01 Sep MAKING YOUR HOSPITALITY BUSINESS COMPETITIVE BY APPLYING THE GLOBAL GREEN SUPPLY CHAIN MANAGEMENT BEST PRACTICES.
Tourism is one of the key pillars of growth under Kenya’s vision 2030 and a focal part of the hospitality industry. This means that the hospitality industry should continuously strive in achieving sustainability and the conservation of resources. This is a global business. Therefore, players in the industry are required to model their services and operations while putting the Global Green Supply Chain Management best practices into consideration in order to remain competitive in the market. What are Global Supply Chain Management best practices? Green supply Chain Management (GSCM) is an approach to improve processes and product manufacturing according to the requirements of environmental regulations. The rise in greenhouse emissions and environmental pollution by firms has increased the need for organizations to realign their supply chain operations with a view of conserving scarce resources. Green Supply Chain Management consist; “green procurement+ green manufacturing+ green distribution+ reverse logistics”. The objective of GSCM is to eliminate or minimize waste (energy, emissions, and chemical/hazardous, solid wastes) along supply chains.
The growing importance of Green Supply Chain Management is driven by the escalating deterioration of the environment which has caused; diminishing raw material resources, overflowing waste sites and increasing levels of pollution. Successful brands in the hospitality industry worldwide have adapted the Green Supply Chain Management after realizing the environmental burden caused by their previous supply chain processes. Firms that operate supply chains need to be particularly keen on reducing their carbon emissions. This is not just about being environmental friendly; it is also about having a good sense of business.
Here are some of the G.S.C.M best Practices that can be adapted into the hospitality industry and other industries in Kenya
- Green Procurement
Green procurement is defined as environmental purchasing that involve in activities that include the reduction, reuse and recycling of materials in the process of purchasing. Green procurement is a solution to environmentally concerned and economically conservative businesses, and a concept of acquiring a selection of products and services that minimize negative environmental impact.
- Green Design
Green design is the systematic consideration of designs associated with environmental safety and health over the full product life cycle from new production to process development. It encompasses disciplines such as; environmental risk management, product safety, occupational health and safety, pollution prevention, resource conservation and waste management. A common approach is to replace a potentially hazardous material or processes with environmental friendly ones.
- Green Operations and Reverse Logistics
Green operations comprise of all aspects that are related to product manufacture /remanufacture, usage, handling, logistics and waste management once the design has been finalized. Reverse logistics on the other hand, is the process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
- Green Manufacturing/Remanufacturing
Green manufacturing is defined as production processes which use inputs with relatively low environmental impacts which are highly efficient and generate little or no waste or pollution. Green manufacturing can lead to lower raw material costs, production efficiency gains, reduced environmental and occupational safety expenses, and improved corporate image. Green manufacturing aims to reduce ecological burden by using appropriate material and technologies, while remanufacturing refers to an industrial process in which worn-out products are restored to working condition
- Waste Management
Waste disposal has always been a compelling problem that has led to green consciousness. In the case of GSCM, efforts to minimize disposal have been the focus. Various waste management and inventory models take disposal costs into account.
In next week’s article, we are going to break down the GSCM best practices into practical examples of what entrepreneurs can do to conform to these best practices and how they will benefit you and your organization or business.