Last edited 01 Oct 2021

Green supply chain management

The term 'Green supply chain management' (GSCM) refers to the concept of integrating sustainable environmental processes into the traditional supply chain. This can include processes such as product design, material sourcing and selection, manufacturing and production, operation and end-of-life management.

Instead of simply attempting to mitigate the environmental impact of the supply chain, GSCM involves driving value creation throughout the supply chain organisations to reduce total environmental impact.

While the specific goal of GSCM is often the reduction of CO2 emissions, other tangible benefits for an organisation include; greater efficiency of assets, less waste production, greater innovation, reduction of production costs, reuse of raw materials, increased profitability, perception of added value to the client base, and so on.

Integral to the success of GSCM is the approach taken by each party to their upstream and downstream partners in the supply chain. A much greater degree of collaboration, transparency and integration of supply chain processes and systems is required for the initiative to be effective.

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