Throughout the years, there are political, social, and environmental issues that continue to rise and flourish as our world continues to grow in population and changes start to happen each day with the fast-paced economy and ever-changing climate. Climate disasters are on the rise. This also includes green market. The United Nation Office stated "Climate change is not just a distant future threat. It is the main driver behind rising humanitarian needs, and we are seeing its impact. The number of people affected, and the damages inflicted by extreme weather has been exceptional." Scarcity and diseases are very dominant in third world countries that lack proper management in their natural resources and raw materials on hand, thus, management of companies are keen on developing a supply chain management to have a good work flow and handle their supplies and materials properly to avoid sudden risks on handling, transporting and managing resources for their production.
In our fellow Southeast Asia country Thailand, green concepts are continuously getting the attention among manufacturing companies that rely on heavy machineries that ultimately contribute to environmental pollutions. Nowadays, companies all around the world are encouraging green supply chain implementations. Supply chain management has been used for years but turned it into something more environmental friendly like a green supply chain which supports the reduction of wastes and greenhouse gas emissions generated during the production process. This movement will also combat issues regarding social and economical problems. If these environmental issues keep on happening, many industries may be affected by the fast-changing world of commerce and fast-moving of resources that are very limited.
Supply chain management concerns the movement of raw materials into an organization from internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. Manufacturing companies involves the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption. The processes are interconnected and linked in order for the supply chain management to take place. Supply chain management is an effective way for an organization to manage the inflow and outflow of goods in their planning, control, and monitoring of supply-chain activities.
It is very valuable to understand that management can run well with an effective supply chain management which collaborates with risk management to create alignment and communication between all the workers and suppliers. There are various fields that heavily rely on this management styles such as engineering and information technology industries that are interested in important role in supply-chain management and human capital management, business-based approach. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners lead to the creation of the concept of supply-chain management.
Swot analysis is strenght, weakness, weaknesses and lastly, threats. The strengths of supply chain management is that it improves trust and collaboration among supply-chain partners who are the suppliers and the producers of goods, thus there can be an improved supply of inventory that contributes to the overall production. In SCM, there can be a better communication with all the vendors, suppliers and producers to be able to meet time requirement and quality products. Also, because of this management, we can eliminate the time it takes to get the materials due from disruptions and traffic. There are also times when the suppliers need to travel thru water that takes more time than land, SCM will address the lead time and possible contingencies like when sea vessels get drowned, cancelled, or even like what happened to Titanic. With a proper inventory management, the inventory on hand will be enough for the time period a new batch will come making the production continuous as possible. Commerce and manufacturing industries can focus on other things other than waiting for the materials to arrive at an indefinite time adding expenses every minute idle time takes longer to be solved. Another benefit of having this system is a better management in high demand products that need fast pacing production with the lowest cost in handling, thus, more profit for the entity. The downside of this green supply chain management perhaps is the green factors used in the supplying the palm oil may not cover all the operational activities of the plant. Although there are studies about its value, it may not be enough to prove its reliability during these times. Information such as quality, price, time, and transportation cost while they still lack evaluation on environmental impacts. Also, data collection about this deal with lots of information that data might not be stored properly. Lastly, because of its traditional models, simulations are not always present that real-time and contingent problems may not be easily addressed by the management. Green suppliers can help motivate a cleaner work force that aims to fight environmental issues. A multi-criteria decision-making model to green supplier selection under fuzzy environment can benefit the management in the decision making process that is a huge step in solving an issue and these solutions are concrete and easy to execute also simulation models that are made for the process can be enhanced by comparing it to a more realistic approach using the MCDM model. Because of green supply chain’s collaborative idea, suppliers may develop long-term relationship with buyers by promoting their green practices as valuable contributions towards sustainability. The economy can benefit in terms of environmental solutions that are given based on the model and help the country in fighting the scarcity, diseases and pollution that make the quality of life worse especially to the poor. This green concept is also obviously beneficial for the nature and environment which are the producers of our natural resources and materials that ultimately provides for everyone. Making this MCDM model can alleviate geographical and economical issues like what happened to the Palm oil industry that struggles to make ends meet regarding their resources that are limited against the high demand.
Collaborations among suppliers as well as green supplier selection can heighten awareness among researchers about new discoveries of combinations that work best for commerce like what happened to the palm oil industry. These information are crucial in developing new methods to help the economy in dealing with scarce resources. Not only it is good for the environment, it is also beneficial for the social and health welfare on the workers’ point of view. This MCDM can complete a production cycle in a friendlier way for the health and psychological well-being of the workers involve because of the process itself that integrated modern and traditional approaches about supply chain. When work environment keeps on improving, workers are also motivated to do it as well. In terms of technology, this method supports clean and green processes that technology is still helpful as long as within its purpose.
Law making bodies are keen to protect the rights of every human as well as the place they live in that this green concept will definitely keep a good picture that would be utilized for optimization of scarce resources. Most importantly, environmental issues are not overlooked by this method given that the palm oil industry opted for a cleaner way to grow its numbers. As much as there are benefits, some threats are also on the verge. For one, there are risks needed to be avoided even if this is a great method to begin with. According to the study, avoiding the potential risk of selecting unsuitable suppliers is important. Therefore, it is tricky to really find the right suppliers for the position. The responsibility is going for the wrong person will ruin the very essence of the MCDM. Secondly, some suppliers might be neglected because of they want to ‘go green’ but others can’t apply for this description losing their opportunity. This model can solve a very complex and fast changing environment we live in but certain models must first be tested to legally make its way to the market. Patent and numerous studies must first happen for this kind of problem-solving model can be implemented.
Lastly, the environmental threat is that the mere idea of scarcity makes this model vulnerable to problems regarding the testing and researches that need proper attention and money for it not to go to waste. There are still many things to work on for it to be global and effective that there are always question why it has to be executed rather than the models which are proven and tested. Our environment is continually changing that problems get worse as it matures that going green and clean can help heal our source of resources. Professionals keep looking for solutions that green concepts work best to address green environment issues that can benefit everyone living and non-living.
