Green supply chain management: manufacturing a Canadian perspective

Background

Canadian firms must continuously introduce new and innovative business processes to remain competitive.Many Canadian manufacturers are differentiating themselves by developing green supply chain management(GSCM) solutions within their organizations or throughmandates ^{Footnote II} with their customers and/or suppliers.

GSCM integrates environmental thinking into supply chain management (SCM). For the purpose of this report, this includes introducing technical and innovative processes into materials sourcing and selection, delivery of the final product to consumers, and end–of–life product management. The intended result is to improve a business' environmental impact while increasing efficiency and growth within its own supply chain.

GSCM practices that are being implemented in distribution activities include:

• Energy efficiency;
• Reduction of greenhouse gas (GHG) emissions;
• Water conservation or processing;
• Waste reduction;
• Reduced packaging/increased use of biodegradablepackaging;
• Product and packaging recycling/re-use; and
• Green procurement practices.

Supply Chain & Logistics Association Canada (>SCL) and Canadian Manufacturers & Exporters (CME) have partnered with Industry Canada to develop research on GSCM practices and their business benefits. Specificbusiness improvements include greater differentiation in distribution services, successful compliance, increasedsales, new access to foreign markets, better customer retention, decreased distribution cost, enhanced riskmanagement, and improved distribution efficiency.

This research report identifies industry perspectives, issues, and drivers for GSCM practices to help inform policy makers of current and future industry needs.

This report also provides insights on the:

• Internal and external pressures involved in adoptingGSCM practices;
• Importance and use of GSCM practices bymanufacturers;
• Specific GSCM practices that manufacturers use;
• Environmental benefits gained by implementingGSCM practices; and
• Business benefits gained by Best–in–Class (BiC)manufacturers and the GSCM technologies andprocesses used to achieve them.