Supply Chain Strategy

There is an increased demand for government regulation on climate control and renewable energy. Manufacturing community must respond in a timely and positive way to survive the new measure against raw materials and products required to prohibit the use of components of risk. The concept not only applies to the components, but also includes packaging materials and flow of supply chain elements. To resume the commodities cycle, reduce the distance from the global supply (from suppliers to customers) to reduce the overall weight of the shipment, suppliers to adopt greener, to closely monitor the inventory pipeline (reducing the risk of lower demand when obsolete) are the elements that demand immediate attention by manufacturers to meet green policies.

Green initiatives also help the company to maintain and expand the customer base (as the green policy is a marketing scheme). Environmental concerns and social responsibility are the point of selling your products to your customers who make your company to maintain your competitive advantage. In fact, your competitors are in the same market force to change direction and priority to more green initiative. Therefore, your company must be greater than the effort of your competitors will make rival. In addition, more importing countries apply to imports of green products to their nations with tax incentives. This will trigger your chances of selling in those countries.

For example, today the development of new products will not only be responsible for product design and technical service, it also includes the full team work between marketing, engineering, procurement, logistics and materials operations. Questions like: how to ship your products to the customer efficiently? What green components can be purchased? What is the optimal size of packaging materials and Re-cycle package your product? How the country of import tax of your product outside the country of origin? Company to review the process of developing new products as part of the strategy of the supply chain green.

The manufacturer has the design of their processes and so green. Supplies should not include indirect toxins. Process does not generate hazardous waste and emissions into the environment. There are some opposite conduct to govern these requirements in various sectors such as, automotive, telecommunications, electronics and medical. In fact, most large MNCs (Multi-National Corporation) have their own manual on the implementation worldwide green supply chain policy.

The development and implementation of green procurement strategy is not only to satisfy customer needs but also to meet the expectations of the general public for manufacturers to improve and strengthen the role of social responsibility and environmental concerns. In exchange, the company has a sustainable competitive advantage in the industry.