In principle, the idea of resource efficiency is intrinsically more profitable. In Table 1 of the Fiksel (2013) chapter, a number of production pathways are introduced by different companies to green the supply chain and simultaneously maximize profits:
- Assure compliance of products and business processes with laws, regulations, and industry standards.
- Minimize risk and maintain business continuity by assuring product and process safety across the supply chain.
- Maintain health of employees and local communities, through responsible management of operating sites.
- Protect the environment, including public health and natural resources, through waste elimination, pollution prevention, and ecologic stewardship.
- Raise productivity through material conservation, energy efficiency, waste minimization, recycling, improved asset utilization.
- Customer loyalty.
- Support innovation in products, services, and technologies that enhance financial performance or customer satisfaction.
- Enable growth and support access to new markets.
In addition to these pathways, Duflou et al. (2012) described the concepts of Industrial Symbiosis and Eco-industrial parks. Both of these collaborations among co-located, yet separated industries result in greening of the supply chain and savings in costs of raw materials as well as costs of water treatment.
Class Discussion Forum 8:
- Choose one of the companies listed in Table 1 in the Fiksel (2013) chapter and explain how each one of the production pathways listed above can be applied to green the supply chain and simultaneously maximize profits of that particular company.
- Make a list of at least two items per pathway of incentives that government agencies such as the U.S. Environmental Protection Agency (EPA) can implement to support the selected company to green its supply chain.
- Choose another one of the companies listed in Table 1 in the Fiksel (2013) chapter and briefly explain how it could benefit from applying the principles of Industrial Symbiosis, as outlined in Section 5 by Duflou et al. (2012).