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An exploration of green supply chain practices and performances in an automotive industry

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Abstract

During recent years, the natural environment has become a challenging topic that business organizations must consider due to the economic and ecological impacts and increasing awareness of environment protection. Globalization and the increased number of countries entering the World Trade Organization (WTO) have promoted green supply chain management (GSCM) practices in manufacturing organizations. GSCM has emerged as an important organizational philosophy and a proactive approach to reduce environmental risks. Increasing pressures such as stricter regulations, increased community, and consumer pressures, and the developing country’s aim to enter the WTO have caused automotive supply chain managers to consider and to implement GSCM practices to improve both their economic and environmental performances. This paper explores the practices and performances of the GSCM based on the GSCM literature, and it considers the relationship between green supply chain practices (initiatives) and performance outcomes. In this paper, two questionnaires were developed and a survey conducted to assess the importance of GSCM practices and performances in an automotive company in a developing country using a fuzzy multiple criteria decision-making method. The result of this paper presents practical guidance for managers in performing GSCM practices by ranking GSCM practices according to their importance which leads to improving GSCM performances.

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Correspondence to Ali Diabat.

Appendix A: list of measurement items for GSCM practices implementation

Appendix A: list of measurement items for GSCM practices implementation

1.1 Internal environmental performance

Commitment of GSCM from senior managers

Support for GSCM from mid-level managers

Cross-functional cooperation for environmental improvements

Total quality environmental management

Environmental compliance and auditing programs

ISO 14000 certification

1.2 Design for environment

Design of products for reduced consumption of materials/energy

Design of products for reuse, recycle, recovery of material, component parts

Design of products to avoid or reduce use of hazardous of products and/or their manufacturing process

1.3 Environmental practices in operational fields

Integrating quality environmental management into planning, and operation process

Use of environmentally friendly technology

Use of environmentally friendly materials

1.4 Pollution control

Air emission

Waste water

Solid waste

The amount of energy consumption

The amount of harmful material usage

1.5 Investment recovery

Investment recovery (sale) of excess inventories/ materials

Sale of scrap and used materials

Sale of excess capital equipment

1.6 Environmental education

Public disclosure of environmental record

Percentage of employee trained on environmental issues

Organizational learning and growth

1.7 Green product

Eco-labeling of products

Green packaging

Product safety

Having special plans for hybrid, electrical, and gas engines (automobile)

1.8 Cooperation with customers including environmental requirements

Cooperation with customer for eco-design

Cooperation with customers for cleaner production

Cooperation with customers for green packaging

Cooperation with customers for using less energy during product transportation

1.9 Green purchasing

Providing design specification to suppliers that include environmental requirements for purchased items

Cooperation with suppliers for environmental objectives

Environmental audit for suppliers’ inner management

Suppliers’ ISO14000 certification

Second-tier supplier environmentally friendly practice evaluation

1.10 Reverse logistics

Recycle

Reuse

Remanufacturing

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Diabat, A., Khodaverdi, R. & Olfat, L. An exploration of green supply chain practices and performances in an automotive industry. Int J Adv Manuf Technol 68, 949–961 (2013). https://doi.org/10.1007/s00170-013-4955-4

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  • DOI: https://doi.org/10.1007/s00170-013-4955-4

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