University Of Management and Technology

Final Project

Organization: AGILITY LOGISTICS

GROUP:

Talha Bin Arif 114405093

Hira Sajjad 114405108

Submitted to: Sir. Ijaz Yosuf

Dated: June 29, 2015

1

Contents

Introduction...............................................................................................................................................3

Significance................................................................................................................................................6

Green Quality vs. GSCM..........................................................................................................................7

Overview................................................................................................................................................7

Supplier..................................................................................................................................................8

Manufacturer.........................................................................................................................................9

Logistics................................................................................................................................................11

Key Drivers Green Supply Chain:.........................................................................................................16

Internal Drivers:....................................................................................................................................16

External Drivers:...................................................................................................................................16

Suggestions for the Implementation of Green Quality in SC.....................................................................17

Practical Implications of Green Quality; Pakistani Context:......................................................................19

Obstacles for achieving Green Quality:.....................................................................................................20

Internal Obstacles:.................................................................................................................................20

External Obstacles:....................................................................................................................................21

Conclusion.................................................................................................................................................22

REFERENCE:...............................................................................................................................................23

2

Introduction

From the onset on the commercial trading, that dates back centuries, man has been an active

partner in the performing such a trade which usually involve exchange of a commodity or

expertise (service) to another against a compensation. However, with the onset on

industrialization and other important events such as formation of company, division of labor etc.

that led to the development of today’s commercial world, same impact was evident on the

exchange of goods or services in manner such as higher complexity of inputs to create finished

good. With such an innovativeness that has been achieved over the passage of time, other

product related aspects were introduced. One of the distinguishing aspect was the aspect of

Quality. Quality, itself, is a generic term identifies a certain attribute of an entity, from here

onwards, only the business aspect of quality would be considered. Quality, in simplest words,

non-inferiority or superiority of something or fitness in purpose. It is contributed that in order for

a company to survive in today’s world, it should be excelling in quality aspects to meet the

customer needs to the fullest. Extensive research has been conducted in managing and improving

the quality aspect of the organization such as Quality management system to extend the “Quality

first spirit” throughout the organization. Other definitions of Quality has been identified by the

Quality Guru’s:

Zero defects (by Crosby)

Predictable degree of Uniformity and dependability at low cost suited to market (by

Deming)

Realization of continuous improvement (by Ijaz Yosuf)

Totality of characteristics of an entity that bear on its ability to satisfy stated and implied

needs (ISO Standards Compendium)

In addition to the varied definition highlight focal point of “conformity” and “Needs of

customer”, Quality itself is broken down into various dimensions:

Performance

Features

Conformance

Reliability

3

Service

Response

Aesthetics

Reputation

These dimensions extends further along the entire supply chain and all the associated entities

such as suppliers, manufacturing, retailing and customer.

In addition to the quality aspect, another feature has become area of concern for the

organizations and is known by the “Go green” or “Green Supply chain management (GSCM)”

highlighting the importance of sustainable environment in which companies are operating. This

onset of Green movement/ GSCM is a resultant of the previous operations of the organizations

operating at the expense of the worldly resources leading to certain depletion as well as damage

to the environmental stake holders with least returning to the ecosystem within which they are

operating. The need for regulation to protect the environment gets widespread but grudging

acceptance: widespread because everyone wants a livable planet, grudging because of the

lingering belief that environmental regulations erode competitiveness. (Porter & Van der Linde,

1995)

Since value chain encompassing activities of supply chain covers each step from converting the

crude raw materials to finished goods which further includes activities as shown in fig below:

4

In the light of the above stated elements of Quality, significance of supply chain in current

commercial scenario, It is imperative that we consider the aspect of Quality into the depth of the

supply chain concept and it’s relate it to associated activities. Also the aspect of Green will be

catered along the way as it is crucial for the supply chain operating in the world to be sustainable

and gainful in meeting the needs of the customers.

Through the report, both the concepts of Quality and Green impacts will be studied while

referring them to the supply chain activities leading to the concept of Green Quality;

As quoted by Socrates:

“Quality is a habit” and habit across the stages of operations will reflect overall effectiveness.

As the practices have advanced, competitive and more complex than simply converting material

into finished products and delivering them to the final customer, the source of competitive edge

now is not limited to the product solely rather depends on the overall profitability of the supply

chain operating to actualizing the product into the hands of final customers. And the overall

profitability itself is extended from short term profitability of the firm to long term sustainability.

(Wu & Pagell, 2011)

In the following proceedings, the significance of the Green quality will be detailed in both in

international scope as well as organization wide scope. Also Green quality will be further

5

illustrated with special reference to GSCM (Green Supply Chain Management) as individual

activities of supply chain instill the quality within a product or a service. Also its tools for

implications will be focused as well.

Significance

The concept of Green Quality is somewhat new considering the areas this concept is attempting

to merge. The significance of Quality is without a doubt is a pushing factor for the firms to

operate and survive in the world against cut throat competition and extensive research conducted

in this area has led to extrapolation of various measures and system to uplift practices and

processes to more efficient and effective fashion; reducing the overall defective practices in a

scientific manner. From the deduced systems, methods and dimensions have been developed to

dictate or guide certain practices to gain from the current resources available. Also organizations

acknowledging the importance of the quality has placed a spot of Quality manager in the

hierarchy of the organization. Likewise as the practices are evolved, addition of stakeholders has

impacted greatly to the overall decision making of the firms. Among the stakeholders are the

environment and the flora and fauna which are being impacted upon due to the workings of the

organization in the natural environment as well as the resources that are being utilized by the

organizations. Therefore both of these have given a footing step to Green practices that needs to

meet the quality aspects to fullest in order to survive and prosper in the commercial world of

today. And these Green quality extends its roots deep into the core processes of the supply chain

such as supplier selection, product designing, procurement, manufacturing, green fueling to be

used for processes etc. The prevailing view is that there is an inherent and fixed trade-off:

ecology versus the economy. On one side of the trade-off are the social benefits that arise from

strict environmental standards. On the other are industry’s private costs for prevention and

cleanup costs that lead to higher prices and reduced competitiveness. With the argument framed

this way, progress on environmental quality has become a kind of arm wrestling match. One side

pushes for tougher standards; the other tries to roll them back. The balance of power shifts one

way or the other depending on the prevailing political winds. (Porter & Van der Linde, 1995).

Porter in his work has detailed the significance of the environmental regard for efficient

workings in example of Dutch Flower industry, where operations were resulting in

environmental pollution which when rectified increased the organizations profitability (Porter &

6

Van der Linde, 1995). Ken Green, in his work, endorses the impact of green practices on the

overall end quality of the supply chain product in the paradigm of the supplier-customer model,

detailing that: “It is very important for the supplier to consider not only the immediate customer

but customer of the customer as well as the impact of his actions on them”.(Green, Morton, &

New, 1996). Kenneth Jr. in his work pertaining to the productivity of the supply chain related to

the going green initiative do have its perks which include increased market share, profitability as

well reduced wastes making the overall working more efficient than without the use of such

initiatives.(Green Jr, Zelbst, Meacham, & Bhadauria, 2012)

Likewise, various countries including China has initiated GSCM that has been extended to both

the suppliers as well as the customer end in order to fulfill the international demands while

conserving the ever growing cost of operations as well as ever reducing resources.(Zhu, Tian, &

Sarkis, 2012), Italian researches have also taken initiatives to understand the 3PL scenario and

GSCM and concluded that 3PL firm should configure themselves in a manner to produce

leverage over the course of their operations.(Perotti, Zorzini, Cagno, & Micheli, 2012). Benjamin

contributed to the significance of Green practices having quality output for the as: “The findings

suggest that consumers perceive products made via some GRL (Green Reverse Logistics)

practices to be inferior to brand-new products in terms of quality. However, participants

indicated no perceived quality difference between products made with recycled materials and

brand-new products”(Hazen, Cegielski, & Hanna, 2011).

Green Quality vs. GSCM

Overview

As mentioned above, green quality is the amalgamation of the green (environmentally friendly

practices) and quality assurance methods to produce leverage of implication for the firms that are

indulged in it. Also it is stated that GSCM (Green supply chain management) is directly linked

with green quality due to the fact that all activities being performed with the supply chain having

intrinsic “green” banner with them are bound to productive and efficient leading to lower levels

of waste produced and optimum levels of resources utilized. In researches conducted to analyze

the factors that push a certain firm to adopt Green initiative within its supply chain is as follows:

7

8

Figure 1 Drivers impacting GSC

Literature has been compiled to breakdown the Green supply chain practices and analyze various

entities of the supply chain itself, emerging as a model for green persona.

Supplier

In a research conducted on the business practice:

“The procurement or purchasing decisions will impact the green supply chain through the

purchase of materials that are either recyclable or reusable, or have already been recycled. The

selection of vendors will also be an important decision at this stage. Vendors who have ISO

14000 certification may be preferable since there is an expectation that the environmental risks

associated with these vendors is lessened (which is an analogous argument to selecting vendors

that are ISO 9000 certified when reducing risk of poor quality purchases). Reduction of these

risks improves the probability that these vendors will also be available for the long term.

Whether or not to outsource certain processes or components may also be a concern for the

procurement department To successfully manage most of the green procurement initiatives

several factors are needed to be included in managing the supplier-customer relationship. These

factors include long-term strategic relationships and contracts, early involvement by the supplier

and customer, building trust, incorporating linkages amongst levels of management and

functions, early involvement of suppliers in design of product and process, joint teams and

problem solving, and a focus on “value” rather than cost (Sarkis, 1999)

Supplier holds a key position in the supply chain and over all aspect of the quality is placed in

the dispatched raw materials from the supplier side, also in the literature compiled by Dr. Abdul

Raouf, material is one of the key elements of the quality, therefore if the material obtained from

supplier is environmentally stable and friendly, the initiation of the processes at this start will

eventually lead a greener set of practices as compared to the counterpart without any such

consideration given to the environment sustainability. Therefore vendor/supplier selection is

crucial actions that needs to be considered while attempting to excel at green quality.

This furthermore relies on the collaboration between the supplier and buyers as well as the

selection criteria that is set for the selecting the supplier who is capable of providing the material

of specific configuration. And overall triumph of all the efforts resides on the fact how well the

supply-Customer model is fitted with collaboration between the two entities.

9

Manufacturer

Second entity after suppliers is the Manufacturer who is responsible for potential conversion of

the raw materials into ultimate form which would be presented to the end customer. The process

with which the complex configuration of the varied raw material is added and converted into

final product. Here the most crucial decision are made that pose greater impacts on the overall

quality of the supply chain output as well as overall productivity. Such decisions having greater

influence on the Green quality are product design, type of material to be used, also the overall

process to be utilized for converting the selected materials into finished products as well as the

fuel to be used to generate power for the processes. All these decisions, ultimately push the

industry towards or far off from the green productivity and the related benefits of sustainability.

(Zhu, Sarkis, & Lai, 2008). In addition to the detailed significance of the manufacturer position

and role in maintaining the quality of the output in an environmentally sustainable form i.e.

green quality, there are few examples of the company that has taken pro-active stance in

achieving the sustainable profitability through enhancing their Green quality aspect through their

operations and sequential decision making. Following are some examples of such companies:

The above table displays the sampler of the organization who have managed their operations into

green operations by pro-actively taking steps into either managing the waste of raw materials to

sustaining the resources to changing their choice of fuels in converting the raw materials; on one

hand managing the waste reduction efforts as well as reducing the costs of fuel that are major

portion of the overall costing of the product ultimately enhancing the quality of the goods

received in the end(Wu & Pagell, 2011). One similar practice is illustrated in research of Porter

10

where he quoted the example of the Dutch flower industry, where the producers shifted from the

soil to water based growing field that not only resulted into enhancing the quality of the final

product as well as reduced time, costing and damage to the soil that was done due to excess

growth patterns of the flowers (Porter & Van der Linde, 1995). The production function is

composed of assembly and fabrication. ‘Within this area environmental issues such as closed-

loop manufacturing, total quality environmental management (TQEM), de-manufacturing, and

source reduction all play some role. Even though some of these issues also play a role in other

functional areas; some of the tenets of TQEM include empowerment of employees, continuous

improvement, team efforts, inter-functional collaboration, and leadership elements. There are

issues in each of these areas, one of the most important of these areas, from a managerial

perspective, is empowerment and employee involvement’(Sarkis, 1999). In addition to this,

another important addition was provided; Closed-loop manufacturing is one of the internal

measures that can be used to improve the environmental performance of the internal supply

chain. The philosophy of zero-emissions (similar to zero-defects of many TQM programs) is

what drives closed-loop manufacturing practice. Closed-loop manufacturing is a process of

producing products with no negative environmental impact (Dassau, Lowe, Barr, Atlas, &

Phillip, 2012; Hasek, 1997) “This internal loop helps to lessen some waste streams that flow

from the production function, but may require additional energy and resources to function and

maintain. As part of the source-reduction philosophy closed-loop manufacturing A related issue

to the zero-emissions philosophy is substitutability, which has become much more popular with

design for the environment linkages”(Sarkis, 1999)

Logistics

This is usually defined as “the movement of goods from one point to another point” and is

strategically one of the crucial activities along the supply chain that basically determines the

nature of the supply chain and ensure the delivery of the goods to the focused customers. Here

the goods are moved from suppliers end towards the customer side and it holds a tactical position

in the supply chain as one of the major cost that are incurred in the supply chain is the logistics

costs and primary objective of the traditional firms is to manage the costs and minimize it to the

greatest level, however with the advancement of the practices it has been identified that

environmental aspect is just as important as economical aspect. This pertains the need to develop

an efficient green efficient logistic model for delivering the product, storing as well as returning

11

the goods for reuse i.e. reverse logistics. The design of a logistics network and its planning are

two of the more strategic issues facing logistics managers to consider. Many trade-off decisions

are needed to be made with regard to the firm's market, customer, product and logistical

resources however, each of these issues includes a tradeoffs among delivery time,

responsiveness, quality and cost, as well as environmental performance(Sarkis, 1999)

In addition to the movement of goods, temporary warehousing as well as proper packaging is an

essential component of the logistics function and involve many decision that may affect the end

quality standards and its related dimensions such as aesthetics as well as service and reputation.

It is usually debated: “warehousing, other than land use requirements, also generates much of

the packaging waste in the supply chain. Standardized reusable containers, good warehouse

layouts, easy information access all cut storage and retrieval movements and save on operating

costs and are environmentally sounder. Freight consolidation functions and “breakbulk”

operations carried out in warehouses also have the potential of utilizing transport capacity more

efficiently, thus minimizing the environmental impact of the out bound transport system’ (Sarkis,

1999).

Same is the case with packaging that is used to protect the goods to be stored and transported.

Also while considering the reverse logistics, initially it is defined as “Their complete definition

for reverse logistics is the return, upstream movement or a good or material resulting from

reuse, recycling, or disposal with the minimization of waste which results in more efficient

forward and reverse distribution processes. Reverse logistics operations include the following

major steps: collection, separation, densification or disassembly, transitional processing, delivery

and integration. The operational emphasis is dependent on the type of material or component

that flows in the reverse logistics channels. Due to such unique addition to the logistic function,

this only enhances the overall green quality of the operations due to additional concern for the

sustainability of the material being transported back. (Perotti et al., 2012).

12

While summerizing this we can refer a framework from a research. In a research the authors

Ninlawan C et all, revealed the green activities in a framework given below:

13

Waste

Green procurement activities must include

Supplier selection: (1) purchase materials or parts only from “Green Partners” who satisfy

green partner environmental quality standards and pass an audit process in following

regulations for the environment-related substances (2) consider suppliers who acquire

ISO14000, OHSAS18000 and/or RoHS directives (3) select suppliers who control hazardous

substances in company’s standard lists and obtain green certificate achievements.

The 3Rs in procurement process: (1) reuse or recycle – paper, parts container (plastic

box/bag) (2) order via email (paperless. Besides green procurement is a solution for

environmental concerns.

In green manufacturing there must be the activities of

Hazardous substance control: (1) lead free – replace other substances (2) rinse parts with

clean water instead of using chemicals and reuse water (3) quality control in inputs at vendor

site and recheck before processing.

Energy-efficient technology: (1) reduce power consumption in products (2) increase product

life-span resulting in higher efficiency and productivity (3) improve machine uptime (4)

improve machine performance.

The 3Rs and waste minimization: (1) promotes reuse/ recycle of parts (2) enhance

environmental consciousness via 3Rs activities (3) reduce indirect materials.

14

Green distribution must include the activities of

Green packaging: (1) downsize packaging (2) use “green” packaging materials (3)

cooperate with vendor to standardize packaging (4) minimize material uses and time to

unpack (5) encourage and adopt returnable packaging methods (6) promote recycling and

reuse programs.

Green logistics/transportation: (1) deliver directly to user site (2) use alternative fuel

vehicles (3) distribute products together, rather than in smaller batches (4) change to

modal shift. Packaging characteristics such as size, shape, and materials have an impact on

distribution because of their effect on the transport characteristics.

Reverse logistics is the process of retrieving the product from the end consumer for the purposes

of capturing value or proper disposal. It includes activities include collection, combined

inspection/selection/sorting, re-processing/direct recovery, redistribution, and disposal. The key

features in reverse logistics are presented as:

Waste collectors (called SaLeng) gather EOL products from community, private/public

organization, select and sort initially to get used parts which are shipped to

disassembly/recycle plants. The facility must have industrial waste treatment and disposal

systems for product waste by secure landfill or stabilization and solidification systems (a

process of detoxification and converting waste into a solid form before disposal in the

landfill.

Disassembly/recycle plants collect used products and parts. Activities include collection,

combined inspection/selection/sorting, re-processing/direct recovery, redistribution, and

disposal. The rest of it are shipped to recycle plants which recycle some portion while

discharge the rest.

15

16

Logistics Green

Distribution Green

Manufacture Green

Procurement Green

Green Supply Chain Management

• Supplier

Selection •3Rs

• Hazardous

Substance

Control

• Energy Efficient

Technology

• 3 Rs & Waste

Minimization

• Green

Logistics

• Green

Packaging

• Final

Treatment

/Landfill

Company

• Disassembly

/Recycle Plants

• Waste

Collectors

• Used

Computer

Stores

Key Drivers Green Supply Chain:

In a literature on GSCM, it is highlighted that certain drivers both outside the organization as

well as internal influence the trend between greening supply chain. Following are some of the

highlighted drivers that impacts organization’s decision making:

Internal Drivers:

Top management commitment

Organization’s attitude towards risk management

Cooperation with the key supplier

Organization’s brand equity and CSR

Economic gains

Investor relations

Continuous improvement

If the above mentioned drivers are considered, they overlap the aspects of Total Quality

Management as a direct provision towards general acceptability over various organizations.

External Drivers:

Regulations

Customers

Suppliers

Society

Competitors

ISO accreditations

For the implications of the drivers on the supply chain applicability, triple bottom line frame

based on 1) Economic 2) Environmental 3) Society. These three aspects, in reality are the major

outcomes of the supply chain and possibly the overall goal to be achieved by the firm.(Walker,

Di Sisto, & McBain, 2008; Zawawi)

17

Suggestions for the Implementation of Green Quality in SC

To acquire effective and successful results in GSCM, synergies among stakeholders in any

industry must be firmly concerned. Subsequent to making discourse about analysis results with

specialists and makers, some imperative proposals are noted here:

Promote Eco outline: Eco plan as a movement that coordinates natural approaches into

item plan and advancement, the coordinated exercises lead to persistent change of the

ecological execution of the whole item through innovative development. Developing

environmental friendly items is reason to change in item outline utilizing 2 standards: (1)

intended to amplify lifetime of item, it can be enhanced, repair, and re-utilization of

items, for example, measured configuration (2) intended for reusing/ plan for

disassembling, after end of life items that can be more restored and recycled.

Control dangerous substances: consenting to RoHS and different regulations.

Set rules for disposing the waste and consider more interest in reuse plants.

Proliferate GSCM information and empower utilizing naturally amicable products and

services.

Set a direct attentive unit to take responsible for product waste just which will expand

reverse logistics proficiently.

Promote repairing and reusing through campaigns/ exercises to raise reuse/reuse

mindfulness in product utilization.

Expand item lifespan by outlining for pull to pieces or updating the specifications as

opposed to purchasing new ones or utilizing rental services.

Set a database unit to gather and record data about production, import/trade information,

and waste administration (do traceability).

Encourage group building and train skilled workers for reverse logistics administration.

Raise the applications in Extended Producer Responsibility (EPR); EPR is an ecological

insurance method in light of the "polluter pays" rule, by making the maker of the item in

charge of the whole life-cycle of the item and packaging the produce.

Promote Product Service System (PSS); services and product benefit blends are

perceived as a possibly effective idea for maintainable improvement. A product service

system (PSS) is another pattern that can possibly minimize ecological effects of both

18

generation and utilization. Along these lines, more traditional material escalated methods

for product usage are replaced by the possibly to satisfy buyers' requirements through the

procurement of more dematerialized services.

In addition to the detailed suggestions as above, there are other models based on which one can

achieve “Green Quality” & “Green Supply Chain”

With reference to the above figure totaling the aspects of green supply chain in order to develop

and upheld the output of green quality, a model has been presented by Mark Pagell and Zhaohui

wu. The model is as follows:

In order to achieve the aspect of green quality singular organizations must initiate practices at

their ends, thus giving a pragmatic grounds of research implications beyond theoretical

framework. Here it is implied, in order to achieve long term sustainability as well as gaining

short run economic benefits it is crucial that each entity upholds the concept of green while

acknowledging the benefits it entails. An organization must develop an environmental posture

i.e. s stance on which it will be operating to pursue green operations; in doing so it must also

consider the aspect of triple bottom line i.e. economic, social and environmental. Using the

developed stance it must develop the operating principles and technical standards which would

be the parameters for working in the respective areas to ensure green effect within the operations.

While developing the parameters, employee involvement must be ensured to mitigate any future

resistant as well as gaining confidence and acceptance of changing horizon. This will overall

result into industrial innovations developing an edge over traditional company in maintaining

19

green. The management itself be sequential in making decision which would present additional

decision that will be novel to the operations as well as environmentally sustainable. The ultimate

result of these efforts will be increased environmental performance and unique supply chain

design and operational practices having minimum wastage and cost figures.(Wu & Pagell,

2011)

Another applicable suggestion for the implementation and achieving green quality is the

implementation of EMS (Environmental Management Systems) identified by ISO 14000 to

upheld environmental standards while pursuing profitability in the organization. The

implementation of such a system is crucial step that can lead to innovation with in the supply

chain design and its operability. Following below is the detailed general model of EMS which

can initiate step towards implementing EMS in the organization

EMS MODEL:

1. Environmental Policy

2. Planning

3. Implementation and operations

4. Checking and Corrective action

5. Management Review

6. Continual Improvement

In an exploratory study conducted on EMS’s practical applicability, it is quoted by the researcher

“For an EMS to be effective, it should be involved in the monitoring, tracking, summarizing, and

reporting of environmental information to internal and external stakeholders. There is also a

need for integrating cross-functional activities to include environmental training of personnel.

Finally, there is the need for formal procedures, and the availability of these specialized

procedures and information to be available to people in new product development, recycling,

and pollution prevention. A firm’s commitment to an EMS will be a determining factor in the

success of the system and the extent of the benefits derived from environmental initiatives”.

(Sroufe, 2003)

20

Practical Implications of Green Quality; Pakistani Context:

In the context of Pakistan, there is only few examples of sustainable practices over the whole

supply chain with primary motive of developing environmentally sustainable practices as well as

increasing the quality of the finished product. In this case Pakistani manufacturing supply chains

has taken proactive steps in achieving Green quality using Information and collaboration as well

as under the influence of drivers of green practices that are prevalent in Pakistan. The

implications as a result of this research provides following inputs:

Pakistani manufacturing industry is at initial phases of implementing such practices

across their supply chains

“International pressure” as well as “international competitors” are being considered as

major driving force of green practice implications.

Government rules and regulations are also key driving force that pushes the practices

towards greener inputs.

Pakistani firms are actively engaged “knowledge dissemination” on inter-firm basis thus

both explicit and tacit knowledge is being delivered within their suppliers networks.

Significance importance is being given to environmental achievements such as ISO

14000 and ISO 26000 in their supplier selection.

Eco-logistics and Eco-inventory are weaker ends of the overall implementation of green

practices i.e. inventory reduction, logistical improvement, customer goodwill and

financial improvement. These areas need due attention to ripe benefits from

green/sustainable practices.(Abbasi)

Obstacles for achieving Green Quality:

Although major drivers of the supply chain morphing into Green supply chain are detailed as

well as major suggestion on how this evolution could be achieved from organization to supply

chain wide framework. There are certain obstacles that resides which hinders such change

toward sustainability and enhanced quality outputs. Following are some of the obstacles

identified:

Internal Obstacles:

Cost figures:

21

A general notion is “customer demand least price for best quality” therefore any

considerations towards achieving green operations result in shortening short term

profitability as well as increased cost structures furthermore many firms find such

increased cost having no visible return unacceptable. Integrating sustainability into the

supply chain processes is expensive and require a big amount of money especially for

small to medium enterprises

Lack of training:

Past research dictates that “Lack of training of employees is a big obstacle. Employees

should be trained well before introducing them to a whole new concept to adopt.

Contributing green supply chain for employees with no training and little knowledge is

perhaps a failure”. This is true in notion that it is the employee who is actually involved

in operations rather than management therefore require certain level of awareness to

judge whether what practices being carried out are truly green and have good impact or

not

Lack of knowledge:

Lack of knowledge obviously appears to be a common hindrance for establishing a

sustainable supply chain approach. Employees are not well informed concerning the

importance of integrating sustainability into the supply chain management. Employees

are not seriously aware about the benefits that will result from such integration. This low

eco-literacy rate is affecting the implementation rate of the green initiative over the

supply chain.(Zawawi)

Other internal drivers include:

Lack of IT system

Poor organizational structure

External Obstacles: Regulations:

Government regulations are a major driver as discussed before; however, in some cases

they can also serve as one of the barriers for the sustainable supply chain implementation.

Environmental regulations might restrain innovation and creativity by stipulating some

required techniques that are considered more reasonable. There are, in reality, various

22

aspects that needs to be looked upon as government may induce restrictions in any aspect

of innovation that may ultimately act as a barrier towards sustainable supply chain

implication.

Poor supplier Commitment:

Poor supplies commitment tells that they are not prepared to be part of the design process

and technology. Supplier’s commitment is vital for a successful performance and quality

output. Suppliers should show some intellect concerning the green supply chain

management which by extension would lead to green quality product.

Competition and Uncertainty:

Since the environment in which firms are operating is highly uncertain and dynamic by

nature therefore it is vital for the organizations to make certain level of decisions under

uncertainty and under the pressure of the competitors.(Zawawi)

Other external obstacles include:

Customers’ unawareness of sustainable green products

Lack of Green Practitioners in the industry as role models

Conclusion:

In the conclusion it is stated the although aspect of Green quality is rather new and infant

however, the practical implications are highly notable in areas of long term sustainability,

profitability, survivability as well as competitive edge. There are many highlighted models for

implementing such Green quality over the supply chain rather than a particular entity however it

is imperative that we consider the whole green supply chain at holistic scope as well as

individualized entity level as individual efforts are ultimately results into overall quality of the

finished goods thus green initiatives developed at each entity would eventually result into

sustainable quality product leading to green quality.

In the aspect of Pakistan, the manufacturing industry is pro-actively taking steps in managing

sustainable supply chain in an attempt to counter major international competitors in both cost as

well as quality. However there are certain obstacles that needs to be for seen such as supplier’s

influence as well as the Government stance on the quality management of its country produces.

23

REFERENCE: Abbasi, M. SUSTAINABLE PRACTICES IN PAKISTANI MANUFACTURING SUPPLY CHAINS: MOTIVES,

SHARING MECHANISM AND PERFORMANCE OUTCOME.

Dassau, E., Lowe, C., Barr, C., Atlas, E., & Phillip, M. (2012). Closing the loop. International Journal of

Clinical Practice, 66(s175), 20-29.

Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management

practices: impact on performance. Supply Chain Management: An International Journal, 17(3),

290-305.

Green, K., Morton, B., & New, S. (1996). Purchasing and environmental management: interactions,

policies and opportunities. Business Strategy and the Environment, 5(3), 188-197.

Hasek, G. (1997). CLOSING THE LOOP. Industry Week, 246(8), 13-16.

Hazen, B. T., Cegielski, C., & Hanna, J. B. (2011). Diffusion of green supply chain management: Examining

perceived quality of green reverse logistics. The International Journal of Logistics Management,

22(3), 373-389.

Perotti, S., Zorzini, M., Cagno, E., & Micheli, G. J. (2012). Green supply chain practices and company

performance: the case of 3PLs in Italy. International Journal of Physical Distribution & Logistics

Management, 42(7), 640-672.

Porter, M. E., & Van der Linde, C. (1995). Green and competitive: ending the stalemate. Harvard

business review, 73(5), 120-134.

Sarkis, J. (1999). How Green is the Supply Chain?: Practice and Research.

Sroufe, R. (2003). Effects of environmental management systems on environmental management

practices and operations. Production and Operations Management, 12(3), 416-431.

24

Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain

management practices: Lessons from the public and private sectors. Journal of purchasing and

supply management, 14(1), 69-85.

Wu, Z., & Pagell, M. (2011). Balancing priorities: Decision-making in sustainable supply chain

management. Journal of Operations Management, 29(6), 577-590.

Zawawi, M. A. Drivers and Obstacles for Creating Sustainable Supply Chain Management and

Operations.

Zhu, Q., Sarkis, J., & Lai, K.-h. (2008). Green supply chain management implications for “closing the

loop”. Transportation Research Part E: Logistics and Transportation Review, 44(1), 1-18.

Zhu, Q., Tian, Y., & Sarkis, J. (2012). Diffusion of selected green supply chain management practices: an

assessment of Chinese enterprises. Production Planning & Control, 23(10-11), 837-850.

R.I. Van Hock, “ From reversed logistics to green supply chains,” Logistics Solutions, vol.2,

2000, pp.28-33.

H.K. An, T. Amano, H. Utsumi, and S. Matsui, “A framework for green supply chain

management complying with RoHS directive,”

Available:http://www.crrconference.org/plaintext/downloads/2006ky

unganamanoutsumimatsui.pdf

J. Sarkis, “A strategic decision framework for green supply chain management,” Journal of

Cleaner Production, vol.11, 2003, pp.397-409.

B.M. Beamon, “Designing the green supply chain,” Logistics Information Management, vol.14,

no.4, 1999, pp.332-342.

M.A. Salam, “Green procurement adoption in manufacturing supply chain,” Proceedings of the

9th Asia Pasific Industrial Engineering & Management Systems Conference (APIEMS2008), 3-5

December 2008, Indonesia, pp.1253-1260.

M. Atlas, and R. Florida, “Green manufacturing,” Handbook of Technology Management, 1998

Available: http://creativeclass.com/rfcgdb/articles/13%20Green%20Manufacturi ng.pdf

K. Kamigaki, “Generation of green brand,” Asian Electrical and Electronic Green Society

International Conference, 7-9 October 2009, Thailand.

25

J.C. Ho, M.K. Shalishali , T. Tseng, and D.S. Ang, “Opportunities in green supply chain

management,” The Coastal Business Journal, vol.8, no.1, 2009, pp.18-31.

26