Energy Management as an Approach for Applying Green Supply Chains: An Empirical Study on Pharmaceutical and Cosmetic Industries

Abstract

Green Supply Chain Management GSCM becomes a very crucial aspect in businesses and different organizations these days. It affects person day to day activities and is considered a major key input to different production process. Moreover, GSCM and its multidimensional nature have a great strategic importance that affects the environment, economy, and governmental implications (Bhattacharyya: 2007). In order to make a green supply chain fully mature, energy management has to be put into consideration, and with the increasing demand for energy, there is a stronger need for operational efficiency in term of energy usage. Leading businesses now perceive Energy Management as just as important and essential to their business as HR, marketing, finance, and operation management. Moreover, economic growth increases the level of energy and material consumption, this in turn contribute to the environmental issues and resource depletion problem (N. Aslinda et al., 2012). Global warming, the scarcity of natural resources along with many other phenomena enforced governments and international bodies to play a more serious roles towards environment sustainability. Businesses in return found themselves on the spotlight to make radical changes in their practices in order to fit into the ‘green’ era. Energy resources are vital to power industrial processes in manufacturing and logistics, the integrative nature of SCM provides conditions for improvement in use and accessibility of energy, and can facilitate the transition in which fossil fuels are replaced with a system of supply and conversion of renewable energy.