Lean and green supply chains – key practices, inter linkages and effects on sustainability - a case study with reference to automobile industry

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This Paper aims to identify key practices of Lean & Green Supply Chain strategies and their inter linkages in terms of issues and impacts.

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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 http://www.iaeme.com/IJMET/index.asp 317 editor@iaeme.com
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 http://www.iaeme.com/IJMET/index.asp 318 editor@iaeme.com
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 http://www.iaeme.com/IJMET/index.asp 319 editor@iaeme.com
Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability - A Case Study with reference to Automobile Industry & 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 http://www.iaeme.com/IJMET/index.asp 320 editor@iaeme.com
Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal 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 http://www.iaeme.com/IJMET/index.asp 321 editor@iaeme.com
Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability - A Case Study with reference to Automobile Industry Green Supply Lean Supply Chain Practices chain Practices EMS & ISO 14001 Tier 1 Suppliers Certification Just in Time OEM Mandatory Recyclable and Geographical Reusable Concentration Packagings Electronic Data Interface for information sharing Single Sourcing Economic Environmental • Operational Cost • Business Wastage • Environmental Cost • Green Image • Inventory Cost • CO2 emissions Sustainable Business Development Source : (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012) http://www.iaeme.com/IJMET/index.asp 322 editor@iaeme.com
Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal 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. http://www.iaeme.com/IJMET/index.asp 323 editor@iaeme.com
Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability - A Case Study with reference to Automobile Industry 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 http://www.iaeme.com/IJMET/index.asp 324 editor@iaeme.com
Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal 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 . http://www.iaeme.com/IJMET/index.asp 325 editor@iaeme.com
Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability - A Case Study with reference to Automobile Industry Effect of Green Upstream Supply chain practices on Business Sustainability Business Wastage Grean Upstream Supply Chain Practices Environmental Performance Green Image CO2 Emisssions 1. EMS ( Environment management system ) & ISO Opeartional Cost 14001 mandatory for Tier one Suppliers . 2 .Using Recyclable & reusable packaging for Economic Environmental Cost material deliveries Performance Inventory Cost Represents Reduction trend Represents Increased trend Effect of Lean Upstream Supply chain practices on Business Sustainability Lean Upstream Supply Chain Practices Business Wastage Environmental Green Image Performance CO2 Emisssions 1. Just-in-time Material delivery directly to the point of Opeartional Cost use . 2 .Geographical concentration: Development of supplier Environmental Cost network in the close vicinity of plant Inventory Cost 3. Information sharing through Electronic data interface Economic 4 .Single sourcing Performance Represents Reduction trend Represents Increased trend http://www.iaeme.com/IJMET/index.asp 326 editor@iaeme.com
Ghanshyam Sharma, Dr. Rushina Singhi, Dr. Alok Mittal 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 http://www.iaeme.com/IJMET/index.asp 327 editor@iaeme.com
Lean and Green Supply Chains – Key Practices, Inter linkages and Effects on Sustainability - A Case Study with reference to Automobile Industry 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 . REFERENCES [1] Anand, G., & Kodali, R. (2008). conceptual framework for lean supply chain and its implementation. Int J Value Chain Manage , 313-357. [2] Angeles, R., & Lane, M. (2011). Roadmap To Charting A Green Supply Chain. Northeast Decision Sciences Institute Proceedings , 1455-1470. [3] Azevedo, ,. S., Carvalho, H., Duarte, S., & Cruz-Machado, V. (2012). Influence of Green and Lean Upstream Supply Chain Management Practices on Business Sustainability. IEEE Transactions On Engineering Management, , 753-765. [4] Bowen, F., Cousins, P., Lamming, R., & Faruk A, A. (2002). Horses for courses:explaining the gap between the theory and practice of green supply. Greener Manage Int 35: , 41-59. [5] Brundtland. (1987). World Commission on Environmental and Development (WCED) Our Common Future: The Brundtland Report. Oxford, U.K.: Oxford Univ.Press. [6] 6.Carvalho, ,. H., & Cruz-Machado, V. (2009). Lean, agile, resilient and green supply chain: a review‖. Proceedings of the Third International Conference on Management Science and Engineering Management in Bangkok, Thailand, , 3-14. [7] Carvalho, ,. H., Azevedo, ,. S., & Cruz-Machado. (2011). A proposal of LARG Supply Chain Management Practices and a Performance Measurement System. International Journal of e-Education, e-Business, e-Management and e-Learning , 7-14. [8] Carvalho, H., Duarte, S., & Cruz-Machado, V. (2011). Lean, agile, resilient and green: divergencies and synergies. Int J Lean Six Sigma , 151-179. [9] Carvalho, H., Garrido, S. A., & Cruz-Machado, V. (2010). Supply chain performance management Green and lean paradigms,. Int. J. Bus. Performance Supply Chain Modelling, , vol. 2, no. 3/4,. [10] CHOUDHARY, M., & SETH, N. (2011). Integration of Green Practices in Supply Chain Environment The practices of Inbound, Operational,Outbound and Reverse logistics. International Journal of Engineering Science and Technology (IJEST) , 4985-4993. [11] Christmann, P. (1998). Environmental strategies of multinational chemical companies: global integration or national responsiveness ? Los Angeles, Los Angeles, CA: The Anderson School at UCLA, University of California. [12] Govindan, K., Azevedo, S., & Carvalho, H. (2015). Lean, green and resilient practices influence on supply chain performance: interpretive structural modeling approach. Int. J. Environ. Sci. Technol. , 15-34. [13] Gunasakaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. Int. J. Prod. Econ , 333-347. http://www.iaeme.com/IJMET/index.asp 328 editor@iaeme.com
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