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Logistics and Supply Chain Management Next Generation Supply Chains How will green supply chains affect and drive the design of next generation logistics and supply chains? Next Generation Supply Chains How will green supply chains affect and drive the design of next generation logistics and supply chains?
Green issues are those concerns relating to the natural environment. They have become prominent in society today as people are becoming more aware of the increasing number of environmental issues and particularly the effects of global warming.
As a result, businesses are being pressurised by customers, suppliers, regulatory authorities and public bodies to address the problems Cousins et al In particular, consumers are starting to question how environmentally friendly the manufacturing processes and supply chains SC are for the goods that they buy and are demanding green supply chains GSC.
Consequently, organisations at all stages of the SC now have to consider environmental issues to ensure that their SC is green as 'every product generated, transported, used and discarded within the SC causes a certain impact on the environment.
All of this has become a concern because we do not want the actions carried out today to harm future generations. This desire to be green has implications for future SCs as new environmentally friendly procedures will have to be introduced.
One of the major concerns driving the desire to become green is the increase in carbon emissions resulting from the burning of fossil fuels to generate power.
Consumers are becoming more concerned about the distance their goods travel because of the environmental damaged caused by the transportation used, this damage has become known as the carbon footprint Mangan et al In particular, the distance travelled by food before it is consumed food miles is becoming a concern Mangan et al This obviously impacts SCs in the world today and those of the future which are currently contributing to these high levels of carbon emissions.
Some companies are choosing to take part in 'emissions trading' which involves giving something back to the environment that has a positive impact to try and strike a balance with the damage caused by the carbon emissions e. Although emissions trading is good for the environment, there are many ways in which carbon emissions can be reduced along SCs to try and reduce the carbon footprint instead of just trying to counteract the damage being done.
One of the main problems in addressing these issues is that there is no way of measuring how environmentally friendly a SC is French Therefore, producers need to consider every stage in their SC and gain all the appropriate information on reducing carbon emissions in order to start to tackle the problem.
The implication of this for future generations is that they will need to integrate this into the early stages of their process which will clearly take more time and money.
This may in fact be easier for new ventures as they are starting with a blank slate thus making it simpler to incorporate this into their new plan than it is for already existing businesses who are going to have to readjust their current systems.
Despite the majority of carbon saving occurring at the design stage, it is not just forward planning that helps reduce the carbon footprint.
As highlighted by Miller and Szekelyit is 'erroneous to suggest that "green" is a fixed state that users of the environment can eventually reach' p.
Therefore, companies cannot become green by just planning ahead, they should constantly be striving to become 'greener' throughout the whole SC Miller and Szekely Consequently, producers need to continuously monitor their whole SC as the process can often be made more efficient at many different stages throughout the life cycle of the chain.Their efficiency in packing the furniture have given rise to cost saving in terms of reduced transport, warehouse costs, and avoiding damage.
As IKEA expands in Sweden, it used to exhibit and sell its products at home furnishing fairs.
May 17, · Operations management is the art of knowledge that ensures that services and goods are produced and distributed successfully to customers. Operations management key objective is maximize efficiency while producing and effectively fulfilling customer needs.
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IKEA MARKETING CASE 1. 1. Until now IKEA international marketing strategy has been tightly and centrally controlled by corporate headquarters. However, high local' pressures emerging due to demographic and cultural differences might force the local IKEA shops to take strategic initiatives to respond to local market needs.
The Polish government is encouraging citizens to go forth and multiply - like rabbits. The health ministry of Poland has put out a short YouTube .