Green Supply Chain Management: Strategy to Gain Competitiveness Advantage.

Journal,

of Energy

Technologies and Policy
ssN 2:t2-t t,':l:, ir,r'
SSN 2.':i il' i.i ,'.r. i4
.

\tr -l N,) lj,2al-i
Sirec.l. ssue lor illLtrSF :iar:l
2C

-r r r,i,r i:rr,,,,

E ri,i '.,

l_'

rr,.

ll

-al:

Vol3, No 11 (2013)
Special Issue for ICEESE-2o13
2013 International Conference on Energy, Environment and Sustainable Economy (EESE 2013) was held
n Bangkok, Thailand, Dec 1st- 4th, 2013. IISTE published the artrcles in this special issue based on the

.e.ommendations from the conference organizing committee,

Table of Contents
Articles
Renewable Enerey in Malavsia:

Expgdg4qgitqqPgflis

Aslam, M.M, ZulkiJli, D.A
The ImDortance ofEnerqy And The Use ofEnerev As A Power
Factor

Bdhad Aydin
Tenant participation in sus
-\HP and case studies
Brano Glumac, Susan Reurek(lmP, Qi Han, tVim Schaefer
Characteristics ofPolar Cells Fabri
printing Process
Hyun-Ji Song, Won-Ki Lee, Chel-Jong Choi

l-5

6-15

t6-26

27 -31

Solid Waste Manaeement Pmctices ofHouseholds in the
UniversitY of Eastem Philippines

Chenl l. Ultra, Allan A. Ultra

32-34

Eastem PhilipB,!!9!

Cherry

I. Ultrd

Maranda Esferhuizen-Londt. Ben Zeelie

A

quilo- de Asis
Variarion In I he Role And Cooins Mechanism of4Ps
Beneficiaries In Northem Samar
Veronica A. Piczon. Leah A. De Asis, Tito M. Cabili
Invento ofthe Aquatic Macrophv4es in Lake KharunsDat. India
K. Khelchandra Singh, B Manihqr Sharna, Khurqiiom Usha
Leah

35-38

39-45

46-51

52-6)
64-75

Economv Cnos,th and Oil Import Reouirement in Indonesia
Dwi Atty Mardiana, Zulkilli Husin, Muhammad Zilal Hqmzah,
RS. TrUana Kqrtoatr odjo

'76-83

Electrochemical Treatment of Hazardous Oreanic Pollutants A
Status Review
Himodti R. Ghaiak
Veeetation Analysis ofthe Pasonanca Natural Park. Zainboanea

84-89

CitY. Philippines
Jocelyn D Partosa, Jamaica L Delos Reyes

90-r 00

Jose Rizakly A. de Armas

l0l -r06

Environmental Policy and Toumaments: A Theoretical
Fomrulation with Over-compliance
Linus NyitNul

107-l 15

Ma. Esnella Natalie B. Pineda

I l6-136

Mohammad Asadullah

137-143

Muhummad Moniruzzumon, Ttutomu ()no, Suzana Yusup. Suion
Cfu,tudhury. Mohammad Azmi Bustam, Yorhimistu Liemurd

'

N. Vu r hulaks

hni A ndal, G.

Goh ulavon

i

144-1s2

153-164

Noritdko yusa, Jing llang, Iikka Virkkunen
Forecastins ofElectric Consumption in a Semiconductor Plant
usine Time Series Methods

165-169

Prayad 8., Somsak S.
Resression Models For Prediction Of Water Ouality [n Krishna
River
M- Chandra Sekhqr, K. Surender Reddy

170-t77

Ali Khan, Mohd Shahir Liew, Zulkipli Bin Ghazali
Greenine ofthe Solid Waste Manaeement in Batansas Citv
Pdz B Reyes, Mqbelle V. Furto
Rdza

178-l8t

182-186
187-194

Rolando P. Javellonor, Victorino T. Tayldn, Ireneo C. Awlto,
Teresito G. Aguinaldo, Emmanuel V. Sicat, Hele F. Gaiino

195-203

Kr ittaphong Chitphairot, Somboon Nuc hprayoon

204-2t0

Effect ofOperatinq Condition on Peformance of Anaerobic
Hybrid Reactor at Themophilic Temperature

Sorawil Wdnitqnukul, Warin Rukruen. Parinee Choiprasert

211-219

.iCarbon Tax

--:'i:lt'le
S

?

in Thailand usi

on El

Model

G

t huk ll-ac hi rarangsrikul, Chumnong Soropipalana, Nattapong
:,:tan,tpong. Jctrto|a ChonIan61)aI

"-.,

:

...J

\lu::omil Hussain

Shah, Khamaruzaman Wan Yusof,

Z;)tiunra )lustaffa, Ahmod Mustafa

229-213

Hashim

Adsomtion ofReactive Dve from
=.e oi Incrnerated Rice Husk for
Solution
-: -:..,rs

l;:nnt Khan, Malay Choudhuti, Mohamed Hasnain lsa, Atkil'ul
Zr;i Bin lbdul Hamid
! {:1Jl' sis of RF Sp
:-::..:inr on ITiO Films Characteristics

T Lhutkeeree, P Nuchuay, N.
( adou,|rcdd, N. Mungkung

220-228

Thungsuk, N. KasayoPanand, A.

234-239

240-

45

i ..:irn tnd Strategic Management
246-250

251-258

I i-Kuo Chang, Zh-Hong Hu, Zhen-llei Hong, Tsung-Yen Wu,
( hun-Chang Cheng
f.'chno-Economic Studv ofSeries Cunent Limitinq Reactor and Its
Impacr in the-LLKY ]lqluqlLt{ilLHarmonic Pollution
I T, SRIDHAR, HAITHAM SAFAR, NLLESH MODI, YOUSUF
1LI- }"1COUB AL-DASHTI
Charactcrizatiolt of Diesel-Hvdroeen Peroxide [uel Blend
\luhanlnad Saad Khan, Iqbul Ahmed, M I Abtlul Mutalib, M

259-263

264-2',73

27

4-279

.1 B Ltslatl11

\:lural Adsorbent: Removal ofAnionic surfactant ftom qreY
'.,::er and its comparison with chemical adsorbent
('huntla Vetma, Santosh K- Sar, J- Mathev
method and aDDlication to solid u'aste manaeement service
improvement
Shehu Usman Adam, Mad Nasir Shatnsudin, Shaulique F. Sidique,
Khalkl Ahdul Rahim. Alias kddn

Carbon Colloids

291-298

299-306

Shailendra Mohdn Mathur
Enhancement on Radon Adsoq)tion Propertv

280-290

ofGAC usirq Nano-size

C_hoi, Seon-hong Kim, Do-hyeon Kim, Min-jun Kim,
Gyeong-mih Kqng, Seung-yeon Cho

*ung-chan

307-31 l

Tareert Management System in Korea
YeonSang Lee, Meoung-Do Kim, Intaekyoon, Sohyun yoon

312-319

Git h i Donatus Mdt h en ge

320-333

Meythi , Riki Mafiusa
New-tyDe of Multi-purpose Standard Radon Chamber in South

Korea
Min-jun-Kim. Seon-hohg Kim. Do-hyeon Kim, Ho-jun Jeon.
Seung-Yeon Cho

\gd

Shujao Safdar Gardezi, Nasir Shafiq, M. Faris B

Khamidi

RHOBERT E. ALI/AREZ, TIRSO A RONSUILLO
The Sustainability Accounting Infomation System
Riki Martusa., Meythi

334-341

342-345

346-350

351-363

164-36a

.

clean ener
Dayliehtine Desisn in Tekan (Iran)
Seyed Hos s e in Mirm ous av

i

369-373

Assessine Financial Vulnerability of Cooperative
Muhamuad Anas Mohd Bul:ltorl Rohana Othmon, Nooraslinda
Abdul Aris. Normah Onar

374-38t

Norliz.a Omar, Roshayctni Arshad, l'/an Ainul Asyiqih ll/an
Mohd Razali

382-389

Ta-moi Jqnggu, Faizdh Datusl yussri Sav,ani, Mustaffa
Mohqmed Zaik

390-396

Sophia

XN

Biah, Victor ll/ong

lgshayani Arshad, Noorbijan Abu B(tkar, lyanAinul Asyiqin
Wan Mohd Rqzali. Normah Omar

39'7 -407

408-414

.1lt.d Rdn

i

415-432

)lohd Sobre Ismail

Fui.ah Darus. Haslintla Yusolf, Nor Khodijah Mohd Azhari

433-439

Hollinda Yusolf, Foizah D(lrus, Hasd Fauzi, yatli

440-445

Ftnlonns Ri
Or{aJisations In Malavsia

Discl

s In

Non Pro

ll'an Ainul Asyiqin Wan Mohd Razali, Roshayani
.lrslrud2Normah Omar

446-456

\-ooraslintla Abdul Aris, Rohana Othman, Rafdah Mohd

45',7

-470

.1:li
Re\ ie\\ ofGreen Buildins Demand Factors for Malavsia
Go,]rrin Ltche Aliagha, Maizon Hashim, Aleez Ololekan Sanni,

471-478

Noorbijan Abu Bakar, Roshayoni Arshad, Nik Amalena Najebah

479-488

Nik Azman- Normah Omar
on ofOne-dimensional

mium Ion

liom Wastewa

Sujan Choldhury, Madiha Yasit, Moham adAz i B Buslan,
Kuen-Song Lin
Devel
Iand T
The S
tal M
s Sustai
\eebel. Ponorogo Dist ct. East Java. Indonesia

Suharlini.

489-494

495-500

Jondal olLnergt Tochnologics and Potic)
ISSN 2221-1212 (Paper) lsSN22:5-0j7:t (Online)

vol3. No I I,

2013

hsue lor

lNinanon.l C..lcrenceon E..r

lln\

tr.dnr.nl dsulanuble

.i

Econony(L!SF 20tl

Green Supply Chain Management: Strategy to Gain Competiu,
Advantage
Melrhir RikiManusar'
I. Accounring Profesjonal SchootDepartmenr, Ma.anarha Christian Unrversiry, Indonesian:
2 Master of Accounting, Maranatha Christian Universjry, tndonesjan:
*Emailaddress otcoresponding

author:

theo

6

tus200l (Oyahoo com

Grcen Supply Chain Management (GSCM) has become a porentialty valuabte way of securing

cu::

advantage and inproving organizarional performance Wjth inc.easing competi(ion in loday,s glob;l nr.,.
firms have to look to the rnodem stmtegic manners, in order ro gajn susrainabte organization and cor:

a new innovalive manageriat toot can be used as a strategic weapon
competitiveness and to promore the firms environmenlat and financiat performance snnutraneously
iHr .
a1.,2012). GSCM as a srralegy to gain competirive adlantage means rhe orienljng ernpiricat srud) sl
there is a substanlral interesr amongst the companies ro take aclion to decrease their environrnentat im; .
goal otadding value to the business and reducjng costs jn aI parts oflhe production system is identifie,
drivers in order to increase compeririveness. The companres agree that the con:mon rnanufacrurin-e o:,
such as cost, qualiiy, d€livery and fleribitity wilt not be enough in order to stay cornpelirive when .
advanrage GSCM as

slakeholders require an increased focus on susrainabitiry Hence, a need for rnvesiigating how envirf
sustainabilny can be rnregrated to creare a comperitive production system has been identified The per-:
thcn changes lrom greening as a burdcn ro greening as a porential sourcc ofcomperilive advanrage
Acci,.
SimpsoD and Sanson (2008) there are 4 (four) strategies to gajn compctitive advantage in rhe
use ofGSa
Risk-based Straregies. (2) Efiicrency,based Straregjes, (3) lnnovalion-based Srraregies, and (1) Clo-Strategies.

Keywords: Green suppl), chain management (GSCM), competirive advanrage, risk_based straregies, en-based strategies, innovation-based strategi€s, and ctos€dtoop siraregies.
1. Introduction

l

GSCM has its roots in both environmenl nlanagemenr and Supply Chain Management (SCM) Uterarure
the 'greerr' componeni to SCM involves addressing rhe influence and retalronships berwcen SCM and rhe
environment Similar to the concepl olSCM, the boundary ofGSCM is dependent on the goalofrhe jr\ e.
(Srivastava, 2007) As in any emerging research area, the early literarure focuses on rhe
ne;essir, and irnF ,
ofGSCM. defines the meaning and scope ofvaflous tenns and sugges(s approaches to exptore the a.ea ,

Fundamentals of greening as a competirive inrlrative are explanred b] porer & Linde
0995) Thet. .
rca'onins i, Ihar invecrmcnr\ in greening , an be rc\ource raving. $a,re etinrinarillg and pruducri\ iry
f.
Three approaches jn GSCM, namely rcactive. proactive and value-seeking, are suggesi;d (Hoek, 1999r
rcactive approach, companies commrl mirimal resources to environmental managenrent, start labelting pr.
that are recyclable and use 'end of pipetine' inihatives ro tower the environmental impact of producrjon
proactive approach, they star to pre-empt new environmenral lalvs by rcalizing a modest resou.ce conrnr
to ininate the rccycling of producis and designing green products In lhe vatue-seeknrg approach, corr:,
integrate environmental activities such as green purchasing and ISo imprementation as slraiegrc iniriatir..
their business slraresy (Sflvasrava. 2007).

i

Accordnrg ro tlaJikhani et al (2012) several studjes on CSCM halc delermrned a broad range of l:.
persuading companies to devclop environmenrat managemcnt injriarr!es and praclices to jts supply
chain l
be molivaled by firm's stakeholders.equests, persuaded by finns rvanr to have tull comptiance
envrronmental regulations, or even promoted by rhe firm,s intemal srrategic nrorivations, which is related i
opponunity to garn the compeniive advantage in rhe marker According ro review on the prevjous studie.
dctemrining fhclors of GSCM adoption can be ctassified bel\ieen: (t) Exremat faclors mostty relar.
stakeholders pressures and environmental r€gulation, qhich n3med as irlatjonat molives arise fron:
aspiration of a organizalion part, ro become legjtimized and ro id\ance rhe existing relalionship arnoi-.
company's drflcrent slakeholders; (2) Inremat factors tinked to a ser ol bu5inessJed srrstegic monves.

E ES

E-10 I 3 is o.ganised by Ir remational Socier) lor

C o mnr

i

rc e_

Industry & Engineerins.

.i

Incrgr Tc.hnologics and I'olic-v

tr lt
l2i2 (P.pcr) lSSN2225-0s71 (Online)
(EESE
ksr f.r hnenDrnn,xl C.nltre.cc .n Fnrr!\ Ftr\r.Dnr.nr ard Snslai,rable
ISIE
cnvironmenlal
and
social
issues
are
becoming
$,ilh
rapid
change
in
manufacturing
scenario.
fie
Slobal
.t
inrportant in managing any busrness (Amemba,20ll) GSCM is an approach to improve performance ol
--ncess and products according to ihe requrrements of the environmenlal regulations (tku & Hu, 2010). The
r greenhouse emissions and pollulion of the environments by finns has precipitat€d the need for
Tatiors 10 rcalgn their supply chain operations wilh a vrew of conserving the scarce resources GSCM is
.d as "Green Purchasrng + Green Manufacturing/Msterials Management + Green Distribution/Marketrng +
-,e Logistics" The idea rs lo elirninate or minimize waste (en€rgy, emissions, chemical/hazardous, and
raste, along supply chain (llervani et al .2005) Accordrns to Amemba (2013) in the case ofasingle
zation, the crealion of'green'supply chain mrkcs it a signiflcant competitive advsntage rn decreasing the
ro create new matkets lor businesser, more organic and better cooperalion rilh lhe suppliers Moreovet
. nalional level, green supply chains can help to change ihe market's orientation to become rnore 'green',
rr wilh the creation of incentivcs for small and mediunl-sized enterprises to implement rrght Practices to
protection.
' e environmental

lllr

2o*)

- rre ditrerenl molivators for companies to slvilch to 'green' ;n theh supply chain (Fores, 2009) Although
,irhe motivators are quite unclear. Wu & Dunn (1995) suggcsls thal some organisations are simPly doing
radjcrl to environmental
:.ause il is lhe nght thing lo do for ihe environment Perhaps

.-' but olhers may not Studies, however, l)ave sho\n that profilability and cost reduction are some of the
. orivalors for businesses to become 'green' in the supply chain (Srivastava, 2007) Johnson ( 99 8) argues
1

-\erse logistics were rnotivated prinra.lly by economic factors and nol concerns about prolecling the eco.. Tibben-Lembke (2002) sugges! that re\rerse logistics can only bring about profitability, reduciion of
3nd advertising Zhu & Sarkis (2004) look Ihrs idea turther and argued that most oftlre I86 paticipants in
. udy allagreed thal GSCM practices arc only about win win relat;onships on environmental and economrc

-rlpose ofthis papcr, however, is to discuss some ofthese issues and provide an overvrew ofthe academrc
the GSCM lrterature This papet wnl then discuss GSCM as a stralegy to gain competitive
:,!e. Al lhe end. Ihe fapcr close' $ irI conclu.ion..

-:.ri!e of

-.cn S p?b, Chain Mondsenent
' I is a kind ofsuslarnable strategic development for enterprises in todayh competitive $'orkplace, whrch has
.rd as a new innovative approach, to achiele both financial and environmental benefiis simultaneously, by

rg environmcntal flsk and inrpacl (Hoek, 1999) Srivashva (2007) defined GSCM as incorporatirg
rmental thoughts inlo supply-chain management, including producl design, nlaterial sourcin-q and
rn manufacturirg processes, delivery olthe final product ro the cusiomcr moreover, the end-of-lile cvcle
ihc nlore environmenral concem during $e pasl years the issue ofenvironmenlal toxlc wasre incidental lo
:.ral ero$,th should be addressed rogether with supply chain managemcnt as the most important parl rn
;(ion chain. therelorc conrributnrg Io inilialives ofGSCM (Sheu & Chou, 2005) The nlain flow is as the
r]rg figure

ll
Green

Green

Desi!,nins

)esrsn

Green Techniques

l.sign

Green Suppliers
Green Materials

-.rgn

Figure

I

The

Crc.n Invironment

(lr.cn Ideas
Rec\cli.g Paclllge Malerials

floll olGrlcn SrLpll\

Green lnfomation
Green Selling

Recovery ProcessiDg

Recycling
waste Disposal

Ch3in \{anagement (Baojuan, 2009)

--J & Linde (i995) concluded rhar conrpanle. r.'.urie Lo conrperitive busrness environment and regulation
:r by expanding strategies to increase P'.rJ:.: \ :. .a rssources making them Possible to improve their

.rjal

and environmental performance at (he

::- : -.Iirihi;\a)fi.mswanttobesustainablebyacquiring

EESE-2ol3 is organised b) lnrernJ:rf

-,''- ..'

a".***.

*dustry & Engineering.

loumal of Encrev Tcchnolosies and Policy

I\S\,,,,I-J,J,.lap

' l\\\:)/.-.'\''rurt'n('

Vol3,Noll,20l3 SpccinllssueaorlrtcrnaroralConlerenceonLners\.rnvhnnrenrmdsusrar.abtcEconom\(L[SE20l])

EI

asustainabl€supplychaln(sustainableSupplyChain@

environm€ntal behaviors on their supply charn, such as, pollution control, recycling or revcrse t!
Moreover th€y would be responsible for envrronmenlal accounrabilly of their suppliers Thus it ..
combine environmental Uabilities to economic concem in order to help the future firmh suslaiDatrjlill
means ofdelivering economic, social and environmental benefits simultaneously

According to Hervani et

al

(2005)

it is noi surprisirg

that GSCM finds irs definition in supf

management Adding the 'green' component 1o supply chain management involves addressing rhc influ.
relationshrps of strpply chain managemen( lo the natural envronmcnt Motivared by an enliron..
conscious mindset, it can also stenr from a competi(iveness motive wilhin organizaLions GSCM is dr
"Gre€n Purchasing + Creen Manufacturing/Materials Management + Green Distribution/Markenng
Logistics"
Figure 2 shows this CSCM equation graphically, wher€ reverse logistics "closes the loop" ofa typica
supply chain and inchrdes reuse, remanufactuflng, andor recycling of marerials inro new materials
products wrth value in the markerplace The idea is io eli,ninare or minrmize wasre (etrersy. e
chemica,/hazardous, and solid wastes) This figure is representative ofa srngle organizat;on,s jnlen:
chain, its major operalional elements and the linkag€ to extemal organizations. A number of envirorconscious pracnces are evident throughout the supply chain ranging from green design (marl.
engineerin_g). green procurement practices

(eg. cedrfying suppliers, pu.chasing

environmenra.

materials,/products). rotal quality environmental management (in(ernal performance measuremenr. :
prevention). environmentally Iiiendly packaging and transponation, ro ihe various producr end-of-trli :
del'lned by rhe 'Re's" of reduction, reuse, remanufacturing, recycling Expanding this figrre. a rorganizalionalrclationships could be tbund at various stages ofthrs rnodel, includjng customers and rh.
as well as suppliers and their chains, forming webs ofrelationships (Hervani et al , 2005).
2 2 Geen Slppb, Chuin MonaEenent as o Stotegi to Cdin Conpetitip Ao\,dntdge

According to Simpson and Samson (2008) rhere are 4 (four) srrategres to gain competitive

advanta_gc

ofGSCMl

I

Risk-basedStrategies
'l he simplest slrategy ofCSCM with regard to rnter-organizational invesrmenr resource devetopr..
of risk minimzahon Finns adopting this stmtegy are proposed to do so in response o::.stakeholder requiremcnts Such a strategy is ideal for rhe organization thal retains minimenvironmental management resources or has only reccn{ly begun to consider rhe inrroduction ..
chain greenrng program. It is based on nlnimal rnter-organizational engagenlenr. Such efforts mrrthe inclLrsion ol basic clauses in purchasing contracts for supplers to nreet aU relevanr ,rcquiremenrs Most frequently used rith rhis approach is the cascading of an esrablished r. :
standard such as ISO 1,1001 (King er al, 2005) The use ofan eristing performance standard.
used innially bythe Ford Motor Conrpany wirh its suppliers and now more fiequently by other or:_
for lhen supply chains, ollers: (a) established envnonmeDtal perfonnance benefits (Melnyk er ai :
thrrd party or arms-length rnanagement of perfonnance. and (c) a system recogniz_ed globa|r
organizaiions. This rhird aspect improles the eflicacy of uplake by supptiers because the .
recogniz€d by the,narket and other industry members, reducing the ambiguity ofdesired performand minimizing the need for customer involvement- From rhe perspective of compelirive ,:
however,lhe benefits are lrnlled b€cause ofthe ease ofimplementarion a lack of unrq uenes, an,r ,
use by other supply chains A similar approach to basic cenrficahon schemes is lhe use ofbroad.

i:

wrthrn purcbas;rg guidance or principles

to include hupplier

activities, among the

ors-

envrronmenlal responsibilities Such syslems based on risk minimization o[ly and managed in a .
Iow relatronal investment orrly guarantee supply chain compl'ance u,irh local or nanonat regut::
end result beirg that risk can be mininrized and repuranon cnhancement is possibl€, but no innovation or complemcntary economic benefits are I'kely

2.

Ef}jciency-basedStrategies

A more complex and developing strategy in recent years has been the 'eco-eficiency' or'lean -:
tlpe ofstrategy derives envrronmental performance b"-nefits for the sur:
beyond mere regulatory compliance through the requirenrent lor suppliers to me€t operau.
efilciency largets- Much ol lhe environmenial pcrformance benefir arises from specific mdnapproach to GSCM. This

practrces thal have been lound to provrde secondary environmental perlormance benefits The :
336
EESE-2013 is organised by lnternalional Society for Commerce, Industry

& Engineering

_

!l ol [nersyTechnologics and Polic]
:ll1-1212 (P.per) lssN 221: osTr LoNnrc)

'[tit

{LrsE2oFr
\o !l.2oll Spcdal hsue lor Inlcdanonal aontu nceonEncrg) F
jeparlurelorlheellciencybasedstlategyfromtheliskbasedslratcg)iStheavailabl]iryofdualecoDomic
.i enuironmental Derlormance ben€fits to the supplv chain and Ih€ requiremenr for higher levels of

-gag€mentbelweencUslomersandsuppliersTheefficienc-vbasedslrategytjesenvironmentalPertbnnance
oierational processes in fte supply chain, and this slrategv allows the exlcnsion ol Perfornunce
ieq$reNreNs \$rs Ne s\DN t\t\$ l\at \\laxir\ize eco(\oRlic lsdorlna(ce atd provide seconda'Y
rnvi.onmental performance benefits through waste and resource use reductions It requires more

lt

-rmpreheEit)e an.J sDppL' chain sPecifrc perfirn1al1ce sPecifi.ations tha\ the sidlpler tuk based stnicer"
, io requires a higher level of involvement beiween supply chajn partners arising liom the use of more
'xple\ inteFfinn perfornrance req rrements Using tltis nrategv to facilitale greater efficiencv in thc
:ply chain does nol require the deYelopnrent of co-specialized resources specific 10 environmental
. irnnance The necessity fbr collaboratron on efilciencv, however, provides a hcilitating role lor contexlcomplex problems such as w:lste reduction and recvcling (Klassen & Vachon, 2003) Ihe strategv
r provide a cost-reduclion advantage to the supply chain and rcadrlv fits $ith pre-exisiing organizationxl
:ls of optimrzation Bu1 tlre efficiency based supplv chair slralegv does nol allow for more knolvledgc
: Nive eDvironmental management acnvities such as producl design, material substitution. or innovation

-:.iilc,

-

,duorecallsbecauseofapoorchoiceoflowcostbuthazardousnraterialsrepresenttheinherentriskin
.iushg oft\y on elhciencl in the supplY chain The clTrcie.c)_based strateg) is considered tcchnicallY
\ eak but mole sociaN coN$ex rhan the dsk based slIaleg)

.

lnnovation-based Strategies

distirct lrom the efticiencv based approach because of its use ofa
are
!upply chain environmental perlonnance sirategv that is more environmentallv specific OrganiTations
n..easlngtya'"areofthepotentiallornaro\'purchasingpo]iciestotn-sourceconrponenlsorseBicesfroln
;uppliers tlat nay be legally non-complianl wrth environmental regulations or who lhenNelves procure
he innovatron based GSCM slrategy is

I

al,200l)

Some organizations have begun to
corrsumcrs of their products once a
standards fo'
:upply chain beglns io consrder specialized processes, technologies, or complex perfonnance
.,ppfi..r
oi Or".i"ul avoidance, rhe level olknowledge exchange and relational investmenL begins io

!"oa, n

*

irresponsible wav (Bowen et

"n.ionIn"rtally
,.ruarantee more comprehensrve product life cycle consider.tions for
sr"f'r

-iange Moving from an efficiency

-

'

of
re$rccs

based CSCM stralegv to a greater level of innovation or integratioD

ir-onmentar fierrorma'ce rn supply chain and product design requires specialized eDvrronmenral

& Kin;. 2004) Keeping up 1o dale with environmental legislation changes and trainjng suppliers in
requires more dedicaled environmental resources' specialized
-,ironrnentaliy relevant prociss changes
organizat;on 1o
:rrsonnel, and design. Th; development ofsuch resources provides lhe conditioDs lor an
.hili fiom an eftlcie;cy based to arrnnovation based GSCM slralegv For products, the resources developed
:ould be used to i,,.o,pornt" innovative enrironmental planning nno specillc prodLrct designs'
At thc
:haracterislics, functronalilY, or life cycle relaled aclivilies (eg. se'vice, repair, and rec]-cling)
rhe
lor
.rocess level ihey could bc deployed to devclop environmentallv robusr me(hods and svsiems
rroduction. distribution. and se ofproducts
Lenox

rlosed-loop SlraLegies
\ccording to Kocabasoglou et al (2007) closed-loop strategies are a more recent t-Ype oIGSCM
1() rn its
:rrd repreient the most comple\ and collaborative lorrn of this tlpe ol aclivitv Olien reler'ed
lor
either
, rrples form as reverse logisricJ, closirg rhe loop involves fie capturc and recovcry ofmateri'ls
production
as
re'rnan,thcture frigh-varuc) or recvchrg (low va]uc) These materials can arise during
environmental
retu-ed goods, po'st-use, ana o ena-of tlre The closedloop stralegy lies or integrales
acLi!iry
perlonnan-ce to the s'hole supply charn Verv few examples ofcoordiraled recvcling or closcd-loop
strategv

rcrnmufacture
in the supply charn curcntly exist however. Prornincnt exanlples includc Kodak s return and
end-of-life
BMw's
and
prinrer
cartridges'
of
used
retrieval
Packard's
Hewlelt
cameras.
of its dispoiabrc
srralegv
rehicle requirernents for suppliers (Curde & Wassenhove, 2002) The motrvation for a closedloop
ofavarlable
supply chain' lack
renrains low lor basic reasoni of poor and distributed conlrol over the reverse
of supplv chains to believe lha1 such activirv is economrcallv viable
inf.astruclure. and the rnability

issues of cconomic' operalional and
strategy, however, represenls an approach that seamlessli'inregrates

ji
EESE-2013 js organised

r'

b) lntcrnalional Soci.I)

i-or Comrnerce. Industry

& Engirecflng

Joumal of Energy Technologics and Poticy
ISSN 2224,3232

Vol3,No

(Pape, ISSN2225-05?3 (Onlne)

Il,20ll

Special Issue

forl

ernalionsl Cmicrene on

.

Envno.henl

d Suslainable Economv (EESE

2Otl

enlif onmental perfonnance
require high levels ol conhol over the captue and retum of used materiah_ Goods need to be r.qualily considerations and aggregation of collection and sorting acrivities allows for rhe .-,.
economies ofscale. Such a high level of integration, coordinarion across parrners, and socrr:
knowledge requires y€ars ofdevelopment effort. Socially complex, collaborative retationshiF::basic foundation for a closed-loop supply chain strat€gy.

-l
c

>i

ii
E"r

a

ie:
!:<

+,=s

ii;
!i

,?

+
4
Fi-qure 2. Graph ofthe GSCM (Hervani et al., 2005)

338

EESE-2o1i

rs

organrsed

b! Intemational Society for Commerce, Industry & Engineering

E

iiai ol Energl Technolosies

.$

and Pohcl

1r5-0i'11 \On\N)
lP+er)
illNoll,20ll-srccialhsuclorlnrcmaroalConleenceon[nere\lnvnnnr.nraDdSusrxLnablcEcononrr(I]ESE20l:l)
i. Conclusions
1114-]111

\SSN

iiii

iusin€ss organrzalions today face a more cornplex and conrpetitive environmenr rhan ever bclore (Poner &
.:em,2001). As trade barriers crunrble and less developed countries enter rhe comperirrve marketplace, firms
,$ coniiont a greater nurnber of compelilors able ro int.oduce new products and senioes faster and c}eaper
.ur ever before (Garten, I 998) TIe ever expand iag c6pab ilrries of iD fomlarion rech.olosy wirh rhe co.coh irant
.iucrion in investment costs allow capital and jrformation 10 flow almosl instantly throughout many pats ofthe
ild Funhermore.
have become more discriminating and demanding (Euinger et cl, 1997),
rduct lifc cycles have been shortened, forcirg firrns to conlract lime to conmercialization (Lovelace ct a1.,
rl) and provide hrgher levels ofcuslonrer service and cuslomized products Consequently, rnost industries and
-ns have eniered inlo a'hyper competitive'markelplace characterized by an increase in conlpetitron,
:enainly, and conrplexity (Merrifield, 2000)

'CM is a newer concept rather rhan SCM- A l€w lrterature reviews are found on GSCM Accordingly CSCM
lnes as, adding "greening phase' to the supply chain activities, in all parts

\fiich

leads to a more "integrared"

r'co-operative" supply chain lhat finally produces better competitive advantages (Rao, 2002) As staled
.. roLrsl)! GSCM requires ecological and social aspects of business practices at the same time. Basics of
..nrng as a "competitive initiatives" are described in delail by Porter & Linde (1995) They srgued that.
saving, waste eliminating. and producrivity inrproving can be the basic reasons for green in;liarivcs and
three parts can promole thc fi.rns competitiveness Accordingly "geenrng" can lower the ecological
-:.rs ofbusin€ss and aho increases cmcienc],, creates the potential sou.ce ofcompehtive advantages in an
\rtive manner According to Snnpson and Samson (200E) there are 4 (four) stralcgies to Sain competiri!e
-rragc in the use ofGSCM: (l) Risk-based Strategies, (2) Efficiency-based Stralegies, (3) Innovation-based
- isics, and (4) Closedloop Straregies.
rLrce

\e

:.r

"green" as a competitrve means is a widely recognized Phenomenon. lt is generally accepted ihat a
:any's contr;bution to environmentally sustainable dcvelopment rs deperdent on an inlegration of
'nnmental requiremenls inio mdustrial products and processes (Poner & Linde, I995) However, 1bc result
r rcview and orienting empiflcal study indicates that even rhough much research has been conducted within
--ea. quesrions are still remaining. Many companies include sustainabilily in thcir busrness strategy, bu rhe
..r\een sbalegy and daily operations is often weak One important challenge idenlified rs the lact that
'rnmcntal responsrbilf) is often separated Bom production and operations managenrent leading 10
-rints .cgarding environmental alvareness wnhrn the organization Hence. we argue that keepnrg
'..menlal work separaied liom operalions may lead to sub-optimization and overlooked opportunities for
-uous improvem€nts

\l

can reduce the ecological rmpact of industrial activiry wrLhout sacrificing qualiry, cost, reliabilil}.-,
arance or cnergy utilization elficrcncy. It rnvolves a paradignr shill. going frorn end-of pipe conlrol to meet
r.reDtal rcgulahons to the situation olnol only minimizing ecological danrage, but also leading 10 overall
)ic prolll The a.ea throlvs various challenges to practjtioners, acadcmicians, and researchers Research in
to .late may be considered conrpartmentalized irto contenl areas drawn from operations slrategy The
areas of emphasis have been qualily, operations slralegy, supply-chair management, product and
.. rechnologies, which are collecirvel) beginnntg lo conlribute to a mo.e syslernatic knowledge base. It is
Lble io expect that these rcsearch areas will conlinuc 10 hold the greatest promise lor advance in the shoi
Ilo\rever. more integrflive contributions are needed in the longer term, iDcludnlg rntra and inter finn
,n ofbest practices- green lcchnology transfer and en!ironmenlal perforrnance measuremenl- One ofthe
: challenges facing $e ficld of GSCM is extending the historical 'comrnon wisdom'about managirrg
.,ns Much research, management education and many pracncal applications have focused on bufering
-:rarions tunction liom exlernal influences, including ihe natu.al envi.onmenr, rn order to nnprove
.ies. reduce cost and increase quality When the naiural envi.onment is considered, it is typicallv
/cd or modelled as an eNemal cor)straint, requiring operatrons to work wilhin prescrrbed limits Once this
.sunrplion is relaxed, a fundamcntal qnestion arises aboul how to pursue rcsearch on green i\5ue5 in
,ns: should this be considered a separale research stream tlith rts own strategic framework or should
.iucs be integraled into existing operalions management rescarch li-arneworks and areas? While lhe
-\ny of green issues might favour the former approach, the greatest contributions can be achievcd bv
opportunities within a more integrative frarnewo.k (Srivaslava, 2007) Finallv, rhe preparalion of
Jidn't only based on inlerdependence relationship between busrness siraregy and societv but the
:,1 relalionship berqeen rhc both Thus perceiving social responsibilrty as building shared value rather
Janrage conlrol or as a PR (Public relatlon) campai-sn \rill requjre dramaticallv different thinkirrg iD

'I
a

'

j

li9
EESE-2013 is organised

b) Intenrational Socicl\ lbr

Cornrnerce, lndustry & Engineering

Joumal of Fncrs_v rc.hnotosrc! and potrcy
ISSN 222{-3?32 (rapeo |SSN2225 057l (Ontine)

become increasingly rnlponanr ro competrlrve success

BaoJuan. (2009) Greeh s

ppt| chdin nandgeuent ond i, plenenting sfdlegy. China
Boweu. F. Cousnrs, p., Lamming, R, & Faruk, A (200t The roleofsuppty
managemenr capabjliries
supply Product ,land Operutions Managenent.l0
),pp. 174-189.

Fortes, J._(200, Green supplychain managernent.A lire*
ture revie

pp 5l-6:.

Guide, D ,

rs here ro stay Bl$iness tyeek,23.pp.2t.
& Wassenhovc, V. L. (2002) 'the rcverse supply chain HaruotuJ Bl'iness Retiel,..
E0(2), pp

A A.

rlervani.

MafllF,

M H, & Joseph, S. (2005).

performance

m

t ttnotionrl. ,r/rJl, Ilt4), pp i10-

rnanagemenr B"r. ,,ral.1/'48: An

h

Re\:

J E (1998) Whylhe gtobaleconony

Carten,

Hoek,

\\. Otusa Manapenpn! crd.ludte

in:

V

R. I. (1999). Irom reversed togisrics
enational Jounat.4(3), pp. i29_r35

::

remem for green suppt)

to green suppt) chain\ Supply Chaih Mona3e,t..

& Hu, A H (20t0) Critjcal faciors for jmplementing green supply chain manaeem€nt p.acr
.
empirical srudy of eleclrcat and eteclronics indusr,es in Tai;;n
U*.gi** a"r".ni x_i".,:.

Hsu, C. W.,

586-608

John

P. F. (1998). Managrng vatue in reverse logistics system
Logistics ond Trutlsportotian Rerie,

Klassen. R,
en\

iro

& Vachon, S (200j) Coltaborarjon
mcnral rnvesrmenr

rmd

cttun ond

and e\aluarion in rhe suppt) rhain:

Tle impact

oreuiu,. .U,,"g.*"r. iili) pp t;6-35: '

on

pl:-

Lenox, M, & Kirg, A. (2004) prospects for devetopjng absorplive
capacity through jnlemal ini.
ptovision Sttalcgic Manoseuent Jaurnat,25,pp lj1-315.

Joumal,a44).pp

179-193

t communications perspec

le

Acddenv ol nh'

-

corporale and environmental performance../orff
Merifield, D B (2000) Changing nalure ofcompetitive advantage Resedrch
Techn.)tog. MonuaeDt.,
.l
Dp

l-4 5.

Porler M. E, & Kranler,

MR

(2006) Slrategy & society: The link between comp€tjtive adlzn_B slness R€tpl, D€cember pp. l _15.
Po(er, M EC.&Linde,V D.(1995) Creen and competitive. Endingthe
sralemate Hdr|ard B sin., :
coryorate socialresponsibjtity_ Hdnatd

(September-October, pp. 120-13a.

Porter, M
36.

E, & Stern, S (200t) tnnovation: Locahon ma(ers. Mlrsl odn Manage tent Review,42t1

140
EESE-1013 is orgrnised by Inrenrational Society for Conrmerce,
Industry

& Engjneering

:

.

{mal

oa Energy T€chnoloeies

ed Policy

Operations & Production Managenent,22(6), PP. 632-655.
tichey! R., Chen, H., Gerchev, S, & Daugherty, P (2005). DeveloPing effective reverse logistics Programs
Ihd strial Marketins Mondgenent,34(8), W.830 -840.

Y

integtated logistics opemtional model for green-suPPlv chain
manageimetf. Tronspo ation Research Part E: Logistics and Transpotation Review, al/4), pP.287'313
iimpson, D., & Samson, D. (2008) Developing strategies for green supPly chain management. Decbion Ltne

:heu, J. 8.,

&

Chou,

H. (2005) An

(July), pp. l2-15.

S (2007). Green supPly-chain managemenr
Jollrnal ofMahogenent Reviswr, 9(l), pp 53-E0.

lrivastava,

A

state-of-the-art literature review Intenational

libben'Lembke, R. S. (2002) Life afte. death: Reverse logistics and the product life
Jowhol of Physicol Distrtbution & Logistics ManaAenent,32, W 223-244-

iu,

cy.le

Internotiohal

H. J., & Dunn, S C. (1995). Environmentally resPonsible logistics svsten. Intetnotional Jo1ltnal
Pllysical Distributrcn & Logist tcs Managenekt, 25, pp 20-39 -

of

Zlu, Q, & Sarkis, J. (2004). RelationshiPs between oP€rational practjces and Perfomance among early adoPteE
of green supply chain managem€nt Pmctices in Chinese manufacturing enter$ises Jo1lrnal of OPetutions
Ma nagen ent, 22, pp. 265 -289

341

EESE-2Ol3 is organised by Intemational Sociely for Commerce, Industry & Engineering