1. Manish Choudhary et al. / International Journal of Engineering Science and Technology (IJEST)
Integration of Green Practices in Supply
Chain Environment
The practices of Inbound, Operational,
Outbound and Reverse logistics
MANISH CHOUDHARY
Malwa Institute of Science and Technology,
Indore, Madhya Pradesh (India)
mchoudhary1611@gmail.com
NITIN SETH
Indian Institute of Foreign Trade,
New Delhi (India)
nitiseth@yahoo.com
Abstract:
The present decade is fully conscious about the environmental problems and green products for sustainable
development and the recent agenda of Indian Industries facing the environmental problems. The intense pressure
from government regulatory acts to implement and become the industries Environment Sustainable (ES). Green
Supply Chain Management (GSCM) has emerged as a key approach for automobile manufacturing industries
seeking to become Environmentally Sustainable (ES). There is a growing need to integrate GSCM into Inbound,
Operational and Outbound supply chain. This study reviewed various literatures on Supplier (Inbound),
Organizational (Operational), Distributional (Outbound) and Reverse logistics (RL) of Green Supply chain
management. This paper propose concise framework for forward direction GSCM (FGSCM) and reverse
direction GSCM (RGSCM).
Keywords: Green Supply Chain Management (GSCM), Environment Sustainable (ES), reverse logistics (RL),
Inbound, Operational and Outbound supply chain.
1. Introduction:
Numerous researchers [26] [28] [22] have pointed for increasing environmental issues and problems of
resource depletion. Due to stricter governmental regulatory acts, some of the Indian automobile manufacturing
industries like TATA motors, EISHER motors, Force motors, MAHLE Engine Components, Mahindra Two
wheelers etc. have implemented ISO 14001 certification to reduce the degradation of environment. In global
scenario, the customers and communities are demanding the environmentally friendly products. This pressures
and extremely serious the manufacturing industries for green practices from raw material to finished products
and up to the end user to disposal.
In the previous frameworks [23] [14], the researchers and practitioners have elaborated the GSCM
needs, drivers, practices and performances. But these frameworks are not clearly elaborated the integration and
optimization of inbound, operational, outbound and Reverse Logistics. The importance of GSCM is to innovate,
implement and widespread the new techniques for sustainable development and deployment to the automobile
industries.
At present, the Indian automobile industry has grown and it holds a promising and challenging tenth
position in the entire world with being number 2 in two wheelers and number 4 in commercial vehicles. A
growth rate withstanding of 18% per annum and production of more than 2 million units per annum, it may not
be an exaggeration to say that this industry in the coming years will soon touch a figure of 10 million units per
annum.
Market Share of Automobile industry of India can be broadly classified under passenger vehicles,
commercial vehicles, three wheelers and two wheelers, with two wheelers having a maximum market share of
more than 75%. Automobile companies of India, Korea, Europe and Japan have a significant hold on the Indian
market share. Tata Motors produces maximum numbers of mid and large size commercial vehicles, holding
more that 60% of the market share. Motorcycles top the charts of two wheelers with Hero Honda being the key
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player. Bajaj by far is the number one manufacturer of three wheelers in India. This experiencing increased
pollution and challenges and encourages reducing and recycling.
The wide scope of GSCM is ranges from implementing and monitoring of the general environment
management programmes to more creating or controlling practices implemented through various Rs (Reduce,
Re-use, Rework, Refurbish, Reclaim, Recycle, Remanufacture, Reverse logistics, etc.) [26] towards attaining a
GSCM waste minimization is being considered as an important strategic. The waste, which is non-value adding
activity, carried out in any operation. The most commonly perceived enemy to environmental protection in
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 [9]
The objective of this research is to identify the dearth of GSCM integration in the supply chain
environment, and therefore integrate the potential of GSCM gaps, issues and evolve new opportunities for
further research. The GSCM classification is categorize in four heads as shown in Fig. 1.
This paper begins with brief description of GSCM and automobile industry in general. It precedes with
the GSCM definitions and section 3 provides an overview of research objectives by integration of Inbound,
Operational, and Outbound supply chain and reverses logistics, which provides the integrated GSCM and
GSCM practices. Section 4 is a conclusion of the paper.
2. GSCM Defined:
A selected number of definitions of GSCM [20] over the past decades including:
2.1 The new concept of green supply chain management has added an environmentally conscious mindset to
supply chain management and has been introduced into many final manufacturing processes [1]
2.2 GSCM is defined as: Green Supply Chain Management (GSCM) = Green Purchasing + Green
Manufacturing/Materials Management + Green Distribution/Marketing + Reverse Logistics. [1]
2.3 Green supply refers to the way in which innovations in supply chain management and industrial
purchasing may be considered in the context of the environment. [13]
2.4 Environmental supply chain management consists of the purchasing function’s involvement in activities that
include reduction, recycling, reuse and the substitution of materials. [25]
2.5 The practice of monitoring and improving environmental performance in the supply chain . . . [24]
2.6 The term ‘supply chain’ describes the network of suppliers, distributors and consumers. It also includes
transportation between the supplier and the consumer, as well as the final consumer . . . the environmental
effects of the researching developing, manufacturing, storing, transporting, and using a product, as well as
disposing of the product waste, must be considered. [12]
3. Literature review:
A brief literature review on GSCM integration, we introduce some of GSCM integration on Inbound,
Operational, Outbound and Reverse logistics.
As suggested [30] framework for managers, an effective tool for operations wishing to design environmental
PMSs. Authors presented internal factors such as economic performance, green product development etc. and
external variables such as green movements or regulators to identify green manufacturing strategy. Suggested,
manufacturing strategies on operations policies such as procurement policies, product planning, production and
manufacturing technologies, logistics and human resource management.
As described By [31], the differences between the traditional supply chain and the extended supply chain. In
traditional supply chain issues considered as production/distribution scheduling, inventory levels, number of
stages, distribution center, plant-product assignment etc. and in extended supply chain benefits realized as
reduced product life cycle costs, reduced environmental and health risks, safer, cleaner factories, recycling and
re-use and remanufacturing. Investigated the environmental factors leading to the development of extended of
recovery operations, such as remanufacturing, recycling, and re-use adds an additional level of complexity to
supply chain design, and forms potential operational and strategic considerations and strategic issues such as
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inventory control policies, impact of uncontrollable recovery processes on inventory composition, production
planning, and scheduling, disassembly planning etc.
Author [32] examined the linkages between green supply chain practices such as environmental
collaboration with suppliers, environmental monitoring upon suppliers, environmental collaboration with
customers, environmental monitoring by customers and the selection of environmental technologies such as
pollution prevention, pollution control, management system. As explored by [33], impact of relationship
conditions existing between a customer and its suppliers such as programs to reduce or eliminate materials used
in manufacturing processes or products etc. on the uptake and effectiveness of the customer’s environmental
performance requirements.
[1] Introduced and provided an overview of the various internal issues such as cost and profit driven, legacy
systems, data management systems, ISO 9000:2000, total quality management, and other industry-specific
standards and integrate works in supply chain management, environmental management, and performance
management into one framework and external issues such as size organizations and specific industries,
regulatory pressure, resource productivity, environmental innovation, an integrated technological system,
environmental compliance, liability, issues of business continuity, the call for benchmarking to national,
international, or industry standards, customer attitudes toward product take-back, and inter-organizational
information technology/data management systems related to environmental (green) supply chain management
performance measurement. Provides metrics of environmental performance from the TRI and the Global
Reporting Initiative of air emissions to energy recovery and recycling such as fugitive non-point air emissions,
stack or point air emissions, discharges to receiving streams and water bodies and general measures such as
employee and participative management, publicly available missions and values statement(s) etc.
Explored by [34], the green supply chain management (GSCM) initiatives (implementation) and practices
such as internal environmental management (IEM), green purchasing(GP), customer cooperation (CC),
investment recovery(IR), and eco-design (ECO) of various manufacturing industries. Support for GSCM from
mid-level managers, cross-functional cooperation, for environmental improvements, total quality environmental
management, environmental compliance and auditing, programs, ISO 14001 certification, environmental
management systems exist, providing design specification to suppliers that include environmental requirements
for purchased item, cooperation with suppliers for environmental objectives, environmental audit for suppliers’
internal management, suppliers’ ISO14000 certification, second-tier supplier, environmentally friendly practice
evaluation, cooperation with customers for eco-design, cooperation with customers for cleaner production,
cooperation with customers for green packaging, cooperation with customers for using less energy, during
product transportation, investment recovery (sale) of excess inventories/materials, sale of scrap and used
materials, sale of excess capital equipment, design of products for reduced consumption of materials/energy,
design of products for reuse, recycle, recovery of materials, component parts, design of products to avoid or
reduce use of hazardous products and/or their manufacturing process.
4.1 Inbound GSCM:
This is the early part of supply chain. This takes care of Internal Environment Management (IEM). The
integration of suppliers functioning begin with Green purchasing (GP) of raw material [26] [21] [22] this GP can
be integrated with green design and leads to Environment friendly raw material, Substitution of environmentally
questionable raw materials, [17] [1], some programmes like Holding awareness seminars for suppliers/
contractors, Guiding suppliers to establish their own environmental programs [19], Suppliers’ ISO14001
certification [22] This practice improves reduction of solid/liquid wastes, reduction of emissions, resource
reduction and decrease of consumption for hazardous/harmful/toxic materials [28]
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Green Supply Chain Management (GSCM)
Inbound Operational Outbound Reverse Logistics
Green purchasing Cleaner production Green marketing
strategies
Waste exchange
Environment- environmentally-
Integration of Design for friendly
suppliers environment friendly packaging
transportation
Remanufacturing Environment-friendly
and lean production distribution
Fig. 1 Integration of GSCM
4.2 Operational GSCM:
This is the middle part of supply chain. This takes care of operations performed on the product. It begins with
Green Design (GD) [4], Eco-design or design for the environment, Design for reduction, Design for reuse,
Design for recycling, Design for remanufacturing, Design for resource efficiency [28], Green manufacturing [4],
Optimization of processes to reduce solid waste, Optimization of processes to reduce air emission, Optimization
of processes to reduce noise, Use cleaner technology processes to make savings (energy, water, wastes) [17] The
benefits of integration is to Reduction of solid/liquid waste, Reduction of emission [19], on-site and off-site
energy recovery [1] [17]can be integrated cleaner production, which leads to Increased efficiency, Product
quality improvement, Productivity improvement, Cost saving [17] [19], Quality improvement [19]
4.3 Outbound GSCM:
This stage is the final delivery of product and contains pick and place of product and delivery. Sometimes Eco-
labelling [5], green marketing, environment-friendly packaging, and environment-friendly distribution are all
the functions of an organization for Outbound GSCM and its supply chain [18] [11], Low-density packaging,
Bio-degradable packaging [8]
4.4 Reverse Logistics:
Reverse Logistics is a ‘‘closing the loop’’ of supply Chain. An Automobile company can save raw materials,
water, energy, processes etc., through recycling, and by that way, the company can achieve both cost and
competitive advantage of Recycling, Refurbishing, Re- manufacturing, Uneconomic recycling [1] [29] [19]
[22], on-site or off-site treatment, Cost for disposal of hazardous materials, Suppliers advances in providing
environmentally friendly packages, Re-using, Disassembly, Re-engineering [4]
The integration of inbound activity with operational activities will ascertain the issues in both part of
the supply chain. Table 1 shows the functions of Supplier (Inbound), Organizational (Operational), and
Distributional (Outbound) and reverse logistics (RL) of green supply chain management and benefits, issues
addressed and factors for greening the GSCM. The functions such as Green Purchasing (GP), Cleaner
Production, Green Design (GD), Re-Manufacturing of rejected products, and lean production. Fig 2 shows
integrated GSCM.
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Forward Green Supply Chain Management (FGSCM) of Automobile Industry
Manufacturing
manufacturing
Green Design
Distribution
Purchasing
Packaging
Green
Green
Green
Green
Re-
Reverse Green Supply Chain Management (RGSCM) of Automobile Industry
manufacturin
Marketing
Re- Cycle
Re-Claim
Re-Work
Re- Use
Green
Re-
g
Fig. 2 Integrated GSCM
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Sr. supply chain Functional Broad Area Typical Benefits Issues addressed Typical issues and Drivers
No. function for Greening
1 Supplier 1. Cost reduction, 1. Reduction of waste produced, 1. Holding awareness seminars
(Inbound) Green purchasing strategies, 2. Integrating suppliers in a participative 2. Material substitution through for suppliers and contractors;
[19]The integration of decision-making process that environmental sourcing of raw 2. Guiding suppliers to set up
suppliers into environmental promotes environmental innovation. materials, and their own environmental
management processes, [27] [7] [10] [17]Source reduction of 3. Waste minimization of hazardous programs;
pollution in terms of recycling, materials. 3. Bringing together suppliers
3. Re-use and Low-density packaging, 4. Lack of management in the same industry to share
and Towards waste elimination in commitment, lack of buyer their know-how and
terms of scrapping or dumping, awareness, problems
recycling and 5. Lack of supplier awareness, 4. Informing suppliers about
4. Sorting for non-toxic incineration and deficient company-wide the benefits of cleaner
bio-degradable packaging. [8] environmental standards or production and technologies;
5. The high cost of environmental auditing programs and 5. Urging/pressuring suppliers
programs, uneconomical recycling 6. Lack of state and federal to take environmental
and uneconomical re-use regulations actions; and
6. Choice of suppliers by
environmental criteria.
2 Organizational 1. Cleaner production, 1. Reducing lead times, material and 1. Reducing waste and pollution, 1. Environmentally-friendly
(Operational) 2. Design for staff costs, 2. Reducing the environmental raw materials;
environment, 2. Increasing production activity and impact of the production phase, 2. Substitution of
3. Remanufacturing and enhancing quality, [16] 3. General waste reduction and environmentally
lean production 3. Reduces the marginal cost of minimizing hazardous wastes, [3] questionable materials;
environmental management 4. Reduces the marginal cost of 3. Taking environmental
4. Products/services produced are environmental management and, criteria into consideration;
environmentally-friendly in nature; enhanced environmental 4. Environmental design
5. Prevention of pollution at source, performance. [2] considerations;
6. Cleaner production practices are 5. Optimization of process to
adopted; reduce solid waste and
7. Closed loop manufacturing (reverse emissions;
logistics), 6. Use of cleaner technology
8. Wastes generated are processed and processes to make savings in
recycled; energy, water, and waste;
9. Re-use and recycling of materials is 7. Internal recycling of
maximized; materials within the
10. Material usage is reduced; production phase; and
11. The recyclable content of a product is 8. Incorporating environmental
increased; total quality management
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12. The production processes are principles such as worker
optimized, and empowerment.
13. Products are redesigned (design for
the environment)
Distributional 1. Green marketing, 1. Cost savings and 1. Dispose of the waste, 1. Environment-friendly waste
3 (Outbound) 2. Environment-friendly 2. Enhanced competitiveness 2. Recycling and management;
packaging, and 3. Utilization of all waste,[15] 3. Re-use of packaging, [6] 2. Environmental improvement
3. Environment-friendly of packaging;
distribution, [18][11] 3. Taking back packaging;
4. Eco-labelling;
5. Recovery of company’s end-
of-life products;
6. Providing consumers with
information on
environmental friendly
products and/or production
methods
Reverse logistics 1. Reverse logistics 1. Cost savings 1. Dispose of the waste, 1. Use of environmentally-
4 (RL) and Waste friendly transportation.
exchange, 2. Taking back packaging
2. environmentally-
friendly
transportation
Table: 1 GSCM Practices (Environmental Initiative)
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4. Conclusion:
To achieve environmental and sustainable development, the developing country like India will have to
focus on GSCM practices. The integration of supply chain functions like Supplier (Inbound), Organizational
(Operational), Distributional (Outbound) and Reverse logistics (RL), the automobile companies can systematize
there supply chain from Green Purchasing to Green Distribution and take back the product for re-use, re-
manufacturing, refurbishing or dis-assembly.
The integration of GSCM will provide conceptual broader framework to researchers. The GSCM can
reduce the degradation of environment due to improper utilisation of resources and manufacturing processes.
Proper integration of GSCM facilities and resources, Manufacturing Industries can reduce general waste and
minimizing hazardous and toxic wastes, reducing waste and pollution, reducing the environmental impact of the
production phase.
At the supplier’s and organisational end, the issues like reduction of solid waste, reduction of air
pollution, substitution of environmentally friendly material and minimize the waste of hazardous materials, lack
of buyer awareness, Lack of management commitment, Lack of supplier awareness, Lack of state and federal
regulations are resolved. At distributional and reverse logistics end, the issue like re-cycling, re-use of
packaging and dispose of the waste.
Concluding, Automobile Manufacturing Industries can implement GSCM in firm and earn profits by
saving cost of products and processes, reduce lead times, material and staff costs, increasing production activity
and enhancing quality, reduces the marginal cost of environmental management, products/services produced are
environmentally-friendly in nature, prevention of pollution at source, cleaner production practices are adopted
and closed loop manufacturing (reverse logistics). The paper presented a select summary of the contributions in
the less explored GSCM area highlighting the rich agenda for researchers.
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