Green Supply Chain Management

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- From “point” to “side” , developing step by step

The designing and management of Green Supply Chain Management need to be adjust and assemble with systematic and unitary perspective. In order to implement green supply chain management at the best level it is a very complicated and complex system. The parties that involve in the Chain and the society could not get sustainable development if these parties are not connected to each other in the chain.

So, as a strategies to achieve the goals we should begin from every link, which is from “a point” to “a small chain”, and reversed from “a small chain” to “a long chain”, to get succeed step by step. If this strategy is taken well by the related party, it is a good step to achieve green supply chain management that will incur between in that chain involve. In supply chain management sector, we understand that in order to become succeed , the chain must be connected to each other from a point to the small chain and by implementing green initiative between the activities incur also one of a big bonuses for the parties to achieve sustainability in logistics and green supply chain management.

- CHALLENGES OF GREEN SUPPLY CHAIN INITIATIVES IN TRANSPORT AND LOGISTICS INDUSTRY

3.1 Lack of customer interest and support

The first stumbling block in Malaysia is the demand for green products or services. We can have many such products and services in the market but if people do not buy or use them, there will be no economic growth and expansion of such products and services. Vachon and Kelson’s study resulted in the support that there was a strong positive linkage between technological integration and environmental collaboration with both primary suppliers and major customers. With buyers pressuring and encouraging their suppliers, it drove SME suppliers to improve their environmental capability and results in them participating in green supply chain initiatives.

- Lack of transport and logistics suppliers’ or partners’ interest and support

In the 2010 Malaysia Budget, the Prime Minister announced a RM1.5 billion fund to advance the producer and users of green technology. These funds enable producer and users of Green Technology to make soft loans to finance their activities. However, lot of companies in Malaysia are still behind and yet to adopt the green supply chain concept in their business strategy (Goh and Zailani, 2010). Many firms have no awareness of the necessity to go for green. Only some firms whose main markets are abroad or companies that produce parts and materials to be supplied to the manufacturer of products for export have the tendency to practice green. For instance the websites of Dell, Sony, Nokia and HP do not show that these leading companies focus on green purchasing activities in their relationships with suppliers and do not have any environmental collaboration practices. This indicates that environmental relationships in Malaysia are confined mainly to the arm’s length or externalisation type (Vachon and Klassen, 2006). Firms focus on giving directions, persuasions, evaluations, and control over their suppliers.

- Lack of clear regulations

There should be a clear policy and legislation to support Green Technology. Malaysia has launched its Green Technology Policy but there is no legislation backing it. The green technology sector is expected to play a major coordinating and implementation role to move the Malaysian Green Agenda. We need strong legislation to push for ‘green labelling’ or Eco Label. This can be done through the Life Cycle Assessment (LCA) process. Both Eco label and LCA are expressions of the ISO 14000 series. Only through valid labeling and data sharing, can we determine the environmental impact caused by manufacturing processes, products or services rendered. However, if the government just continues to focus on attracting Foreign Direct Investment (FDI), Malaysia will develop into a hub of manufacturing and we will not be able to be ‘green’.

- APPLICATION AND PRACTICES OF GREEN SUPPLY CHAIN INITIATIVES IN TRANSPORT AND LOGISTICS INDUSTRY IN MALAYSIA

- Malaysia’s Strategic Green Initiatives : The National Green Technology Policy

In April 2009, a new Ministry was established, The Ministry of Energy, Green Technology and Water (KeTTHA). The primary objective of KeTTHA is to promote high impact research and development (R&D) of green technologies in Malaysia. The Green Technology Financing Scheme was set up by the government towards this end. The National Green Technology Policy (NGTP) was launched to address the following four main areas of concern which is energy, environment, economy and social aspects. The strategic thrusts of the National Green Technology Policy:

- Strengthen the Institutional Framework

- The formation of Ministry of Energy Green Technology & Water (MEGTW)

- Establishing the Malaysia Green Technology Corporation (MGTC)

- The formation of teh National Green Technology and Climate Change Council

- Provide a Conducive Environment for Green Technology Development

- A financial incentive scheme for local companies to kick start their business in the GT industry (both userd and produer categories).

- Increases Domestic Direct Investment (DDI) and R&D in the area of GT.

- Green Technology Financing Scheme (GTFS), Green Townships in Putrajaya and Cyberjaya, Eco label and Green Public Procurement, Electric Vehicles (EV) and Hybrid Vehicles, Clean Low Carbon Transport, and Green ICT.

- Intensify Human Cpital Development in Green Technology

- Integration of green topics in the eduation system.

- Green jobs

- Intensify Green Technology Research and Innovations

- Promotion and Public Awareness

- International Green Tech and Eco Product Exhibition and Conference (IGEM).

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- ACCREDITED CERTIFICATION FOR GREEN SUPPLY CHAIN MANAGEMENT IN MALAYSIA

- MS ISO