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What is a green supply chain? How to apply it to business

Green supply chains are now emerging as an important means for businesses to meet growing demands for environmental and social responsibility. In this article, 1C Vietnam will work with businesses to learn about what the green supply chain concept is and how to integrate it into business processes to achieve both environmental benefits and sustainable sales. Watch now!

1. What is a green supply chain?

Green Supply Chain is a supply chain management model that aims to minimize negative impacts on the environment and society during the production and supply of goods or services. The green supply chain was born with the goal of minimizing the amount of waste discharged outside, protecting the living environment, and increasing efficiency for the economy.

This trend is associated with many activities, of which green production and green purchasing are the two most popular activities.

  • Green purchasing: This activity focuses on purchasing materials and products that have little impact on the environment and human health. For example, instead of using disposable water bottles, you can switch to reusable bottles.
  • Green production: Businesses invest resources to develop environmentally friendly products. This production process is often applied in renewable energy systems and "green" technology products. For example, Toyota in Japan has succeeded in developing car engines that reduce CO2 emissions into the environment.
green supply chain
Green supply chains can create value for businesses through improved public image

2. Key components in the green supply chain

Green supply chains include many important components, the interaction of which plays a decisive role in creating a sustainable and environmentally friendly business environment. Include:

  • Select raw materials from suppliers that comply with standards of environmental friendliness and safety for consumer health.
  • Apply reverse supply chain strategy to reduce costs, effectively utilize raw materials and ensure flexible handling of goods when problems arise.
  • Build a warehouse system and use inventory management software to optimize energy consumption.
  • Use a variety of measures to reduce waste in packaging and product packaging, minimizing the release of toxic substances into the environment.
  • Combine multiple means of transporting goods, prioritizing the use of methods to reduce harmful gases emitted into the environment.
green supply chain
These components work together to build a green supply chain

3. Compare green supply chain and traditional supply chain

Green supply chains and traditional supply chains have important differences. As follows:

Evaluation criteria

Green supply chain

Traditional supply chain

Environmental impact

Sustainable development, reducing environmental pollution, using modern technology.

Often focused on financial and time efficiency. At the same time, no attention has been paid to minimizing environmental impacts.

Risk management

Integrate strategies and measures to reduce environmental risks, meeting sustainable development regulations.

Often focused only on financial and production risks. Little attention is paid to environmental factors.

Supply chain

Associate with partners and suppliers who share sustainable values. Businesses focus on promoting and building fairness in the supply chain.

Focusing mainly on cost savings and business performance, businesses pay little attention to social and environmental factors.

Technology application

Use technology to track and manage shipping information.

Businesses optimize processes with technology solutions

Technology may be used, but often does not incorporate the latest solutions.

4. The importance of green supply chains for businesses

Green supply chains play an important role for businesses, bringing many benefits and opportunities for sustainable development in business activities. Some important points of the chain for businesses include:

Economic aspect:

  • Improve production processes: Optimize production processes to increase efficiency, reduce waste, leading to economic growth.
  • Reduce raw material costs: Use resources and raw materials effectively, minimize waste and raw material purchasing costs.
  • Increase competitive advantage: Implementing a green supply chain not only reduces costs but also creates opportunities to access new markets and increase brand recognition, creating a competitive advantage.
  • Increased flexibility: Use more flexible production processes, capable of quickly adapting to changes in the market and customer needs.
  • Create long-term relationships with partners: Build long-term partnerships with suppliers and business partners through clarity, transparency, and sustainable commitment.

Environmental aspects:

  • Reduce waste: Optimize processes to reduce waste and use resources efficiently, reducing pressure on the environment.
  • Reduce the amount of waste: Limit the appearance of waste through recycling and using recycled materials, reducing negative impacts on the environment.
  • Reduce pressure on the environment: Take measures such as reducing greenhouse gases and low energy consumption, reducing negative impacts on the natural environment.

Social aspect:

  • Protect human health: Ensure that products do not harm consumers' health, enhancing corporate social responsibility.
  • Reduce the negative impact of waste on the community: Reduce the amount of waste and pollution, protecting the community from the negative impacts of the production process.
  • Carry out responsibility to the community: Participate in social activities, support the local community and carry out corporate social responsibility.
green supply chain
The above trend has become an important strategy to help businesses compete in today's market

Green supply chain is not just a trend, but a strategy that helps businesses optimize processes, reduce waste, and positively contribute to the environment and society. This is not just innovation but a new way of living and creating real value. Green supply chain - the key to a sustainable and prosperous business future. If you have any questions, please contact 1C Vietnam immediately to find out more detailed information.

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