Supply chain management is one of the systems operated in every company. "Greening the supply chain" refers to buyer companies requiring a certain level of environmental responsibility in core business practices of their suppliers and vendors. Many companies have internal standards, policies, and/or environmental management systems that govern their own environmental performance and efficiency. If suppliers do not abide by these same standards, the buyer company may be not buying and using products that do not meet their own standards.

For international companies, re-integrating and redesigning their global production network to serve the emerging market for "sustainable" products has become a major concern. Regulations such as WEEE or RoHS (recently passed in Europe) are one of the most important pressures. Many international companies, including Sony, Cannon, Epson, IBM, and HP, have started their own green supply chain management (GSCM) programs that focus on different aspects of environmental performance, especially in conformity with RoHS. The ripple effect of GSCM starting from these big-name companies now reach their OEM, ODM, suppliers, and other partners. Because many Taiwan’s companies are the major OEM and ODM of these big-name companies, to meet the GSCM is more important than other countries.

Many companies in Taiwan are trying to build up GSCM but just by-pass all questionnaires to their suppliers. Lacking green supply chain policy confuses them and their suppliers on the relationship of management. The Industrial Development Bureau (IDB) of Taiwan has funded to demo the GSCM schemes and methods to the companies that want to build up their own GSCM. By correct GSCM, a company can handle all the green information form their suppliers, improve their product to meet the demands from the customers, and prevent loss of business.