Green Supply Chain Management: Strategy to Gain Competitiveness Advantage.

Technologies

and

Policy

Journal,

of

Energy

ssN

2:t2-t

. t,':l:,

ir,r'

SSN

2.':i

il'

i.i ,'.r.

i4

\tr

-l

N,)

lj,2al-i

Sirec.l.

ssue

lor

illLtrSF

:iar:l

Vol3, No

11

(2013)

Special Issue

for

ICEESE-2o13

2013 International Conference on Energy, Environment and Sustainable Economy (EESE 2013) was held

n Bangkok, Thailand, Dec 1st-

4th,

2013.

IISTE published the artrcles in this special issue based on the

.e.ommendations from the conference organizing committee,

Table of Contents

Articles

Renewable

Enerey in

Malavsia:

Expgdg4qgitqqPgflis

Aslam,

M.M, ZulkiJli, D.A

The ImDortance

ofEnerqy

And

The Use

ofEnerev

As

A

Power

Factor

Bdhad

Aydin

Tenant

participation in

sus

-\HP

and

case

studies

Brano

Glumac, Susan Reurek(lmP, Qi

Han,

tVim Schaefer

olar

Cells Fabri

Characteristics

ofP-printing

Process

Hyun-Ji

Song, Won-Ki Lee, Chel-Jong

Choi

Solid

Waste

Manaeement Pmctices

ofHouseholds

in the

UniversitY

of

Eastem

Philippines

Chenl

l.

Ultra, Allan

A.

Ultra

Eastem

PhilipB,!!9!

Cherry

I.

Ultrd

Maranda

Esferhuizen-Londt. Ben Zeelie

Leah

A

quilo-

de Asis

Variarion

In

I

he Role

And Cooins

Mechanism

of4Ps

Beneficiaries In

Northem

Samar

Veronica

A. Piczon. Leah A. De Asis, Tito

M.

Cabili

Invento

ofthe

Aquatic

Macrophv4es

in

Lake KharunsDat.

India

K. Khelchandra

Singh,

B

Manihqr Sharna,

Khurqiiom

Usha

Economv Cnos,th and

Oil

Import

Reouirement in Indonesia

Dwi Atty Mardiana,

Zulkilli

Husin,

Muhammad

Zilal

Hqmzah,

RS. TrUana

Kqrtoatr

odjo

Electrochemical Treatment

of

Hazardous Oreanic

Pollutants A

Status

Review

Himodti

R.

Ghaiak

Veeetation

Analysis

ofthe

Pasonanca

Natural

Park.

Zainboanea

l-5

6-15

t6-26

27 -31

32-34

35-38

39-45

46-51

52-6)

64-75

'76-83

CitY.

Philippines

Jocelyn

D

Partosa, Jamaica

L

Delos

Reyes

Jose Rizakly

A.

de

Armas

Environmental Policy

and

Toumaments:

A

Theoretical

Fomrulation

with

Over-compliance

Linus NyitNul

Ma. Esnella Natalie

B.

Pineda

Mohammad

Asadullah

Muhummad

Moniruzzumon, Ttutomu

()no, Suzana

Yusup.

Suion

Cfu,tudhury. Mohammad Azmi Bustam,

Yorhimistu Liemurd

'

N. Vu r hulaks

hni

A

ndal,

G.

Goh ulavon

i

Noritdko

yusa,

Jing llang, Iikka

Virkkunen

Forecastins

ofElectric

Consumption

in

a

Semiconductor Plant

usine

Time

Series

Methods

Prayad 8.,

Somsak

S.

Resression Models

For Prediction

Of

Water

Ouality [n Krishna

River

M- Chandra Sekhqr, K. Surender Reddy

Rdza

Ali

Khan,

Mohd Shahir Liew,

Zulkipli Bin

Ghazali

Greenine

ofthe

Solid

Waste Manaeement

in

Batansas

Citv

Pdz

B

Reyes,

Mqbelle

V. Furto

Rolando P.

Javellonor,

Victorino

T. Tayldn,

Ireneo

C. Awlto,

Teresito G.

Aguinaldo,

Emmanuel

V.

Sicat,

Hele

F.

Gaiino

Kr

ittaphong Chitphairot,

Somboon

Nuc

hprayoon

Effect

ofOperatinq

Condition

on

Peformance of Anaerobic

Hybrid

Reactor

at

Themophilic

Temperature

Sorawil

Wdnitqnukul,

Warin

Rukruen.

Parinee

Choiprasert

90-r 00

l0l

-r06

107-l

15

I

l6-136

137-143

144-1s2

153-164

165-169

170-t77

178-l8t

182-186

187-194

195-203

204-2t0

.iCarbon

Tax

on

El

in Thailand usi

--:'i:lt'le

G

S

"-., :

t

huk ll-ac

hi

rarangsrikul,

Chumnong

Soropipalana, Nattapong

?

:,:tan,tpong.

Jctrto|a

ChonIan61)aI

...J

\lu::omil

Hussain Shah,

Khamaruzaman

Wan Yusof,

Z;)tiunra

)lustaffa, Ahmod

Mustafa

Hashim

=.e oi

Incrnerated Rice Husk

for Adsomtion

ofReactive Dve

from

-:

-:..,rs

Solution

l;:nnt

Khan,

Malay Choudhuti,

Mohamed

Hasnain

lsa, Atkil'ul

Zr;i

Bin

lbdul

Hamid

!

{:1Jl'

sis

of RF

Sp

:-::..:inr

on ITiO

Films

Characteristics

T

Lhutkeeree,

P

Nuchuay, N. Thungsuk, N. KasayoPanand, A.

(

adou,|rcdd,

N.

Mungkung

i

..:irn

tnd

Strategic Management

I

i-Kuo Chang, Zh-Hong Hu,

Zhen-llei

Hong,

Tsung-Yen

Wu,

(

hun-Chang Cheng

f.'chno-Economic

Studv

ofSeries Cunent

Limitinq

Reactor and Its

Impacr

in

the-LLKY

]lqluqlLt{ilLHarmonic

Pollution

I

T,

SRIDHAR,

HAITHAM

SAFAR, NLLESH MODI,

YOUSUF

1LI- }"1COUB

AL-DASHTI

Charactcrizatiolt

of Diesel-Hvdroeen

Peroxide

[uel

Blend

\luhanlnad

Saad

Khan, Iqbul

Ahmed, M I Abtlul

Mutalib,

M

.1 B Ltslatl11

\:lural

Adsorbent: Removal

ofAnionic

surfactant

ftom

qreY

'.,::er

and its comparison

with

chemical adsorbent

('huntla

Vetma, Santosh

K-

Sar, J-

Mathev

method and aDDlication to

solid

u'aste manaeement service

improvement

Shehu Usman

Adam, Mad

Nasir Shatnsudin, Shaulique F. Sidique,

Khalkl

Ahdul

Rahim.

Alias

kddn

Shailendra Mohdn

Mathur

Enhancement on Radon

Adsoq)tion

Propertv

ofGAC

usirq Nano-size

Carbon

Colloids

Model

220-228

229-213

234-239

240-

45

246-250

251-258

259-263

264-2',73

27

4-279

280-290

291-298

Tareert Management System

in Korea

*ung-chan

C_hoi,

Seon-hong

Kim,

Do-hyeon

Kim,

Min-jun

Kim,

Gyeong-mih Kqng, Seung-yeon Cho

YeonSang Lee,

Meoung-Do Kim,

Intaekyoon,

Sohyun

yoon

312-319

307-31 l

320-333

334-341

351-363

164-36a

369-373

374-38t

Meythi

,

Riki

Mafiusa

New-tyDe

of

Multi-purpose

Standard Radon Chamber

in

South

Korea

Min-jun-Kim.

Seon-hohg Kim. Do-hyeon

Kim, Ho-jun

Jeon.

Seung-Yeon Cho

\gd

Shujao

Safdar Gardezi,

Nasir Shafiq,

M.

Faris B

Khamidi

RHOBERT E.

ALI/AREZ,

TIRSO

A RONSUILLO

The

Sustainability Accounting

Infomation

System

Riki

Martusa.,

Meythi

.

clean ener

Dayliehtine

Desisn in

Tekan

(Iran)

Seyed Hos

s e

in

Mirm

ous av

i

Assessine

Financial

Vulnerability of

Cooperative

Muhamuad

Anas

Mohd

Bul:ltorl

Rohana Othmon,

Nooraslinda

Abdul Aris. Normah

Onar

Norliz.a Omar, Roshayctni

Arshad,

l'/an

Ainul Asyiqih ll/an

Mohd

Razali

Ta-moi

Jqnggu,

Faizdh

Datusl

yussri

Sav,ani,

Mustaffa

Mohqmed

Zaik

Sophia

XN Biah,

Victor ll/ong

lgshayani

Arshad,

Noorbijan

Abu

B(tkar,

lyanAinul Asyiqin

Wan

Mohd

Rqzali.

Normah Omar

342-345

346-350

382-389

390-396

39'7

-407

Git

h

i Donatus Mdt

h en

ge

.1lt.d

Rdn

i

)lohd

Sobre

Ismail

Fui.ah

Darus.

Haslintla

Yusolf,

Nor Khodijah

Mohd

Azhari

Hollinda

Yusolf,

Foizah

D(lrus,

Hasd

Fauzi,

yatli

415-432

433-439

440-445

446-456

45',7

-470

471-478

479-488

489-494

495-500

Ftnlonns

Ri

Suharlini.

Sujan

Choldhury, Madiha

Yasit,

Kuen-Song

Lin

s

In

Non

Pro

Moham

adAz

i B

Buslan,

Devel

Discl

Or{aJisations

In

Malavsia

ll'an Ainul

Asyiqin

Wan Mohd Razali, Roshayani

.lrslrud2Normah Omar

\-ooraslintla Abdul Aris,

Rohana Othman,

Rafdah Mohd

.1:li

Re\

ie\\

ofGreen

Buildins

Demand Factors

for Malavsia

Go,]rrin

Ltche

Aliagha,

Maizon Hashim, Aleez

Ololekan

Sanni,

Noorbijan Abu

Bakar,

Roshayoni

Arshad,

Nik Amalena

Najebah

Nik Azman-

Normah Omar

on

ofOne-dimensional

mium Ion

liom

Wastewa

The

S

Iand

T

s

Sustai

tal

M

Jondal olLnergt Tochnologics and Potic)

ISSN 2221-1212 (Paper) lsSN22:5-0j7:t (Online)

vol3. No I I, 2013 hsue lor lNinanon.l C..lcrenceon E..r lln\

tr.dnr.nl

dsulanuble Econony(L!SF 20tl

.i

E ES E-10 I 3 is o.ganised by Ir remational Socier) lor C o mnr i rc e_ Industry

&

Engineerins.

Green

Supply Chain Management:

Strategy to

Gain

Competiu,

Advantage

Melrhir

RikiManusar'

I. Accounring Profesjonal SchootDepartmenr, Ma.anarha Christian Unrversiry, Indonesian:

2

Master of Accounting, Maranatha Christian Universjry, tndonesjan:

*Emailaddress _{otcoresponding author:}

theo 6 tus200l (Oyahoo com

Grcen Supply Chain Management (GSCM) has become a porentialty valuabte

way

of

securing

cu::

advantage and

inproving

organizarional _{performance Wjth inc.easing competi(ion in loday,s}

glob;l nr.,.

firms have

to

look

to

the rnodem stmtegic manners,

in

order ro gajn susrainabte organization and

cor:

advanrage

GSCM as

a

new innovalive

manageriat

toot

can

be

used as

a

strategic weapon

competitiveness and to promore the firms environmenlat and financiat performance snnutraneously

iHr

.

a1.,2012). GSCM as a srralegy to gain competirive adlantage means rhe orienljng ernpiricat srud) sl

there is a substanlral interesr amongst the companies ro take aclion to decrease their environrnentat

im;

.

goal

otadding

value _{to the business and reducjng costs} jn

aI

_parts

oflhe

_production

system is identifie,

drivers

in

order to increase compeririveness. The companres agree that the con:mon rnanufacrurin-e

o:,

such as cost,

qualiiy,

d€livery and

fleribitity

wilt

not

be enough

in

order

to

stay cornpelirive when

.

slakeholders require an increased focus on susrainabitiry Hence, a need

for

rnvesiigating how

envirf

sustainabilny can be rnregrated to creare _{a comperitive production system has been}

identified

_{The per-:}

thcn changes lrom greening as a burdcn ro greening as a porential sourcc ofcomperilive advanrage

Acci,-SimpsoD and Sanson (2008) there are 4 (four) strategies to gajn compctitive advantage in rhe use ofGSa .

Risk-based Straregies.

(2)

Efiicrency,based Straregjes,

(3)

lnnovalion-based Srraregies, and

(1)

Clo--Strategies.

Keywords: Green suppl), chain management (GSCM), competirive advanrage, risk_based straregies,

en--based strategies, innovation-based strategi€s, and ctos€dtoop siraregies.

1.

Introduction

GSCM has its roots in both environmenl _{nlanagemenr and Supply Chain Management (SCM) Uterarure}

l

the 'greerr' componeni to SCM involves addressing rhe influence _{and retalronships berwcen SCM and} rhe

environment Similar to the concepl

olSCM,

the boundary

ofGSCM

is dependent on the

goalofrhe jr\

e.

(Srivastava, 2007) As in _{any emerging research area, the} early literarure _{focuses on rhe ne;essir, and irnF}

,

ofGSCM.

defines the meaning and scope

ofvaflous

tenns and sugges(s approaches to exptore the

a.ea

,

Fundamentals

of

greening as

a

competirive inrlrative are explanred

b]

porer

&

Linde

0995)

Thet.

.

rca'onins

i,

Ihar invecrmcnr\ in greening , an be rc\ource raving. $a,re etinrinarillg and pruducri\ iry

i

f.

Three approaches jn GSCM, namely rcactive. proactive and value-seeking, are suggesi;d (Hoek, 1999r

rcactive approach, companies commrl

mirimal

resources to environmental managenrent, start labelting pr.

that are recyclable and use 'end of pipetine' inihatives ro tower the environmental impact

of

producrjon

proactive approach, they

star

to pre-empt new environmenral lalvs by rcalizing a modest resou.ce conrnr

to

ininate the rccycling

of

producis and designing green

products In

lhe vatue-seeknrg approach,

corr:,

integrate environmental activities such as green purchasing and

ISo

imprementation as slraiegrc

iniriatir..

their business slraresy (Sflvasrava. 2007).

Accordnrg

ro

tlaJikhani

et

al

(2012) several studjes

on CSCM halc

delermrned

a

broad range

of

l:.

persuading companies to devclop environmenrat managemcnt injriarr!es and praclices to jts supply

chain

l

be

molivaled

by

firm's

stakeholders.equests, persuaded

by

finns

rvanr

to

have

tull

comptiance

envrronmental regulations, or even promoted by rhe firm,s intemal srrategic nrorivations, which is related

i

opponunity to garn the compeniive advantage

in

rhe marker According ro review on the prevjous studie.

dctemrining fhclors

of

GSCM

adoption can

be

ctassified

bel\ieen:

(t)

Exremat

faclors

mostty relar. stakeholders pressures

and

environmental r€gulation,

qhich

n3med

as irlatjonat molives arise

fron: aspiration

of

a organizalion part,

ro

become legjtimized and

ro id\ance

rhe existing relalionship arnoi-.

.i

Incrgr Tc.hnologics and I'olic-v

lllr

l2i2 (P.pcr) lSSN2225-0s71 (Online)

tr

lt

(EESE

2o*)

ISIE

ksr

f.r hnenDrnn,xl C.nltre.cc .n Fnrr!\ Ftr\r.Dnr.nr ard Snslai,rable

inrportant

in

managing any busrness

(Amemba,20ll)

GSCM is an approach to improve performance

ol

--ncess and products according to ihe requrrements of the environmenlal regulations

(tku &

Hu, 2010). The

r

greenhouse emissions

and pollulion

of

the

environments

by finns

has precipitat€d

the

need

for

Tatiors 10

rcalgn

their supply chain operations

wilh

a vrew of conserving the scarce resources GSCM is

.d as "Green Purchasrng + Green Manufacturing/Msterials Management + Green Distribution/Marketrng +

-,e Logistics"

The idea rs

lo

elirninate

or minimize

waste (en€rgy, emissions, chemical/hazardous, and

raste,

along supply chain

(llervani

et al

.2005)

Accordrns to Amemba (2013)

in

the case

ofasingle

zation, the crealion

of'green'supply

chain mrkcs

it

a signiflcant competitive advsntage rn decreasing the

ro create new matkets lor businesser, more organic and better cooperalion

rilh

lhe suppliers Moreovet

.

nalional level, green supply chains can help to change ihe market's orientation to become rnore 'green',

rr wilh

the creation

of

incentivcs for small and mediunl-sized enterprises to implement rrght _Practices to

' e environmental protection.

-

rre ditrerenl molivators for companies to slvilch to 'green' ;n theh supply chain (Fores, 2009) Although

,irhe _{motivators are quite unclear. Wu}

&

Dunn (1995) suggcsls thal some organisations are simPly doing

:.ause

il

is lhe

nght

thing

lo do

for

ihe

environment

Perhaps

radjcrl to

environmental

.-'

but olhers may

not

Studies, however, l)ave

sho\n

that

profilability

and cost reduction are some

of

the

.

orivalors for businesses to become 'green'

in

the supply chain (Srivastava, 2007) Johnson ( 1 99 8) argues

-\erse logistics were rnotivated prinra.lly by economic factors and nol concerns about prolecling the

eco-..

_{Tibben-Lembke} (2002) sugges! that re\rerse logistics can

only

bring about

profitability,

reduciion

of

3nd advertising Zhu

&

Sarkis (2004) look Ihrs idea turther and argued that most

oftlre

I86 paticipants in

. udy allagreed thal GSCM practices arc only about

win

win relat;onships on environmental and economrc

-rlpose

ofthis

papcr, however, is to discuss some ofthese issues and provide an overvrew

ofthe

academrc

-:.ri!e

of

the GSCM

lrterature

This papet

wnl

then discuss GSCM as

a

stralegy

to

gain competitive

:,!e.

Al lhe end. Ihe fapcr close' $

irI

conclu.ion..

-.cn S p?b, Chain Mondsenent

' I is a kind ofsuslarnable strategic development for enterprises in todayh competitive $'orkplace, whrch has

.rd

as a new innovative approach, to achiele both financial and environmental benefiis simultaneously, by

rg

environmcntal

flsk

and inrpacl

(Hoek, 1999)

Srivashva (2007) defined

GSCM

as incorporatirg

rmental

thoughts

inlo

supply-chain management,

including producl

design,

nlaterial

sourcin-q and

rn

manufacturirg processes, delivery

olthe

final product ro the cusiomcr moreover, the end-of-lile cvcle ihc nlore environmenral concem during

$e

pasl years the issue ofenvironmenlal toxlc wasre incidental

lo

:.ral ero$,th should be addressed rogether

with

supply chain managemcnt as the most important

parl

rn

;(ion chain. therelorc conrributnrg Io inilialives

ofGSCM

(Sheu

&

Chou,

2005)

The nlain

flow

is as the r]rg figure

ll

Green

Desi!,nins

.t $,ilh

fie

rapid change

in

Slobal manufacturing scenario. cnvironmenlal and social issues are becoming

)esrsn

[image:8.545.12.512.544.712.2]

l.sign

-.rgn

Figure

I

The

floll

olGrlcn

SrLpll\ Ch3in \{anagement (Baojuan, 2009)

--J

&

_Linde

(i995)

concluded rhar conrpanle.

r.'.urie

Lo conrperitive busrness environment and regulation

:r

by

expanding strategies to increase

P'.rJ:.:

\

:.

.a

rssources making them _Possible

to

improve their

.rjal

and environmental performance at (he

::-

:

-.Iirihi;\a)fi.mswanttobesustainablebyacquiring

EESE-2ol3 is organised

b)

lnrernJ:rf

-,''- ..' a".***.

*dustry

&

Engineering.

Green

Green Techniques

Green Suppliers

Green Materials

Crc.n

Invironment

(lr.cn

Ideas

Rec\cli.g

Paclllge Malerials

Recovery ProcessiDg

Recycling waste Disposal

Green

lnfomation

loumal of Encrev Tcchnolosies and Policy

I\S\,,,,I-J,J,.lap

' l\\\:)/.-.'\''rurt'n('

Vol3,Noll,20l3

SpccinllssueaorlrtcrnaroralConlerenceonLners\.rnvhnnrenrmdsusrar.abtcEconom\(L[SE20l])

EI

asustainabl€supplychaln(sustainableSupplyChain@

environm€ntal behaviors

on

their

supply charn, such as,

pollution control, recycling

or

revcrse t!

Moreover th€y

would be

responsible

for

envrronmenlal

accounrabilly

of

their suppliers

Thus

it ..

combine environmental Uabilities to economic concem

in

order to help the future

firmh

suslaiDatrjlill

means ofdelivering economic, social and environmental benefits simultaneously

According

to

Hervani

et

al

(2005)

it

is

noi

surprisirg that GSCM finds irs definition

in

supf

management Adding the 'green' component 1o supply chain management involves addressing rhc

influ.

relationshrps

of

strpply

chain

managemen(

lo

the

natural

envronmcnt

Motivared

by

an

enliron..

conscious mindset,

it

can also stenr from a competi(iveness motive

wilhin

organizaLions GSCM is dr

"Gre€n Purchasing

+

Creen Manufacturing/Materials Management

+

Green Distribution/Markenng Logistics"

Figure 2 shows this CSCM equation graphically, wher€ reverse logistics "closes the loop"

ofa

typica

supply chain and inchrdes reuse, remanufactuflng,

andor

recycling

of

marerials inro new materials

products

wrth value

in

the

markerplace

The

idea

is

io

eli,ninare

or

minrmize wasre (etrersy. e

chemica,/hazardous, and

solid

wastes) This figure

is

representative

ofa

srngle organizat;on,s

jnlen:

chain, its major operalional elements and the linkag€ to extemal organizations.

A

number

of

enviror-conscious pracnces

are evident

throughout

the supply chain ranging from

green design

(marl.

engineerin_g). green procurement practices

(eg.

cedrfying suppliers,

pu.chasing environmenra.

materials,/products).

rotal quality

environmental management (in(ernal performance measuremenr.

:

prevention). environmentally

Iiiendly

packaging and transponation, ro ihe various producr

end-of-trli :

del'lned

by rhe

'Re's"

of

reduction, reuse, remanufacturing,

recycling

Expanding

this figrre. a

r-organizalionalrclationships could be tbund at various stages

ofthrs

rnodel, includjng customers and rh.

as well as suppliers and their chains, forming webs ofrelationships (Hervani et al , 2005).

2 2 Geen Slppb, Chuin MonaEenent as o

Stotegi

to Cdin

Conpetitip

Ao\,dntdge

According to Simpson and Samson (2008) rhere are 4 (four) srrategres to gain competitive advanta_gc

ofGSCMl

I

Risk-basedStrategies

'l _{he simplest slrategy}

ofCSCM

_{with regard to rnter-organizational invesrmenr resource}

devetopr..

of

risk

minimzahon Finns

adopting

this

stmtegy

are

proposed

to do

so

in

response

o::.-stakeholder requiremcnts Such

a

strategy

is

ideal

for

rhe

organization

thal

retains

minim-environmental management resources or has only reccn{ly begun to consider rhe inrroduction

..

chain greenrng program.

It

is based on

nlnimal

rnter-organizational engagenlenr. Such efforts

mrr-the

inclLrsion

ol

basic

clauses

in

purchasing contracts

for

supplers

to

nreet aU

relevanr

,-rcquiremenrs

Most

frequently used

rith

rhis approach

is

the cascading

of

an esrablished

r.

:

standard such as

ISO

1,1001

(King

er

al,

2005) The use

ofan

eristing performance standard.

i:

-used innially bythe Ford Motor Conrpany wirh its suppliers and now more fiequently by other

or:_

for lhen supply chains, ollers: (a) established envnonmeDtal perfonnance benefits (Melnyk er

ai

:

thrrd party

or

arms-length rnanagement

of

perfonnance. and

(c) a

system recogniz_ed globa|r organizaiions.

This rhird

aspect

improles the eflicacy

of

uplake

by

supptiers because

the

.

recogniz€d by the,narket and other industry members, reducing the ambiguity ofdesired

perform-and

minimizing the

need

for

customer involvement-

From

rhe perspective

of

compelirive

,:

however,lhe benefits are

lrnlled

b€cause ofthe ease ofimplementarion a lack of unrq uenes, an,r

,

use by other supply chains

A

similar approach to basic cenrficahon schemes is lhe use

ofbroad.

wrthrn purcbas;rg

guidance

or

principles

to

include hupplier activities, among

the

ors-

_

envrronmenlal responsibilities Such syslems based on risk minimization

o[ly

and managed in a

.

Iow relatronal investment orrly guarantee supply chain compl'ance u,irh local

or

nanonat regut:: end result

beirg

that

risk

can be mininrized and repuranon cnhancement

is

possibl€,

but no

-innovation or complemcntary economic benefits are I'kely

2.

Ef}jciency-basedStrategies

A

more complex and developing strategy

in

recent years _{has been} the 'eco-eficiency'

or'lean

-:

approach to GSCM. This

tlpe

ofstrategy derives envrronmental performance b"-nefits for the

sur:

beyond mere regulatory compliance through

the

requirenrent

lor

suppliers

to

me€t operau.

efilciency

largets-

Much

ol

lhe

environmenial pcrformance benefir arises

from

specific

mdn-practrces

thal

have been lound

to

provrde secondary environmental perlormance

benefits

The

:

336

!l ol [nersyTechnologics and Polic] :ll1-1212 (P.per) lssN 221: osTr LoNnrc)

\o

!l.2oll

Spcdal hsue lor Inlcdanonal aontu nceonEncrg) F

{LrsE2oFr

'[tit

-gag€mentbelweencUslomersandsuppliersTheefficienc-vbasedslrategytjesenvironmentalPertbnnance

oierational

processes

in fte

supply chain,

and this slrategv

allows the

exlcnsion

ol

Perfornunce ieq$reNreNs

\$rs

Ne

s\DN

t\t\$

l\at

\\laxir\ize

eco(\oRlic

lsdorlna(ce

atd

provide

seconda'Y

rnvi.onmental

performance

benefits through waste

and

resource

use reductions

It

requires

more

-rmpreheEit)e an.J sDppL' chain sPecifrc perfirn1al1ce sPecifi.ations

tha\

the sidlpler

tuk

based

stnicer"

lt

, io requires a higher level

of

involvement beiween supply chajn partners arising liom the use

of

more

'xple\ inteFfinn

perfornrance

req rrements Using tltis nrategv

to facilitale

greater

efficiencv

in

thc

:ply

chain

does

nol

require

the

deYelopnrent of co-specialized resources specific 10 environmental

.

irnnance The necessity fbr collaboratron on efilciencv, however, provides a

hcilitating role lor

contexl--:.iilc,

complex problems such as w:lste reduction and recvcling (Klassen

&

Vachon,

2003) Ihe

strategv r provide a cost-reduclion advantage to the supply chain and rcadrlv fits $ith pre-exisiing organizationxl

-

:ls of optimrzation

Bu1 tlre efficiency based supplv

chair

slralegv does

nol allow

for

more knolvledgc : Nive eDvironmental management acnvities such as producl design, material substitution. or innovation

,duorecallsbecauseofapoorchoiceoflowcostbuthazardousnraterialsrepresenttheinherentriskin

.iushg

oft\y

on elhciencl in the

supplY

chain The

clTrcie.c)_based strateg)

is

considered tcchnicallY \ eak but mole sociaN coN$ex rhan the dsk based slIaleg) .

lnnovation-based Strategies

I

he innovatron based GSCM slrategy is

distirct

lrom the efticiencv based approach because

of

its use

ofa

!upply chain environmental perlonnance sirategv that is more environmentallv

specific

OrganiTations are

n..easlngtya'"areofthepotentiallornaro\'purchasingpo]iciestotn-sourceconrponenlsorseBicesfroln

;uppliers

tlat nay

be

legally non-complianl wrth

environmental regulations

or who

lhenNelves procure

!"oa,

n

*

"n.ionIn"rtally

irresponsible wav (Bowen et

al,200l)

Some organizations have begun to ,.ruarantee more comprehensrve product

life

cycle consider.tions for corrsumcrs

of their products

once

a :upply chain beglns io consrder specialized processes, technologies, or complex perfonnance standards

fo'

.,ppfi..r

sr"f'r

oi

Or".i"ul

avoidance, rhe level olknowledge exchange and relational investmenL begins

io

-iange

Moving from an efficiency based CSCM stralegv to a greater level of innovation or integratioD

of

-

_' ir-onmentar _fierrorma'ce rn supply chain and product design requires specialized eDvrronmenral

re$rccs

Lenox

&

Kin;. 2004)

Keeping up 1o dale with environmental legislation changes and trainjng suppliers in

-,ironrnentaliy

relevant prociss changes requires more dedicaled environmental resources' specialized :rrsonnel, and design.

Th;

development

ofsuch

resources provides lhe conditioDs

lor

an organizat;on 1o

.hili

fiom an

eftlcie;cy

based to arrnnovation based GSCM slralegv For products, the resources developed

:ould

be

used

to

i,,.o,pornt"

innovative enrironmental planning

nno

specillc

prodLrct designs' :haracterislics, functronalilY,

or

life cycle relaled aclivilies

(eg.

se'vice, repair, and

rec]-cling)

At

thc .rocess level

ihey

could

bc deployed to devclop environmentallv robusr

me(hods and svsiems

lor

rhe rroduction. distribution.

and

se ofproducts

rlosed-loop SlraLegies

\ccording

to

Kocabasoglou et al (2007) closed-loop strategies are a more recent t-Ype

oIGSCM

strategv

:rrd repreient the most

comple\ and collaborative lorrn

of

this

tlpe

ol aclivitv

Olien

reler'ed 1()

rn

its

, rrples form as reverse logisricJ, closirg rhe loop involves

fie

capturc and recovcry

ofmateri'ls

lor either re'rnan,thcture

frigh-varuc)

or

recvchrg

(low

va]uc)

These materials can arise

during production

as

retu-ed

goods, po'st-use, ana

o

ena-of

tlre

The closedloop

stralegy lies

or

integrales environmental perlonnan-ce to the s'hole supply charn Verv few examples ofcoordiraled recvcling or closcd-loop acLi!iry in the supply charn

curcntly

exist however. Prornincnt exanlples includc Kodak s return and

rcrnmufacture

of its dispoiabrc

cameras. Hewlelt Packard's retrieval

of

used prinrer cartridges' and BMw's end-of-life rehicle requirernents for suppliers (Curde

&

Wassenhove, 2002) The motrvation for a closedloop srralegv renrains low lor basic reasoni of poor and distributed conlrol over the reverse supply chain' lack ofavarlable inf.astruclure.

and the rnability

of

supplv chains

to

believe lha1 such activirv

is

economrcallv viable

strategy, however, represenls an approach that seamlessli'inregrates issues

of cconomic' operalional

and

jeparlurelorlheellciencybasedstlategyfromtheliskbasedslratcg)iStheavailabl]iryofdualecoDomic

.i

enuironmental Derlormance ben€fits

to the supplv chain and Ih€

requiremenr

for higher levels

of

ji

r'

Joumal of Energy Technologics and Poticy ISSN 2224,3232 (Pape, ISSN2225-05?3 (Onlne)

Vol3,No

Il,20ll

Special Issue

forl

ernalionsl Cmicrene on . Envno.henl d Suslainable Economv (EESE 2Otl

enlif onmental

perfonnance

require high levels

ol conhol

over the captue and retum of used materiah_ Goods need to be

r.-qualily

considerations

and

aggregation

of

collection and sorting

acrivities

allows

for

rhe

.-,.

economies

ofscale.

Such a high level

of

integration, coordinarion across parrners, and socrr: knowledge requires y€ars ofdevelopment effort. Socially complex, collaborative

retationshiF::-basic foundation for a closed-loop supply chain strat€gy.

E

>i

+

4

,?

Fi-qure 2. Graph ofthe GSCM (Hervani et al., 2005)

338

EESE-2o1i rs organrsed

b!

Intemational Society for Commerce, Industry

&

Engineering

-l

c

ii

E"r

a

ie:

+,=s

!:<

ii;

i.

Conclusions

iusin€ss organrzalions today face a more cornplex and conrpetitive environmenr rhan ever bclore (Poner

&

.:em,2001).

_{As trade barriers crunrble and less developed countries enter rhe comperirrve marketplace, firms}

,$

coniiont a greater nurnber of compelilors able ro int.oduce new products and senioes faster and c}eaper

.ur ever before (Garten, I 998)

TIe

ever expand iag c6pab ilrries of iD fomlarion rech.olosy wirh rhe co.coh irant

.iucrion in investment costs allow capital and jrformation 10 flow almosl instantly throughout many

pats ofthe

ild Funhermore.

have become more discriminating and demanding (Euinger et

cl,

1997),

rduct

lifc

cycles have been shortened,

forcirg

firrns to conlract

lime

to conmercialization (Lovelace

ct

a1.,

rl)

and provide hrgher levels ofcuslonrer service and cuslomized products Consequently, rnost industries and

-ns

have

eniered

inlo a'hyper

competitive'markelplace

characterized

by

an

increase

in

conlpetitron,

:enainly, and conrplexity (Merrifield, 2000)

'CM

is a newer concept rather rhan SCM-

A

l€w lrterature reviews are found on

GSCM

Accordingly CSCM

lnes as, adding "greening phase' to the supply chain activities, in all parts

\fiich

leads to a more "integrared"

r'co-operative"

supply chain

lhat finally

produces better competitive advantages (Rao,

2002) As

staled

.. roLrsl)! GSCM requires ecological and social aspects

of

business practices

at

the same

time.

Basics of

..nrng

as

a

"competitive

initiatives"

are described

in delail by

Porter

&

Linde

(1995)

They srgued that.

rLrce saving, waste eliminating. and producrivity inrproving can be the basic reasons for green in;liarivcs and

\e

three parts can promole

thc fi.rns

competitiveness

Accordingly "geenrng"

can

lower

the ecological

-:.rs

ofbusin€ss and aho increases cmcienc],, creates the potential sou.ce ofcompehtive advantages

in

an

\rtive

manner According to Snnpson and Samson (200E) there are 4 (four) stralcgies to _Sain competiri!e -rragc

in

the use

ofGSCM:

(l)

Risk-based Strategies, (2) Efficiency-based Stralegies, (3) Innovation-based - isics, and (4) Closedloop Straregies.

:.r

"green" as a competitrve means

is a widely

recognized _Phenomenon.

lt

is

generally accepted

ihat

a

:any's contr;bution

to

environmentally sustainable dcvelopment

rs

deperdent

on

an

inlegration

of

'nnmental requiremenls inio mdustrial products and processes (Poner

&

Linde,

I995)

However, 1bc result

r

rcview and orienting empiflcal study indicates that even rhough much research has been conducted within

--ea. quesrions are

still

remaining. Many companies include sustainabilily in thcir busrness strategy,

bu

rhe

..r\een sbalegy and

daily

operations

is

often

weak

One important challenge idenlified rs the lact that

'rnmcntal responsrbilf)

is

often

separated

Bom

production

and

operations managenrent

leading

10

-rints

.cgarding

environmental alvareness

wnhrn the organization

Hence.

we

argue that

keepnrg

'..menlal

work separaied

liom

operalions may lead

to

sub-optimization and overlooked opportunities for -uous improvem€nts

\l

can reduce the ecological rmpact

of

industrial

activiry

wrLhout sacrificing qualiry, cost, reliabilil}.-,

arance or cnergy utilization elficrcncy. It rnvolves a paradignr

shill.

going frorn end-of pipe conlrol to meet

r.reDtal rcgulahons to the situation

olnol

only minimizing ecological danrage, but also leading 10 overall

)ic prolll

The a.ea throlvs various challenges to practjtioners, acadcmicians, and researchers Research in

'I

to .late may be considered conrpartmentalized

irto

contenl areas drawn from operations

slrategy

The

a

areas

of emphasis have

been

qualily,

operations slralegy, supply-chair management, product and

..

rechnologies, which are collecirvel) beginnntg

lo

conlribute to a mo.e syslernatic knowledge base.

It

is

Lble

io

expect that these rcsearch areas

will

conlinuc 10 hold the greatest promise

lor

advance in the

shoi

Ilo\rever.

more

integrflive

contributions are needed

in

the longer term, iDcludnlg rntra and inter finn

,n

ofbest

practices- green lcchnology transfer and en!ironmenlal perforrnance measuremenl- One

ofthe

:

challenges facing

$e

ficld

of

GSCM

is

extending the historical 'comrnon

wisdom'about

managirrg

.,ns Much research, management education and many pracncal applications have focused

on bufering

-:rarions tunction

liom

exlernal influences, including

ihe

natu.al envi.onmenr,

rn order

to

nnprove

.ies.

reduce cost

and

increase

quality

When

the

naiural envi.onment

is

considered,

it

is

typicallv /cd or modelled as an eNemal cor)straint, requiring operatrons to work

wilhin

prescrrbed

limits

Once this

.sunrplion

is

relaxed, a fundamcntal qnestion arises aboul

how to

pursue rcsearch

on

green i\5ue5 in

,ns: should this be considered a separale research stream tlith rts own strategic framework

or

should

.iucs be

integraled

into

existing operalions management rescarch li-arneworks and areas?

While

lhe

-\ny

of

green issues might favour the former approach, the greatest contributions can be achievcd bv

j

opportunities

within a

more integrative frarnewo.k (Srivaslava,

2007)

Finallv, rhe preparalion

of

'

Jidn't

only

based

on

inlerdependence relationship between busrness siraregy

and

societv

but

the :,1 relalionship berqeen rhc

both

Thus perceiving social responsibilrty as building shared value rather

Janrage conlrol

or

as

a

PR (Public relatlon) campai-sn

\rill

requjre dramaticallv different thinkirrg iD

iiai ol Energl Technolosies and Pohcl

.$

1114-]111 _lP+er) \SSN 1r5-0i'11 \On\N)

illNoll,20ll-srccialhsuclorlnrcmaroalConleenceon[nere\lnvnnnr.nraDdSusrxLnablcEcononrr(I]ESE20l:l)

iiii

li9

Joumal of Fncrs_v rc.hnotosrc! and potrcy ISSN 222{-3?32 (rapeo |SSN2225 057l (Ontine)

become increasingly rnlponanr _{ro competrlrve success}

BaoJuan. (2009) Greeh s

ppt|

chdin nandgeuent ond

i,

plenenting

sfdlegy.

China

Boweu.

F.

Cousnrs, p., Lamming,

R,

&

Faruk,

A (200t

_The

roleofsuppty

_{managemenr capabjliries}

in:

supply Product

,land

Operutions

Managenent.l0

),pp.

_174-189.

Fortes,

J._(200,

Green supplychain managernent.A

lire*

ture revie

\\.

Otusa Manapenpn!

crd.ludte

Re\:

pp

5l-6:.

Carten,

J

E

(1998) Whylhe gtobaleconony rs here ro

stay

Bl$iness

tyeek,23.pp.2t.

Guide, D ,

&

Wassenhovc, V. L. (2002) 'the rcverse supply

chain

HaruotuJ

Bl'iness

Retiel,.. E0(2),

pp

::

.

rlervani.

A

A.

MafllF,

M

H,

&

_Joseph,

S.

_{(2005). performance}

m

remem

for

green suppt) rnanagemenr

B"r.

,,ral.1/'48: An t ttnotionrl.

,r/rJl,

Ilt4),

pp

i10-Hoek,

V

R.

I.

(1999).

Irom reversed

_togisrics

to

_green

suppt) chain\

Supply

Chaih

Mona3e,t..

h

enational

Jounat.4(3),

pp. i29_r35

Hsu, C. W.,

&

Hu,

A

H

(20t0)

Critjcal faciors for jmplementing green supply chain manaeem€nt p.acr .

empirical srudy of eleclrcat and eteclronics _{indusr,es in}

Tai;;n

U*.gi**

a"r".ni

x_i".,:.

586-608

John

P. F. (1998). _{Managrng vatue in reverse logistics}

system

Logistics ond Trutlsportotian

Rerie,

Klassen.

R,

&

Vachon,

S (200j)

Coltaborarjon and e\aluarion in rhe suppt)

rhain:

Tle

impact on

pl:-en\

iro

mcnral rnvesrmenr

rmd cttun

_ond

oreuiu,. .U,,"g.*"r.

iili)

pp

t;6-35:

'

Lenox,

M,

&

Kirg, A.

(2004)

prospects

for

devetopjng absorplive capacity through

jnlemal

ini.

ptovision Sttalcgic Manoseuent

Jaurnat,25,pp lj1-315.

Joumal,a44).pp

179-193

t communications perspec

le

Acddenv

ol nh'

-corporale and environmental

performance../orff

Merifield,

D B

(2000)

Changing nalure

ofcompetitive

advantage Resedrch Techn.)tog. MonuaeDt.,

Dp .l l-4 5.

Porler

M.

E, &

Kranler,

M

R

(2006)

Slrategy

&

society:

The

link

between comp€tjtive

adlzn_-coryorate socialresponsibjtity_

Hdnatd

B

slness

R€tpl,

D€cember pp. l _15.

Po(er,

M EC.&Linde,V

D.(1995)

_{Creen and competitive. Endingthe}

sralemate

Hdr|ard

B

sin.,

: (September-October, pp. 120-13a.

Porter,

M

E,

&

Stern,

S

(200t)

tnnovation: Locahon ma(ers.

Mlrsl

odn Manage

tent Review,42t1

:

36.

140

{mal oa Energy T€chnoloeies ed Policy

Operations & Production Managenent,22(6), PP. 632-655.

tichey!

R., Chen,

H.,

Gerchev,

S,

&

Daugherty,

P

(2005). DeveloPing effective reverse logistics Programs

Ihd

strial Marketins _{Mondgenent,34(8), W.830} -840.

:heu,

J.

8., &

Chou,

Y

H.

(2005)

An

integtated

logistics

opemtional

model

for

green-suPPlv chain

manageimetf. Tronspo ation Research Part E: Logistics and Transpotation Review,

al/4),

pP.287'313

iimpson, D.,

&

Samson,

D. (2008)

Developing strategies

for

green supPly chain management. Decbion Ltne (July), pp. l2-15.

lrivastava,

S

(2007).

Green supPly-chain managemenr

A

state-of-the-art literature

review

Intenational

Jollrnal ofMahogenent Reviswr,

9(l),

pp

53-E0.

libben'Lembke,

R.

S.

(2002)

Life

afte.

death: Reverse logistics and

the

product

life

cy.le

Internotiohal

Jowhol

of Physicol Distrtbution

&

Logistics ManaAenent,32,

W

223-244-iu,

H.

J.,

&

Dunn,

S

C.

(1995). Environmentally resPonsible

logistics svsten.

Intetnotional Jo1ltnal

of

Pllysical Distributrcn & Logist tcs Managenekt, 25,

pp

20-39

-Zlu,

Q, &

Sarkis, J. (2004). RelationshiPs between oP€rational practjces and Perfomance among early adoPteE

of green supply chain managem€nt Pmctices in Chinese manufacturing enter$ises Jo1lrnal of OPetutions

Ma nagen ent, 22, pp. 265 -289

341