International Journal for Research in Engineering Application & Management (IJREAM)

ISSN : 2494-9150 Vol-02, Issue 04, July 2016.

STUDY OF GREEN SUPPLY CHAIN

PRACTICES AND ITS PERFORMANCE
EVALUATION
1
Prof. Anil S. Dube, 2Dr. R. R. Gawande, 3Prof. Kunal U. Shinde
1
Research Scholar, 2,3Department of Mechanical Engg,
1,2
Bapurao Deshmukh College of Engg, Sevagaram, (Wardha) M.S. India.
3
Sandip Institute of Engg & Management, Nashik. M.S. India.
1
anildube100 @gmail.com, 2 wsbdcoe@rediffmail.com , 3kunalrajeshinde@gmail.com

Abstract- The objective of this paper is to explore the peer literature reviewed on green supply chain practices and its
performance evaluation with the intention of characterizing the research methodologies used in these areas of research.
As indicated by the literature published already there seems to be certain set of methodologies which have mostly been
used and that too frequently. Consequently, there is a need to do a more detailed study that can pinpoint particular
research methodologies that are generally used in research related to green supply chain practices and its performance.
This paper attempts to attain the aim by using a keyword search for identifying papers related to green supply chain
practices and its performance. Finally the methodologies used are grouped in order of their usage in order to characterize
the research methodologies used in linking green supply chain practices and its performance. This will help newer
research work to flow in the right direction without reinventing the wheel and also it will act as a ready reference for
newer research work to practicing managers.
Keywords— Green Supply Chain Practices; Economical Performance; Environmental Performance Review; Research Methodologies.

chains are also not free from these anthropogenic activities.

I. INTRODUCTION
Thus, activities of supply chain must be managed in order that
Organizations are trying hard to perk up their sustainability they do not adversely impact the environment. Activities aimed
through different strategies such as environmental management at attaining this goal are termed as green supply chain practices.
systems, agile, lean, resilient, green and world class The research problem here is to identify the research
manufacturing, eco-effectiveness and competency to sustain methodologies generally used in researching the linkages of
their position in today's cut-throat environment. As the green supply chain practices are green supply chain
environmental awareness is growing across the world, performance. There is a growing body of literature that has
organizations are increasingly facing heavy pressure to reduce studied Green Supply Chain Management (GSCM) Practices,
the emission throughout the supply chain. In fact, they need to GSC Practices; and GSC Performance. Though, there is a need
think seriously about integrating their business practices in to have a summary of research methodologies used in reaching
manufacturing and service sector with sustainability and the linkage of green supply chain performance and green
cutting supply chain expenses to achieve a competitive edge supply chain practices. This will help in characterizing the
over others. The Rio Declaration on Environment and research methodologies in this area. This paper addresses this
Development, which is an modified version of the Stockholm requirement in a suitable way by referring to thirty-two papers
Declaration of 1972, published general principles for future published in peer-reviewed journals in the recent past.
international action on development and environment. The
agenda 21 of the Earth Summit, 1992 lays down an action plan
for the next hundred years along with a framework for dealing
II. MOTIVES FOR GREEN SUPPLY CHAIN
MANAGEMENT
with the environment and development issues. Accordingly,
Global warming has raised alarming concerns worldwide due The Green supply chain is emerged as a response for long term
to the adverse effects it has been having on the environment. trends in manufacturing industries. In the early 20th century
Nations worldwide are posed with the immediate issue of the manufacturing industries are characterized by consolidation
reducing this adverse impact on the environment which is of vertical integration i.e. the major components for the product
predominantly due to the anthropogenic activities Supply is manufactured and assembled within the industry. In the later

IJREAMV02I041606 www.ijream.org © 2016, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2494-9150 Vol-02, Issue 04, July 2016.

part of the 20th century it is characterized by outsourcing III. GREEN SUPPLY CHAIN MANAGEMENT: AN
functions were the industries made to be more dependent on OVERVIEW
their suppliers for good and needed quality, promptly delivery Today, environmental effects caused by the industries is the
of goods and to make the product in competitive prices. So the main problem that mankind faces every day. The traditional
supplier’s environmental impact can affect the any of those supply chain practiced in the industries in early 1990’s, focuses
elements, so it is demanded that the suppliers should practice on the cost reduction and improving of different flows within
the green supply chain to help the organization to overcome the the organization but the environmental consideration is ignored
environmental challenges (Green Business Network, 2001). (Srivastva 2007). So the researchers and industries started to
The green supply chain can be practiced in organization redefine the traditional supply chain by including the
through several internal and external drivers. New Zealand environmental factors in to the supply chain and also making
Business Council for Green Development (NZBCSD) as the industries economically profitable by using this extended
described in their practical guide for Business Guide to a Green supply chain. In the present globalized and competitive market
supply chain (2003) is that the supply chain is mainly focused the industries are pressurized to follow the environmental
on three areas as central: management, these pressures are derived from the internal and
• Improving the performance of business’s own operations. external sources in the organization (Zhu et al, 2008). So the
• Ensuring that the goods and services provided by suppliers need of interest of practicing is increased among the industries
are green and working with the suppliers increases the till to the end customer. According to Srivastva (2007) Green
efficiency and competitiveness. Supply Chain Management has its roots from Green
management and supply chain management. Srivastva (2007)
• Working effectively with customers and sales channel to
defined Green supply chain management as ―integrating
design green products and services.
environmental thinking into supply-chain management,
On against the backdrop of these general trends the companies
including product design, material sourcing and selection,
mainly relay on the motivation factors which are classified as
manufacturing processes, delivery of the final product to the
internal and external motivations. The primary motivations
consumers as well as end-of-life management of the product
explained in the Green Business Network (2001) are risk
after its useful life. This shows that the environmental aspects
management, enhanced brand image, regulatory stance,
are considered in every process of the product life cycle.
international purchasing restrictions and customer pressure.
Johansson and Winroth (2009) stated that Green supply chain
aims for continuous improvements of industrial processes and
Primary motivations
Internal motivations and External motivations and possible products to prevent or reduce pollution to air, water and land.
possible effects effects They also suggested that by these improvements, there is
Risk management Enhanced brand image possibility of reducing risks to humans and other species.
• Supply interruption • Corporate culture of forecasting There are some challenges that has been pointed out by
• Long term risk to trends and moving proactively
human and • Potential for harm to public Richards (1994) in associate with the Green manufacturing
environment image for environmental concern. which are meeting the customer demands for development of
• Competitive recycling schemes, environmentally sound products,
disadvantage minimizing the materials use, and selecting the materials
•
Regulatory stance International purchasing restrictions
causing low environmental impacts. Adding the concept of
• Desire to go beyond • Eco-labeling and product take green to the supply chain invokes the consideration of natural
compliance back gaining momentum environment in to the process. Similar to the supply chain, the
• Suppliers knowingly or • May drive the creation of system green supply chain has its 14 boundary and scope ranging from
unknowingly provide for collection
problematic substances •
green procurement to integrated green supply chain to green
Frequently focused on high-
• Supplier non- profile brands transport, distribution flowing from supplier to manufacturer to customer.
compliance poses disassembly or recycling Zhu and Sarkis (2004) even included the concept Reverse
production risk Logistics (RL) in to the Green Supply Chain Management.
•
Green Supply Chain Management is a broad term in which all
Customer pressure
• Often appear in conjunction with a threat to brand image the industries work with their suppliers and customers to
• Regularly focusing on high-profile brands improve their environmental performance. These
• environmental performances can be practiced by different
Secondary motivations focuses (Green Business Network, 2001).
Cost reduction as suppliers Increased innovation
apply pollution prevention • Can result from supplier • Focus on reducing or eliminating the excess materials
participation in new product used in the manufacturing processes or products.
development • Focus on the supplier’s environmental compliance
Enhanced quality status during the operations.

IJREAMV02I041606 www.ijream.org © 2016, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2494-9150 Vol-02, Issue 04, July 2016.

• Joint venture for developing the new materials, useful life. Green product and process design incorporates
products and solutions for environmental issues. many concepts such as green raw material, use of cleaner
• Requiring suppliers to implement and possibly certify technology processes, use of reverse logistics practices etc.
environmental management systems.
• Educating the suppliers regarding the material use, 2. Green purchasing practices
prevention of pollution and tools of interest to the Green purchasing practices means purchasing items that have
customer company. enviable environmental properties such as recyclability,
• Refining the suppliers would help in developing new reusability and non-use of hazardous materials. Growing
materials, parts and process with environmental concerns about environmentalism have encouraged purchasing
concern. professionals to review their existing purchasing strategy and
role in supply chain.

IV. PRACTICES IN GREEN SUPPLY CHAIN 3. Green production practices

MANAGEMENT
Green production practices are the function of environmentally
Ninlawan et al. (2010) had done a study on Green and socially responsible practices to diminish the negative
implementation on electronics industries where he proposed impacts of manufacturing activities while, at the same time, to
activities of Green supply chain management. These activities achieve economic benefits. GSCM production practices and
compromises all the process in green supply chain starting related principles assist an organization to attain profit and to
from green procurement to green manufacturing to green enhance efficiency in the process. Adoption of green
distribution till recycle and waste management of the product. production practices improves worldwide competitive position
Thai manufacturers presented their findings of Green of suppliers as well as manufacturing organizations in
manufacturing activities in different aspects (Ninlawn, automobile industry.
et al., 2010).
4. Green management practices
Green management practices offer an organization to
supplementary sources of information to improve their
environmental and business performances. Implementation of
better management practices leads to improve corporate image,
environmental compliance improvement, achievement of social
commitment, increased efficiency, cost savings and reduced
emissions etc.

5. Green marketing practices

Green marketing practices are the practices to promote or
present the products with environmental characteristics
Green marketing involves the actions to fulfill human
requirements or desires with least negative impacts on the
natural environment. Green marketing practices may perk up
organization's profitability and competitiveness. Green
marketing practices enhance corporate image, product image
and corporate Reputation.

6. Green logistics practices

Green logistics practices are the integration of activities
required to move products throughout the supply chain with the
Green practices
aim of producing and distributing goods in a green way by
Six green practices (Green Design; Green Purchasing; Green
considering ecological and societal issues. An efficient
Production; Green Management; Green Marketing and Green
transportation & distribution system saves logistics overheads
Logistics Practices) to accomplish environment sustainability
and improves customer relationships to generate more
are recognized using literature and are explained as below.
profitability reverse logistics practices are the set of logistics
1. Green Design practices
and rehabilitation actions (recycling, reusing and
Green design practices suggested in their research that about 80%
remanufacturing) to products that are once again usable by
of product and process related impacts on the environment may
Globally, the end-of-life vehicles and concern for resources are
be minimized by green design practices. Green design practices
becoming major pressures for automobile manufacturers to
are used to reduce biological impact of products during their
initiate remanufacturing activities. Green logistics activities
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 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2494-9150 Vol-02, Issue 04, July 2016.

will help in decreasing environmental impacts while at the universalized as per the need but doesn’t seem to the utmost
same time maintaining or improving quality, energy savings, requirement at this moment. The most important aspect is that
reliability and cost reductions etc. companies must realize the fact that sustainability measures
and declarations would genuinely do good to them and would
not only be beneficial for their businesses but also for the life
V. PERFORMANCE OUTCOMES span of their companies which actually would have an
Expected performance outcomes Likely, sixteen expected enhanced effect, which is strengthened by the fact that, the
organizational performance outcomes were extracted into the study has tried to outline that awareness and importance given
four categories of expected performances (Economic; Social; to sustainability in manufacturing companies is accepted or
Environmental and Operational outcomes) by implementing tested positively. Green supply chain management systems
GSCM practices to attain sustainability in Indian automobile must have models to follow and measures and procedures may
industry extracted four expected performances outcomes have also be shared through formal and business arrangements
been defined from the literature. amongst the organizations. One of the limitation is inadequate
methods of examining and stating tangible and comparative
5.1. Economic performance outcomes benefits to establish the strengths of green supply chain
Many researchers have revealed that cost reduction is management systems. GSCM systems have to be popularized
considered the most important factor for organizations while as a movement, which anyways would take place in the light of
engaging in green activities. The adoption of GSCM initiatives the fact that in globalized scenario, most of the organizations
may help to minimize the costs of raw materials and packaging somehow get associated within a larger system, but the
because of use of recycled/reused materials. GSCM practices question is that do we have that much of time and if not then
have become important strategies for business organizations to it’s a matter of creating a well-crafted uniform strategy and an
attain profit and increase market share objectives. integrated environment to propel the adoption and development
of GSCM systems.
5.2. Social performance outcomes
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