Why Companies Should Green Their Supply Chain Management - Research Paper Example

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Why Companies Should Green Their Supply Chain Management

Sourcing of raw materials with right quality and lower price necessitated movement of materials across the continents. On the other hand, shifting of production facilities to the places where the cost of labor is cheap is also considered by the companies. These twin strategies result into movement of raw materials and finished products from place to place cutting across the borders of the nations. The increase in the level of activity in the flow of the movement of goods over the period of time necessitated revisiting of the strategies by the corporate companies in respect of supply chain management with a view to reduce cost. However, the developments that have been taking place in the environmental front warrant corporate social responsibility (CSR) in view of atmospheric pollution which leads to global warming, water pollution, human rights issues involved, and extinction of animal and plant species. Judicious use of natural resources in the process is very important for maintaining ecological balance and the welfare and rights of the future generations. Also, growth at the current level with the accelerated use of natural resources is not sustainable in the long run. ...Show more

Summary

Increasing cross-border transactions in supply chain is a phenomenon closely associated with the liberalization and globalization of economies. The intense competition drives the manufacturers to keep the cost of raw materials and labor low…
Author : cathrinefisher
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