Effect of green supply chain management on production costs, quality and productivity using structural equation modelling

Author(s):  
Fariba Maadanpour Safari ◽  
Manouchehr Omidvari
Author(s):  
Yudiansyah Yudiansyah ◽  
Tukhas Shilul Imaroh

PT. XYZ is one of the companies engaged in the salt processing industry in Indonesia. The development of this industry, in addition to having a positive impact on the economy also has the potential for negative impacts on the environment if not managed properly. This condition is inseparable from the production process which produces many defects and rejects. One way to reduce these negative impacts is by measuring performance that is integrated with the environment (Green Supply Chain Management). The researcher uses the green SCOR model which refers to the SCOR (Supply Chain Operation Reference) model from the Supply Chain Council to identify green supply chain management performance indicators. Then use AHP (Analytical Hierarchy Process) to determine the level of importance of green supply chain management performance indicators. There are six categories of processes used in measuring the performance of green supply chain management, namely plan, source, make, deliver, return and waste management, but research is focused on the make process that focuses on the salt production process. The results of measurements indicate that the value of the performance of green supply chain management of PT. XYZ in 2017 amounted to 75.4 and 2018 amounted to 72.3 is still below 80 even though it is nearing the target but is still being controlled and efforts are made to improve. But when in 2019 it decreased to 46.6 which shows far below the target and needs to be done immediately. As for the 17 performance indicators measured, there are 9 performance indicators that need to be improved, namely reusable material, the number of machine troubles, the number of process rejects, recycleable rejects, the amount of waste, the amount of product defects, recycleable defects, production costs and waste handling costs.


2016 ◽  
Vol 10 (12) ◽  
pp. 115 ◽  
Author(s):  
Bahareh Abbasi ◽  
Hasan Farsijani ◽  
Abbas Raad

The purpose of this paper is proposing a comprehensive model that shows the effect of green supply chain management practices on sustainable performance focusing on environmental collaboration. 311 pieceworkers companies in the field of automotive, motorcycle and agricultural machinery were investigated. Questionnaire was used for collecting data. Structural equation model were used as a technique to analyzing the data. The results of analyzing data showed that green supply chain management practices have positive effect on sustainable performance and environmental collaboration. As mediating variable environmental collaboration has also positive effect on green supply chain management practices focusing on environmental collaboration on sustainable performance. Green supply chain can help increasing sustainable performance and environmental collaboration is also considered as an important capability for facilitating executing green supply chain management. Both positively impact society through improvements to the overall environment. This research is one of the few studies that explore the effect of green supply chain management practices on sustainable performance focusing on environmental collaboration. Green supply chain management practices plays an important role of each enterprise which is involved with supply chain activities and it will help increasing sustainable performance.


2020 ◽  
Vol 31 (5) ◽  
pp. 1285-1308 ◽  
Author(s):  
Shohanuzzaman Shohan ◽  
Syed Mithun Ali ◽  
Golam Kabir ◽  
S.K. Kafi Ahmed ◽  
Tasmiah Haque ◽  
...  

PurposeIn Bangladesh, the chemical industry is one of the expanding industries based on current statistical data analysis. Green supply chain management (GSCM) is pivotal in order to compete with the global competition. This paper main aim is to discuss a systematic approach to build a structural outline. The purpose of the proposed structural outline is to predict the constructive implementation of GSCM especially on chemical industry in Bangladesh.Design/methodology/approachThis proposed structural framework evaluates the suitable interrelationship next to the barriers of GSCM in the Bangladesh's chemical industry. Here, on the basis of literature review and survey from expert opinions by the use of the Delphi methodology in total eight barriers were concluded. Here additionally, MICMAC analyses were applied to determine the driving and dependence power. Furthermore, the frameworks outline for the barriers were included by means of total interpretive structural modeling (TISM) method.FindingsBased on the analysis, the most significant barriers were found lack of supporting laws and guidance from the government and cost of disposal of hazardous products.Research limitations/implicationsThe TISM technique only has implemented to develop the framework, whereas other tools or structural equation modeling (SEM) technique can be used to develop and validate the frameworks for barriers.Originality/valueIn this research, Delphi method questionnaire generated based on the GSCM in the Bangladesh chemical sector. This study will assist the industrial managers to assess and evaluate the crucial sectors, whereas they should give priority to apply the GSCM in the Bangladesh chemical industry.


2019 ◽  
Vol 10 (5) ◽  
pp. 48
Author(s):  
Muhammad Saad ◽  
Danish Ahmed Siddiqui

This paper explored advancement in what performance factors affect Green Supply Chain Management practices of the firms. Data was collected through survey questionnaire, adopted and disseminated to 200 different employees working in different organizations based in Karachi that were associated with supply chain management activities. Data was analyzed using Structural Equation Modeling. Results showed that environmental and financial performance of organization has no statistically significant association with green supply chain management. Whereas, organizational performance produced a positive and significant impact. The results are significant for managers of manufacturing organizations in improving the practices of green supply chain management and achieve competitive position in the industry.


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