Logistic and Supply Chain Management Research Paper

Logistic and Supply Chain Management - Research Paper Example There has been a shift of environmental responsibility from the consumer to the manufacturer. Also, the retailers have become more dominant as compared to manufacturers in the supply chain relationship and they are generally the drivers of a sustainable and green supply chain (Business Guide, 2003). A block diagram of a green supply chain is shown in Figure 1.1(Fortes, 2009). The government owns the primary responsibility to influence supply chain sustainability. The government can achieve progress on this by effective use of bans, subsidies, and incentives. The government can come up with measures such as environmental labels, licenses and product design guidelines (Business Guide, pp. 42). There are already a number of regulations in place for sustainability. These include U.S. Farm security and rural investment act (2002), European Union’s Restriction of Hazardous Substances (RoHS), China ROHS, E.U. Cosmetics directive, E.U. Packaging Directive, Waste Electrical and Electronic Equipment (WEEE) and REACH. In addition, there are International Standards such as WRAP, FLA, ICTI CARE, ISO 14000 and ISO 26000 for addressing environmental causes (Business for Social Responsibility, 2007). The relationship between brand owners and retailers is changing. Big retailers such as Walmart have a huge clout over the manufacturers and control the types of products they want to keep on their shelves. In addition, the retailers and brand owners are also under tremendous pressure from NGOs and other organizations working for environmental causes. This pressure comes from the opportunity cost due to a risk of reputation loss among the stakeholders. Some of the well known non-profit organizations working in collaboration with companies for environmental sustainability are Carbon Trust, Ceres, Clinton Climate Initiative, Conservation International and Earth share (Tilde, 2010).  Ã‚