Benefits Of Supply Chains Going Green - 1388 Words

The discussion of supply chains going green has become a bone of contention among major stakeholders in the industry. The discussion started after the Carbon disclosure project released a report indicating that supply chains contributed greatly to the emission of carbon in the atmosphere. Due to the report, pressure has been mounting on the administration of supply chains to implement strategies on their carbon management. Analysts have however stated that there are various pros and cons of the supply chains going green, which have to be considered in the implementation of carbon management strategies. This paper analyzes the pros and cons of supply chains going green. Advantages of supply chains going green Improvement in financial†¦show more content†¦It is however important for companies to understand that the improvement of financial performance as a result of going green is not immediate since the company has to adjust in its operations, which might take a while to adjust to (Palevich, 2012). Resource sustainability Through the move by supply chains to go green, there is an effective utilization of available resources. Going at the current rate where carbon emissions have increased, the environment is being compromised and the future generations may have a problem in producing even the basic products that they may need. Additionally, environmentalists have warned of the increase in global temperatures that are affecting climate. With the decision to go green by the supply chains, the carbon emissions will be reduced at a certain percentage, which is important for the conservation of the environment. Increase in efficiency Through the effective management of resources, chances are that efficiency will be embraced. When supply chains go green, resources are limited and this translates to development of effective models that not only focus on reduce carbon emissions but also improving efficiency through the limited resources. Through efficiency, production of hazardous substances will be reduced and organizations will not have to be fined for violation of regulations regarding the environment (Laloux, 2014). Competitive advantage and differentiation of products