Green Supply Chain Management Barriers & Drivers A Review
Green Supply Chain Management Barriers & Drivers A Review
Green Supply Chain Management Barriers & Drivers A Review
ISSN: 2278-0181
Vol. 2 Issue 4, April - 2013
Abstract:- Green Supply Chain Management (GSCM) has Automobile sector exhaust accounts for more than 75%
emerged as an important organizational philosophy to reduce of total air pollution. Automobiles are responsible for 80% of
environmental risks, but there are many Barriers as well as total CO emission, 36% of the HC’s, 44% of the NOx, 4% of
Drivers which affects directly and indirectly to the SOx and 18% of the particulate matter. Environmental
implementation of GSCM in an organization (different at management system refers to the protection of our surrounding
different levels and with respect to organization‟s level of environment and utilizing our natural resources in most efficient
development). In this paper a total number of 20 Barriers and a way. Automobiles are responsible for over 75% of total
total number of 16 Drivers are identified through extensive pollution in India. If we look for different options for protecting
literature review and expert opinion to academics. These the environment then GSCM is the most suitable and efficient
Barriers and Drivers are almost common for various one.
organizations for the adoption and implementation of GSCM in
them. GSCM is one of the best strategies for meeting the
Keywords: - Green Supply Chain Management, Barriers and challenge to reduce carbon emission and enhance sustainability
Drivers. because of its potential to improve the environmental
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performance of any organization (S. Balasubramaniam 2012).
I. INTRODUCTION Along with the rapid change in global manufacturing scenario,
environment and social issues are becoming more important and
Today, environmental pollution is the main problem compulsory in managing any business (Sunil Luthra et al. 2010).
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Vol. 2 Issue 4, April - 2013
to customers and also after the end of life cycle of the product – consumers as well as end-of-life management of the product
customer to disposal of the product. after its useful life‟‟.
The environmental impacts at each stage of the supply According to Rao and Holt (2005), GSCM practices
chain are minimized and focus on the utilization of energy and should cover all SC activities, from green purchasing to the
resource (of an organization) for making environmentally sound integration of life cycle management, through the manufacturer
supply chain. and customer, to closing the loop with reverse logistics. Several
green practices at the product level are described in the
It is important to integrate environmental management literature, including eco-design (Linton et al., 2007, Zhu et
practices into the entire SC in order to achieve a greener SC and al.,2008b) and design for product recyclability (Chen and Sheu
maintain competitive advantage. Accordingly, Srivastava (2007) (2009). Another practice which is commonly referred to is
defines GSCM as, „„integrating environmental thinking into reverse logistics (Srivastava, 2007).
SCM, including product design, material sourcing and selection,
manufacturing processes, delivery of the final product to the
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Figure 1: Process involved in green supply chain management (Source: Ali Daibat et. al. 2011)
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ISSN: 2278-0181
Vol. 2 Issue 4, April - 2013
II. LITERATURE REVIEW Management (GSCM) practice have been identified by various
researches; they are briefly outlined in the below Table I and the
A number of authors have referred to the green supply chain different journals which were reviewed are enlisted with their
over the past decade as a result of emerging environmental respective year of publishing is outlined in the Table II.
management topics. Approaches towards Green Supply Chain
TABLE I: Concepts and models related to environmental issues have been suggested by different researchers is summarized
in the following table:
Chain Management in automobile Kumar & Abid structural model of the barriers to implement green
industry using Interpretive Structural Haleem supply chain management.
Modeling (ISM) Technique – An
Indian Perspective
2011 An Analysis of the Drivers Affecting Ali Diabat & Kannan A case study approach is used to identify various
the Implementation of Green Supply Govindan drivers of green supply chain management for a
Chain Management manufacturing firm.
2011 Drivers of Green Supply Chain Large, R.O. & The paper seeks to evaluate two practices – green
Management Performance: Evidence Thomsen, C.G. supplier assessment and green collaboration which
from Germany impacts purchasing department and environmental
commitment of the firm. Out of this commitment
influences green assessment directly and
environmental performance impact purchasing
performance directly.
2011 The Influence of Greening the Chiou, T.Y., Chan, The paper aims at providing empirical proofs to
Suppliers and Green Innovation on H.K., Lettice, F., & encourage companies to implement GSC and green
Environmental Performance and Chung S.H. innovation in order to improve their environmental
Competitive Advantage in Taiwan performance, and to enhance their competitive
advantage in the global market and uses Structural
Equation Modeling that verifies the significance of
the proposed relationships among the selected
variables.
2011 Sustainable Production: Practices and Xianbiag Liu, Jie A special emphasis is laid on companies’ overall
Determinant Factors of Green Supply Yang, Sixiao Qu, green supply chain practices, which is measured by
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Chain Management of Chinese Leina Wang, using data from various respondents in a
Companies Tomohiro Shishime questionnaire survey.
and Cunkuan Bao
2011 Research on the Performance Yan Li The paper tries to improve the environmental
Measurement of Green Supply Chain performance by implementing a variety of GSCM
Management in China practices in additionally top level manager’s
commitment is necessary for development of any
GSCM program.
2010 Evaluating Green Supply Chain Zhu, Q., Geng, Y., The study includes a comparison between Chinese
Management among Chinese Sarkis, J., & Lai, K.H. manufacturers and Japanese manufacturers which
Manufacturers from the Ecological implies more significant improvements made in
Modernization Perspective environmental and financial performance and
additionally four other GSCM practices were
implemented.
2009 Opportunities in Green Supply Chain Jonny C. Ho, Maurice A comparison is performed between traditional and
Management K. Shalishali, Tzu- green supply chain. It includes several important
Liang Tseng and opportunities in green supply chain management,
David S. Ang including those in manufacturing, bio-waste,
construction, and packaging.
2009 An Empirical Study of Green Supply Daine Holt and Abby The paper identifies various operational activities
Chain Management Practices Ghobadian within a supply chain and also suggests the factors
Amongst UK Manufacturers which are driving these operational changes.
2008 Environmental Management System Nicole Darnall, G. The paper evaluates a relationship between
and Green Supply Chain Jason Jolley and environmental management system (EMS) and
Management: Complements for Robert Handfield green supply chain management (GSCM)
Sustainability? practices.
2008 Influences, Practices & Opportunities Raymond P.C., Lopez This paper demonstrates that opportunities exist to
for Environmental Supply Chain J., Marche S., Perron reduce greenhouse gas emissions and solid waste
Management in Nova Scotia SMEs G.M. & Wright R. within supply chains using environmental
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performance and environmental issues as working
variables.
2008 Drivers for the Participation of Small Su-Yol Lee The paper shows that buyer’s GSC practices,
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13. 2008 International Journal of Management Science & Engineering Management
(Vol. 3)
14. 2008 Supply Chain Management: An International Journal (Vol. 13)
III. DISCUSSION OF FINDINGS treatment and long term contracts for adopting GSCM from
government, Lack of management initiatives for transport and
Concepts and models related to environmental issues logistics, Lack of energy management and waste management of
have been suggested by different researchers. Literature was the organization.
reviewed to identify barriers and drivers to implement GSCM in The common drivers to implementation of GSCM in
an industry. We have identified more than 42 various barriers various industry sectors are: Certification of suppliers’
and 30 drivers to implement GSCM in various industry sectors environmental management system, Company’s environmental
from the literature reviews, but the paper contains a total of 20 collaboration with their suppliers, Reduction and elimination of
barriers and 16 drivers which were commonly stated by product’s harmful environmental impacts by collaborating
different authors in their respected papers. between product designer and suppliers, Government regulation
The common barriers to implementation of GSCM in and legislation, like making transparent reward system for green
various industry sectors are: Lack of integration of IT system, practitioners, Green product design, Standard quality
Lack of acceptance of advancement in new technology, Poor certifications like ISO 14001, Integrating total quality
organizational culture in GSCM, Lack of skilled human environmental management into planning and operation
resource professionals in sustainability and GSCM, Uncertainty processes, Reducing energy consumption and confining wastes,
and competition in market, Lack of government initiatives Reusing and recycling materials and packaging, Environmental
system for GSCM practitioners, Poor implementation of green collaboration with customers and making them environmentally
practices within a supply chain, Lack of top level management aware, Reverse logistics and feedback system, Establishing
commitment, Cost of implementation for GSCM, Supplier’s company’s green image locally and globally, Cost of
flexibility to change towards GSCM, Customer’s unawareness environmentally friendly goods, Cost of environmentally
towards GSCM products and services, Lack of knowledge and friendly packages, Supplier’s awareness and advances in
experience, Lack of green architects, consultants, green providing environmentally friendly packages, Sharing best
developers, contractors in the region, Lack of training in GSCM, green practices.
Lack of internal sustainability audits within the organization,
Lack of external sustainability audits for suppliers and Following are the tables which conclude the Barriers
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contactors, Lack of sustainability certification like ISO 14001, (Table III) and Drivers (Table IV) for the GSCM with their
Lack of professional treatment and long term contracts for respective references.
adopting GSCM from government, Lack of professional
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GSCM with special context to their recruitment al. (2008); Hsu et al. (2008); Chien et al.
policies and trainings in GSCM. (2007) ; Yu Lin (2007).
5. Uncertainty and competition in Market competition and uncertainty is high Jie Yang (2011); Mudgal et al. (2010);
market due to global competitiveness and varying Daine Holt (2009); Hosseini (2007); Yu
customer’s requirements. Lin (2007).
6. Lack of government initiatives It means government not making industry Shreejith B. (2012); Gioconda Q.
system for GSCM practitioners friendly policies toward GSCM and not (2011); Xianbing Lui (2011); Sunil L.
giving special benefits to those (2010); Daine Holt (2009); Abby
organizations implementing GSCM. Ghobadian (2009); Mudgal et al.
(2010); Mudgal et al. (2009); Yu Lin et
al. (2008); Hsu et al. (2008); Srivastva
(2007); Hosseini (2007); Scupola
(2003).
7. Poor implementation of green Lack of consideration of green practices Christian B. (2011); Jie Yang (2011);
practices within a supply chain like hazardous solid waste disposal, energy Daine Holt (2009); Abby Ghobadian
conservation, reusing and recycling (2009); Mudgal et al. (2009); Yu Lin et
materials etc. al. (2008); Hsu et al. (2008); Ravi et al.
(2005).
8. Lack of top level management It means top level management resisting M.D. singh (2012); Shreejith B. (2012);
commitment towards implementation of green practices. Gioconda Q. (2011); Xianbing Lui
(2011); Sunil L. (2010); Daine Holt
(2009); Abby Ghobadian (2009);
Mudgal et al. (2010); Sarkis (2009);
Mudgal et al. (2009); Zhu (2007); Ravi
V. et al. (2005); Digalwar et al. (2004).
9. Cost of implementation for It reflects to the high initial cost investment Shreejith B. (2012); Gioconda Q.
GSCM required to implement various green (2011); Xianbing Lui (2011); Sunil L.
methodologies such as green design, green (2010); Daine Holt (2009); Abby
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manufacturing, green labeling of packing Ghobadian (2009); Mudgal et al. (2009);
etc AlKhidir et al. (2009); Hosseini (2007);
Ravi et al. (2005).
10. Supplier’s flexibility to change This means suppliers unwillingness to be B.P. Sharma (2012); Shreejith B. (2012);
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towards GSCM involved in design process and technology, Tomohiro Shishime (2011); Sanjay K.
which affects overall performance of whole (2010); Lettice et al. (2010); Hsu et al.
chain. (2008); Kannan et al. (2008); Srivastva
(2007); Sarkar et al. (2006); Ravi et al.
(2005).
11. Customer’s unawareness towards This reflects customers do not know about B.P. Sharma (2012); Shreejith B.
GSCM products and services green products and their benefits. (2012); Tomohiro Shishime (2011);
Sanjay K. (2010); Mudgal et al. (2009);
Zhu et al. (2008); Zhu et al. (2007);
Ravi et al. (2005).
12. Lack of knowledge and Lack of knowledge and experience among Sixiao Qu. (2011); Daine H. (2009); Yu
experience the supply chain stakeholders in executing and Hui (2008); Tsai and Ghosal (1999).
GSCM.
13. Lack of green architects, Lack of green practitioners available in the Sixiao Qu. (2011); Daine H. (2009); Yu
consultants, green developers, region for an organization. and Hui (2008); Tsai and Ghosal (1999).
contractors in the region
14. Lack of training in GSCM This reflects lack of training given to the B.P. Sharma (2012); Daine H. (2009);
employee of the organization, thus resisting Yu and Hui (2008); Bowen et al. (2001);
enhancement of overall performance of Cooper et al. (2000).
supply chain and green practices in it.
15. Lack of internal sustainability It reflects integration of all internal Walker and Preuss (2008); Min and
audits within the organization departmental issues related to the Galle (2001); Wycherley (1999).
coordination for the supply chain.
16. Lack of external sustainability It reflects integration of all external Walker and Preuss (2008); Sharfma et
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audits for suppliers and contactors departmental issues related to the al. (2007); Min and Galle (2001);
coordination for the supply chain. Wycherley (1999).
17. Lack of sustainability certification It refers to authenticity of quality of B.P. Sharma (2012); Shreejith B. (2012);
like ISO 14001 products and services as per pre-established
Tomohiro Shishime (2011); Sanjay K.
norms. (2010); Yu (2007); Linton et al. (2007).
18. Lack of professional treatment It shows poor government regulations and B.P. Sharma (2012); Shreejith B. (2012);
and long term contracts for support to the GSCM practitioners. Cunkuan Bao (2011); Sanjay K. (2010);
adopting GSCM from government Yu (2007); Linton et al. (2007); Carter
and Ellram (1998).
19. Lack of management initiatives It shows poor managerial management of M.D. Singh (2012); Daine Holt (2009).
for transport and logistics logistics in the organization.
20. Lack of energy management and It shows poor management of organization M.D. Singh (2012); Daine Holt (2009);
waste management of the towards its resources. Alemayche (2008); Roger and R.S.
organization (1998).
impacts by collaborating between suppliers can help a lot to reduce and Lippman (2001).
product designer and suppliers eliminate product’s harmful impacts over
the environment.
4. Government regulation and Making green practitioners friendly laws Kannan Govindan (2010); Walker et al.
legislation, like making and rewards can stimulate more and more (2008); Hall (2001); Min and Galle
transparent reward system for organizations to practice GSCM. (2001); Beamon (1999); Walton et al.
green practitioners (1998); Green et al. (1996).
5. Green product design Environmental friendly products are more Kannan Govindan et. al. (2010); Routroy
genuinely accepted. (2009); Hu and Hsu (2006); Zhu et al.
(2005, 2007a,b, 2008a,b,c); Zhu and
Sarkis (2006).
6. Standard quality certifications Certification encourage organizations Ali Daibat (2010); Abby Ghobadian
like ISO 14001 towards continue quality enhancement, (2009); Zhu et al. (2005, 2007a,b,
thus improving organization’s culture. 2008a,b,c); Vachon (2007); Zhu and
Sarkis (2006); Hu and Hsu (2006); Rao
and Holt (2005).
7. Integrating total quality It enables new innovations in production Ali Daibat (2010); Zhu and Sarkis (2006);
environmental management into and operation methodologies, confining Zhu et al. (2005, 2007a,b, 2008a,b,c); Rao
planning and operation processes wastes and reduces energy usages. and Holt (2005).
8. Reducing energy consumption It results in better usage of financial Ali Daibat (2010); Paulraj (2009); Abby
and confining wastes resources of the organization. Ghobadian (2009); Gonzalez et al. (2008);
Rao and Holt (2005).
9. Reusing and recycling materials It prevents waste of raw material Kannan Govindan (2010); Daine Holt
and packaging resources. (2009); Paulraj (2009); Vachon (2007);
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Rao and Holt (2005).
10. Environmental collaboration with Making customers aware towards green Ali Daibat (2010); Paulraj (2009); Abby
customers and making them products and acknowledging benefits. Ghobadian (2009); Zhu et al. (2008);
environmentally aware Vachon (2007); Klassen and Vachon
(2003).
11. Reverse logistics and feedback Reverse logistics and feedback system Ali Daibat (2010); Routroy (2009);
system assures customer satisfaction towards Vachon (2007); Rao and Holt (2005); Zhu
product and brand. et al. (2005); Hu and Hsu (2006); Lippman
(2001).
12. Establishing company’s green Making customers satisfied with all the Gioconda Quesada et. al. (2011); Daine
image locally and globally environmental and performance aspects of Holt (2009).
product, thus making them brand loyal.
13. Cost of environmentally friendly Encourage to the customers to buy the Gioconda Quesada et. al. (2011); Daine
goods products. Holt (2009).
14. Cost of environmentally friendly Encourage to the suppliers. Christian Bailey et. al. (2011); Daine Holt
packages (2009).
15. Supplier’s awareness and Cost of environment friendly packages Brooks Woodfin et. al. (2011); Daine Holt
advances in providing encourages suppliers to provide less costly (2009).
environmentally friendly packaging.
packages
16. Sharing best green practices Sharing best green practices in supply Gioconda Quesada et. al. (2011); Daine
chain can make organization IT network Holt (2009).
strong and beneficial too.
IV. CONCLUSION Practices in the Electrical and Electronics industries and their
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