Learn about green supply chain: What is green supply chain? What are the benefits of green supply chain?

What is a green supply chain?? What are the benefits of a green supply chain? That is a question that many businesses are interested in. Simply put, this is a supply chain management model that integrates sustainable and environmentally friendly factors to minimize negative impacts on the ecosystem. This trend not only helps businesses improve their social responsibility but also creates sustainable competitive advantages in the green economy era. To better understand this supply chain, follow the article below of Green In!

1. What is a green supply chain?

A green supply chain can be understood as a supply chain operating system that ensures high performance while reducing negative impacts on the environment. To do that, businesses need to use natural resources effectively.
Green supply chain management is the process of integrating environmental factors into supply chain management activities. From product design, material selection, manufacturing processes to product distribution and end-of-life disposal. This model combines traditional methods but is improved to meet environmental standards, ensuring that procurement and supplier cooperation comply with sustainable development principles.
The green supply chain model includes many elements such as: environmentally friendly product design, sustainable operations, green raw material procurement, green logistics, optimal production and effective waste management.

2. What are the benefits of a green supply chain?

• For the environment: Helps reduce waste, limit negative impacts on the ecosystem and optimize the use of natural resources.
• For the economy: Reduce raw material costs, improve production efficiency, increase competitiveness and promote cooperation among stakeholders.
• For society: Protect human health, minimize negative impacts from industrial pollution, enhance community responsibility and build a sustainable corporate image.

3. Prominent areas of green supply chain

Currently, the green supply chain trend includes many different areas, of which green production and green procurement are the two most focused areas:

• Green procurement: Selecting materials and products that have a low impact on the environment and human health. For example, instead of using disposable plastic bottles, businesses prioritize materials that can be recycled or reused.
• Green manufacturing: Applying advanced technology to produce environmentally friendly products. For example, Toyota has succeeded in developing fuel-efficient engines, reducing CO2 emissions into the environment.

4. Famous green supply chain application enterprises in Vietnam

4.1. IKEA's green supply chain

IKEA is committed to developing an environmentally friendly supply chain by:

• Selecting materials and designing products according to sustainable criteria, without causing negative impacts on nature.
• Apply safe, energy-saving production processes.
• Improve packaging and transportation efficiency to reduce CO2 emissions and limit industrial waste.
• Work closely with suppliers to ensure raw materials meet environmental standards and stakeholder interests.

Thanks to this strategy, IKEA not only protects resources but also ensures reasonable prices for products, aiming for long-term development.

4.2. Vinamilk's green supply chain

Vinamilk has implemented the green supply chain model through many activities such as:

• Research and development: Evaluate product life cycle and apply 3R principle (Reduce, Reuse, Recycle).
• Sustainable farming: Apply organic farming methods, control pesticides and antibiotics, and utilize solar energy.
• Green manufacturing: Minimize industrial waste, optimize water resources, and use automation technology to improve efficiency.
• Sustainable distribution: Leverage technology to optimize shipping routes, reduce emissions, and use environmentally friendly transportation.

These solutions help Vinamilk not only protect the ecosystem but also optimize operating costs.

4.3. Heineken's green supply chain 

With the goal of minimizing environmental impact, Heineken Vietnam has implemented a circular economy model in the supply chain:

• Waste treatment: The entire factory is landfill-free, instead, waste and by-products are recycled or reused.
• Save resources: Aim for 100% renewable energy and net water consumption by 2025.
• Recycling packaging: 97% of beer bottles are recovered, cleaned and reused more than 30 times before being recycled.
• Utilizing by-products: Brewer's dregs are used as animal feed, sludge from water treatment plants is used to produce bricks and fertilizers.
• Sustainable design: Recycling old containers into employee break spaces and using energy-efficient refrigerators at points of sale.

These solutions help Heineken not only minimize environmental impact but also save costs and improve business performance.

5. Conclusion

The above article has explained to you the questions "What is a green supply chain??” “What are the benefits of a green supply chain?” Applying a green supply chain model not only demonstrates the social responsibility of businesses but also meets the increasing demand of consumers for environmentally friendly products. In the future, the green supply chain will continue to be a key factor in helping businesses develop sustainably and contribute positively to the green economy. Follow now Green In for more useful information!