PROGRAMME:

EXECUTIVE MASTER IN OPERATION &

PROJECT MANAGEMENT

MODULE:
STRATEGIC SUPPLY CHAIN
MANAGEMENT

HAMBRA EDU SERVICES

F-16-2, Alam Avenue 2, Jalan Serai Wangi N16/N,
Seksyen 16, 40000 Shah Alam.
www.executivetraining.com.my
STUDENT’S NAME : SARAVANA RAO
I/C NO / MATRIX NO. : 901121-10-5019
PROGRAMME : EXECUTIVE MASTER IN OPERATION & PROJECT
MANAGEMENT
CLASS DATE : 11 DECEMBER 2021
INTAKE DATE : 17 APRIL 2021
MODULE : SUPPLY CHAIN MANAGEMENT
TRAINER’S NAME : DR ZAMRI BIN ISA
CENTRE : AETC SHAH ALAM
OVERALL MARK
(Fill up by Trainer)

INDICATOR MARK

EFFORT ( 10% )

PRESENTATION (10% )

CONTENT ( 40% )

TOTAL ( 60% )
 TABLE OF CONTENTS
Contents Page Number
[0.0] ABSTRACT……………………………………………………………….3
[1.0] INTRODUCTION………………………………………………………4
[2.0 ] GSCM IN AUTOMOTIVE INDUSTRY………………………..6
[3.0] CASE STUDY OF GSCM……………………………………………11
[4.0] GSCM IMPLEMENTED AUTOMAKERS……………………..13
[5.0] DRIVERS & BARRIERS………………………………………………14
[6.0] GSCM PRACTICES: INTERNAL PROCESS……………………15
[7.0] PRACTICES OF GSCM: SUPPLIER MANAGEMENT & GREEN PURCHASING……..17
[8.0] GSCM PRACTICES……………………………………………………..18
[9.0] DIRECT & REVERSE LOGISTICS……………………………………20
[10.0] CLEAN PRODUCTION & ECO DESIGNS………………………22
[11.0] GSCM PRACTICES & CLASSIFICATIONS………………………25
[12.0] CONCLUSIONS………………………………………………………….27
[13.0] REFERENCES………………………………………………………………28
ABSTRACT
The purpose of this assignment is to study the case of supply chain strategies in
multinational companies around the world, which in my case I chosen the strategies
implied of supply chain management in Brazilian automotive industry. This motive
choosing this title is to expose how GSCM (Green Supply Chain Management) is being
adapted and implied in Brazilian automotive industry. Furthermore, it contributes to more
practical so that the companies evaluate the level of application of GSCM practices that
such they may take more corrective actions to increase the level of GSCM practices.
INTRODUCTION.
Combining with easy access of credit, which referring to population growth, it has led to a
considering increase in vehicle sales compared to previous decades. Global vehicle
production has grown annually of 37% in the past 10 years before the hit of pandemic. This
data based on (OICA, 2013).
Brazil is one of the countries placed within the highest rate of vehicle production. As
according to OICA from year 2013, Brazil is ranked seventh in the world automotive
production with an 18.2% in increasing when compared to second quarter in 2013 which
aligns the same period in 2012.
The growth of vehicle sales by recent years in Brazil are very large due to some economic
plus points that validates in likes of the domestic and international economic
development, population growth and access to easy credit and loans. As meeting the
demand of the external market, production of vehicles (leisure) in Brazil has been
increased by 200% in last 10 years.
Although this figure are being viewed as positivity from the economic standpoint, where
it generates the environmental impact throughout the supply chain from the consuming
of natural resources and lastly waste generated. Industrial automotive production growth
has caused a significance impact on the environment as we speak. To mitigate such impact,
many automakers around the world imply green practices. Moreover, organizations take
parts on more responsibility to prevent environmental accidents and wastes that
generated in their supply chain, where largely motivated by regulatory fines and customer
demands.
This process is known as GSCM (Green Supply Chain Management) which carries the
effectiveness way for supply chain managers or superiors to enhance the damage on
environmental risks carried, reducing wastes, and increment in flexibility in responding to
new environmental requirements and customer demand. Such setting an example on top
tier automakers such as Ford, BMW & Mitsubishi requiring suppliers to have ISO 14001
certification
This assignment primary aim to study the main driving factors and barriers to implement
GSCM, hence explain and describe how GSCM works and being adapted in Brazilian
automotive supply chain.
1.GSCM IN AUTOMOTIVE INDUSTRY.
Procuring the sustainable management is very important in the supply chain. As the
development of the environmentally friendly products or processes (either one
dimensions of sustainable development) which hails the calling of the unified effort in the
supply chain, where it depends on the contribution and commitment of all factors in the
chain in both upstream and downstream.
The strategic alignment on this upstream and downstream chain speaks the volume of
environmental issues that resulting in effective gains that orders the supply chain to
achieve such satisfactory environmental performance.
Such strategical calls upon this alignment requires suppliers to enhance and employ a
participation states as below:-
a) Programs that created to do reducing or eliminating wastes materials used in
production process.
b) Programs focused on environmental conformation in suppliers’ operational
methodology and values implied.
c) Joint developing on materials, processes, or other solutions to reduce
environmental risks.
The philosophical value of GSCM being extinguished as integration of environmental
consideration in supply chain which includes product design, the outsourced and selection
of the materials, manufacturing methods and processes, deliveries of the final product to
consumers and disposal of the product at the end of its life cycle.
Furthermore, the implementation of GSCM practices in automotive industries depends on
the various driving factors and internal and external pressures. Such interpretation on
external pressures (on the organization) has been identified as the main factor where it
affects the execution GSCM. In the respect, companies that face greater regular pressures
tend to adapt GSCM faster and efficiently.
In addition, in return there are various barriers implementing GSCM, among of it are
pinpointing the cost of the implementation and technological barriers and the qualification
of technological barriers.
The count of efficiency from start to finish in the management of products or processes, it
involves the ensuring the sustainable principles or the value that being incorporated and
evident enough throughout the supply chain. GSCM practice been encompass all the
activities in the supply chain, from green purchasing to integrating life cycle management,
and ending the cycle with reverse logistics which emphasizes the closed loop supply chain
is a necessary factor for achieving effective environmental outcomes.
GSCM practices can be identified in five main categories as stated below: -
a) Designed products with ecofriendly materials.
b) Process flow of the designed product.
c) Improvisation from supplier process flow.
d) Evaluation of supplier’s end.
e) Process flow of internal logistics.
Also it can be defined the combination of GSCM can be outdone in the following activity
that takes place in automotive industry world: -
a) Green purchasing.
b) Green manufacturing & materials management.
c) Green/distribution/marketing.
d) Reverse logistics.
GCSM implementation in automotive industry in Brazil emphasize where the importance
to understand the factors, impacts and relativity which brings the higher elevation of
GSCM practices in the industry. Particularly, in regard with suppliers and collaborating with
green innovative processes for better understanding on the relationship and the impact
that takes place on the environmental performance and competitive advantages.
Such an example of another case study that can be included in this assignment is, of three
undisclosed automotive manufacturers from the industry in USA where analyze the
innovation in the pain sector. It can be concluded that many improvements has been made
in reducing the environmental impact in the painting sector of the automotive product
part industry, where it generates with an effective participation of suppliers through the
implementation of technological advancement which innovates the production process.
Such application can be witnessed when manufacturers and suppliers invest in
technological advancement and organize a flexible manufacturing which signify the
improvement in environmental value and performance.
Therefore, executives need to apply the identification or seek the most suitable situation
to apply or use full, open innovation and modular type strategies. Secondly, key issue that
testify such industry are innovation, technology, demand, and swift market alteration,
which can be disclosed everything as a temporary advantage. In addition, everything that
is currently acceptable on supply chain may not be ideal in few years as I am stating in this
case study. Therefore, because beyond discovering on how and why, it should reciprocate
on what, where and when. Evaluation from an executives in the supply chain strategies is
a must due to advancement that takes place periodically and such main reason for the
success in the race in automotive industry is speed and flexibility.
The future of supply chain management in the automotive industry is divided into four
elements:-
a) Sustainable development.
b) Less dependency on gasoline/petrol usage.
c) Advancing innovative EV vehicles.
d) Green energy reform.
e) High elevated moral and ethical standards.
Integration of GSCM can be explained through conceptual model that covers regulatory
requirements, the risks detected and anticipated in calculated measure, the process of
supply and development of suppliers linked to the automotive industry and constantly
monitored. The effectiveness of the implementation of the sustainability in automotive
industry relies the necessary which go far beyond from starting to finish where it finds
practical approaches on sustainable development within the company itself as well their
relation in their supply chains.
As the connectivity and relation adhered between practices and measured performance,
here I propose a framework that demonstrates the influence of the GSCM practices on the
performance of the automotive supply chain in Brazil. As speaking, in the model it
represents the GSCM practices were divided into the focal company in upstream and
downstream method in the supply chain and connected with three dimension of
performance measured, operational, economic and environmental.
Figure 1: Practices of GSCM and performance measures in the automotive supply chain.
On that par, regarding with ISO 14001 the necessary has emerged to encourage its
implementation ploy that extends from the focal company outwards the supply chain.
Implementation of ISO 14001 contributing the sustainable management to the supply
chain. It can be found that supply chain managers/ executives who improvises and applies
it changes the integration of sustainability within their supply base that seek out suppliers
that capable of generating adequate performance in improving the efficient level
internally.
Suppliers that have lesser integration and that doesn’t possess ISO 14001 certification
becomes the motivation of change, to do what is necessary to meet the demand and
requirement of the customer, such enabling here has come to conclusion that supplier
with lesser integration is not to be chosen.
The implementation of ISO 14001 in the supply chain are allowing increased sustainability,
improved company performances, reduced waste on materials and costs, increased
profitability, increased company growth, improved company image and lower risk of
accidents in the industry.
Automaker is one of the key stakeholders in the environmental actions which carried out
by suppliers. As supporting the statement, the result of cost reduction in the practices
provided. Also, automakers exercise the governance in supply chain and have similar
potential to force out suppliers where the room to make improvements emerged directly
in their environmental management practice by introducing sound technology adaption
that fit environmentally and such collaboration of suppliers shares the knowledge and
jointly develop more sustainable products and processes.
Further to point out whilst in adapted environmental practices, the supply chain generates
long term cost reductions and such reactions conveys in requiring investments in higher
technology, innovation in processes and equipment which results in impact of increasing
cost in short term.
Amidst of this, effective participation of the automakers in the process of GSCM
implementation through the supply chain with acting on transfer of technology and
innovations, the installation of new equipment, machineries, tools and more, training of
suppliers, allocating employees at the plants of suppliers. This to avail generating similar
gains in environmental efficiency.
Main objectives to implement GSCM in automotive industry consists of regulatory
requirements, environmental protections, improvised corporate image, quality and
competitive advantage, reduction in costs and efficient use of resources but there is still
low level of adaption. Such identification in the legal requirement, and the pressure from
external market are being the main valid reason to adapt environmental practices. The
focus becomes on relation to cost reduction and improvements in environmental
performance.
2.CASE STUDY OF GSCM IN BRAZIL AUTOMOTIVE INDUSTRY.
To answer in this section, it takes many studies and research to adhere the perfect module,
framework and integrated flow of supply chain implemented in Brazil. Well, to study more
in this design of GSCM in Brazil, it pinpoints the main motivation and barriers on its
implementation in automotive supply chain.
The framework that represents GSCM picturize on focal company, upstream and
downstream in the supply chain. There are collected literature review in this assignment
case study that entitles on supply chain in the Brazil automotive industry. It can be
breakdown into motivators, barriers, supply process, internal, external, and reverse
logistics processes, production, and product development.
Such representation of the framework has been attached as Figure 2 to note the flow
process of supply chain in the Brazil automotive industry. It does cover the normative
requirements that has been direct observation.

FIGURE 2: GSCM SUPPLY CHAIN FRAMEWORK FOR BRAZIL AUTOMOTIVE INDUSTRY

As a research protocol validation process a pilot test was initially carried out in one of the
three companies studied. The pilot case was important for fine tuning the interview script
and determining which areas of the company need to be involved. Adjustments in the
research protocol and in the data collection script were carried out during the pilot case,
including the need to increase the number of areas studied and the people interviewed,
they were then standardized for conducting the other case studies.
For data analysis, content analysis was carried out, thus using triangulation between
respondents, the documents collected, observation of direct and reverse processes,
comparison with the results gained from the GSCM research conducted for this
assignment. As a research protocol validation process a pilot test was initially carried out
in one of the three companies studied. The pilot case was important for fine tuning the
interview script and determining which areas of the company chosen for this GSCM supply
chain strategies implemented.
3.GSCM IMPLEMENTED AUTOMAKERS.
From March of 2013 to February of 2014 three car manufacturers were studied in the
south of Brazil. To protect the confidentiality of each company analyzed & chosen, the
term AM (AUTOMAKER) was adopted, followed by a number (1, 2 or 3) to identify each
organization, referred to as AM1, AM2 and AM3. The characteristics of the companies
studied are listed in Table 1.
Below the data will be described following the sequence of the research protocol: drivers
and barriers; regulatory requirements; internal processes; direct logistics and reverse
logistics; clean production and eco-design.
AUTOMAKER AM 1 AM 2 AM 3
SECTOR AUTOMOTIVE AUTOMOTIVE AUTOMOTIVE
SIZE LARGE LARGE LARGE
COUNTRY OF ORIGIN GERMANY FRANCE ITALY
NUMBER OF EMPLOYEES 3300 6300 2500
QUANTITY PRODUCED 826 1000 100
SECTORS DATA LOGISTICS, PURCHASING, LOGISTICS, PURCHASING, LOGISTICS, PURCHASING,
COLLECTED QUALITY, ENVIRONMENT QUALITY, ENVIRONMENT QUALITY, ENVIRONMENT
AND PRODUCT AND PRODUCT AND PRODUCT
DEVELOPMENT DEVELOPMENT DEVELOPMENT
TABLE 1: GSCM IMPLEMENTED AUTOMAKERS CHOSEN IN BRAZIL
3.1 DRIVERS AND BARRIERS.
To identify the main drivers and barriers to implementing GSCM in the three companies a
survey was carried out with each one of automotive companies where the data collected.
The drivers were organized according to the following categories: market, legal
requirements, certifications and internal based on this literature review. A summary of
the responses are listed in Tables 2 and 3.
The main drivers identified for implementing GSCM were customer demand for
sustainable products; legal requirements; and the reduction of costs in the supply chain by
minimizing the consumption of resources.
In relation to the barriers, findings show that the main factors that impede the
implementation of GSCM practices in the automotive supply chain is the cost of
implementation and the lack of preparedness of suppliers. These results coincide with
those obtained in studies carried out in the automotive supply chain.
DRIVERS AM1 AM2 AM3
MARKET Demand for vehicles that Demand for sustainable Demand for less polluting
produce less of an impact products products
on the environment Actions from competitors
sustainability have also driven the
company to adopt
sustainable actions

LEGAL REQUIREMENTS ISO 14001 ISO 14001 Compliance with

GRI Guidelines Compliance with legislation
Compliance with the legislation
current legislation in
Brazil

INTERNAL Implementation of Reduction in costs Reduction in costs from

environmental actions (recovery of value from energy savings, by
since its inauguration in resale, energy, water, reducing expenses on
1999 and in the supply, time, among others) compressed air, for
chain starting in 2003 by Increased quality example, reduction in the
orders from Reliability (delivery use of natural resources
headquarters deadline, product, with the installation of
Reduction of internal and process) the waste treatment
external logistics costs plan, reuse in the paint
and production costs cabin and time for
Treatment and disposal improvement in the
of waste layout of the factory.

TABLE 2: DRIVERS OF GSCM.

 COMPANY AM1 AM2 AM3
BARRIER GSCM practices, which Lack of fiscal incentives The greatest barrier
are high, especially due and the high cost of relation to the supply
to the need for new implementing chain is the lack of
technologies involved in sustainable processes preparation by suppliers,
the vehicle production often times they are not
process encouraged to initiate
sustainable activities due
to lack of support from
AM3
TABLE 3: BARRIERS OF GSCM.
Both table discusses the tranquility of drivers and barriers faced from each automakers
company and the differences that inoculated from the data provided as above, further I
will explore more in detail to extinguish the GSCM implemented in this automakers chosen
in Brazil.

3.2 GSCM PRACTICES: INTERNAL PROCESSES.

In the three companies interviewed there is a manager who oversees environmental
practices and there are environmental policies in place aligned with the company’s
production and business strategies. The environmental sector is essential to defining the
environmental strategy of the companies.
AUT1 invests resources in environmental management from its beginning in 1999 and
starting in 2001 the company implemented an EMS. The EMS at the three companies aim
to evaluate and control the environmental impacts generated by their processes,
identifying the opportunities for reducing the use of natural resources and energy to
preserve the environment and prevent environmental damage, in complying with
legislation and other environmental norms in effect. The EMS of AM1 has seven principles,
categorized as shown in Table IV.
AM2 has a recovery rate of 91 percent of parts from its product with the goal of reaching
95 percent in 2015. AM3 does not yet have ISO 14001certification; therefore, its current
objective is to meet the criteria required for certification.
The three automakers have targets as part of their Operational Planning that aim to reduce
environmental impacts and accidents resulting from production. The clearest example is
AM3 with: energy consumption – objective of 268 kWh per vehicle produced; water – 1.12
m3/vehicle; volatile organic compounds – 41 g/m2; and industrial and domestic waste –
1.48 kg/vehicle.
It was possible to see that the three companies have prevention policies in place as well
as instruments for avoiding potential environmental accidents. Table V illustrates the main
characteristics of the EMS of the three companies studied.
The three companies have internal EMS that are structured and functioning with specific
managers for overseeing sustainable practices. Furthermore, it is important to note that
the EMS at each of the three companies is aligned with the company strategies,
contributing to strategic development, and generating a positive image among customers.
In the automotive industry the implementation of ISO 14001 in the supply chain
contributes to: increased sustainability; improved company performance; reduced waste;
increased cost efficiency; increased company growth; improved image; improved work by
employees; and reduced risk of accidents.

CRITERIA AM1 AM2 AM3

There is personnel for Manager Manager Manager
sustainable practices
Internal Environmental
Policy?

Goals for reducing Yes, for reducing the use Yes, kWh per vehicle Yes, management of
environmental impacts? of natural resources and produced; water m3/ water and energy
energy vehicle, waste, among consumption
others
Yes, sustainability is part Yes, kWh per vehicle Yes, according to data
They are aligned with the of the strategic mapping produced; water m3/ reported by the
production strategy of the company vehicle, waste, among respondent, alignment is
others approximately 25
Yes, it has a goal for the percent
recovery of 95% of parts
from its product

TABLE 4: EMS OF COMPANY CHOSEN.

PRINCIPLES OBJECTIVES
1 Reduction of pollutant emissions
2 Focusing on market
3 Eco-design product vehicles
4 Continuous improvement
5 Legal requirement & risk anticipation
6 Information flow in supply chain & stakeholders
7 Environmental protection in internal processes &
employee training
TABLE 5: RMS PRINCIPLES ADAPTED BY THE AUTOMAKERS.
3.3 PRACTICES OF GSCM: SUPPLIER MANAGEMENT & GREEN PURCHASING.
To qualify and develop suppliers the three companies conduct audits of processes and
documentation. Each one has its own specific tools for developing suppliers, with different
criteria and weights. In addition to requirements and conditions for suppliers, AM1 carries
out environmental actions at its suppliers through workshops, training, technical visits to
the factory to demonstrate supplier influence on the process, control and mitigation
actions for potential impacts and on-site technical visits to the suppliers, to identify
operational limitations and bottlenecks, to know their production reality first-hand.
The knowledge of environmental practices adopted by suppliers occurs through these
visits, audits, and technology fairs, where they present their own best practices that make
a difference in the market.
Supplier development begins with the minimum environmental requirements for
becoming an approved AM1 supplier. In addition to ISO 14001, the qualification of the
supply network is directly related to the criteria of the VDA norm and ISO TS 16949. Only
suppliers classified as level A can participate in new projects with this norm, which requires
the fulfillment of 92 percent or more of the requirements for certification. The suppliers
rated as B (meeting between 82 and 91 percent), can only supply parts for the current
contract.
AUT2 requires environmental licenses. For AM2 meeting ISO 14001, 9001 and
OSHAS18001 has greater weight on the decision of choosing a supplier. On the other hand,
for AUT3 it is not part of the selection criteria.
As facilitators in implementing environmental practices at the suppliers, AM2 considers
the following: safety in the environmental management process, dealing with emergencies
and meeting legislation. AM3 holds that there are no criteria for implementing
sustainable practices, as the company has no requirements for certifications.
AM3 is more advanced in terms of its knowledge of the sustainable actions carried out by
suppliers because it has a specific program for getting results, where the company
launches its sustainability proposals related to the manufactured products that can
generate gains. These proposals are evaluated by the different departments at AM3 and if
approved the savings generated by the project are divided between the company and the
proponent supplier. At AM2 they are communicated via e-mail, and recognition is given in
the form of rewards and, especially through the sustainability report presented.
AM3 is the only company that does not conduct environmental audits at its suppliers, as
it is already part of the company’s internal policies. AM1 and AM2 have different systems
for recording and monitoring actions.
AM2 involves suppliers in product development, as far as the use of materials is concerned.
An example of this is that currently they have a service provider that uses waste for making
some of the parts used in the process.
AM2 and AM3 stand out for the involvement of suppliers in the development of
sustainable products. AM3 is more complete on this item as it has a program offering
incentives to suppliers for making sustainable products.
Regarding the purchasing processes of the companies interviewed, only AM1 and AM2 ask
their national and international suppliers to meet Brazilian environmental legal
requirements. AM3 requires suppliers to meet regulatory requirements in addition to
economic, logistics and quality issues.
For the logistics operators, each company makes different demands, in the case of AUT1
and 2 operating and transporting licenses are required as well as ANTT 420. AM3 requires
that they present an Environmental Risk Prevention Program (PPRA, acronym in
Portuguese), a Medical Control Program for Occupational Health (PCMSO, acronym in
Portuguese) and a Certificate of Occupational Health (ASO, acronym in Portuguese). None
of the three companies set requirements for specific environmental certifications for the
logistics service suppliers.
The results identified demonstrate that, although the three companies have actions for
extending green practices to their suppliers and they adopt environmental requirements
in the process of selecting suppliers, the evaluation of how suppliers are applying the
environmental practices is not effective. The two companies that have adopted audits at
their suppliers do not have a direct objective environmental assessment; instead, they
focus on the quality of the process and the product. The adoption of clear environmental
criteria in selecting suppliers and the demand for environmental certifications like ISO
14001 are important factors for GSCM.
3.4 GSCM PRACTICES: GREEN PACKAGING.
The three companies have well-defined processes for developing and managing packaging.
Although at AM1 the process for managing the development of packaging does not have
an environmental emphasis. Table VII presents the main characteristics related to
packaging at the companies studied.
It is important to note that AM2 has carried out studies on the evolution of materials used
in packaging and the objective is to constantly increase the life cycle. The case of Plastisol
is an example, degradation of the material is difficult, and it has a life cycle of over five
years together with the packaging.
Meanwhile, AM2 has environmental goals for its packaging components, adopts standards
of approval for suppliers and has documentation for all departments involved to approve
the packaging recommended by the Logistics Engineering department. It has procedures
in place and a standard form for Engineering approval. AM2 adopts an internal flow for
developing its packaging, which includes the functional optimization of products,
packaging production techniques from the beginning to end of the life cycle, selection of
low impact materials for production and reduction with an efficient distribution system
and an environmental impact reduction evaluation by the final customer.
Although the packaging development and management system of company AM3 is less
developed than AM2, it has just won an environmental award for its project developing
pallets from recycled materials. The pallet called an eco-pallet is made from recycled
materials; plastic ply collected from the streets by associations of recycled material
collectors. This practice is aligned with the study that looked at the contribution of the
process of reverse logistics to generate income for underprivileged classes of the economy.
3.5 DIRECT & REVERSE LOGISTICS.
In all the companies studied actions are being carried out to reduce the consumption of
environmental resources. An initiative taken by all the companies is replacing forklifts
fueled by Liquefied Petroleum Gas with forklifts that run on electricity. Another action
taken by AUT2 and 3 is changing the layout to reduce the circulation area of forklifts thus
gaining time and reducing wasted resources.
AUT1 already has a system via the web, together with the suppliers for scheduling
deliveries that lead to a significant reduction in time spent waiting in line and thus leads
to better allocation of transportation resources.
When problems are identified in products that do not conform to AM2 standards, in the
simpler cases, they try to solve the problems internally. In the more complex cases they
are sent to quality control and the supplier is notified. For AM3, an analysis is carried out
for each specific case. First the company evaluates the possibility of reworking the parts
internally where the supplier pays for the costs. This service is performed by an outsourced
company that operates on site at AUT3. If it is not possible to rework the parts they are
returned to the supplier, if it is an international supplier very often, they become scrap
parts. Table VIII illustrates the main internal and reverse logistics practices of the three
companies.
Activities related to internal logistics are a source of waste in the three companies, mainly
in the stocking and moving of materials. The three companies have adopted actions for
reducing waste, especially waste from damaged materials when moving them and the
consumption of natural resources.
For external logistics, AM1 and AM2 present more effective practices for reducing the
emissions of pollutants and the consumption of natural resources. As far as reverse
logistics are concerned, the three companies have similar processes for returning defective
product materials and adopt similar actions for dealing with the return of defective
products by customers. In relation to waste management, AM1 presented a more
organized system with specific areas for this and partners that act internally to separate
the waste and send it out externally for appropriate treatment.
Below are the table as attached for the GSCM applied in the AM 1, AM 2 & AM 3 based on
the characteristic listed as data collected and tabulated correctly in order:

CRITERIA AM 1 AM 2 AM 3
REQUIREMENT FOR ISO 14001 AND TSI 16949 ISO 14001 AND TSI 16949 NOT REQUIRED
SUPPLIERS PREPARED WITH 3 AUDITS
SUCH AS CONTROL
PROCESS, POTENTIAL
SUPPLIERS AND
EVALUATION OF SUPPLIER
PERFORMANCE
AWARENESS OF SITE VISIT, AUDITS AND SUSTAINABILITY REPORT. SUPER PROGREAM WHERE
SUSTAINABLE ACTIONS TECHNOLOGY THE COMPANY LAUNCH ITS
FROM SUPPLIER ADVANCEMENTS FAIR SUSTAINABLE PROPOSALS
RELATED MANUFACTURED
PRODUCTS
INVOLVEMENT OF OFFERING LOWER FUEL RECYCLING WASTE TAKES CONSIDERATION
SUPPLIERS IN THE CONSUMPTIONS AND MATERIALS AS ECO FROM LAUNCED SUPER
DEVELOPMENT LOWER co2 EMISSIONS PRODUCTS. PROGRAM
AUDITS CONDUCTS YES YES YES
TECHNOLOGICAL USING EDI FOR LOGISTICS USING EDI FOR LOGISTICS USING EDI FOR LOGISTICS
RESOURCES PROGRAMMING OF PROGRAMMING OF PROGRAMMING OF
SUPPLIERS AND ETC SUPPLIERS AND ETC SUPPLIERS AND ETC
TABLE 6: PRACTICE OF SUSTAINABILITY IN SUPPLIER MANAGEMENT.
CRITERIA AM 1 AM 2 AM 3
TYPE OF PACKAGING USED RETURNABLE; REUSABLE; ONE WAY PACKAGING FOR ONE WAY PACKAGING
DURABLE PACKAGING CKD MANUFACTURED WITH ATTACHED PLASTIC
PRODUCTS PLAY
MATERIAL FROM ONE WAY PACKAGING THAT THE RETURNABLE DEVELOPED A PALLET MADE
PACKAGING GENERATES 100% PACKAGIMNG MADE OF RECYCLABLE WASTE
RECYCLABLE WASTES VACUUM FORMING
MATERIALS
RETURNING OF PACKAGING ALL NEW PACKAGES ARE ADOPTS STANDARDS FOR HAS A SPECIFIC
DEVELOPED JOINTLY WITH THE APPROVALOF DEPARTMENT FOR
SUPPLIERS PACKAGING SUPPLIERS DEVELOPING PACKAGES.
TABLE 7: GREEN PACKAGING METHODS APPLIED BY SUPPLIERS AND AUTOMAKERS.

CRITERIA AM 1 AM 2 AM 3
INTERNAL LOGISTICS IDENTIFICATION, STORAGE CARRIES OUT ACTIONS TO CARRIES OUT ACTION TO
AND PROPER TRANSPORT REPLACE FORKLIFTS FUELED LPG FORKLIFTS BY USING
OF TOXIC MATERIALS WITH ELECTRIC FORKLIFTS. ELECTRIC FORKLIFTS.
DISTRIBUTION HAS GOALS FOR REDUCING USES MILK RUN TO TO DREDUCE FUEL
EMISSIONS IN TRANSPORT OPTIMIZE THE TRANSPORT CONSUMPTIONS AND
SYSTEM TRASNPORT COMPANY IS
HIRED.
REVERSE LOGISTICS OF MILR RUN SYSTEM WITH PERFORMS THE FLOOWS THE FLOW OF THE
PACKAGING PART OF ITS SUPPORT ALLOCATION OF MERCHANDISE
TRASNPORTATION,
STORAGE AND TRANSIT
DAYS
REVERSE LOGISTICS OF PLAN FOR WASTE PROCEDURES PROCEDURES FOR THE
WASTE MANAGEMENT IMPLEMENTED FOR THE WASTE DISPOSAL OF
DISPOSAL OF WASTE WASTE
TABLE 8: DIRECT AND REVERSE LOGISTICS APPLICATIONS.
3.6 CLEAN PRODUCTION AND ECO-DESIGN.
The three companies studied adopt practices for reducing the use of natural resources and
measure them in a variety of ways (indicators, committees, observation of consumption
meters); however, AM3 has not clearly defined which sector is responsible for measuring
environmental goals. Therefore, only AM2 adopts practices for improving efficiency
through the clean production methodology where 39% of its processes are already
mapped. However, both AM1 and AM2 adopt practices for reducing raw materials and
projects that aim to generate lower environmental impacts, respectively.
Another common practice among the three companies is the presence of a water
treatment system, where at AM1 the water is treated and then sent to the company
responsible for its complete treatment. At AM2 there is a water treatment station and an
effluent treatment station that treats the water coming from industrial processes and
reuses it in bathrooms and for gardening, in year 2011 water reuse represented
11% of total consumption. At AM3, 84% of water consumption is generated as effluents
and are treated according to the legislation in effect and the treated water is used in the
existing paint cabin.
For new product development the three companies have practices for reducing
environmental impacts, as an example at each company I cite:
.
AM1: reduction in the number of components, in addition to consideration of the
final product disposal.
.
AM2: use of 100 percent recyclable natural fibers, the eco-drive project with tips for
customers to reduce their fuel consumption, use of recycled materials and they have
goals related to the recycling rate of vehicle parts.
.
AM3: works with projects that aim to generate the lowest possible impact, like the
development of materials made from sustainable raw materials.
AM1 and AM2 use recycled materials in their production processes, where AM1 uses
mainly plastics and metals that come from the waste generated by the company. AM2 uses
only recycled PET to produce one of the products commercialized by the company.
At AM3 all acquired equipment is evaluated based on its environmental impact. At the
other companies studied, only part of the processes is evaluated and specifically at AM2
equipment projects must have approval from the investments committee evaluating their
impact and environmental risks.
At AM1 the process for disposing of waste from production and otherwise, is handled
similarly with documentation and waste management controls. At AM2, the waste
generated in the production process goes to a Waste Triage Center where it is separated,
disassembled, and sent for proper final disposal. For the waste not resulting from the
production processes, it is sent to associations and cooperatives responsible for the proper
disposal of the material. One of the most recent launches by AM2 earned them the green
car award where one of the practices was recycling 97% of all the waste generated in
producing the model.
At AM3 there is also a procedure for disposing of production and non-production related
materials that should be duly identified, where 85% of the waste is recycled and the rest
is sent for its proper final disposal.
AM2 stands out from among the three companies for eco-design and clean production. In
the data collection process, it was possible to observe that AM 2 has a real concern about
the environmental impact generated from the production of products and the use of
vehicles by customers. Some results from AUT2 deserve to be highlighted, average
reduction of 25% in energy consumption; 57% of water consumption; and 65% of waste
generated.
AM1 stands out mainly because of the support that the headquarters and upper
management give to managers to adopt sustainable practices internally and in the supply
chain. An example is the adoption of sustainable metals for the design of new products
and processes.
CRITERIA AM1 AM2 AM3
PRATICES TO REDUCE THE REUSE OF OIL VAPORIZED IN ACTIONS WITH PRACTICES CARRIES OUT PROJECTS
NATURAL RESOURCES STAMPING PROCESS. FOR REDUCING RAW THAT MITIGATES
MATERIALS ENVIRONMENTAL IMPACTS
WATER TREATMENT RECOVERY AND RECYCLING HAS A WATER TREATMENT EFFLUENT TREATMENT
SYSTEM OF WATER STATION STATION AND 84% OF THE
WATER CONSUMED.
PRACTICES IN NEW PRODUCT DEVELOPMENT IS REDUCTION IN THE DEVELOPMENT OF RAW
PRODUCT DEVELOPMENT DONE IN PARTNERSHIP NUMBER OF COMPONENTS, PRODUCTS WITH
WITH SUPPLIERS TAKES INTO FINAL SUSTAINABLE RAW
CONSIDERATION MATERIALS.
USE OF TOXIC MATERIALS WATER BASED PAINT USED WATER BASED PAINT THE TOXIC WASTE IS
CORRECTTLY IDENTIFIED
AND SENT TO RECEIVERS.
USE OF RECYCLED RE-USE AND INCREASING USES PLASTICS AND DOESN’T USE
MATERIALS THE LIFE CYCLE OF METALS, WHICH COMES
ELECTRODE LAYERS FROM THE WASTE
GENERATED BY THE PLANT
TABLE 9: CLEAN PRODUCTION METHODOLOGY AND ECO-DESIGN SPECIFICATION.
3.7 GSCM PRACTICES AND CLSSIFICATIONS.
In order, classify the company studied, a ranking was organized based on a three-point
scale, 1, 2 and 3 reflecting, respectively: practices not adopted; practices in the
implementation phase and not yet consolidated; and practices already consolidated at the
company.
The results presented demonstrate a certain balance among the three companies studied,
the similarity in the results reinforce the selection criteria of the sample used. Company
AM1 had the best overall performance, 9% compared to AM2 and roughly 28% higher than
AM3. Part of this result is based on the process of developing products and packaging at
AM2, as it was possible to identify clear actions in the reuse of materials and a reduction
in the consumption of natural resources.
Furthermore, AM2 underwent a process to increase its capacity which involved
technological innovation and improvements in the processes which, in addition to
increasing the production capacity by roughly 20%, also made it possible to reduce the
consumption of natural resources and the emission of pollutants.
Another important factor identified at AM1 and AM2 is the presence of more mature Lean
Manufacturing practices than at AM3. For improvement programs like Just in Time, TQM,
Lean Manufacturing, and agile manufacturing as potential antecedents to the GSCM
practices.
That for example can support efforts for eliminating environmental waste. From the three
studies carried out it was possible to list some lessons learned:
(1) the inclusion of sustainability in the strategic guidelines of the company favors the adoption of
internal environmental practices and in the supply chain.

(2) imposing environmental requirements on suppliers has a positive environmental impact,

especially regarding the use of recyclable materials, reducing waste, management of
environmental risk.

(3) the process of communicating with customers about environmental practices, as done at AUT1,
favors the application of environmental practices downstream and the development of eco-
friendly vehicles, based on customer needs.

(4) innovation based on continuous improvement and the acquisition of equipment with more
advanced technology generate a positive impact on the reduction of waste and the emission of
pollutants; and

(5) the adoption of improvement practices like Six Sigma by AUT1 and Lean Manufacturing by AUT2
have resulted in economic gains and consequently reduced the cost barriers in the
implementation of GSCM practices.
The transference of environmental practices carried out by suppliers has a greater impact
when combined with actions for reducing the costs of supplier operations. It is important
to note that the lessons learned are limited to the Brazilian automotive industry and are
based on the three case studies carried out. Thus, the lessons learned do not have the
intention of generalizing for organizations in diverse sectors of the economy or even all
automotive industries. Nevertheless, it can contribute to companies analyzing the impacts
of the items presented in their activities regarding environmental performance in the
supply chain.
4.CONCLUSIONS.
Based on the case studies it was possible to analyze the two questions posed in the third
section of this paper. Regarding the first question, it was found that the major motivation
among the companies studied for implementing GSCM practices in their supply chains is
directly linked to cost reduction (improvement actions generated by the Lean
Manufacturing and Six Sigma programs), meeting the demands of the consumer market
through sustainable products and processes, and meeting regulatory requirements.
Regarding the barriers, the main ones identified are related to the cost of implementation
and the resistance of suppliers to implement certain clean technology practices for
products, production, and logistics due to the initial costs of implementation.
Regarding the second question – the application of GSCM practices – the study revealed
that several of the GSCM practices proposed in the literature are being implemented at
the suppliers and distributors in the three automotive companies. The study showed that
implementation focusses more on internal processes, the selection process of suppliers,
eco-design, systems for managing packaging and the waste generated in production.
However, the effect of such practices on the supply chain tends to increase as the
companies intensify their focus on sustainable practices and exercise governance in their
supply chains.
Thus, the two main objectives of this paper were achieved. The study contributes by
presenting important characteristics of GSCM in three relevant companies in the supply
chain of Brazilian automotive vehicles. This can serve as a parameter for making
comparisons with other studies in the automotive sector or other sectors of the economy,
many actions in the supply chain are driving forces that influence implementation in
companies from other sectors.
Lastly, to the description of the main drivers, barriers, and practices of GSCM the paper
also contributes to the organizing of a GSCM framework. The framework was important
for the development of the research protocol and for the data collection instruments.
Furthermore, the framework can contribute to more organizations carrying out the
mapping of their processes related to GSCM. Another contribution was the
classification system created to identify the company with the highest level of adoption of
GSCM practices.
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