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Emerging Supplier Selection Criteria in The Context of Traditional VS Green Supply Chain Management

  • SVKMs NMIMS Mukesh Patel School of Technology Management & Engineering Mumbai
  • Dwarkadas J. Sanghvi College of Engineering, Mumbai, India

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Supply chain management used to be widely understood as an integrated one-way manufacturing process, in which the raw material is converted to the finished product and then delivered to the customer. It merely centered around the procurement of raw material to make the final product. With increasing concern towards environmental protection, organizations have become more and more responsible for their products and overall sustainability. For companies to maintain their sustainability and competitiveness in the market, green supply chain management (GSCM) considers a systematic and integrated approach. It has been found from the literature that the green supplier selection is an important issue in improving environmental related performance. This study attempts to find out what the traditional supply chain is and how to redefine the basic structure of traditional supply chain. It also explores major factors included in green supply chain along with the criteria for supplier selection process.
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International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
DOI: 10.5121/ijmvsc.2014.5103 19
Ashish J. Deshmukh.
and Dr. Hari Vasudevan.
Mukesh Patel School of Technology Management and Engineering, Mumbai.
D.J. Sanghvi College of Engineering, Mumbai.
Supply chain management used to be widely understood as an integrated one-way manufacturing process,
in which the raw material is converted to the finished product and then delivered to the customer. It merely
centered around the procurement of raw material to make the final product. With increasing concern
towards environmental protection, organizations have become more and more responsible for their
products and overall sustainability. For companies to maintain their sustainability and competitiveness in
the market, green supply chain management (GSCM) considers a systematic and integrated approach. It
has been found from the literature that the green supplier selection is an important issue in improving
environmental related performance. This study attempts to find out what the traditional supply chain is and
how to redefine the basic structure of traditional supply chain. It also explores major factors included in
green supply chain along with the criteria for supplier selection process.
Supplier selection, Supplier selection methods, Supplier selection criterion, Green supply chain
management (GSCM).
In a competitive business environment, selection of suppliers represents one of the most critical
issues faced by manufacturing firms. The cost of raw materials comprises a major portion of the
product’s final cost and the selection of appropriate suppliers significantly reduces the purchasing
costs in manufacturing firms. Two types of supplier selection are prominent in practice today. In
the first type (single sourcing), one supplier can satisfy the buyer’s entire requirements and the
buyer needs to make only one decision: finding the best supplier. In the second and more
common type (multiple sourcing), more than one supplier must be selected, because no single
supplier can satisfy all the buyer’s requirements. Hence, for effective supply chain management,
firms need to select both the best set of suppliers and find as to how much quantity should be
allocated among them for creating a constant environment of competitiveness (Alyanak and
Armaneri, 2009). Moreover, with the changing environmental requirements, affecting the
manufacturing operations, increasing attention is also required to be given to develop effective
environmental management (EM) strategies for the supply chain.
Environmental management or Green supply refers to the way in which innovations in supply
chain management and industrial purchasing are considered in the context of the environment.
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Activities included in Green Supply Chain management (GSCM) are re-use, recycle,
remanufacture and reverse logistics etc. Among various issues in GSCM, green supplier
selection is a crucial problem to be addressed for improving the environmental performance. This
is because, a good supplier helps with the supply of material that comply with the regulations and
further assists in green design, affecting the performance of the entire supply chain. Carvalho et.
al. (2010), Rao and Holt (2005) and Van Hoek and Erasmus (2000) expressed that “GSCM” is an
important organizational philosophy, which plays a significant role in promoting efficiency and
synergy between partners. It facilitates environmental performance, minimizes waste and saves
cost in order to achieve corporate profit and to set market-share objectives. It also improves the
ecological efficiency of organizations and their partners.
This study is an attempt to compare traditional supply chain and green supply chain and to
explore the importance of green supply chain management in the current context in India. It also
lists out various criteria in supplier selection and is structured in the following manner. In section
2, an elaborate survey is included to explore the literature pertaining to traditional and green
supply chain management. In section 3, the difference between traditional SCM and Green SCM
is covered. Section 4 gives the overall information about the traditional supply chain. In section
5, the basic structure of a traditional supply chain is redefined by accommodating the
environmental concerns. Section 6 gives a basic idea about what is green supply chain
management. Section 7 explains various criteria for supplier selection in the traditional and green
supply chain and Section 8 ends with the conclusion.
In recent years, several proposals for supplier- related problems have been reported in the
literature. For traditional and green supply chain, the supplier selection methods are divided into
two clusters of single model and combined models as illustrated below in Fig. 1.
2.1. Traditional Supply Chain
Extensive single model approaches have been proposed for supplier selection, such as the
Analytical Hierarchical Process (AHP) by Bayazit, O. (2005). The Author proposed
dependencies and interaction among various criteria in a decision making model, pointing that the
analytical network process is a more appropriate methodology. Bhutta, K.S., Huq, F. (2003)
analysed as to how AHP provides a framework to cope up with multiple criteria situations,
involving supplier selection, while total cost of ownership is a methodology and philosophy.
Chan, F. T. S. (2003) proposed a model using AHP for interactive supplier selection as a
contribution to development of supply chain management. Satty, T. H. (1994) showed as to how
to make a decision in multi-criteria decision making situation, using the Analytical Hierarchical
Process (AHP). Analytic Network Process (ANP) is used as a decision tool to solve multi criteria
decision making tool as also proposed by O Bayazit (2006) and Gencer C, Gürpinar D., (2007).
Difference between managers rating is examined by Verma and Pullman (1998) using discrete
choice analysis (DCA) to perceive the importance of different supplier attributes and their actual
choice of suppliers in an experimental setting.
R. Verma (2008), provided directions for designing and executing discrete choice studies
for services and discussed several examples for a number of industries including health care,
financial services, retail, hospitality and online services. Interpretive structural model (ISM) to
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
show levels of importance in supplier selection process and the inter-relationship of different
criteria were developed by Mandam A. and Deshmukh, S.G. (1994). Kannan and Haq (2007)
used an interpretive modeling methodology to understand the interactions among the criteria,
which influences the supplier selection. Kannan et. al. (2010), developed a structure to analyze
the interactions among the criteria such as buyer- suppler relationship, evaluation and
certification system, inert-organizational communication, supplier commitment, competitive
pressure, supplier performance, long-term strategic goals, supplier development program,
purchasing performance, joint action, trust, top management support and supplier strategic
objective for the supplier development using ISM. To select the best third party reverse logistics
provider for summarizing and identifying the relationship among attributes Govindan et. al.
(2012a), applied an interpretive structural modeling methodology.
Figure 1. Existing analytical methods for supplier selection
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Case-based reasoning (CBR) by Paul Humphreys, (2003) developed a knowledge-based
system (KBS) which integrates the environmental factors into the supplier selection process.
Artificial neural network (ANN) and intelligent supplier selection relationship management
system (ISRMS) using hybrid case base reasoning (CBR) was applied by Choy et. al. (2003a, b)
to select and benchmark a potential supplier. K. Zhao (2011) summarized particular
characteristics of the supply chain of Chinese petroleum enterprises and analyzed the limitations
of the traditional methods of supplier selection and brought forward the method based on a case
based reasoning system (CBR). Liu (2000) proposed and demonstrated the application of
Data Envelopment Analysis (DEA) in evaluating the overall performances of suppliers in a
manufacturing firm. Wu et. al. (2007) proposed an approach that included three stages. Firstly,
DEA and CCR model are used to calculate pair-wise efficiency and proposes a cross- evaluation
DEA model,. Secondly, the pair-wise efficiency scores were then utilized to construct the
consistent fuzzy preference relation. Thirdly, the row wise summation technique was used. M.
Toloo, (2011) used cardinal and ordinal data to identify the most efficient supplier.
A Genetic algorithm (GA) was proposed by Ding et. al. (2005) and Neural networks were
proposed by Choy et. al. (2003c). Fuzzy TOPSIS was used by Chen-Tung Chen (2006) and
in this study, linguistic values were used to assess the ratings and weights. Triangular or
trapezoidal fuzzy numbers are used to express linguistic ratings. To deal with the selection of a
supplier problem in SCM, a Multi-criteria decision making (MCDM) model based on fuzzy set
theory was proposed. To guide the supplier selection process for whom, the best third party
reverse logistics provider (3PRLP) is relevant, Kannan et. al. (2009b) applied a multi-criteria
group decision-making (MCGDM) model in a fuzzy environment. Fuzzy extent analysis by
Kannan and Murugesan, (2011), proposed a structured model for the selection of a 3PRLP, under
fuzzy environment for the battery industry, which established the relative weights for attributes
and sub-attributes.
In multiple sourcing, many researchers have applied different methods of mathematical
programming. For a multiple-criteria supplier selection scenario, Ng,
(2008) proposed a
weighted linear program. Mixed integer LP used by Hong et. al. (2005) established formal
methods for reasoning about first order programs, including a sound and complete lifted inference
procedure for integer first order programs. Multi-objective programming (MOP) was proposed by
Rezaei and Davoodi, (2011) and goal programming (GP) by Lee et. al. (2009b) and Jolai et. al.
(2011). Hong et. al. (2005) proposed a mathematical programming model, with the objective
function being to maxmise or minimize the decision variables. In his review work, Ho et. al.
(2010) mentioned that there are several hybrid techniques that have been used for solving supplier
selection in multiple sourcing environments and order allocation, such as DEA and MOP. Talluri
et. al. (2008) effectively considered multiple factors and interrelationships among them for
assisting in buyer supplier negotiation, proposing an optimization model.
Ghodsypour and O’Brien (1998) proposed AHP and LP together to choose the best supplier by
considering tangible and intangible factors so that the total value of purchasing (TVP) becomes
maximum. Using ISM and TOPSIS, Kannan et. al. (2009a) proposed a multi-criteria group
decision-making (MCGDM) model in a fuzzy environment to develop a guide in the selection
process of best 3PRLP. Authors analyzed the interactions between criteria before arriving at the
decision. The analysis was done through Interpretive Structural Modeling (ISM) and fuzzy
technique for order preference by similarity to ideal solution (TOPSIS). AHP and Grey Relational
Analysis (GRA) were used by Ching-Chow Yang, (2004), Haq and Kannan, (2006b) and
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Jianliang Peng, (2012). Kull and Talluri, (2008) used AHP and GP for product life cycle
consideration and risk measurement as decision tools in supplier selection process.
AHP, DEA and neural networks were used by Ha and Krishnan (2008) and ANP & GP were used
by Demirtas and Ustun (2009) and S. M. Gupta ( 2006). Many authors have proposed several
types of MOP approaches for the supplier selection and order allocation problem, including
Ghodsypour and O’Brien (2001), Narasimhan et. al.( 2006),Wadhwa and Ravindran (2007),
Demirtas and Ustun (2008), Kannan et. al. (2009c), Amid et. al., (2011), Jolai et. al. (2011),
Amin et. al. (2012) and Liao & Kao (2012). Amin and Zhang (2012) have summarized the
models used for a supplier selection and order allocation problem and is widely available in the
contemporary literature.
2.2. Green Supply Chain
The GSCM literature has focused on encouraging existing suppliers to improve their
environmental performance by requiring these suppliers to acquire certifications or to introduce
green practices. Supplier selection in GSCM has been identified as significant in making
purchasing decisions. In order to meet the environmental regulations, many scholars have studied
the indicators of a green supplier evaluation. For example, Roy and Whelan (1992) showed a
model for reducing waste coming out from electronics without harming and affecting the
environment. Noci (1997) applied an AHP model to design a green supplier rating system. Sarkis
(1998) categorized five major components for green business practices and that are analysis of
life cycle, total envornmental management quality, ISO1400 certification for green supply chain
and green design. Handfield et. al. (2002) utilized the Delphi method to collect environmental
experts’ opinions from different companies and proposed an environmentally conscious
purchasing decision based on AHP. Sarkis (2003) utilized ANP to develop a six-dimension
strategic decision framework for GSCM. Amy H.I. Lee (2009) proposed a model for
manufacturers to have a better understanding of the capabilities that a green supplier must possess
that can evaluate and select the most suitable green supplier for cooperation and accordingly used
Delphi and fuzzy extended AHP.
Hsu and Hu (2009) presented ANP as a new criterion of supplier selection to hazardous substance
management including green purchasing, green materials coding & recording, capability of green
design, inventory of hazardous substances, management for hazardous substances, legal-
compliance competency and environmental management systems. Lee et. al. (2009a) proposed
quality, technology capability, pollution control, environment management, green products and
green competencies for green supplier selection in the high-tech industry. Awasthi et. al. (2010)
presented a fuzzy multi criteria approach for evaluating the environmental performance of
suppliers and mentioned that the availability of clean materials, environmental efficiency, green
image, environmental costs, green products, environmental & legislative management and green
process management as the most commonly referred criteria in green supplier evaluation
literature. Bai and Sarkis (2010) used a grey system and rough set methodologies to integrate
sustainability into supplier selection and summarized environmental metrics as pollution controls,
pollution prevention, environmental management system, and resource consumption and
pollution production. Gulcin Buyukozkan (2011) compared a novel hybrid MCDM approach
based on fuzzy DEMATEL, fuzzy ANP & fuzzy TOPSIS to evaluate green suppliers.
Yeh and Chuang (2011) developed two multi-objective genetic algorithms for green partner
selection, which involved four objectives such as cost, time, product quality and a green appraisal
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
score. They offered green image, product recycling, green design, green supply chain
management, pollution treatment cost and environment performance assessment criteria for green
supplier selection. Alireza Iirajpour (2012) used Technique for order preference by similarity to
ideal solution (TOPSIS) method for selection of a supplier. Govindan et al. (2013) proposed a
fuzzy multi criteria approach for measuring sustainability of a supplier and considered pollution
production, resource consumption, eco-design and environmental management system as
environmental criteria. K.Mathiyazhagan (2013) used an Interpretive Structural Modeling
(ISM) to understand the mutual influences amongst the twenty-six barriers by conducting a
survey. A study by Lixin Shenc (2013) examined GSCM to propose a fuzzy multi criteria
approach for green suppliers’ evaluation. Authors translated subjective human perceptions into
solid crisp by fuzzy set theory and the overall performance score for each supplier was generated
through fuzzy TOPSIS.
Traditional Supply chain management (SCM) usually concentrated on cost and control of the
final product, but hardly considered its ecological effects. In comparison, GSCM is green,
integrated and ecologically optimized and takes into consideration the human toxicological
effects as well. Companies considered ecological requirements as the most important criteria for
products and production, to ensure economic profitability and sustainability. Some characteristic
differences between traditional SCM and green SCM are shown in table 1.
Table 1. Traditional SCM vs Green SCM
Sr.No. Characteristics Conventional SCM Green SCM
1 Objectives and values Economic Economic and Ecological
2 Ecological
Integrated Approach High Ecological
3 Supplier Selection
Price Switching
Supplier Short Term
Ecological Aspects
Long Term
4 Cost prices Low High
5 Speed and Flexibility High Low
These supply chain stages include:
Component/ raw material suppliers
A traditional supply chain is defined as an integrated manufacturing process, wherein the Supplier
supplies raw materials or semi finished goods to the manufacturer and are manufactured or
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
assembled into final products, and then the finished goods are sent to the wholesaler, to retailer
and finally delivered to customers. Figure 2 illustrates structure of a traditional supply chain.
Each stage in a supply chain is connected, on one side by physical flow of goods i.e. from top to
bottom on left hand side and on the other side by the information flow i.e. from customer to
supplier. The appropriate design of the supply chain depends on both the customer’s needs and
the roles played by the stages involved. Traditional SCM has usually concentrated on economy
and control of the final product, but hardly considered its ecological effects.
Figure 2: Traditional supply chain structure
The concept of Green supply chain management faces new challenges in the context of
manufacturing and production enterprises worldwide. The main challenge is to develop ways that
finds an optimum between industrial development and environmental protection. The first step in
meeting this challenge is to redefine the basic structure of a traditional supply chain and
accommodate the environmental concerns associated with reduce waste and resources as shown
in Fig. 3.
Traditional supply chain also includes a supplier, manufacturer, wholesaler, retailer and customer.
But the main objective of extending the traditional supply chain is to consider the in between and
eventual environmental effects of all products and processes known as
stewardship. The stewardship concept is shown in figure 3 below. After the life cycle of the
product gets over, the product is finally collected from customer and after the collection, if some
components are found to be good enough to use, it is directly sent to the retailer and those are not
further forwarded for dismantling. In final dismantling of the product, if some parts are found to
be used are forwarded directly in manufacturing process and finally those, which are not of any
use are disposed off or recycled such that it is used as raw material.
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Figure 3. Redefined basic structure of traditional supply chain
The economic advancements and development in a society consumes a lot of energy and other
resources and these contribute to a lot of environmental issues and also results in depletion of
natural resources. In view of this, it has become increasingly imperative for organizations facing
competitive, regulatory and community pressures to search for a balance between economic and
environmental performance. Currently, many of the organizations are attempting to go green in
their businesses, because of the concern for environmental sustainability. They have realized that
the green technology adoption benefits them in their business operation, which also affects the
suppliers and customers. Environmental regulations and directives in advanced economies such
as US, the European Union (EU) and Japan have become important concerns for manufacturers.
Green Supply Chain Management (GSCM), therefore emerges as a new systematic environmental
approach in supply chain management as it considers factors such as eco-design & design for
environment, industrial ecology, environmental management systems, product stewardship &
extended product responsibility and life cycle analysis as shown in Fig. 4.
Figure 4. Systematic environmental approach in supply chain management
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Eco-design is an approach in the design of a product with special consideration for the
environmental impacts of the product during its whole lifecycle. In assessment of life cycle of the
product, the whole life cycle is divided into procurement, manufacture, use and disposal. Eco-
design is a growing responsibility and understanding of our ecological footprint on the planet. It
is imperative to search for building new solutions that are environmentally friendly and lead to a
reduction in the consumption of materials and energy.
Industrial ecology is the study of energy and material flows through industrial systems. The
global industrial economy can be modeled as a network of industrial processes that extract
resources from the Earth and transform those resources into commodities, which can be bought
and sold to meet the needs of humanity. Industrial symbiosis is a branch of industrial ecology,
whose main focus is material and energy exchange.
Environmental management system (EMS) refers to a comprehensive, planned, systematic and
documented organizational environmental program management. It includes the organizational
structure, planning and resources for developing, implementing and maintaining policy
for environmental protection. EMS is "a database and system, which integrates process for
training of personal and procedures, summarize, monitor and reporting of specialized
environmental performance information to external and internal stakeholders of a firm." EMS is
typically reported using International Organization of Standards (ISO) 14001 to help understand
the EMS process.
Extended producer responsibility, also known as Product Stewardship is a strategy to place a
shared responsibility not only of end user, but all of them, who are involved in product chain for
end life of product management. This is done while encouraging product design changes that
minimize a negative impact on human health and the environment at every stage of the product's
lifecycle. It is the primary responsibility of brand owner or producer, who makes the marketing
and design decision to incorporate the treatment and disposal cost into the cost of product. It also
creates a setting for markets to emerge that truly reflect the environmental impacts of a product,
and to which producers and consumers respond.
Life-cycle analysis (LCA) is a technique to assess the environmental impacts associated with all
the stages of a product’s life from material processing, manufacturing, distribution, use,
maintenance, repair and recycling. LCAs can help avoid a narrow outlook on environmental
concerns by compiling an inventory of relevant energy and material inputs & environmental
releases. This is done by evaluating the potential impacts associated with identified inputs &
releases, interpreting the results to help make a more informed decision.
6.1 Objectives of green supply chain management
Main focus of GSCM is to make business orientation eco-friendly:
To achieve competitive advantage and high performance through GSCM practices.
To integrate the green supply chain into corporate policies and strategies for smooth
To make a significant difference in its approach.
To show how important it is to conserve environment and sustain the natural resources
and show to what extent is the business activities dependent on environment.
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
7.1 Traditional supplier selection criteria
Since 1960s, supplier selection criteria and suppliers performance have been a focal point of
many researchers. While the traditional supplier evaluation methods primarily considered
financial measures in the decision making process, more recent emphasis points to the
incorporation of multiple suppliers criteria into the evaluation process (Talluri and Narasimhan,
It was observed that the price or cost is not the most widely adopted criterion. Instead, quality,
followed by delivery, cost etc. are the most popular criteria used in supplier selection process. It
proves that in contemporary SCM traditional approach single criteria i.e. cost is not supportive
and robust. The traditional cost-based approach cannot guarantee that the selected supplier is
global optimal, because the customer-oriented criteria (quality, delivery, flexibility, and so on) are
not considered (Ho et. al., 2009).
Location, additional value added capability, scope of resources, quality, cost, flexibility in
contracts, on time delivery, reputation, culture and existing relationship are the top10 factors
considered in supplier selection according to a survey (Shu and Wub, 2009). 23 criteria were
identified for supplier selection based on a survey of 273 purchasing managers by Dickson
(1966). The Author observed that quality was perceived to be the most important criterion
followed by delivery and performance history (Chaudhry et. al. 1993;Talluri and Narasimhan,
Weber et. al. presented a review of 74 articles that represented the supplier selection literature
available since the year 1966. They also characterized each article according to the criteria used,
purchasing environment assumed and techniques or analytical methods employed. Capacity,
quality, on time delivery and net price, were the criteria that appeared most often in articles
(Weber et. al., 1991). Ho et. al. (2009), suggested that flexibility, finance, risk, research &
development, manufacturing capability, technology, management, service, relationship,
reputation, price, delivery, safety and environment are followed after quality management, safety
and environment.
7.2 Green supplier selection criteria
Supplier selection is a multi-criteria decision making process and mostly the data type is
qualitative and quantitative in nature. Supplier selection problem involves tangible and intangible
criteria. Variations in the criteria mostly depend upon products and also include lots of
judgmental facts. Various criteria that are important for green supplier selection, as evident in
literature and gathered from discussions with experts include:
Design criteria: In the development of a new product, mostly design criteria is considered and the
design criteria includes, reuse of the components, reduction of waste coming out of product as
well as cost, design according to changeability of product/processes, design for proper utilization
of material, dismantling of the component makes easy, design for utilization of resources
efficiently, design according to remanufacturing is done afterwards.
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Manufacturing criteria: Minimize the amount of hazardous material used in production of
product, Measures taken to reduce material, water and energy used in manufacturing, Reduced
setup time, Minimizing use of natural resources during manufacturing, Minimizing
toxic/hazardous waste during manufacturing, Production schedule, Close loop
manufacturing/Remanufacturing, Backup system, Quality level, Supply chain information
Technology criteria: Technology level ability of R&D, Cleaner technology (water, air, energy
used), Technical expertise.
Green logistics criteria: Sustainable transportation Handling and storage of hazardous material,
Control on inventory, Warehousing, Packaging and Facility Allocation.
Customer service criteria: Technical support, Re-design, Complaint response time, Storage
frequency, Warranty, Certification.
Environmental management criteria: Raw material, reuse recovery; Recycle of waste, Emission,
ISO 14000 certification.
Procurement management criteria: Requirement of green purchasing, Green material coding and
recording, Inventory of substitute material, suppler management.
R&D management criteria: Capability of green design, Inventory of hazardous substance, legal
compliance competency.
Process management criteria: Management of hazardous substance, Prevention of mixed material,
Process auditing, Pre-shipment inspection.
Operational performance criteria: Inventory level has to reduced, Reduction in percentage of
scrap, Promote to use only for environmental quality products, Optimization of maximum
capacity utilization, Percentage goods delivered on time, Monitoring the environmental and
implementation for improvement with industry, Conduct the program to promote and track the
reduction of waste, Waste management program for compliance with all applicable regulations,
Selection of energy efficient equipment as for mechanical, electrical, and lightning applications,
Development of prevention program to identify and eliminate sources of pollution.
Customer co-operation criteria: Customer’s co-operation for eco-design, Customer co-operation
for cleaner production (air, water and energy), Insisting form customer for green packaging, Co-
operation for using less energy during transportation of product, Co-operation with customer for
environmental procurement.
The concept of traditional supply chain management is becoming more complex and competitive
day by day; as it was considered earlier as the process of converting raw material into final
product and finally delivered it to the end user. In the current era, the analysis of each individual
stage in the supply chain is equally important. Thus the concept of supply chain has emerged in
all production process, ranging from raw material acquisition to final delivery of the product.
International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No. 1, March 2014
Changes in the state of environment, subsequent public pressure and environmental logistics have
come to enforce the shift in manufacturing and business practices. Now it has become most
important to analyze the entire life cycle effect of all processes and products. Therefore, the
structure of traditional supply chain is to be extended further and included with the product
recovery mechanism. Presence of this extension has created an additional level of complexity in
the analysis and design of supply chain.
Upon reviewing the extant literature, it can be concluded that the concept of SCM needs to be
remodeled in the green context. The difference between traditional supply chain management and
green supply chain management points to the need to address the ecological aspect, through there
exists a tradeoff with the cost, speed and flexibility. The addition of the product recovery
mechanism gives rise to numerous issues affecting strategic and operational supply
chain decisions. Subsequently, the extension of the traditional supply
chain requires the establishment and implementation of new performance measurement systems.
In view of this, the supplier selection criteria have to be redesigned as per the need and the
context. These new measurement systems developed will serve as the centerpieces of
environmentally conscious implementation plans, based on continuous improvement, that will
enable organizations to become and remain more competitive, while achieving sustainable
processes and development.
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... When a breakdown occurs, spare components are delivered over long distances to resolve the problem. This philosophy was used in the past and continues to be popular to date [13,14]. ...
... Spare parts are generated utilising 3D printers, which are often positioned close to the end customers. Digital spare parts are now accounted for at least 5% of a company's spare parts market [13,14]. It is possible to employ digital spare parts to boost the productivity of spare parts service organisations while also achieving significant cost savings: spare parts are enhanced, delivery times are lowered, and small batches and individual parts are less expensive to manufacture. ...
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Mobility is undergoing changes. Increasingly strict legislation regarding pollutant emissions and the protection of the environment are more important than ever. The change to electric mobility is also presenting the mobile world with new challenges and opportunities. Vehicles are becoming more and more efficient with higher power densities and better performance. Applicationadapted components are being developed and used as a matter of preference. New production technologies can help to realise the change in mobility reliably. Additive manufacturing is one way of producing functionally integrated and performance-optimised components. AM offers the possibility to produce application-specific performance parts. Electric vehicles often have a problem with the thermal load of the components during power output and charging. Additively manufactured components with optimised topology and integrated cooling strive to achieve higher power density, enhanced cooling performance, and improved mechanical properties. AM not only makes it possible to produce functionally integrated and application-adapted components but also to reduce CO2 emissions and conserve resources. The potential of additive manufacturing for mobility is particularly interesting for the spare and performance parts sector. Components can be improved in performance and manufactured directly on-site. The higher power density and the elimination of transport routes can make an additional significant contribution to environmental protection. This paper presents an overview of the current state of additive manufacturing in the field of electromobility with regard to replacement and performance parts using 3D metal printing. Based on an extensive literature research, a market overview is given. This serves as the basis for the further procedure and, building on this, the advantages of additive manufacturing are demonstrated using the example of an electric motor. The selected electric motor is an example of a defective component in a vehicle that needs to be replaced and whose performance can be improved by additive manufacturing and which can be produced on-site in a quantity of one. The motor is verified by means of a FEM simulation in order to determine the selection of an optimal water jacket topology and to demonstrate further potential for the future.
... observed that environmental practices need entire participation and collaboration cross-sector from participants. [4] illustrated that the inconstant environmental requirements impact manufacturing operations and increase attention to develop effective environmental management strategies for the supply chain. [5]presented that the concept of supply chain management is becoming more complex and competitive. ...
... To ensure the consistency of the tools, the Cronbach alpha equation was used on the study sample, to find out the coefficient of internal consistency for each of the fields of Green Supply Chain Management and the scale of Environmental Performance and the scale as a whole , to find out about these values Table (1) shows that: (4) shows that the value (F = 11.220) and statistically significant (0.00) are both less than the level of statistical significance (0.05). As a result, a simple linear regression model is appropriate for estimating the causal relationship between the independent variable (Green Supply Chain practices) and the dependent variable (environmental performance). ...
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Purpose: The study's goal is to investigate how a green supply chain (green purchasing, green operations, green selling, green distribution, and green marketing) can affect environmental performance in Jordanian pharmaceutical industries firms.Design/Methodology/Approach: The survey unit of analysis is made up of 50 out of 245 managers who work at Pharmaceutical Manufacturing Organizations and were available at the time the questionnaires were distributed. The normality, validity, and reliability of the study tool were confirmed, followed by a descriptive analysis and the calculation of the correlation between variables. Finally, the impact of Green Supply Chain was tested using multiple regressions.Finding:The study's findings indicate that the green supply chain has a positive impact on the environmental performance of Jordanian pharmaceutical companies. Green selling has the greatest impact on environmental performance, followed by green purchasing, green labeling, green distribution, and green operations.Recommendations: The study suggests that Jordanian Pharmaceutical Manufacturing Organizations incorporate Green Supply Chain into their supply chain management strategic plans.Practical and Managerial Implications:Implementing a Green Supply Chain in Jordanian Pharmaceutical Industries Firms increased Environmental Performance. As a result, incorporating Green Supply Chain into Supply Chain Management strategies will increase competitive advantages.
... Due to ever-increasing environmental legislation, customer perception, and market competitiveness, etc., the element of greenness in the SCM is added in the present scenario (Sarkis, 1999;Deshmukh and Vasudevan, 2014;Lamba and Thareja, 2020). According to the available literature, the GSCM methodology discusses the numerous study resources that are little or not thoroughly covered in conventional SCM (Simpson and Power, 2005;Mezher and Ajam, 2008;Lamba and Thareja, 2020). ...
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... • Au niveau des approvisionnements. Il s'agit de procéder à une acquisition de matières et composants de telle sorte que soit minimisés leurs impacts négatifs sur le cycle de vie des produits finis (Deshmukh et Vasudevan 2014;Sauer et Seuring 2018). • Au niveau de la production. ...
RÉSUMÉ L’article s’interroge sur les enjeux de la gestion verte de la chaîne logistique pour les entreprises familiales. L’analyse d’un échantillon d’entreprises françaises cotées de l’indice SBF 120 entre 2002 et 2018 montre que, globalement, le caractère familial des entreprises n’incite pas particulièrement à une gestion verte de la chaîne logistique. Toutefois, les entreprises familiales opérant dans des secteurs « polluants » semblent manifester un intérêt majeur pour une telle gestion, une façon de soigner leur image, constitutive de leur identité et de leur réputation.
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Supplier selection and determining appropriate replenishment policies is one of the major concerns in production systems and supply chains. This paper describes the supply chain of integrated buyers and suppliers of perishable product. The retailer supplies the product it needs from different manufacturers. Products purchased by manufacturers are perishable products, and their Perishable rate is expressed as a fixed percentage of retailers' and manufacturers' inventories. In this situation, the selection of suppliers and the determination of the quantity to purchase from each supplier have a great impact on the optimization of the supply chain. Based on the fixed demand of the end customers, the retailer tries to determine its optimal replenishment policy, and based on this optimal policy, the process of purchasing raw materials from manufacturers, as well as the time and amount of purchase from each manufacturer will be determined. Among these, the supplier that can deliver the product within the specified time and at the lowest cost will be selected. The main purpose of this paper is to select suppliers and determine replenishment policies in a way that minimizes the total cost of this chain of supply, including retailer and supplier costs. This model uses a mixed-integer linear programming approach. Finally, this model was checked with a numerical example.
The imperatives of globalisation demand that organisations and governments of various countries adopt sustainable supply chain practices for reduced impact on their ecosystems but beyond their immediate economic needs and exigencies. Aside from digitisation, sustainable supply chain management is engendered by the three pillars of economic, societal and environmental benefits inherent in the supply chain ecosystem. Incrementally, organisations need to hinge their value chains on these pillars. This chapter’s discourse will focus on the nature and characteristics of the traditional supply chain model, emerging sustainable supply chain focused on global warming, barriers inhibiting sustainable supply chain practices, environmental safety issues and societal concerns among consumers; what strategies organisations and governments in sub-Saharan Africa should adopt to enhance green operations practices; emergent opportunities organisations can leverage to access clean energy, amidst competing demand for issues of environmental degradation and increasing incidents of insecurity across the African continent.
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The global integration of supply chains has tremendously increased data generation in operational processes. The data produced is vital in the decisions of supply chain managers. The increasing importance of data management has necessitated the use of big data analytics in supply chain management and thus the concept of supply chain analytics capability has emerged. The effective use of big data by supply chain management is considered as a skill. Supply chain agility is the ability of the supply chain to quickly adapt and respond to changing conditions in a changing market environment. Although the effects of supply chain analytics capability on the performance of companies are becoming more evident, the role of supply chain agility in this relationship has not been examined in the literature. In order to contribute to this gap in the literature, this study investigates the role of supply chain agility in the relationship between supply chain analytics capability and firm performance. The results of the research support that supply chain agility has a mediator role in the relationship between supply chain analytics capability and firm performance.
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With the growth of public awareness for environmental protection, green production was raised as an important issue for each producer, which will guarantee its activity in long term. Creating suppliers , performance assessment system is so necessary and important that it measures suitability of the suppliers for long-term cooperation with the company. Many activities have been performed for selection of the suppliers but those who pay attention to environmental issues, social responsibility of the organizations, and compatibility with the environment are limited. In this study, we seek to present a framework for assessment of the green suppliers with accountability components of the organizations regarding society which considers cost issues for the selection of suppliers and their responsibilities toward society and the surrounding world. In this article, we have classified our criteria into four groups each with the following criteria which should be included in suppliers assessment and selection process .TOPSIS method has been used for the selection of the greenest supplier.
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Due to growing awareness about environment protection, firms are forced to implement environmental practices to enhance their green image. In recent times, academicians and practitioners have shown interest in green marketing and green supply chain management (GSCM). Fields of green branding and sustainability have seen special interest from different business disciplines including information management, marketing, supply chain management, etc. Due to economical and ecological impact, there is a growing concern for the environment and related critical issues. Pressure on the environment is dynamic and diverse, and demands new levels of accountability, financial commitment and supply chain capabilities. Indian manufacturing industries have started adopting green concepts in their supply chain management giving special attention to environmental issues based on pressures from different directions, e.g. customer pressure, government regulations etc. Yet, industries struggle hard to identify essential pressures for implementation of GSCM. This work focuses mainly on identifying such pressures for implementation of GSCM. Initially 65 pressures were identified through detailed literature and categorised into six groups. Then common acceptable pressures were identified through a questionnaire survey from different industrial sectors in Phase 1. Finally, essential pressures are prioritised with the help of analytic hierarchy process in Phase 2.
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As customers are becoming more environmental conscious and governments are making stricter environmental regulations, the industries need to reduce the environmental impact of their supply chain. Indian auto component manufacturing industries especially SMEs (Small and Medium Enterprises) are focused to cleaner production by implementing Green Supply Chain Management (GSCM) in their industries. But they are struggling to implement GSCM concept. The present research analyzes the barriers for the implementation of GSCM concept which has been divided into two phases such as identification of barriers and qualitative analysis. The study has used three different research phases: identification of barriers from the literature, interviews with various department managers and a survey of auto component manufacturing industries. The identification phase led to the selection of twenty-six barriers based on literature and in consultation with industrial experts and academicians. The Interpretive Structural Modeling (ISM) qualitative analysis was used to understand the mutual influences amongst the twenty-six barriers by survey. This study seeks to identify which barrier is acting as the most dominant one for the adoption of green supply chain management and this result is helpful for industries to make easier the adoption of green concept in their supply chain by removing the dominant barrier. It indicates that different Indian auto component manufacturing industries have differing barriers for the implementation of green supply chain management. However, in their GSCM implementation, especially for maintaining the environmental awareness, the supplier barrier is the dominant one. Finally the approach has been applied to ten auto components manufacturing industries in Tamilnadu, South India.
Supplier evaluation and selection problem has been studied extensively. Various decision making approaches have been proposed to tackle the problem. In contemporary supply chain management, the performance of potential suppliers is evaluated against multiple criteria rather than considering a single factor-cost. This paper reviews the literature of the multi-criteria decision making approaches for supplier evaluation and selection. Related articles appearing in the international journals from 2000 to 2008 are gathered and analyzed so that the following three questions can be answered: (i) Which approaches were prevalently applied? (ii) Which evaluating criteria were paid more attention to? (iii) Is there any inadequacy of the approaches? Based on the inadequacy, if any, some improvements and possible future work are recommended. This research not only provides evidence that the multi-criteria decision making approaches are better than the traditional cost-based approach, but also aids the researchers and decision makers in applying the approaches effectively. (C) 2009 Elsevier B.V. All rights reserved.
The optimization of green suppliers is a key step in green supply chain management. First of all, in the green supply chain management and green procurement characteristics of the premise is proposed based on green supply chain management supplier evaluation index system construction method. Secondly, according to green supply chain management theory Analytical Hierarchy Process (AHP) and Grey Relational Analysis (GRA) are given the green supply chain management model supplier evaluation index system, combined with the characteristics of the indicator system proposed the concept of green adjustment factors, and gives the calculation of the specific steps and methods. Finally, a numerical example shows that this algorithm is scientific and reasonable.
Today's international business environment has forced many firms to focus on supply chain management to gain a competitive advantage. During recent years, supplier selection process in the supply chain has become a key strategic consideration. With the growing worldwide awareness of environmental protection and the corresponding increase in legislation and regulations, green purchasing has become an important issue for companies to gain environmental sustainability. Traditionally, companies consider criteria such as price, quality and lead time, when evaluating supplier performance and do not give enough attention to environmental criteria as a means to evaluate suppliers. Now, many companies have begun to implement green supply chain management (GSCM) and to consider environmental issues and the measurement of their suppliers’ environmental performance. This paper examines GSCM to propose a fuzzy multi criteria approach for green suppliers’ evaluation. We apply fuzzy set theory to translate the subjective human perceptions into a solid crisp value. These linguistic preferences are combined through fuzzy TOPSIS to generate an overall performance score for each supplier. A numerical example is presented to demonstrate the effectiveness of the proposed approach