Green Supply Chain Management – A Review

Green Supply Chain Management has its roots in supply chain management, i.e. it is based on the adoption and extension of its concepts. The “Green” component to Supply Chain Management involves addressing the influence and relationships between Supply chain management and the natural environment [1]. Harland [2] defines supply chain management as “the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers”. The concept of supply chain management can be extended by adding the aspect of sustainability. Green or Sustainability refers to an integration of social, environmental, and economic issues [3]. The implementation of Green Supply Chain Management (GSCM) is such innovative idea that is fast gaining attention in the industry and has received a great interest among researchers and practitioners of operations and SCM [4]. Supply chain management has its beginnings in physical distribution and logistics, and it has recently concentrated on close relationships between parties involved in the flow of goods from the supplier to the customer. Relationships should extend beyond the exchange of materials or services for a price towards the alignment of goals. While, SCM is the integration and management of supply chain organizations and activities through cooperative organizational relationships, effective business processes, and high levels of information sharing to create high-performing value systems that provide member organizations a sustainable competitive advantage. The main objectives of the GSCM function include cost reduction, improvement and innovation of end-to-end processes between firms and their customers and suppliers, improved communication and interaction among supply chain partners, and improved performance and productivity in a way that benefits all contributors in the supply chain [5]. Although the Green Supply Chain Management recognizes the disproportionate environmental impact of supply chain processes in an organization.