In today's markets, the integration of sustainable practices within supply chain management (SCM) is no longer a choice but a necessity. Two critical concepts leading this transformation are Green Supply Chain Management (GSCM) and the Circular Economy. To help you understand these crucial topics, I have created - in collaboration with FIU Chapman Graduate School of Business - two insightful videos: "What is Green Supply Chain Management?" and "Green Supply Chain Management vs. Circular Economy."
Why Green Supply Chain Management Matters
Green Supply Chain Management focuses on minimizing the environmental impact of supply chain activities. It encompasses everything from eco-friendly procurement and sustainable manufacturing to green logistics and recycling. The goal is to achieve a balance between economic growth and environmental sustainability.
Key Benefits of GSCM:
- Environmental Protection: Reduces waste and emissions, helping to protect natural ecosystems.
- Cost Savings: Improves efficiency and reduces costs through waste minimization and resource optimization.
- Brand Image: Enhances corporate reputation and meets consumer demand for sustainable practices.
- Regulatory Compliance: Helps businesses adhere to increasingly stringent environmental regulations.
Green Supply Chain Management vs. Circular Economy
While GSCM focuses on making the existing supply chain processes more sustainable, the Circular Economy takes a more holistic approach. It aims to redefine growth by decoupling economic activities from the consumption of finite resources and designing waste out of the system.
Circular Economy Principles:
- Design Out Waste and Pollution: Products are designed for durability, reuse, and recyclability.
- Keep Products and Materials in Use: Extends the lifecycle of products through maintenance, repair, reuse, remanufacturing, and recycling.
- Regenerate Natural Systems: Restores and preserves natural capital.
In my video "Green Supply Chain Management vs. Circular Economy," I look into the differences and synergies between these two approaches and how they can be implemented to drive sustainable growth.
If you want to know more on the topic, have also a look at some of the articles I published on this topic:
Ciccullo, F., Pero, M. and Patrucco, A.S. (2023), "Designing circular supply chains in start-up companies: evidence from Italian fashion and construction start-ups", The International Journal of Logistics Management, Vol. 34 No. 3, pp. 553-581.
Ramos, E., Patrucco, A.S. and Chavez, M. (2023), "Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain", Supply Chain Management, Vol. 28 No. 1, pp. 55-73.
Difrancesco, R.M., Luzzini, D. and Patrucco, A.S. (2022), "Purchasing realized absorptive capacity as the gateway to sustainable supply chain management", International Journal of Operations & Production Management, Vol. 42 No. 5, pp. 603-636.
Ciccullo, F., Pero, M. and Patrucco, A.S. (2023), "Designing circular supply chains in start-up companies: evidence from Italian fashion and construction start-ups", The International Journal of Logistics Management, Vol. 34 No. 3, pp. 553-581.
Ramos, E., Patrucco, A.S. and Chavez, M. (2023), "Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain", Supply Chain Management, Vol. 28 No. 1, pp. 55-73.
Difrancesco, R.M., Luzzini, D. and Patrucco, A.S. (2022), "Purchasing realized absorptive capacity as the gateway to sustainable supply chain management", International Journal of Operations & Production Management, Vol. 42 No. 5, pp. 603-636.
