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GREEN SUPPLY CHAIN MANAGEMENT

A DEMATEL BASED APPROACH FOR INVESTIGATING BARRIERS


IN GREEN SUPPLY CHAIN MANAGEMENT IN CANADIAN
MANUFACTURING FIRMS
Ever since the notion of supply chain management became popular in the 1970s,
green supply chain management (GSCM) has captured the attention of all. Today,
sustainability has become a fundamental part of every business organisation, be it
of any size or nature. GSCM has been integrated into the strategic planning of
every organisation. The green supply chain framework involves adoption of green
initiatives at different stages of the supply chain right from product design,
sourcing, manufacturing, distribution, until product recovery. It is considered as
one of the main efforts aiming to integrate environmental parameters within the
supply chain management systems (Jung 2011).

The importance of GSCM has been growing over years. Organisations are
investing in green supply chain initiatives to beat market competition and build
brand image. Examples of few green supply chain initiatives are eco-design, green
purchasing, reverse logistics, customer cooperation, investment recovery and eco-
Design, internal environmental management, environment management system
adoption

Enablers and Barriers of Flexible Green


Supply Chain Management: A Total
Interpretive Structural Modeling Approach
In this dynamic era of globalization, survival of organizations is becoming
more and more challenging. Customers demand for wide variety, high quality,
better service, better reliability, faster delivery, and highly customized
products. Hence, intense competition occurs between organizations, which
impacts on the life span of products, as well as on speed, quality and costs
(Laugen et al. 2005).
COST

Enablers and Barriers of Flexible Green


Supply Chain Management: A Total
Interpretive Structural Modeling Approach
Implementation of FGSCM requires latest green and flexible technologies for
which considerable amount of financial investment is required that may be
beyond the reach of small and medium enterprises in the supply chain
network (Min and Galle 2001; Ravi and Shankar 2005). According to
Mathiyazhagan et al. (2013), good financial support is required for the
implementation of green supply chain management strategies. Therefore,
financial barriers may create a major hurdle in the achievement of GSCM and
are considered as a barrier.

Evaluating barriers to implementing green supply chain


management: An example from an emerging economy
Greening the supply chains require different modern and high-tech green
technologies, infrastructure and eco-designs, which require huge financial
investment (Lin 2013; Teixeira et al. 2016; Vachon 2007).
The cost of disposal of hazardous products (B44) is significantly huge, with this
huge cost implication causing the uncertainty of implementing GSCM practices
(Kushwaha 2010; Sambrani and Pol 2016).
This lack of knowledge of economic benefits (B45) that the companies seek to gain
is considered to be one of the potential barriers hindering GSCM implementation.
Organizsations perceive GSCM implementation as a programme with high initial
and operating cost with no short-term benefits and so are demotivated to such
initiative (Chin, Tat, and Sulaiman 2015; Zhu and Sarkis 2004).
Barriers in different aspects of technology, infrastructure, organizational policy, knowledge, financial
matters are the main hindrance to implementing green initiatives along the supply chains of plastic
industry of Bangladesh. This study mainly focuses on the identification and analysis of the barriers in
different areas for implementing GSCM practices. Introducing green technologies and activities is a
pressing need because of the immense local and global pressures for organizations to transit toward
sustainability (Hsu et al. 2013; Youn, Yang, and Jungbae Roh 2012).
Introducing and practicing green initiatives in the traditional supply chains needs adequate knowledge
on green supply chain concept, proper training, and support (Islam 2012; Islam et al. 2017; Seuring and
Muller € 2008; Tseng and Chiu 2013). The lack of knowledge of green practices (B21) can significantly
hinder the implementation of GSCM practices (Kumar, Agrahari, and Roy 2015; Mehrabi et al. 2012).

Green supply chain management: an


empirical investigation on the construction
sector

Lack of knowledge and awareness


As evident from several studies in the construction literature (Sourani and Sohail, 2011; Zhang et al.,
2012), a lack of knowledge and awareness about green practices and its benefits is a significant barrier
stopping firms from investing time and resources in implementing green practices.

High cost of implementation:


The additional cost incurred for implementing green practices poses a significant challenge for all
stakeholders as highlighted by several studies in construction and other sectors (Zhang et al., 2011; Liu
et al., 2012; Seuring and Muller, 2008)

Evaluating barriers to green supply chain redesign and


implementation of related practices in the West Africa
cashew industry
Financial costs and constraints (F. Costs). 

Cost of green practices is a constraint to GSCM implementation (Min and Galle, 2001;
Zhu and Geng, 2013). Although implementation of a GSCM strategy can generate a
long-term cost reduction, many of the required practices for initial implementation can
increase cost (Simpson et al., 2007). GSCR and implementation of related practices
may require the development of supply chain systems and processes, which often
increases the costs of traditional operations (Luthra et al., 2011; Mudgal et al., 2010).
Many kernel distributors that want to implement GSCR practices may need additional
financial investments into the supply chain (Ravi and Shankar, 2005), such as
supporting many small-sized processors in volarization of RCNs shell by gasification
rather than being burned in open air (Tippayawong et al., 2011). Such financial
investments in suppliers may be beyond the financial capacity of kernel distributors
(Bhaskaran et al., 2006).

Financial Barrier
Greening the supply chains require different modern and high-tech green technologies,
infrastructure and eco-designs, which require huge financial investment (Lin 2013; Teixeira et al.
2016; Vachon 2007).
Implementation of GSCM requires latest green and flexible technologies for which considerable
amount of financial investment is required that may be beyond the reach of small and medium
enterprises in the supply chain network (Min and Galle 2001; Ravi and Shankar 2005).
According to Mathiyazhagan et al. (2013), good financial support is required for the
implementation of green supply chain management strategies. Therefore, financial barriers may
create a major hurdle in the achievement of GSCM and are considered as a barrier.
Cost of green practices is a constraint to GSCM implementation (Min and Galle, 2001; Zhu and
Geng, 2013). Although implementation of a GSCM strategy can generate a long-term cost
reduction, many of the required practices for initial implementation can increase cost (Simpson
et al., 2007). GSCR and implementation of related practices may require the development of
supply chain systems and processes, which often increases the costs of traditional operations
(Luthra et al., 2011; Mudgal et al., 2010).
The cost of disposal of hazardous products (B44) is significantly huge, with this huge cost
implication causing the uncertainty of implementing GSCM practices (Kushwaha 2010;
Sambrani and Pol 2016).
The additional cost incurred for implementing green practices poses a significant challenge for
all stakeholders as highlighted by several studies in construction and other sectors (Zhang et al.,
2011; Liu et al., 2012; Seuring and Muller, 2008)
Lack of knowledge and awareness
As evident from several studies in the construction literature (Sourani and Sohail, 2011; Zhang et
al., 2012), a lack of knowledge and awareness about green practices and its benefits is a
significant barrier stopping firms from investing time and resources in implementing green
practices.
This lack of knowledge of economic benefits (B45) that the companies seek to gain is considered
to be one of the potential barriers hindering GSCM implementation. Organizsations perceive
GSCM implementation as a programme with high initial and operating cost with no short-term
benefits and so are demotivated to such initiative (Chin, Tat, and Sulaiman 2015; Zhu and Sarkis
2004).

Empirical Investigation of the Barriers of Green Supply Chain


Management (GSCM) Implementation in Indian Mining Industries
Lack of awareness of managers either regarding advanced technologies or, appropriate areas of
application of these technologies has been one of the major barriers of GSCM, as observed in case of
Indian mining industries. Managers are often unaware of the fact that social and environmental
responsibility can yield financial rewards in terms of waste reduction, improved energy and material
efficiency, prevention Empirical Investigation of the Barriers of Green Supply Chain Management (GSCM)
Implementation in Indian Mining Industries Kamalakanta Muduli, and Dr. Akhilesh Barve M 3rd
International Conference on Business, Economics, Management and Behavioral Sciences
(ICBEMBS'2013) April 29-30, 2013 Singapore 290 and mitigation of costly environmental accidents etc.
Besides, poor awareness among politicians, local residents and policy makers about mining
environmental issues compounded by insufficient information regarding various mining issues develops
gaps for illegal operations to function and flourish unchecked [6].

BARRIERS OF IMPLEMENTING GSCM


Barriers in different aspects of technology, infrastructure, organizational policy, knowledge, financial
matters are the main hindrance to implementing green initiatives along the supply chains of plastic
industry of Bangladesh. This study mainly focuses on the identification and analysis of the barriers in
different areas for implementing GSCM practices. Introducing green technologies and activities is a
pressing need because of the immense local and global pressures for organizations to transit toward
sustainability (Hsu et al. 2013; Youn, Yang, and Jungbae Roh 2012).

Introducing and practicing green initiatives in the traditional supply chains needs adequate knowledge
on green supply chain concept, proper training, and support (Islam 2012; Islam et al. 2017; Seuring and
Muller € 2008; Tseng and Chiu 2013). The lack of knowledge of green practices (B21) can significantly
hinder the implementation of GSCM practices (Kumar, Agrahari, and Roy 2015; Mehrabi et al. 2012).

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