Green Supply Chain Management Lecturer David Sta Summer

Green Supply Chain Management Lecturer: David Staš Summer School 2015 ŠKODA AUTO University Mladá Boleslav Czech Republic 1

Lecture Content Why go the green way? What is green supply chain management? Green design in supply chain management Example of green supply chain management activities 2

Why go the green way? Environmental concerns 3 Regulation Shareholder or public pressure Improving corporate image Cutting costs

Why go the green way? The Conventional Supply Chain Raw Material Manufacturing Distribution Consumption 4

Why go the green way? The Conventional Supply Chain But as a product moves through conventional supply, chain waste and other problems occurs: Raw Material Manufacturing Waste discharge 5 Distribution Consumption Landfill / Incinerator

Why go the green way? The Green Supply Chain Raw Material Manufacturing Distribution Consumption The green supply chain modifies conventional supply chain in two ways: The 1 st is an initial focus on ensuring that for each stage of the supply chain environmentally friendly process are optimised. The 2 nd modification on the conventional supply chain involves an entirely new reverse supply chain (recover, refurbish, recycle). 6

What is green supply chain management? One of the possible definitions: The alignment of sourcing, manufacturing, distribution, transportation and remanufacturing/recycling processes with the goal of reducing a company’s carbon footprint. Used in many business sectors Government Manufacturing Education Services 7

What is green supply chain management? Benefits: Reducing the consumption of toxic chemicals Less waste Sustainability of natural resources Lowered costs Increased efficiency Brand reputation Reducing risk Employee morale Ethics 8

What is green supply chain management? → Starts with daily operation Implementation: Recycling Product design Change in raw materials Increase manufacturing effectiveness Reduce energy consumption Environmental initiatives Renewable energy Reduction of waste Use of environmentally friendly products 9

What is green supply chain management? Barriers Customer preference Suppliers adapting to change Cost of implementing processes No concrete way to measure return on investment 10

Green design in supply chain management One of the possible definitions of green design for four aspects with lower environmental impact: Green Raw materials Green production - Manufacturing − Development of green technologies & materials − Improvement of material recycling ratio − Elimination of resource waste − Reduction of energy consumption − Clean technology − Reduction of production waste − Efficient planning around electricity demand peak times Green design Green Product Recovery Green logistics - Transport − Increasing the percentage of recycled inputs − Reuse of products − Use of ecological alternatives as a part of Corporate Social Responsibility − Eco-design − Use of eco packaging to maximise logistic efficiency − Configure efficient global logistic system to lower the use of fuels − Optimising delivery schedules − Use of light weight trailers 11

Example of Green supply chain management activities Firms focus mainly on green logistics activities Transportation Warehousing Packaging Reverse Logistics 12 Fields of the Green transport practices

Example of green supply chain management activities Green Logistics - technical solution Effective deployment of innovative elements in the transport of components Hydraulic opening sidewalls of the truck SWING TOP LIFTER Increasing productivity Reducing the number of trucks 13

Example of green supply chain management activities Green Logistics - technical solution Effective deployment of innovative elements in the transport of components project EDIS (Ecological Transport Internal Skoda) EDIS (AKU – truck + sidecars) Deployment AKU-trucks instead of trucks with diesel engines Direct supply to the precise time windows 14

Thanks for your attention 15