Green Sourcing Definition

A green supply chain is a supply chain that has been designed to reduce the environmental impact of the products and services that are delivered. This includes the sourcing of materials, manufacturing, packaging, transportation, and end-of-life management. A company may choose to implement a green supply chain in order to improve its environmental performance, meet regulatory requirements, or appeal to eco-conscious consumers.

There are many ways to make a supply chain more green. One common approach is to source materials from suppliers who have demonstrated environmentally-friendly practices. This might include using recycled materials, investing in energy-efficient production processes, or minimizing waste. Another way to green the supply chain is to optimize transportation routes and modes in order to minimize emissions. This might involve consolidating shipments, using low-emissions vehicles, or shipping by rail instead of road. Finally, companies can invest in end-of-life management strategies that extend the life of products and minimize waste. This might involve recycling programs, repair and reuse initiatives, or take-back schemes.

Implementing a green supply chain can help a company save money, reduce its environmental impact, and gain a competitive advantage.