Green Supply Chain Management

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Green Supply Chain Management
Lets think about GREEN for a minute
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Chevy Tahoe 4WD (14 mpg city / 20 mpg highway)
Chevy Tahoe Hybrid 4WD (20 mpg city / 20 mpg
highway)
Assignment for Wed, 1 April Q Is the Tahoe
Hybrid a green vehicle? Answer in less than 50
words. Email answer to geyer_at_bren.ucsb.edu
(Subject Tahoe Hybrid) before Wed, 1
April. There is no wrong or right answer, only
strong or weak arguments.
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Reading for Wednesday, 1 April Jackson and
Clift (1998) Where is the profit in industrial
ecology? Posted on course website

• Course Grading
• Term paper 60
• Assignments 30
• Participation 10

https//www.bren.ucsb.edu/academics/course.asp?num
ber289
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Solar Radiation (Teff 6000K mainly UV, optical
and IR)
Earths Radiation(Teff 300K mainly IR)
Industrial Ecology
Needs Wants
Services
Source of Materials Energy Water Land
Sink for Wastes Emissions
Products
Production
Anthroposphere
Ecosphere
Industrial production and consumption systems use
the environment as source of resources and sink
for wastes and emissions
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A more detailed view of industrial production and
consumption systems called Life Cycle Perspective
Raw materials mining
Primary materials production
Component manufacture
Final product assembly
Product use and maintenance
Product disposal
Service
Traditional Supply Chain
Product Life Cycle
Flows of goods and services
Monetary flows
Industrial transformation processes
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A more detailed view of industrial production and
consumption systems called Life Cycle Perspective
Raw materials mining
Primary materials production
Component manufacture
Final product assembly
Product use and maintenance
Product disposal
Service
Flows of goods and services
Waste and emission outputs into the environment
Monetary flows
Industrial transformation processes
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Measuring environmental impact using a life cycle
perspective
Environmental impact categories
Life cycle stages
Life cycle assessment aims at quantifying the
environmental impacts acrossall relevant
environmental concerns and all relevant life
cycle stages.
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Perspective and goal of industrial ecology
Most environmental impacts are caused by the
material transformation processes of the economy.
1)
Economic outputs
Economicinputs
Process
Wastes Emissions
Natural resource inputs
To make good environmental decisions it is
necessary to identify and assess all relevant
environmental impacts of all relevant
transformation processes.
2)
Impact assessment
Product life cycle
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Limitations of IE The Problem of Agency in
Industrial Ecology
Industrial Ecology needs to have some idea who
the actors in the industrial ecologyare, and
what motivates their actions.
(Tim Jackson Roland Clift, 1998, JIE, Vol. 2
No. 1)

• Industrial and consumer activities are
  process-based but agent-driven
• One production and consumption system consists
  of many agents
• Environmental impact is based on whole system
  performance (life cycle perspective)
• Agents, however, usually base their decisions on
  criteria other than environmental (e.g.
  economic performance), which are applied to
  smaller sub-systems

Perspective
Objective
Whole System
Individual Agents (Sub-System)
Driver
Environmental
Economic or Other
Performance
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Limitations of IEOne Life Cycle, many Agents
Environmental Objective, Economic Driver
Raw materials mining
Primary materials production
Component manufacture
Final product assembly
Product sale and delivery
Product demand use
Component re- processing
Product re- processing
Materials re- processing
End-of-life product disposal
Eol product collection inspection

• Life Cycle Management - Objective High
  environmental performance of the product system
  - Boundaries Product Life Cycle
• Economic agent
• - Objective High financial performance
  of the business
• - Boundaries Financial boundaries of the
  business

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Two challenges of industrial ecology
1) How to coordinate the agents?
2nd tier supplier
1st tiersupplier
Manufacturer
Customer
Supply Chain Management
2) How to generate double dividends, or win-win
scenarios
Environmentallife cycle performance
Economic performance of agent
Green Supply Chain Management