Building a Green Supply Chain: Challenges and Strategies Faced by Enterprises

Some industries require a large amount of energy and natural resources in the production process, and generate waste such as wastewater, exhaust gas, and solid waste. The excessive use of these resources and the accumulation of waste have brought many challenges to the development of the industry. To address these challenges, green supply chain has become an important strategy for enterprises to achieve sustainable development.

Green supply chain, which integrates the concepts of environmental protection and resource conservation throughout the entire process of enterprise from product design to raw material procurement, production, transportation, storage, sales, use, and disposal, aims to coordinate the economic activities of enterprises with environmental protection. This concept was first proposed by scholars at the University of Michigan in the 1990s in their research on environmentally responsible manufacturing (ERM), and was then known as the "environmental awareness supply chain".

Why should companies implement green supply chain management? Firstly, the strict requirements of regulations force companies to comply, otherwise they may face market access restrictions or litigation risks. Secondly, as consumers' attention to sustainability continues to increase, companies need to incorporate sustainability factors into their product decisions to meet market demand. In addition, fulfilling social responsibility is also an important driving force for promoting green supply chain management.

Green supply chain management covers multiple aspects such as procurement, product design, production, packaging, logistics and warehousing, sales, use, and recycling. Among them, green procurement is the starting point of green supply chain management, requiring enterprises to prioritize environmentally friendly, resource-saving, and safe and healthy raw materials, products, and services in procurement activities. For example, some companies use digital technology to build procurement platforms and prioritize suppliers who have passed sustainable procurement certification.

The product design and development process is also an important part of green supply chain management, which directly affects the entire lifecycle of the product. Enterprises need to optimize their raw material selection, energy consumption, and waste management. Meanwhile, green logistics is also crucial for achieving a green supply chain. Enterprises can adopt low-carbon methods such as electric vehicles and alternative fuels to reduce the impact of logistics on the environment.

In the packaging and transportation process, enterprises can use intelligent box algorithms to recommend the optimal box type and path algorithms to optimize vehicle scheduling and other intelligent technologies, reducing resource consumption and carbon emissions. Recycling, as a part of the green supply chain, can not only reduce resource consumption but also create economic benefits for enterprises.

However, green supply chains also face many challenges, such as supply chain coordination issues, economic cost inputs, and supply chain data acquisition. To address these challenges, companies can leverage digital technology to enhance supply chain collaboration and build digital platforms to achieve real-time data sharing. At the same time, explore the "green supply chain+green finance" model and increase support for green supply chain management enterprises. In addition, increasing consumer participation in green supply chains is also an important way to promote the development of green supply chains.

In short, green supply chains can help reduce environmental impact and enhance the market competitiveness of enterprises. Despite facing numerous challenges, enterprises can address these challenges and promote the development of green supply chains through digital technology, green finance, and consumer participation.

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