Green supply chain management: manufacturing a Canadian perspective

BiC GSCM Processes and Technologies

To be successful at GSCM, BiC manufacturers are using many highly advanced processes and technologies — both at the corporate level and within their DCs and transportation operations (see Annex 1 for detailed BiCactivities). Two of the most commonly used processes at the corporate level are joint process improvement andtraining on GSCM processes (Figure 8). Other commonstrategies include purchasing renewable energy (such as solar and wind power) and rewarding suppliers fortheir green practices.¹

Figure 8: BiC processes used to implement GSCM practices in distribution activities¹

The most commonly used GSCM DC practices are paperless processes and reusable pallets, with 80 percent ofBiC manufacturers implementing both. Reduced packaging and energy efficient cooling are also commonlyused.¹ Other GSCM DC processes include high–densitystorage, optimized use of natural light, and energy credits (Figure 9). High–density storage is a system that maximizes the inventory stored in a given amount of space. An example is using stackable pallets that canbe moved or accessed from a variety of points.

Figure 9: Distribution centre (DC) processes — BiC manufacturers¹

Fewer BiC manufacturers are using processes and technologies related to their transportation and logistics operations since 80 percent of their transportation volume is outsourced to service providers.³ The most commonly used processes by BiC manufacturers in their transportation operations is load maximization (35 percent), which is the optimization of pallet capacity in freight transportation (Figure 10).

Figure 10: Transportation technologies and processes — BiC manufacturers¹

Other GSCM technologies and processes that some BiC manufacturers are implementing include responsible transportation system certification, auxiliary power units, anti–idling technology, and green dashboards¹ (computer units that track the carbon emissions produced by the vehicle). Responsible transportation system certification is awarded to transportation systems that have demonstrated environmentally friendly results verified by a non–government organization.