IntroductionTypicalsupply chain involves suppliers, manufacturer, warehouse, retailers and finallycustomers.
Due to existence of superior alternatives, today customers are moredemanding, looking for wide variety of products at shortest possible deliverytime, even willing to configure the product to their specifications. This hasbrought the shift from passive acceptance of customer to active involvement inthe design and delivery of products and services. The exceptions of earliersupply chain like desired product delivered in right quantity to the rightlocation in time, damaged free and correctly invoiced are reality of today.Traditionally the focus of supply chain network is economic benefit i.e. costminimization or profit maximization. Thetheory is changing from economic value to market value to Importance.
Increasedpressure on cost and globalization of supply chain have further complicated thesupply chain. These have brought tremendous changes in the traditional supplychain. The supply chain has become an integral part of strategic managementwith most of the companies and even considered as competing strategy. Intoday’s environment, the concept of integrated supply chain is widely used bylarge enterprises. Still in classic supply chain, the concept of environment orTBL (Triple bottom line) is not considered.
It will be pertinent to mentionhere that organizations are also looking at CSR initiatives as part of theirlarger responsibility towards society. CSR activities focuses more on businessethics, local employment and local concerns whereas green supply chainmanagement focus on environmental issues. Shell Puget was fined in US fornon-compliance of environmental regulations1. This indicates thatlegal framework is tightening noose around the companies for violations inregard to environment. There are many more1 alike examples. Now-a-daysmanufacturing industries are seen as culprits for damaging the environment. Beamon, (1999) have mentioned in his study that to achieve sustainability hugereductions in waste generation is needed and need for change in concept ofproduct disposal. The greening of supply chain involves the consideration ofenvironment.
The increasing customer awareness about environment, legalframework and pressures from stakeholders (consumers, government regulatorybodies, competitors, non-profit or non-government organizations, investors,employees, shareholders, etc.) have forced the organizations to think of Greensupply chain. Thinking Green has become buzz word in today’s corporate world. In1997, Kyoto protocol was adopted by both developed and developing countries toreduce the CO2 emission (Greenhouse gas). Theconcept of green supply chain applies to product or services through entireproduct life cycle. The products designed , manufactured or processed mustfollow the regulations to meet environmental standards for design, development,distribution, use, disposal or recycling. The all-inclusive approach includes reducing energy, water consumptionand greenhouse gas emissions, increasing use of renewable energies, Augmentingappropriate waste management and teaching of employees. The growing awarenessabout the conservation of environment is partly attributed to media also.
Theconsumers in the developed countries are more concerned about the environmentalfriendly products. The biggest challenge of the green supply is to integratethe suppliers and customers in a collaborative way. AGreen supply chain is defined as process where all the impacts of products andprocess considered for entire life cycle.. We can define green supply chainmanagement (GSCM) as management practice which considers the impact ofenvironment in its existing supply chain, use of resources efficiently,elimination or minimization of waste ( energy, water, air, hazardous materials)and reverse logistics. Sustainable supply chain includes forward supply chainand closed loop supply chain including reverse logistics, remanufacturing, andproduct recovery. Greensupply chain management is now-a-days a part of strategic management at boardlevel of many companies.
European automotive companies like BMW Group,Volkswagen, PSA Peugeot, Ford, Volvo, Land Rover, Jaguar, Scania, Daimler andToyota have already formed the automotive working group on supply chainsustainability. They are working on common guiding principles forsustainability. There is no conclusive evidence or empirical evidence availablewhich states that GSCM practices have positively impact the profitability ofthe organization. Therehas been enough literature which discuss about enablers, barriers, motivations,advantages. supplier selection, supplier integration , inter or intraorganizational capabilities or integration of suppliers etc. in entire supplychain.
During literature review, it was observed that the words like Greensupply chain management (GSCM) or sustainable supply chain management (SSCM) orsustainable green supply chain management (SGSCM) has been interchangeablyused.Recentlydiscussions have started about performance measurement of Sustainable supplychain. Thispaper focuses on identifying the performance parameters for SSCM. Literature reviewTheorganizations are still in very nascent stage of establishing the links betweenGSCM or SSCM and their impact on overall performance management. The companiesneed to develop the capabilities to measure the performance of theirSustainable operations. The environmental criteria’s in SCM are increasinglybecoming important for competitive advantage and for business performance.
Themain questions for researchers and organizations are 1) which criteria’s to bemeasured, 2) do the organizations have capabilities to measure, 3) to establishlinkages between environmental criteria’s and business performance. Duringthe literature review, literature was selected based on various regions1. Mexico: The free trade agreement between North Americancountries (USA, Canada, and Mexico) came into existence in January 1994.
Wisneret al, (2005) conducted study on the impact of NAFTA (North American Free TradeAgreement) on environmental responsiveness and performance by Mexican industry.They conducted structured in-depth interview with 236 Mexican companies andthen applied Log logit method modelling. They concluded that the regulatoryinfluence and market pressure have positive impact on environmental performanceof Mexican Industry. 2.
Canada:Moralli et al (2013) conducted the study on extent of integration ofSustainability principles into Supply Chain management and evaluation ofsupplier performance. They used content analysis for 100 Canadian companies andin-depth interviews with 18 experts. They concluded that integration ofsustainability principles on supply chain management is increasing. Tajbakhshet al (2014) conducted the study on KPI for entire sustainable supply chain andconcluded performance of SSCM should be evaluated across the chain andsuggested the comprehensive framework. 3. USA: Beamon,(1999)conducted a study to analyse the current state of environment in USA andintegration of environment into traditional supply chain management. Hesuggested new performance parameters for SSCM and concluded that profitabilitycan be increased by reducing the liability risks due to environment hazards.4.
Germany:Julia Wolf, (2011) conducted a study on to provide a coherent and testablemodel of sustainable supply chain management integration (SSCMI). They usedgrounded theory concept for building the conceptual model and thereafterdeveloped cross case analysis from single case to generalize the results. Theyconcluded the integration of SSCM across the supply chain will give better sustainabilityperformance results.5. Taiwan:Lo,(2013) conducted the study to establish the relationship betweenuncertainties and the motivations for implementing GSCM depending upon theposition in supply chain. They conducted the in-depth interviews with 12Taiwanese companies and secondary data was used from various sources (e.g.company’s website).
They developed the single cases and then made cross caseanalysis.6. South East Asia (SEA)-Raoet all (2005) conducted the study on establishing link between Greening ofsupply chain and their impact on environmental and economic performance. Theyconducted in-depth interviews and then use the Linear SEM approach. Theyconcluded that greening of supply chain has positive impact on economicperformance and competitiveness and proposed a theoretical framework.7. Varsei,(2014) conducted a study in identifying and analyzing drivers and barriers forSSCM.
They suggested a theoretical / conceptual framework sustainable supplychain development and KPI for performance management of SSCM. Their approachwas based on literature review and four organization theories (e.g.
RBV,Institutional, Stakeholder and Social network)8. Iran:Govindan et l (2015) conducted a study on establishing interrelationship andinterdependence between GSCM drivers and performance indicators. They used theintegrated intuitionistic DEMATEL approach to develop a comprehensive list,followed by a case study in automobile company located in Iran. They concludedthat internal management support, green purchasing and ISO 14001 Certificationare the most important criteria’s for GSCM.9. India:Mitra, (2013) conducted a study on implementation of GSCM in India. Theyconducted questionnaire based survey and in-depth interview with 232 Indianmanufacturing companies and then analyzed the data with SEM approach.
Theyconcluded that pro-active collaboration with suppliers supports environmentallysustainable product design and logistics which improves the economicperformance and competitiveness. Dubey et al (2017) conducted the study orunderstanding the impact of institutional pressures on sustainable performancemanagement and the role of organization culture on Institutional pressure. Theyconducted questionnaire based survey of 277 respondents from Indian industriesand concluded that there is positive relation between them. Mani.V et al (2015)conducted a study on understanding the different dimensions of “Social”sustainability in Indian Manufacturing companies.
This study is based oncomparative case and they concluded that the majority of social dimension inIndian Manufacturing companies revolve around equity, child labour, bondedlabour, education, wages, ethics and philanthropy despite of many similarities or/and differences. Mani et al(2017) conducted a study to identify the dimensionsof social sustainability. This study is based on in-depth interviews with 27 Indianmanufacturing companies and hypotheses testing with SEM model. They concludedthat 18 measures categorized under five dimensions namely Labor rights, safetyand health, societal responsibility, diversity and product responsibility areplaying vital role and have positive relation to sustainability performance.
GapAnalysis:Based on the literaturereview, it was identified that various conceptual and theoretical models usingvarious statistical techniques (e.g. questionnaire based, survey based or SEMor Fuzzy DEMAETEL or theory based (RBV, Institutional theory, ContingencyTheory, Grounded theory etc have been proposed in most of the studies.
It hasbeen mentioned that – Organizational performance (economicperformance, sustainability performance, social performance) is improved ordirectly related with implementation of practices of Green Supply Chain,- There are mediation effects of enablers ofGSCM on organizational performance.- Pull effect is more effective than pusheffect – There is no single study has beenconducted which shows that Profitability or market share of organization hasactually been impacted (increased) through product innovation e.g. Electricvehicle, light weight vehicle) or there are gains in terms of improvedcorporate image. Focus of future studies should be to establish the impact ofadoption of GSCM or SSCM practices on profitability of organization empirically.1