you comply strictly with food safety guidelines) and 2) donating to a food

recovery program that will provide it to those in need. In certain jurisdictions, food can also

be donated to feed animals provided it is handled and treated correctly.

3. R ecycle- Recycle is the final good option prior to disposal. By recycling or composting,

you divert the waste from the landfill or elsewhere in the solid waste stream and ensure

ongoing value when the item is converted into something useful.

A.3R¶s in procurement process:

(1) Reuse or recycle ± paper, parts container (plastic box/bag)

(2) Order via email (paperless).

B.3R¶s in manufacturing process:

(1) promotes reuse/ recycle of parts

(2) Enhance environmental consciousness via 3Rs activities

(3) Reduce indirect materials.

D. R everse Logistics:



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Reverse logistics is the process of retrieving the product from the end consumer for the

purposes of capturing value or proper disposal. Activities include collection, combined

inspection/selection/sorting, re-processing/direct recovery, redistribution, and disposal.



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Environmental Policies

Public Pressure:

Currently, most of consumers claim that their purchasing decisions are influenced by a

company¶s environmental reputation, and some of them would be willing to pay more for

environmentally friendly goods.

On a worldwide level, a recent 22-country survey of environmental attitudes found that:

1. In half of the countries surveyed, the environment was considered one of the three

most serious problems.

2. In most countries, the majority of the citizens surveyed said that the state of the

environment affects their health, and an even greater majority say that the

environment affects the health of their children.

3. In 16 of the 22 countries, citizens said that they avoid products that are harmful to the

environment.

Thus, in the India, and worldwide, there is an overall awareness of the worsening state of the

environment, as well as a desire to reverse that trend, even if it costs more to do so.

Environmental Legislation:

In response to growing worldwide concern regarding the state of the environment, including

pollution and resource conservation, new environmental legislation was adopted in the India.

Environmental Management Standards (ISO 14000 Series)

In response to more stringent environmental regulations and changes in environmental

management philosophy, there has been a corresponding need to develop operational

guidelines and standards to assist organizations in moving towards ecologically sustainable

business practices. The ISO 14000 series standard is designed to address these needs.

Objectives and Structure:

Recently, the International Organization for Standards (ISO) adopted ISO 14000 Series as its

international specification standard for environmental management systems, with the

objectives of:

1. Encouraging an internationally common approach to environmental management.



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2. Strengthening companies¶ abilities to improve and measure environmental performance,

through continual system audits.

3. Improving international trade and removing trade barriers.

The ISO 14000 Series documentation is comprised of five basic components, and is

structured as:-

ISO 14001 Specifies minimum requirements for achieving ISO 14000 Certification.

ISO 14004 Sets guidelines for developing an environmental management (EM) system.

ISO 14010 Establishes the general principles of environmental auditing.

ISO 14011 Establishes auditing procedures for the auditing of EM systems.

ISO 14012 Establishes qualification criteria for environmental auditors.

P rimary Requirements:

ISO 14000 addresses these three objectives by requiring that organizations develop.

1. An advance environmental impact analysis of all new activities, products, and processes.

2. A continuous environmental impact assessment of current activities, products, and process.

3. Standards and objectives that includes policies for pollution prevention and waste

minimization that are defined for and continuously improved at every organizational level.

4. Numerical targets and monitoring procedures for each identified objective.

5. Procedures to be followed in the event of non-compliance with established environmental

policies, and in cases of accidental discharge.

6. Procedures to ensure that suppliers and contractors working within or associated with

organizational facilities apply environmental standards equivalent to organizational

standards.

Thus, ISO 14000 is indicative of the recent shift in environmental philosophy; ISO

14000focuses on procedures and systems, and says nothing of discharge standards, limits, or

test methods.



Benefits of Green SupplyChain Management

Economic benefits from increased efficiency. By reducing wastes, companies

decrease handling expenses, fines, and even costly inputs. Supplier's savings may be

passed along to buyer companies.

Competitive advantage through innovation. Efficient production is enhanced through

the use of cleaner technologies, process innovation, and waste reduction. Reduction in

wastes equals dollars earned.

Improved product quality. Supply chains partnerships help to maintain relationships

between buyers and suppliers leading to increased control over product quality.

Consistent corporate environmental goals. In an era of multi-faceted, non-vertical

manufacturing, companies include supplier outreach to address corporate

environmental goals.

Improved public image. Consumers, investors, and employees respond positively to

companies with a reputation for good environmental performance.

environment gscm report

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