6-GSCM-19April-07

6-GSCM-19April-07 - Green Supply Chain Management...

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GSCM – Spring 2007 – Session 6 – April 19 Green Supply Chain Management – Analytical framework Process Input Output Economic dimension: process C input C input process output C C C + = value added input process process output C C PM P + + = Environmental dimension: process E input E input process output E E E + =
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GSCM – Spring 2007 – Session 6 – April 19 Industrial Ecology Perspective of Pollution Prevention: Industrial Ecology Perspective of Pollution Prevention: Pollution is caused by material flows. Pollution prevention is thus a material issue: There are essentially three ways to reduce or prevent pollution: 1. Dematerialization (less material per economic output) 2. Material substitution (different material) 3. Reuse & recycling (use material and value-added over and over)
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GSCM – Spring 2007 – Session 6 – April 19 Service-based contract and variable input productivity Paint/door example: • Supplier paid per painted door • Paint required to paint door is variable The economic incentives of supplier and customer are not quite aligned: • Customer: Customer is indifferent with respect to paint use Supplier: Use less paint per painted door
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6-GSCM-19April-07 - Green Supply Chain Management...

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