LEAN AND GREEN SUPPLY CHAINS KEY PRACTICES, INTER … · Cite this Article: Ghanshyam Sharma, Dr....

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International Journal of Mechanical Engineering and Technology (IJMET)

Volume 10, Issue 03, March 2019, pp. 317–330, Article ID: IJMET_10_03_033

Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3

ISSN Print: 0976-6340 and ISSN Online: 0976-6359

© IAEME Publication Scopus Indexed

LEAN AND GREEN SUPPLY CHAINS – KEY

PRACTICES, INTER LINKAGES AND EFFECTS

ON SUSTAINABILITY - A CASE STUDY WITH

REFERENCE TO AUTOMOBILE INDUSTRY

Ghanshyam Sharma

Research Scholar, Amity University, Noida, U.P, India

Dr. Rushina Singhi

Assistant Professor, Amity University, Noida, U.P, India

Dr. Alok Mittal

Director, Lal Bahadur Shastri Institute of Technology and Management,

Indore , M.P. India

ABSTRACT

The need of time is to find a competitive supply chain strategy for Organizations .

Lean and Green are the appropriate strategies recommended for competitiveness and

sustainability, But the grey area is their integration and impact on each other . Lean

Practices being followed since long and are very well recognized and accepted in the

Organizations , whereas Green Concept is relatively new and still struggling to find

its way in the Industry supply chains . In View of current environmental scenario,

there is Huge pressure on Industry to build and adopt process ,favorable to

environmental sustainability . Green Supply Chain is the option available but it needs

to be linked with Lean Practices to find a competitive edge with benefits to

Organization and contribution to nature . This Paper aims to identify key practices of

Lean & Green Supply Chain strategies and their inter linkages in terms of issues and

impacts. The structured analysis approach is adopted to improve performance of

Automotive supply chain by integration of Lean and Green Strategies . An Automobile

OEM was selected for the study . Data collection and Analysis was done to find out

Prevailing Lean and Green Practices in the organization . Research carried out to

find out integration scope amongst these practices and add /Implement new Green

Practices . Results derived after integration and implementation. An integrated Supply

Chain Model developed with benefits of Green and Lean. The Model Provides a route

map for developing sustainable Green Supply chains with acceptability and

adoptability in Industry.

Key words: GSCM , Lean , Green , Automobile Industry , Supply Chain

Management, Organizational Performance , Cost Saving , Green Packaging

Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability

- A Case Study with reference to Automobile Industry


Cite this Article: Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal, Lean and

Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability

- A Case Study with reference to Automobile Industry, International Journal of

Mechanical Engineering and Technology 10(3), 2019, pp. 317–330.

http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=3

1. INTRODUCTION

Supply chain management is a complex network of business relationships that organizations

maintains with their suppliers or partners in order to purchase , produce , and supply products

or services. Supply Chain practices are evident in organization activities i.e. raw material

procurement, intermediate manufacturing , Storage , dispatch and transportation of finish

goods to end customers . Supply chain may include various companies, individuals and

institutions (Pramod & Garg, 2006). Supply chain management is the complex flow of

material, information, and financials between and among all the stake holders and participants

.There are various supply chain paradigms introduced by researchers and practitioners in the

past , to achieve the aim of effective supply chain management , most of those are developed

in context to automotive industry only . But in order to achieve most effective supply chain

Integration of diverse entities is a mandatory requirement . (MALEKI & CRUZ MACHADO,

2013)

Supply Chain function plays an important role in organizations competitiveness and

profitability. Synonymously this function is considered as a strategic key factor for

enhancement of organizational goals such as effectiveness, competitive edge and profitability

. (Govindan, Azevedo, & Carvalho, 2015) . Lean and Green are the Key paradigms of Supply

chain management and considered as critical for supply chain competitiveness and success .

(Govindan, Azevedo, & Carvalho, 2015) . Many Organizations across the Globe are using

Lean practices to improve their product and service quality and to reduce costs ,But they do

not necessarily integrate environmental concerns in their lean paradigm . Past researches on

Lean and Green Paradigm reveals that while Lean and Green have different Drivers and

Approaches ,But they can be compatible and can build synergistic systems . (Govindan,

Azevedo, & Carvalho, 2015) . Lean Paradigm can add value to green efforts by reducing

many types of environmental impacts, connecting green practices to stronger financial drivers

and improving the effectiveness of green procedures (Tice, Ahouse, & Larson, 2005) .

Environmental wastes and risks are not explicitly included in the wastes targeted by lean.

However, lean practices contribute to reduce some of these environmental impacts because of

their intrinsic focus on waste elimination (Tice, Ahouse, & Larson, 2005) .

From the past researches , it is evident that most of the researches have focused on

studying individual paradigms in supply chain management with the focus on lean or green

(Anand & Kodali, 2008) .Although studies on simultaneous integration of lean and green

paradigms in supply chain management are unknown, they are considered crucial to help

supply chains to become more efficient, streamlined and sustainable (Carvalho, Duarte, &

Cruz-Machado, Lean, agile, resilient and green: divergencies and synergies, 2011). This work

intends to fulfill the research gap that exists on this topic and to improve the knowledge as

regards the simultaneous influence of lean and green paradigms on supply chain performance.

Paradigm Perspective is an important perspective towards supply chain integration and

combination of these different paradigms may result in the most effective supply chains . (Lee

& Wei, 2009). A concept of Combining four paradigms namely Lean, agile, resilient, and

green was introduced in recent years. This supply chain concept is considered as an important

integrated model approach that has its own characteristics . In addition, these supply chain

Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal


practices as introduced by Carvalho, Azevedo, & Cruz-Machado which paved the way for

further development the integration model. (Carvalho, Duarte, & Cruz-Machado, Lean, agile,

resilient and green: divergencies and synergies, 2011)

Various Supply Chain management approaches, such as ―green‖ and ―lean,‖ have been

adopted by manufacturing organizations throughout the globe . (Gunasakaran, Patel, &

McGaughey, 2004) . The integral deployment of green and lean practices leads to improved

business performance while creating economic, social, and environmental benefits. There are

many past researches that focus on green and lean approaches, but they treat them separately

(Anand & Kodali, 2008) . A study of both paradigms together is done by Y. Kainuma and N.

Tawara, in which the authors highlights the opportunities for improving both financial and

environmental performance. (Kainuma & Tawara, 2006) . Only few researches has

highlighted the importance of studying the influence of both paradigms on supply chain

performance (Carvalho, Garrido, & Cruz-Machado, Supply chain performance management

Green and lean paradigms,, 2010) . There is lack of research addressing the relationship

between green and lean approaches, specifically in the upstream SCM, and their influence on

the sustainable businesses improvement .

Based on the research gap , this study aims to investigate the deployment of green and

lean upstream SCM practices and to understand the influence of these practices on sustainable

business development, with impact on economic and environmental performance. The

research is translated into three main objectives as follows :

The green and lean upstream SCM practices used by organizations to achieve sustainable

development

Integration of green and lean upstream SCM practices to improve the sustainable development

of businesses in a balanced way

Effects of green and lean upstream SCM practices on economic and environmental

performance of businesses (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

The paper is organized as follows. After the introduction, a brief review of literature

related to lean and green paradigms followed by theoretical framework , Case Study , findings

and observations . Finally, results & conclusions are drawn.

2. LITERATURE REVIEW

The very first definition of sustainable business development was made by the World

Commission on Environment and Development: ―Development that fulfills the needs of the

present without compromising future generations ability to meet their demands ‖ (Brundtland,

1987) .Sustainable development involves a compromise between the natural environment and

economic growth. (Redclift, 1993) . The main interdependent and interrelated components of

sustainable development can be classified as : society, environment, and economy. (Seuring &

Muller, 2008) . The sustainable business development aims to adopt business strategies and

activities that fulfills the needs of the organizations and its stakeholders today while

protecting, sustaining, and enhancing the human and natural resources that will be required in

the future (Zhang, Shen, Love, & Treloar, 2000) . The sustainable business development can

be achieved by adopting new supply chain management approaches, such as green and lean.

(Mefford, 2011)

The green management approach is defined as the effective use of resources such as

water, raw material and energy to achieve cost reduction. (Walker, Redmond, & Giles, 2010) .

Organizations which don‘t make effective use of resources may loose on potential

commercial and opportunities . Green supply chain management is defined as integration of

environmental thinking into supply chain practices . It includes product design, procurement




& sourcing and, manufacturing practices and finish goods delivery to end customers

(Srivastava, 2007) . Few important green practices suggested in the upstream supply chain

context are the following :

Strategic planning to anticipate environmental-related problems and agreement to resolve

them .

Purchase Contracts and agreements with suppliers for material flow and logistic impact .

Environmental collaboration and monitoring with suppliers

ISO14001 certification of suppliers

Green Recyclable purchasing

In recent years ,Green supply chain management concept has been evolved as an

important organizational approach to achieve competitive growth and improved profit

margins with simultaneous reduction in environmental impacts and risks associated with

organization business practices . (Zhu, Sarkis, Cordeiro J, & Lai K-H, 2008a) Suppliers and

partners are considered as an integral part of this GSCM approach (Rao & Holt, 2005). There

are many factors like global competition , mandatory ISO 14000 certification requirement ,

pressure from social & government pressure groups , Organization image , Cost reduction and

competitiveness , that are driving Organizations to adopt Green Supply Chain practices

(Rondinelli & Berry, 2000), (Christmann, 1998) (Zhu, Sarkis, Cordeiro J, & Lai K-H, 2008a)

. Integration of GSCM practices in the complete supply chain process is essential to improve

business competency and sustainability. (Zhu, Sarkis, & Geng Y, Green supply chain

management in China: pressures, practices and performance, 2005) .The various dimensions

of upstream green supply chain management includes supplier collaboration & active

participation , environmental certification , process improvements by adopting EMS ,

recycling initiatives , green packaging implementation , and clean technology for product

manufacturing (Bowen, Cousins, Lamming, & Faruk A, 2002)

The Lean management approach was developed by Ohno (1988) at Toyota Motor

Corporation in Japan (Ohno, 1988). The globally renowned and accepted TPS system that is

Toyota Production System is based on this Lean management approach . It has two main

pillars namely ‗‗autonomation‘‘ and ‗‗just-in-time‘‘ (JIT) production. The main objectives of

lean paradigm are waste ( known as Muda in Japanese language ) reduction and enhancement

of Value added activities in business processes , to meet customer requirements with

profitability (Govindan, Azevedo, & Carvalho, 2015) . Reichhart and Holweg (2007) defined

lean production towards the supply chain downstream level as lean distribution with

minimum wastage in the supply chain, by ensuring availability of right product at customer

end at right time and destination (Reichhart & Holweg, 2007). A lean supply chain system

synonyms continuous improvement that focus on waste reduction by eliminating non-value

added activities across supply chain . (Vonderembse, Uppal, Huang, & Dismukes, 2006)

The wastage concept in context to lean paradigm includes all possible non value added

activities , broadly categorized as motion, transportation ,waiting, over processing , rejection

manufacturing , correction, extra production, inventory, and knowledge competency

(Womack & Jones, 2003). Anand and Kodali emphasized in their research that a lean Supply

chain involves an effective use of assets than the conventional supply chain system .It

facilitates integration of all the upstream and downstream activities for simplifying,

streamlining and optimizing supply chain activities (Anand & Kodali, 2008) . The important

lean practices suggested for deployment in the upstream Supply chain are just-in-time (JIT) ,

subcontracting /outsourcing/in house production , centralized procurement with consolidation

, supplier certification , supplier rating and evaluation , supplier involvement and development



and Direct materials delivery to the point of use or consumption (Anand & Kodali, 2008),

(Wilson & Roy, 2009) (Ward & Zhou, 2006)

Useful comparison between Lean and Green paradigm can be described as (1) Lean—

cost reduction and flexibility by continuous improvement with elimination of waste or non-

value added activities across the supply chain. (2) Green—sustainable improvement across

supply chain with reduction in environmental or ecological impacts on society (Carvalho,

Duarte, & Cruz-Machado, Lean, agile, resilient and green: divergencies and synergies, 2011)

There are evidences of how integration of green and lean upstream SCM practices can

improve business sustainability. Vachon and Klassen provide an example where an

organization working in close coordination with their chemical suppliers drastically reduced

the solid waste associated with chemicals inventory levels .Markley and Davis provides

another example where Ford Company implemented recyclable plastic containers termed as

FLC , for dispatch of their car components as against the cardboard boxes , improving process

efficiency because of ease in handling by working staff and transportation cost reduction by

approx .25%. (Markley & Davis, 2007)

3. THEORETICAL FRAMEWORK

To identify and establish the relationships between green and lean upstream SCM practices

and sustainable business development , it is assumed that the implementation of these

practices will affect following key businesses aspects :

Economic performance

Environmental performance.

Source : (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

The proposed frame work to the study of relationships between lean and green upstream

supply chain practices and sustainable development of businesses considers the following

important green and lean upstream SCM practices.

EMS ( Environment management system ) & ISO 14001 mandatory for Tier 1 Suppliers .

Using Recyclable & reusable packaging for material deliveries.

Just-in-time: Material delivery directly to the point of use for example assembly Line , to

avoid holding costs..

Geographical concentration: Development of supplier network in the close vicinity of plant .

For example Supplier parks in / near to the OEM Campus .

Information sharing through Electronic data interface for example E- Kanban , web base

intranet , emails , RFID tags etc.

Single sourcing: This procurement policy is adopted to build mutual trust between producer

and supplier

Source : (Nishitani, 2010) (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

Key Benefits of implementation all of above green and lean practices are waste

minimization , inventory cost reduction , improved material and information flow , improved

profit margins and competitive environment friendly global image

The theoretical framework to support the study of relationships between lean and green

upstream supply chain practices and sustainable development of businesses can be

represented as shown in below figure




Source : (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

Green Supply Chain Practices

EMS & ISO 14001 Certification Mandatory

Recyclable and Reusable

Packagings

Lean Supply chain Practices

Just in Time

Geographical Concentration

Electronic Data Interface for information

sharing

Single Sourcing

Economic

•Operational Cost

•Environmental Cost

• Inventory Cost

Environmental

•Business Wastage

•Green Image

•CO2 emissions

Sustainable Business Development

Tier 1 Suppliers OEM



The theoretical framework drawn will help to analyze and assess the influence of green

and lean upstream SCM practices on the sustainable business development , using

performance parameters as economic (environment cost ,operational cost and inventory cost ),

and environmental ( green image ,business wastage and CO2 emissions) . (Azevedo,

Carvalho, Duarte, & Cruz-Machado, 2012)

The following propositions derived from primary data collection and testing , to co relate

the influence of green and lean upstream SCM practices on the sustainable business

development in context to automobile industry :

P1: ―Effective management of supplier base by Automobile organizations is done by

implementing Lean and Green upstream practices‖ (Azevedo, Carvalho, Duarte, & Cruz-

Machado, 2012)

P2: ―Improvement in business performance aspects i.e. Economic and Environmental can be

achieved by adopting Green upstream supply chain practices (Azevedo, Carvalho, Duarte, &

Cruz-Machado, 2012)‖

P3: ―Improvement in Economic and Environmental business performance can be achieved by

adopting Lean upstream supply chain practices‖ (Azevedo, Carvalho, Duarte, & Cruz-

Machado, 2012)

P4: ―Improved Business sustainability can be achieved by implementation of lean and green

upstream supply chain practices.‖ (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

These research propositions tested out with a case study done in an Indian automotive

supply chain . The automotive industry was chosen because this industry over a period of time

is undergoing a tough phase to reconcile and integrate economic, social, and environmental

goals (Tukker & Cohen, 2004)

4. THE CASE STUDY

An Indian Automobile organization OEM , engaged in manufacturing Tractors & Farm

equipments was selected for case study . An upstream supply chain process flow in this

organization ,was selected for detailed analysis and research purpose . The firm is certified

with ISO14001 as per environmental regulations and also manages its large supplier base of

about 810 Suppliers , through lean philosophy . The organization has strong & long term

business relationship with suppliers to get high quality product with Low cost , on time

deliveries in green packaging . These suppliers represent about 45% of the finish Tractor

value. Four main elements are considered when developing relationships with suppliers,

namely sustainable standards for suppliers, an early warning system to minimize risk,

acknowledgement of corporate standards by the suppliers and supplier development by self-

assessment, and a monitoring. Besides ,The Auto OEM works on virtually zero Inventory of

finish vehicles and produce vehicles in response to customer orders .

Data collected from participants through well structured interviews. A questionnaire was

developed based on literature review and proposed theoretical framework .The questionnaire

was pre tested through an interview with a representative of another automotive company.

After the pretest results , appropriate changes were done in the questionnaire for use on target

participants in the selected automobile organization . Data collection was done with sample

size of 10 participants through questionnaire and personal interviews. Follow-up questions

added to clarify and elaborate wherever necessary. Besides the relevant data was also

collected from secondary sources, like organization website, Plant visits, institutional

websites, and the organization‘s internal MIS reports and financial data.




5. OBSERVATIONS AND FINDINGS

Based on data collection ,Observations and findings were recorded and analyzed to validate

the proposed theoretical framework and the four propositions associated with it . The study

explored the important relationships between green and lean practices and the economic,

social and environmental performance of businesses. The research also highlighted the

contribution of green and lean upstream SCM practices to the sustainable development of

business.

A . Important Green and Lean Upstream Supply Chain Practices

Empirical evidences collected for the important green and lean practices deployed by the

organization to manage business relationships with suppliers. 1. EMS ( Environment management system ) & ISO 14001 mandatory for Tier 1 Suppliers .

The Automobile organization expects all supplier to meet environmental regulations by

implementing EMS systems ISO 14001 Certification is mandatory for any new supplier

development and addition . Specific focus is there to ensure that all existing suppliers must be

certified for EMS and ISO 14001. Out of total supplier base ,nearly 80% are following EMS

systems and has ISO 14001 Certification . The automobile organization supplier policy is to

influence the suppliers to meet all the social and environmental laws and regulations. The

automobile organization performs regular environmental audits of all its first-tier suppliers

using environmental management criteria that include: environmental policy; objectives and

improvement targets; implementation of EMS procedures and programs ,corrective actions

etc.

2 .Using Recyclable & reusable packaging for material deliveries.

About 90% of the supplier deliveries to the automotive OEM are made using recyclable and

reusable packaging . These packagings includes PP Boxes , FLC , Metal Trolleys and

dunnages , Plastic Crates etc. These are returned to the suppliers or logistic service providers ,

after material consumption , for further supplies . Most of these returnable packaging are

customized according to the component design , storage space and required lot quantities .

The storage space is also limited at organization warehouse to avoid holding stocks or

inventory .This practice has reduced the inventory levels as well as has improves the

company‘s environmental performance by elimination of packaging disposal . Returnable

packaging need initial investment cost ,but it leads to packing cost reduction in long run .

3. Just-in-time: Material delivery directly to the point of use for example assembly Line , to

avoid holding costs

The automobile OEM enhanced its supply chain by implementing Just in Time deliveries

integrated with just in sequence as per production plan . Specifically A and B Class Items are

selected for JIT Deliveries . This practices involves close coordination with suppliers and

results into lower inventories ,less stock holdings , improved resource utilization and

increased efficiency rates . However JIT deliveries also encourage a negative environment

impact due to frequent deliveries , increased logistics activities , higher fuel consumption and

in turn increased CO2 emissions .

4 Geographical concentration: Development of supplier network in the close vicinity of plant.

For example Supplier parks in / near to the OEM Campus

In view of increased logistics activities in JIT process , organization is promoting

Geographical concentration that means bringing supplier‘s manufacturing facility /warehouse

,close to plant i.e. within 30km radius. This will help in reduced logistics activities ,reduced

lead time and shortened response time . Almost 60% of A and B Class supplies are supplied



by suppliers located within 30 km radius . These supplies are either through their

manufacturing facilities or through their warehouse . It will also result in reduced

transportation cost and thereby improved financial performance of the organization .

5. Information sharing through Electronic data interface for example E- Kanban , web base

intranet , emails , RFID tags etc.

The automobile OEM uses electronic data interface to share supply information of inbound

material deliveries . The EDI is used to share information like E –Kanban ,supply window

timings , dispatch quantities , Vehicle details , GRN Data , accepted or rejected quantities ,

etc. A new concept of RFID tags in Supply Bins /Pallets is in implementation . It will help to

locate the exact dock /store location /point of consumption by just reading RFID tags , leading

to reduced waiting or searching time for inbound supply disposal . The EDI system also

facilitates merging of supplier and OEM information system for important data sharing like

yearly , six monthly forecast plan , monthly rolling schedules , DI , weekly production plan ,

daily production sequence etc. This practice benefits the organization in terms of supporting

JIT , reduced inventory & supply lead time and increased resource utilization . It also

eliminates overproduction and dead stocks as suppliers produce only required components

due to real time information sharing .100% Suppliers are covered through EDI for

information sharing with the organization .

6. Single sourcing: This procurement policy is adopted to build mutual trust between

producer and supplier

The organization uses single sourcing policy specifically for Just in time and just-in-sequence

suppliers. This practice build trust between supplier and OEM as suppliers takes full

ownership for good quality material supply at right time in required quantities . Supplier

manage their capacities as per the forecasted projections and ensure no production stoppages

at OEM Plant . The, the single sourcing practice enhance resource utilization reduce cost and

wastage. For other distant suppliers who supply non JIT components, a multiple sourcing

policy is adopted by organization . About 70% of Suppliers are single sourcing suppliers .

B . Green and Lean Upstream Practices : Inter Linkages and effects on

Performance

From the Primary data collection and empirical evidences from secondary data, the key

business relationships between green and lean upstream supply chain practices i.e. economic

and environmental performance were identified. The effect of these practices on these

performance aspects and in turn on sustainable business development is shown in following

frame work .




Represents Reduction trend

Represents Increased trend

Represents Reduction trend

Represents Increased trend

Effect of Green Upstream Supply chain practices on Business Sustainability

Environmental Performance

Economic Performance

Grean Upstream Supply Chain Practices Business Wastage

Green Image

CO2 Emisssions

Opeartional Cost

Environmental Cost

Inventory Cost

1. EMS ( Environment management system ) & ISO 14001 mandatory for Tier one Suppliers .

2 .Using Recyclable & reusable packaging for material deliveries

Effect of Lean Upstream Supply chain practices on Business Sustainability

Environmental Performance

Economic Performance

Lean Upstream Supply Chain Practices Business Wastage

Green Image

CO2 Emisssions

Opeartional Cost

Environmental Cost

Inventory Cost

1. Just-in-time Material delivery directly to the point of use .

2 .Geographical concentration: Development of supplier network in the close vicinity of plant

3. Information sharing through Electronic data interface

4 .Single sourcing



From the above framework ,We could derive the relationship between lean and Green

Supply chain Practices and the business sustainability . It is evident from the findings as

above that there is great level of synergies between green and lean supply chain practices as

both enhances improvement in business performance in terms of environmental and economic

aspects . For example Reduction in inventory levels is an outcome of combined

implementation of Green Practice i.e. Recyclable Packaging and Lean Practice ie. JIT . The

other lean practice is geographical concentration that helps to reduce fuel consumption and in

turn CO2 emissions , a KRA of Green Supply Chain Practice . As evident from above

frameworks , All Lean and Green Practices results in Reduced Business wastage , Reduced

Inventory levels , Reduced operational Cost , reduced CO2 Emissions and Increased Green

Image in corporate world . These further facilitates improved business sustainability by

improving Economic and Environmental Performance .

The findings of case study also supports the following prepositions ,assumed earlier in this

research study :

P1: ―Effective management of supplier base by Automobile organizations is done by

implementing Lean and Green upstream practices‖ (Azevedo, Carvalho, Duarte, & Cruz-

Machado, 2012)

P2: ―Improvement in business performance aspects i.e. Economic and Environmental can be

achieved by adopting Green upstream supply chain practices (Azevedo, Carvalho, Duarte, &

Cruz-Machado, 2012)‖

P3: ―Improvement in Economic and Environmental business performance can be achieved by

adopting Lean upstream supply chain practices‖ (Azevedo, Carvalho, Duarte, & Cruz-

Machado, 2012)

P4: ―Improved Business sustainability can be achieved by implementation of lean and green

upstream supply chain practices.‖ (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)

6. CONCLUSIONS

The research study aimed to find out main lean and green upstream supply chain practices ,

their inter linkages and effects on business sustainability , in context to Automobile industry .

Research prepositions and theoretical framework was drawn based on literature review and

secondary data analysis . We could able to find out main lean and green upstream supply

chain practices in the automobile OEM . The research findings highlighted that green and lean

upstream supply chain practices can have a significant and positive impact on the business

economic and environmental performance .The green initiatives aims to minimize

environmental impacts by reducing CO2 levels and reduced consumption of natural resources

while the lean initiatives tend to minimize wastages in supply chain by removing non value

added activities , reducing inventories and supply lead time . Both Lean and Green aims to

achieve similar objective of increased environmental and economic performance . In Nut shell

we can say based on the case study, that the implementation of green and lean upstream

supply chain practices influences the sustainable development of businesses . The Supply

chain activities like JIT , Recyclable Packaging and geographical concentration not only

improves economic performance of the organization , but also contributes towards

environmental performance by reducing logistics activity , reducing CO2 emission levels and

reducing consumption of natural resources like cardboard , wood etc. A structured and

analytical framework was drawn to establish the relationship between lean and green and their

impact on business sustainability . Supply chain professionals can use this framework to

implement and promote Integration of Lean and Green practices so as to achieve Global

competency and Green Organization image . They can also contribute to Environment and




Society by reducing carbon foot prints and global warming . Integrated Lean and Green

Supply chain can be an ideal solution for ever increasing demand for Green and clean

manufacturing , thereby reducing negative industry impacts on Environment and Society .

ACKNOWLEDGEMENT

We express Our sincere thanks and gratitude to the Automobile OEM Organization and its

Tier 1 Supplier groups for their expert feedback and extended support throughout the research

study . We really appreciate the organizations for driving Lean and Green initiatives for

business sustainability with contribution to environment and society .

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