The Impact of Green Supply Chain Management on Transportation Cost Reduction ABSTRACT: Supply chain management（SCM）has become an important competitive approach for organizations. The issue of green supply chain management is critical for the successful implementation of industrial ecosystems and industrial ecology. Organizations have a number of reasons for implementing these green supply chain policies, from reactive regulatory reasons, to proactive strategic and competitive advantage reasons. From an overall environmental and organizational perspective, it is important to understand the situation and what issues exist in this field. Many organizations worldwide have already experienced globalization and a shifting focus to competition among networks of companies in this environment. Multinational enterprises have established global networks of suppliers that take advantage of country-industry specific characteristics to build this competitive advantage. To success having this competitive advantage, logistics and supply chain managers have to balance efforts to reduce costs and innovate while maintaining good environmental performance. Therefore, today, competition is not between companies, between supply chains. This study brings us the effect of Green Supply Chain Management (GSCM) on the Transportation Cost Reduction (TCR).Keywords: Green Supply Chain; Transportation Cost; Cost Reduction1. IntroductionGlobal enterprises are permanently trying to develop new, flexible, applicable and innovative methods to enhance their success and competitiveness. Some of these organizations are enhancing their competitiveness through improvements in their environmental activities performance to comply with environmental law and regulations. The main point of complying with environmental law and regulations is customer environmental concerns and environmental impact of production and service activities. Besides, increasing of awareness of the propensity for environmental pollution within organizations supply network to cost them in consumer complain, cleanup and punishment.To response the requirement of environmental law and regulations, minimum standards of environmental performance have become increasingly prevalent in the purchasing agreements of multinational corporations for their local and global suppliers. This requirement has become a new customer expectation from suppliers therefore suppliers have to reduce costs and improve quality and service to complete their responsibility for their customers.It is generally thought that green supply chain management has a great effect in increasing environmental performance, minimizing waste and achieving cost savings. Besides because of increasing synergy among business parties, green supply chain management enhances efficiency through partner and their supply networks. This synergy is expected to enhance the corporate image, competitive advantage and marketing exposure.However, if green supply chain management practices are to be fully adopted by all organizations, a demonstrable link between such measures and cost saving, specifically transportation cost saving is very necessary. Bowen et al. state that organizations will adopt green supply chain management practices if they identify that this will result in specific financial and operational benefits.Thus, there is a clear research need to establish the potential link between structure of green supply chain and effective transportation cost saving, to provide an accelerator for enterprises to establish effective green their supply chains.Many enterprises have demonstrated significant efforts to establish green supply chain management initiatives. While there is not enough study which examine about cost reduction through Green Supply Chain Management and tested an empirical link between such efforts and Transportation Cost Reduction. Therefore, this paper presents the results of a survey of organizations to investigate the proposition that there is a significant relation between GSCM and TCR.2. Literature ReviewThis paper encompasses previous “functional” specific research on aspects of GSCM, to develop a conceptual model of GSCM and TCR. In this paper, the structure of green supply chain management encompasses environmental parameters as:(1) Purchasing and In-Bound Logistics,(2) Production or the Internal Supply Chain,(3) Distribution and Out-Bound Logistics,(4) Reverse Logistics.2.1 Purchasing and In-Bound LogisticsFrom the purchasing - the beginning point of supply chain - perspective of the supply network it is under discussion that GSCM has several benefits, ranging from cost reduction to integrating suppliers in a participative decision-making process that promotes environmental innovation). Green purchasing strategies which the largest part of inbound logistics side is adopted by the companies to response global concern of environmental stability.Green purchasing might enhance issues such as using environ