Factors affecting green supply chain management (GSCM) initiatives : a case study at Cipla Medpro Manufacturing.

Abstract

Sustainability has become a critical issue for both society and businesses globally. With the increase of natural disasters and global issues such as water shortages, acid rain and climate change companies have started focusing on reducing their carbon footprint to ensure that the world’s natural resources are sustained for the foreseeable future. Many international and local companies are now looking to incorporate green initiatives into key functional areas such as Supply Chain Management. This has given rise to Green Supply Chain Management which is the incorporation of sustainable initiatives into the supply chain of a company. In the pharmaceutical industry the implementation of Green Supply Chain Management initiatives is a challenge, because of the complexity of their supply chain. Consequently, it is essential to determine what factors affect these initiatives in order to successfully implement and maintain Green Supply Chain Management initiatives. In South Africa there are many other factors that pharmaceutical companies need to take into consideration before the implementation of Green Supply Chain Management. Some of these factors include high costs, lack of government support and pressure to lower prices. This makes it more difficult for companies such as Cipla Medpro Manufacturing to incorporate green initiatives into their supply chain. Some recommendations to overcoming these factors include the reduction of costs through better product design and the use of green technologies in order to reduce costs. If the key factors affecting Green Supply Chain Management can be identified pharmaceutical companies can focus on overcoming these factors and utilise their resources more efficiently and effectively. This will improve the success rate of Green Supply Chain Management initiatives overall and make them a more attractive method to reduce their companies carbon footprint.