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Environmental Management in Product Chains

In: Supply Chain Management and Knowledge Management

Author

Listed:
  • Michael Søgaard Jørgensen
  • Marianne Forman

Abstract

The product chain — the chain of interacting suppliers and customers, which together make up the activities from raw material extraction to handling of waste connected to a product — plays an important role in the shaping and management of environmental aspects connected to the production and consumption of a product, for example, a piece of clothing. To illustrate, with lack of environmental focus, a retail chain may only be willing to pay a certain price for the product because their business strategy focuses on price competition with the other retailers. Therefore the retail chain does not care about the environmental protection measures taken by their suppliers and the retail chain procurement persons do not control the environmental aspects of the manufacturing at the suppliers’ facilities. In contrast, as an example of proactive environmental management, a manufacturing company may initiate direct supply of organic cotton from a number of small farmers in order to be able to protect their own workers during the manufacturing of T-shirts from the cotton.

Suggested Citation

  • Michael Søgaard Jørgensen & Marianne Forman, 2009. "Environmental Management in Product Chains," Palgrave Macmillan Books, in: Ashish Dwivedi & Tim Butcher (ed.), Supply Chain Management and Knowledge Management, chapter 16, pages 288-306, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23495-6_16
    DOI: 10.1057/9780230234956_16
    as

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