Increased market competition, technological advancements, customer requirements
and environmental concerns have led the organizations to review and integrate their
business activities right from strategic planning to procurement, product development,
manufacturing, marketing and logistics. In today’s business environment, companies
not only compete on manufacturer to manufacturer basis, but also on supply chain to
supply chain basis. Rather, the true competitive battle occurs between one supply
chain and another (Cousins and Spekman, 2003). Organizations started realizing the
importance of supply chain for competitive advantage. Business executives and managers recognize that the ultimate success of any enterprise is no longer built
around a firm’s capability and capacity, but on a supply chain’s capability and capacity
(Chow et al., 2008). One of the reasons for the increased interest in Supply Chain
Management (SCM) is that the organizations progressively find themselves reliant
on having effective supply chains, or networks, to successfully compete in the global
market economy (Lambert, 2008). Another reason for the increased interest is the
potential benefits of SCM, which include improvement in returns on investments and
returns on assets (Naslund and Williamson, 2010). Ultimately, the goal of SCM is to
achieve greater profitability by adding value and creating efficiencies, thereby
increasing customer satisfaction (Stock and Boyer, 2009). Ideally, any improvement in
the SCM will translate into benefits for all supply chain members.
The concept of SCM addresses the issues relating to efficiency and effectiveness of
the entire chain of the business entities with least concern to environmental issues.
Now when environmental sustainability has become an important national and global
concern, governments have started framing rules and business firms have started
making their supply chains greener by introducing sustainability strategies throughout
their organizations and supplier relationship. Green Supply Chain Management
(GrSCM) seeks to integrate environmental thinking into SCM, including product
design, material sourcing and selection, manufacturing process, delivery of the final
product to the consumers as well as end-of-life management of the product after its
useful life (Srivastava, 2007).
|