Green supply chain management (GSCM) is exactly what it sounds like: greener, more environmentally friendly practices within supply chain management (SCM). The concept of SCM was introduced and popularized in the 1950s when manufactures found ways to minimize production costs through mass production. As competition heightened within the field, companies increased their awareness of “green” practices, therefore, acting in an ethically and socially responsible manner.
The success of any business is linked to the performance of its supply chain. It doesn’t matter if you are the CEO of a growing corporation or the owner of a developing enterprise, it’s the undeniable truth. At least 50% of businesses, regardless of size, close within 5 years of their launch. The statistics are real, regardless of the industry; 79% of companies with high-performing supply chains achieve higher revenue growth compared to the average within their industry. Contrarily, about 8% of companies with low-performing supply chains report above-average growth. This comparison alone highlights how critical the relationship is between companies and their supply chain. As mentioned before, 50% of businesses fail within 5 years of their launch, therefore, it can be concluded that poor supply chain performance can contribute to business failure.