Green supply chain management: retail chains and consumer product goods–A Canadian perspective

Background

Canadian consumer products supply chain firms must continuously introduce new and improved processes and technologies to remain internationally and domestically competitive. To differentiate themselves, Canadian retail chains, along with consumer product goods (CPG) manufacturers^{Footnote III} and logistics and transportation service providers, are developing green supply chain management (GSCM) solutions within their organizations and/or through mandates^{Footnote IV} with their customers and suppliers.

GSCM integrates environmental thinking into supply chainmanagement (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 biodegradable packaging;
• Product and packaging recycling/re–use; and
• Green procurement practices.

In general, investments in new business processes such as GSCM should be supported by a business plan that outlines a demonstrable return on investment. However, current literature is relatively devoid of citing GSCM's quantifiable business and environmental benefits. Forthis reason, the Supply Chain & Logistics Association Canada (SCL) and the Retail Council of Canada (RCC)have partnered with Industry Canada to research GSCMpractices and their business benefits. Business benefits can include greater distribution service differentiation, successful compliance processes, increased sales, new access to foreign markets, better customer retention, decreased distribution cost, enhanced risk management, and improved distribution efficiency.

This research report identifies industry perspectives, issues, and drivers for GSCM practices and thus helps inform decision makers of current and future industry needs.

This report provides insights on the:

• Internal and external pressures involved in adopting GSCM practices for Canadian retail chains, CPG manufacturers, and CPG logistics and transportation service providers;
• Importance of GSCM practices and their use by retail chains, CPG manufacturers, and CPG logistics and transportation service providers;
• Environmental benefits gained by implementing GSCM practices; and
• Business benefits gained by Best-in-Class (BiC) businesses and the GSCM technologies and processes used to achieve them.