Literature review on

Application of analytical hierarchy process to evaluate pressures

to implement green supply chain management
K. Mathiyazhagan , Ali Diabat , Abbas Al-Refaie , Lei Xu ,
By Masresha Tasew GSE/5744/09
Yonatan Leykun GSE/5013/09

Date Dec 9, 2017

 Focus of the literature
• Adoption of environmental management practices(like Green
Supply Chain Management or GSCM) is essential in every
industry to fulfill the requirement of environmental regulations
and customer demands.
• Indian industries have initiated moves to adopt GSCM practices
in their traditional activities due to added pollution from
automobiles and also due to tough market competition for a
green image, government regulations, pressures from non-
governmental organizations (NGOs), customers' demands and
media.
• practically hard to respond to all the pressures simultaneously
and it is also difficult for managers to make decisions.
• Identify the primary pressure among available pressures for
GSCM adoption.
 objective of the study
• To identify and analyze the essential pressures for GSCM
adoption with an example case study in the Indian mining and
mineral industry context.
• To rank the pressures based on experts' opinion through an
Analytical Hierarchy Process (AHP) technique in the mining
and mineral industry context.
 Introduction
• Environmental practices are not a stand-alone department process;
they are a team activity that involves all departments in the industry
from procurement to after sale service (Santos et al., 2013).
• Green Supply Chain Management (GSCM) and Sustainable Supply
Chain Management (SSCM) concepts ensure that environmental
practices are adopted by all departments in the industry and that it is
also helpful to adopt reverse logistics concept like recycling (Govindan et
al.,2015b; Mudgal et al., 2009; Tyagi et al., 2015).
• This reduces consumption of virgin resources and increases used items
(Diabat and Al-Salem, 2015; Diabat et al., 2015).
• Because of these benefits, GSCM and SSCM concepts are now
receiving special attention from academics, practitioners and
researchers .
• Environmental concepts now receive attention due to pressures like
tough market competition for a green image, government regulations,
non-governmental organizations, customers' demands, media etc.
Cont…
• In addition to this, environmental issues are becoming a serious problem
for business research and practice in the last decade due to the rapid
depletion of natural resources and concerns over wealth disparity and
corporate social responsibility (CSR).
• Analyzing pressures for GSCM adoption is a challenging task for all
industries, especially those who want to improve their
environmental image (Mathiyazhagan et al., 2014; Mathiyazhagan and Haq,
2013; Zhu et al., 2007).
• Table 1 summarizes the 15 identified pressures for GSCM adoption from
the literature review and from a discussion with academics and
practitioners from the mining and mineral industry.
• Five groups of academics and ten practitioners were involved in
short listing the pressures under four categories, namely
regulations, external source, financial factors, production and
operation factors.
Cont…
 Case description
• Integrating Green SCM practices requires a team effort and needs the
co-operation of all levels, both internally (from top management,
managers, engineers and labor workers) and externally (from suppliers,
vendors and distributors.).
• The adoption of GSCM brings more benefits to the environment other
than improvement of economic performance,like improving customer
satisfaction, and increasing reuse of used products ( Govindan et al., 2014a).
• Analyzing the pressures for GSCM adoption is important for each
industry as it has to satisfy customers and regulations.
• It is also difficult for managers to satisfy both economic and
environmental views without violating the industry's mission and
vision (Govindan et al., 2014a).
• Thus, analyzing and ranking the pressures according to their
importance is challenging for the industry to get a product without
violating economic issues.
 Methodology
• A detailed and clear questionnaire was prepared for the collection
of opinions from experts in the mining and mineral industries to
rate the various pressures for GSCM implementation.
• The collected data were analyzed with the help of AHP technique.
Analytical Hierarchy Process (AHP) is a popular technique under
multi-criteria decision making (MCDM) for analyzing environmental
issues .(Govindan et al., 2014a,b; Mathiyazhagan et al., 2013).
Results
 Conclusion
• The literature considered the fifteen pressures under four separate
categories. With the help of AHP, Pressure from Non-governmental
organizations (NGOs) for environmentally friendly products (E2)
occupies the first rank and motivates adopting GSCM practices in
mining and mineral industries.
• It is pointed out that Non-governmental organizations take care
regarding serious environmental awareness in addition to
government organizations.
• Also, the AHP results show the external source category plays a key
role in the pressure category over four other categories.
 Home take
• Improving environmental performance in Traditional Supply
Chain Management (TSCM) is a difficult task for company
managers
• Managers need a detailed analysis to make decisions
regarding environmental aspects for different sectors
• The research outcome helps managers of industries to
identify important pressures which force them to Adopt
GSCM.
Thank you!!!!!