Pranjana ?
Vol 12, No 1, Jan-June, 2009
GREENING THE SUPPLY CHAIN: A NEW
INITIATIVE IN INDIA WITH SPECIAL
REFERENCE TO CHHATTISGARH
Gazala Yasmin Ashraf 1, Arpita Raichoudhary
P. N. Mukherjee 3, R. K. Srivastava 4
Abstract
Over the years Mother Nature has found
ways to maintain a clean and sustainable
environment for the living world. However,
over the last few decades, the environmental
impact from rapid economic development
and industrialization has largely
overloaded the Nature’s capacity.
Consequently, the environmental and
ecological balance on Earth has been
seriously disrupted, Global warming,
ozone holes, abnormal weather, extinction
of species, and the emergence of new
illnesses and diseases are just a few of the
symptoms reflecting the rapidly emerging
environmental crisis. As a result, the current
environmental crisis is only to intensify in
the next century. India has experienced one
of the fastest economic growth rates in the
world reaching 8.3 in 2007.This growth
has been a dramatic driver in the nature
and scale of impact on the country’s
environment and natural resources.
Environmental risks and problems are
widening. The issues of managing this
environment impacts are capturing not
only public attention but has attracted the
attention of researchers from a wide variety
of fields. Green Supply Chain
Management is evolving as a solution to
this problem.This Paper Epitomise an
Overview of Green Supply Chain
Management With Special Reference to
Chhattisgarh.
Keywords: Gr.SCM, Green Purchasing,
RL, Waste Management.
1. Sr. Lecture, D.I.M.T.R., Raipur.
2. Sr. Lecture, I.T. GGU, Bilaspur.
3. Sr. Academic Advisor, D.I.M.T.R., Raipur
4. Director, (Research), D.I.M.T.R., Raipur.
2
Introduction
Green supply-chain management has its roots in
both environment management and supply chain
management literature. Adding the ‘green’
component to supply-chain management involves
addressing the influence and relationships between
supply-chain management and the natural
environment. The definition and scope of
Gr.SCM in the literature has ranged from green
purchasing to integrated green supply chains
flowing from supplier to manufacturer to
customer, and even Reverse Logistics (Zhu and
Sarkis 2004). It is the systematic consideration
of design issues associated with environmental
safety and health over the full product life cycle
during new production and process development
(Fiksel 1996).
Green operations relate to all aspects related to
product manufacture/remanufacture, usage,
handling, logistics and waste management once
the design has been finalized. Green
manufacturing aims to reduce the ecological
burden by using appropriate material and
technologies, while remanufacturing refers to an
industrial process in which worn-out products are
restored to like-new condition (Lund 1984).Rogers
and Tibben-Lembke (1999) define RL as ‘the
process of planning, implementing, and controlling
the efficient, cost-effective flow of raw materials,
in-process inventory, finished goods and related
information from the point of consumption to
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Gazala Yasmin Ashraf, Arpita Raichoudhary, P. N. Mukherjee, R. K. Srivastava

the point of origin for the purpose of recapturing value or proper disposal’..In Chhattisgarh
Gr. SCM is a relatively new concept and only a few companies are able to implement it.
Whether Gr.SCM actually improves corporate financial and overall performance or not
has yet to be ascertained in this region. This is precisely the objective of this paper.

A brief review of the work already done in the field: According to Barney (1991)
competitive advantage of a particular firm is a consequence of its resources and/or
capabilities which are scarce, as they are not possessed by all of the firms in the same
industry and relevant, as they contribute to either improve the internal efficiency or achieve
a differentiation advantage. Porter and van der Linde (1995) explained fundamentals of
greening as a competitive initiative. Their basic reasoning is that investments in greening
can be resource saving, waste eliminating and productivity improving. Srivastava(1995)
introduced the term environmental technology to refer to production equipment, methods
and procedures, product designs and product delivery mechanism that conserve energy
and natural resources, minimize environmental load of human activities and protect the
natural environment.

Dr. Diego Medina and Dr. Juan Manuel Garcia (1998) tried to emphasize on sustainable
development as an essential requirement for achieving economic goals without degrading
the environment. Kopicki et al.1993; van Hoek 1999 suggested three approaches in
GrSCM, namely reactive, proactive and value seeking. Owen (1993) and Sarkis (1995)
discuss environmentally conscious manufacturing. Interactions among various stakeholders
on integrated Gr.SCM. Van Hoek 1999 changed the perspective from greening as a
burden to greening as a potential source of competitive advantage. In a study linking
Gr.SCM elements and performance measurement, Beamon (1999) advocates for the
establishment and implementation of new performance measurement systems. He suggests
that the traditional performance measurement structure of the supply chain must be
extended to include mechanisms for product recovery (RL).

Sarkis 2001 explained greener manufacturing and operations; Wagner et al. (2001)
described the relationship between environmental and economic performance of firms
while Bowen et al. (2001) seek to resolve the apparent paradox between the desirability
and the actual slow implementation of Gr.SCM in practice. Zhu and Sarkis (2004)
describe empirical findings on relationships between operational practices and performance
among early adopters of green supply-chain management.
Objectives/Conceptual Frame work: Recent studies have shown that a majority of
manufacturing activities will be carried out in Chhattisgarh in the next couple of decades,
this massive development is carried on with potentially significant environmental risks,
since the developers and investors have limited access to information on environment
friendly technologies and management practices and business opportunities. The results
of survey will arrive at the following determination:
„ What kind of environmental initiatives are taken by the companies to enhance their
environmental performance.
„ What endeavors are being made to turn supplier green.

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Research Methodology: The research is intended to cover an exploratory analysis

investigating environmental initiatives undertaken by leading edge companies to enhance
their own environmental performance and the features of greening of suppliers or Gr.SCM
established by them for their suppliers. This would include Framing of Questionnaire
which would be designed especially for environment actions taken by organization, their
benefits and how it is being implemented on suppliers and investigating if greening of
suppliers would contribute to environmental performance, competitiveness and economic
performance.

Sampling Design: In view of the focus on the growth-environment nexus, the study
would cover two select areas- Industry and Power - that are among the key drivers of
growth. Together, these sectors represent a wide range of environmental impacts. Sample
size was 20.

Data Analysis and Result

Environmental Initiatives taken by Companies:
The percentage of companies which said “agree” or “strongly agree” were determined
and presented in descending order of percentage in the table given below:

Environmental improvement of packaging 98.07

Optimization of processes to reduce solid wastes 89.23
Optimization of processes to reduce water use 89.07
Taking environment criteria into consideration 84.21
Design Considerations 84.21
Change for more environment friendly transportation 84.21
Substitution of environmental questionable materials 78.95
Optimization of processes to reduce noise pollution 78.95
Use of cleaner technology processes to make 78.95
savings (energy, water, wastes)
Use of waste of other companies 78.95
Providing customers with information on 78.95
environmentally friendly products
Optimization of processes to reduce air emissions 73.68
Environment friendly raw materials 68.42
Using/pressing suppliers to take environmental actions 63.16
Recycling of materials internal to the company 63.16
Recovery of the company’s end_of_life products 63.16

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Gazala Yasmin Ashraf, Arpita Raichoudhary, P. N. Mukherjee, R. K. Srivastava

Eco Labeling 57.89

Choice of suppliers by environmental criteria 52.63
Use of alternative sources of energy 52.63
Helping suppliers to develop their own environment 52.63
management system
Taking back packaging 31.58

The items which had highest percentage(98.07) is “Environment improvement of

packaging”.This implied that 98% of the companies had said “agree” or “strongly agree”
to this item. Next came “Optimization of processes to reduce solid wastes” (89.23%)
followed by Optimization of processes to reduce water use (89.07), Taking environment
criteria into consideration, Design Considerations, Change for more environment friendly
transportation (84.21%).

Initiatives taken by Companies in the process of Greening Suppliers and

Contractors:
The percentage of companies which said “agree” or “strongly agree” were determined
and presented in descending order of percentage in the table given below:

Bringing together suppliers to the same industry to 98.14

share their know how and problems
Guiding suppliers to establish their own environmental programmes 84.21
Informing suppliers about the benefits of cleaner production and 84.21
technologies
Sending in-house company auditors to appraise environmental 84.21
performance of suppliers
Holding awareness seminars for suppliers/contractors 73.68
Urging/pressuring suppliers to take environmental actions 73.68
Choice of suppliers by environment criteria 73.68
Arranging for funds to help suppliers to purchase equipment 73.68
for pollution prevention, waste water recycling etc.

The items which had highest percentage(98.14) is “Bringing together suppliers to the
same industry to share their know how and problems”.This implied that 98% of the
companies had said “agree” or “strongly agree” to this item. Next came “Guiding suppliers
to establish their own environmental programmes” , “Informing suppliers about the benefits
of cleaner production and technologies”, “Sending in-house company auditors to appraise
environmental performance of suppliers “ (84.21%) .

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Specific Benefits achieved by companies on implementing better management

practices:
The percentage of companies which said “Moderate benefit” or “Substantial benefit”
were determined and presented in descending order of percentage in the table given
below:

New market opportunities 84.21 Product price increase 73.68

Reduction of solid/liquid waste 84.21 Social commitment 73.68
Profit margin 84.21 Preserve environment 73.68
Sales 84.21 Quality improvement 63.16
Market share 84.21 Reduction of emissions 57.89
Increased efficiency 73.68 Productivity improvement 52.63
Improved corporate image 73.68 Cost Saving 36.84
Environmental compliance 73.68 Recycling 31.58
improvement

The items which had highest percentage(84.21%) is “New market opportunities ”, “Reduction
of solid/liquid waste”, “Profit margin”, “Sales” and “market share” .

References
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Technovation, 677–690.
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managing product recalls. Harvard Business Review, 102–112.
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Gazala Yasmin Ashraf, Arpita Raichoudhary, P. N. Mukherjee, R. K. Srivastava

Closed- Loop Supply Chains. Berlin: Springer.

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Reuse and Recycling: Reverse Logistics Opportunities. Oak Brook, IL: Council of
Logistics Management.
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Strategic Management Journal, 137–200.

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Appendix
Questionnaire – Greening of the Supply Chain
Questionnaire – Greening of the Supply Chain – A new initiative in India with special
reference to CG.
1. What is the company’s main manufacturing activity?
„ Food products, beverages and tobacco.
„ Textiles and textile products
„ Wood and wood products
„ Chemicals, chemical products and man made fibres
„ Rubber and plastic products
„ Basic metals and fabricated metal products
„ Machinery and optical equipments
„ Others. Please specify…………………………………………………………….
2. How many employees does the company have?
3. Does your company belong to a MNC category?
4. Does your company has ISO 9000 Certification?
5. Does your company has ISO 14000 Certification?
6. In the last two years the company has taken environmental actions in the following
areas:

SD – Strongly disagree , D- Disagree, A- Agree , SA- Strongly Agree.(Put a (v) in suitable

block)
SD D A SA
„ Environment friendly raw materials……………………....
„ Substitution of environmental questionable materials……
„ Choice of suppliers by environmental criteria……………
„ Using/pressing suppliers to take environmental actions…
„ Taking environment criteria into consideration………….
„ Design Considerations……………………………………
„ Optimization of processes to reduce solid wastes………
„ Optimization of processes to reduce water use…………
„ Optimization of processes to reduce air emissions………
„ Optimization of processes to reduce noise pollution……
„ Use of cleaner technology processes to make savings
(energy, water, wastes)
„ Recycling of materials internal to the company……………
„ Use of waste of other companies……………………………

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Gazala Yasmin Ashraf, Arpita Raichoudhary, P. N. Mukherjee, R. K. Srivastava

„ Use of alternative sources of energy…………………………

„ Helping suppliers to develop their own environment
management system.
„ Recovery of the company’s end_of_life products…………
„ Eco Labelling…………………………………………………
„ Environmental improvement of packaging…………………
„ Taking back packaging………………………………………
„ Providing customers with information on environmentally
friendly products and / or production methods
„ Change for more environment friendly transportation……

7.In the last two years because of implementing better management practices there has
been specific benefits achieved in each of the following categories :
No Minor Moderate Substantial
Benefit Benefit Benefit Benefit
„ Increased efficiency………
„ Quality improvement……
„ Productivity improvement…
„ New market opportunities…
„ Cost Saving………………
„ Improved corporate image.
„ Reduction of solid/liquid
waste
„ Reduction of emissions……
„ Recycling…………………
„ Environmental compliance
improvement
„ Product price increase……
„ Profit margin………………
„ Social commitment………
„ Sales……………………
„ Market share……………
„ Preserve environment……

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8. In the process of Greening the suppliers, the company has taken actions in the following
areas with regard to the suppliers: SD – Strongly disagree , D- Disagree, A- Agree , SA-
Strongly Agree.
SD D A SA
„ Holding awareness seminars for
suppliers/contractors
„ Guiding suppliers to establish their
own environmental programmes
„ Bringing together suppliers to the same
industry to share their know how and
problems
„ Informing suppliers about the benefits of
cleaner production andtechnologies
„ Urging/pressuring suppliers to take
environmental actions
„ Choice of suppliers by environment criteria
„ Arranging for funds to help suppliers to
purchase equipment for pollution. prevention,
waste water recycling etc.
„ Sending in-house company auditors to
appraise environmental performance of
suppliers

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