Challenges in Building a Green Supply Chain: Case of Intel Malaysia

Challenges in Building a Green Supply Chain: Case of Intel Malaysia

Yudi Fernando (Universiti Sains Malaysia, Malaysia), Kurtar Kaur (Universiti Sains Malaysia, Malaysia) and Ika Sari Wahyuni-TD (Andalas University, Indonesia)
DOI: 10.4018/978-1-4666-8222-1.ch013


Consumers today are focusing on products that are manufactured using sustainable, environmentally friendly methods. Profitability or even existence of an industry can be impacted by public opinion. Governments all over the world are also coming up with stricter regulations for industries to comply with on items like pollution, hazardous content, conflict minerals, child labor, exploitation, etc. A number of requirements have been set up by the semiconductor industry, and Intel worldwide is working on some of the current issues: (1) conflict-free minerals sourcing; (2) using green/sustainable energy; (3) reduction of water consumption/recycling of water; and (4) migrating to unleaded parts and halogen free parts. This chapter presents the Intel experiences and challenges in building a green supply chain at both the corporate and regional levels.
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Green Supply Chain

A supply chain is considered sustainable or green when sustainability and sustainable development concepts are applied into the traditional operational principles, i.e., economic, environmental and social friendly practices are considered part of the operational procedures on a regular basis (Pusavec et al., 2010). There are many definitions being brought up by researcher on sustainable supply chain or green supply chain management (GSCM). Srivastava (2007) defines sustainable supply chain management or GSCM as the integration of the sustainable thinking that incorporated into the supply chain, including product design, material sourcing and selection, manufacturing processes, delivery of goods to the final products to the consumers as well as the product management after its useful life also known as reverse logistics (Vanalle et al., 2011). Zsidisin and Siferd (2001) argue that environmental supply chain management is a series of policies and actions on design, procurement, production, bulk dispatch, utilization, reutilization, and disposal, undertaken by businesses out of concern for the natural environment. Skjoett-Larsen (2000) suggested that green should include each link in the chain from initial manufacturer at the raw material stage to the end-user which including production, processing, packaging, shipping, handling, and so on. Supply chain strategies are developed with the purpose to improve effectiveness and efficiency of processes across the operation. Integration of environmental concern in supply chain or green supply chain is one strategy for operational improvisation (Hasan, 2013). Green supply chain management main concern is to integrate environmental interest into corporate supply chain practices that include purchasing, material handling, and logistics procedure. Thus, it is of vital importance that the upstream members of the supply chain, which are the suppliers to be aware of the focal company aspiration of establishing green supply chain management (Zhu et al. 2014). Besides, Zucatto et al. (2008) defines green supply chain management as a way of environmental improvement that can involve initiatives in purchasing, production, shipping and reverse logistics, including material suppliers, service contractors, salesmen, distributors and final users, all them working together to reduce or eliminate adverse environmental impact from their activities (Zucatto et al., 2008; Vanalle et al., 2011).

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