SCOR Model and the Green Supply Chain

SCOR Model and the Green Supply Chain

Ulas Akkucuk (Bogazici University, Turkey)
DOI: 10.4018/978-1-4666-9723-2.ch006
OnDemand PDF Download:
$30.00
List Price: $37.50

Abstract

Supply chain management (SCM) is a continually evolving field, relying on breaking down internal and external organizational barriers to gain efficiencies, improve customer support and increase flexibility, thereby resulting in lower costs and increased market share. An emerging area in supply chain practice is green SCM, which integrates environmental management with traditional SCM. Green supply chain management is seen as an important step companies need to take on the road to sustainable practices. SCOR Model (Supply Chain Operations Reference) has been developed by the Supply Chain Council (SCC now merged with APICS) in order to guide companies applying SCM principles. The GreenSCOR model was also developed as an integrated green SCM tool that allows companies to manage their supply chain's environmental impacts, resulting in more efficient operations which have minimal impact on the environment. This chapter will talk about how SCM principles can be modified to reduce the adverse effects of company operations on the environment, especially using the GreenSCOR model.
Chapter Preview
Top

Introduction

Supply chain management (abbreviated as SCM) is a continually developing field, relying on breaking down internal and external organizational barriers to gain efficiencies, improve customer support and increase flexibility, thereby resulting in lower costs and increased market share. An emerging area in supply chain practice is green supply chain management, which incorporates environmental management with traditional supply chain management. Green supply chain management is seen as an important stride companies need to take on the road to sustainable practices. SCOR Model (Supply Chain Operations Reference) has been developed by the Supply Chain Council (SCC is now merged with APICS) in order to guide companies applying SCM principles. The GreenSCOR model was also developed as an integrated green supply chain management tool that allows companies to manage their supply chain’s environmental impacts, resulting in more efficient operations which have minimal impact on the environment. This chapter will talk about how SCM principles can be modified to reduce the adverse effects of company operations on the environment, especially using the GreenSCOR model.

Supply chain management involves all facilities, functions, and activities associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows (Russel & Taylor, 2008). SCM can be regarded as an integrated group of processes to “source,” “make,” and “deliver” products. Namely SCM deals with the corporate functions of procurement, production and distribution. SCM can be applied in service industries (hospitals, fast food, supermarkets, retail), petroleum industries, chemicals industries (continuous processes), textile industries (ready to wear clothing) and many others. The specific SCM applications are influenced by type of process (continuous, batch, project, mass production), number of stock keeping units (SKU’s) and government regulations among other factors.

Sustainable supply chains are becoming more important as firms focus on the resource consequences of the operations that they carry out. The three P’s of sustainability can be listed as People, Profits and Planet. These concepts can easily be applied to supply chain operations as well. As the world population is increasing the waste generated also increases. The growing waste problem can be reduced by applying the principles of 4R many of which are related to the operations of the supply chain:

  • Reduce: For example, designing concentrated detergent that uses less packaging,

  • Reuse: Using reusable packaging,

  • Recycle: Packages used in transportation can be recycled and turned into new packages,

  • Recover: Energy can be gained from waste.

Creating a sustainable supply chain can start with the design of the products. Products can be designed in such as way so as to consume less materials, result in less transportation costs and be easily disassembled so that parts can be used for remanufacture or refurbishing. As an example, polyester fabric 100% recyclable, polar fleece may be made by recycled soda bottles, also the new BMW i30 interior is made from recycled materials. Firms can generally follow these principles for design for the environment or DFE:

  • Use fewer materials.

  • Use recycled materials or recovered components.

  • Don’t assume that natural materials are always better.

  • Don’t forget energy consumption.

  • Extend the useful life of the product.

  • Involve the entire supply chain so they share the responsibility in terms of the environmental impact.

  • Change designs, some consumers’ solutions may require services rather than products, an example could be using laundry services rather than selling washing machines.

Key Terms in this Chapter

EPR: Acronym for Extended Producer Responsibility, EPR-extended producer responsibility- producers are responsible for their products even after their useful life.

LCA: Life Cycle Analysis is a technique to assess the environmental aspects and potential impacts associated with a product, process, or service, by (1) Compiling an inventory of relevant energy and material inputs and environmental releases, (2) Evaluating the potential environmental impacts associated with identified inputs and releases, (3) Interpreting the results to help you make a more informed decision.

SCC: Acronym for the Supply Chain Council now merged with APICS.

APICS: Acronym for the American Production and Inventory Control Society, APICS is the premier professional association for supply chain and operations management and the leading provider of research, education and certification programs that elevate supply chain excellence, innovation and resilience.

Remanufacturing: To disassemble a used product completely and inspect all modules and parts. Worn out parts are replaced to bring the quality standard of final product to like-new condition.

DFE: Acronym for Design for Environment, DFE-design for environment-involves designing products from recycled materials, using components that can be recycled, designing a product easier to repair than discard, and minimize unnecessary packaging.

Green SCOR: An extension of the SCOR model to cover environmental areas and sustainability issues for the logistics and production related areas.

Recycling: Series of activities by which discarded materials are collected, sorted, processed and used in the production of new products.

SCM: Acronym for Supply Chain Management, Supply chain management involves all facilities, functions, and activities associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows.

SCOR: Acronym for Supply Chain Operations Reference, a set of guidelines providing metrics and best practices for supply chain functions of procurement, production, delivery, and return.

Refurbishing: To renovate and recondition a used product to a certain level, perhaps not as high as in remanufacturing.

LCEA: Life cycle energy analysis is an approach in which all energy inputs to a product are accounted for, not only direct energy inputs during manufacture, but also all energy inputs needed to produce components, materials and services needed for the manufacturing process.

Sustainable Operations: Performance measures and continuous improvement are the components necessary to translate sustainable corporate strategy into sustainable operations, using an integrated quality, environmental and safety management system. Sustainable operations entail total quality management, sustainability, environmental stewardship and process safety.

Complete Chapter List

Search this Book:
Reset