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A supply chain is a system of organizations,
people, technology, activities, information and
resources involved in moving a product or
service from supplier to customer.
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6 „upply Chain Management („CM) is the management of a network of
interconnected businesses involved in the ultimate provision
of product and service packages required by end customers.

6 „upply Chain Management spans all movement and storage of raw

materials, work-in-process inventory, and finished goods from point of
origin to point of consumption (supply chain).

6 Another definition is provided by the APIC„ Dictionary when it defines

„CM as the "design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally."
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6 ÷ogistics, Procurement have become strategic
6 Organizations outsourcing, forming partnerships,
alliances
6 Product environment becoming more complex
6 Time based competition requires time compression
6 Managing suppliers and customer relationships
necessary
6 Competition shifting from company vs. company to
„upply Chain vs. „upply Chain
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„upplier Organizational Customer

„uppliers Relationships Processes Relationships Customers

Continuous Improvement ÷oops

„upply Chain Elements

„upply Chain => „upply Cycles
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Prequalification of suppliers
6 Require or encourage environmental criteria for approved suppliers
6 Require or encourage suppliers to undertake independent
environmental certification

Environmental requirements at the purchasing phase

6 Build environmental criteria into supplier contract conditions
6 Incorporate EH„ staff on sourcing teams

„upply base environmental performance management

6 „upplier environmental questionnaires
6 „upplier environmental audits and assessments
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Build environmental considerations into product design
6 £ointly develop cleaner technology with suppliers
6 Conduct life cycle analysis in cooperation with suppliers
6 Engage suppliers in design for environment (DFE) product innovation
6 Coordinate minimization of environmental impact in the extended supply chain
6 Develop tools that assist in the DFE effort

Cooperate with suppliers to deal with end-of-pipe environmental issues

6 Reduce packaging waste at the customer/supplier interface
6 Reuse/recycle materials in cooperation with the supplier
6 ÷aunch reuse initiatives (including buy backs and leasing)

Reverse logistics
6 Give supplier an incentive to reduce the customer¶s environmental load
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Management of Materials and Resources from

„uppliers to Manufacturer/„ervice Provider to
Customer and Back, with the Natural Environment
Explicitly Considered (hopefully in a conscientious
manner).
  





    

     


 
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6 Economic globalization and the pressures from the public, laws and
environmental standards are forcing and driving enterprises to improve
their environmental performance as well.

6 Green „upply Chain Management (G„CM) is thus being paid increasing

attention to. „everal organizations applied green principles to their
company, such as using environmental friendly raw material, reducing the
usage of petroleum power, and using the recycle papers for packaging.

6 The green principles were expanded to many departments within

organization, including supply chain.

6 Green supply chain management (G„CM) was emerging in the last few
years. This idea covers every stage in manufacturing from the first to the
last stage of life cycle, i.e. from product design to recycle.

6 Not only manufacturing, but G„CM can also be used to other business
sectors such as government, education and services.
  

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6 Distribution Network Configuration: Number and location of
suppliers, production facilities, distribution centers, warehouses and
customers.

6 Distribution „trategy:Centralized versus decentralized, direct

shipment, cross docking, pull or push strategies, third party logistics.

6 Information: Integrate systems and processes through the supply

chain to share valuable information, including demand signals,
forecasts, inventory and transportation.
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    By reducing wastes, companies
decrease handling expenses, fines, and even costly inputs. „upplier's savings may
be passed along to buyer companies.

6 
     

 
 Efficient production is enhanced

through the use of cleaner technologies, process innovation, and waste reduction.
Reduction in wastes equals dollars earned.

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   „upply chain partnerships help maintain relationships

between buyers and suppliers leading to increased control over product quality.

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 In an era of multi-faceted, non-
vertical manufacturing, companies include supplier outreach to address corporate
environmental goals.

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   Consumers, investors, and employees respond positively
to companies with a reputation for good environmental performance.