Evaluating green supply chain management performance in the Indonesian mechanical assembly industry
Abstract
This study aims to evaluate the efficiency and performance of implementing green supply chain management in a specialized mechanical assembly company. The research focuses on a company that produces plastic-molded components and mechanical assemblies for medical, industrial, automotive, and transport sector clients, representing a significant segment of the Indonesian mechanical assembly industry. Utilizing the Supply Chain Operations Reference (SCOR) model and the Analytical Hierarchy Process (AHP), the study assesses green supply chain performance across five domains: planning, sourcing, production, delivery, and returns. The results indicate a green supply chain performance score of 80.1, categorized as good, suggesting effective implementation of environmentally friendly practices. Based on these findings, it is recommended that the company continue to refine its green supply chain strategies, particularly in areas that scored lower, to further enhance overall performance. Future studies could expand this research by including a larger sample of companies within the Indonesian mechanical assembly industry, enabling broader generalizations and identification of industry-wide trends in green supply chain management implementation.
References
1. Topgul MH, Kilic HS, Tuzkaya G. Greenness assessment of supply chains via intuitionistic fuzzy based approaches. Advanced Engineering Informatics. 2021; 50: 101377. doi: 10.1016/j.aei.2021.101377
2. Sahar DP, Afifudin MT, Indah ABR. Review of green supply chain management in manufacturing: A case study. IOP Conference Series: Earth and Environmental Science. 2020; 575(1): 012239. doi: 10.1088/1755-1315/575/1/012239
3. Luthra S, Garg D, Haleem A. Identifying and ranking of strategies to implement green supply chain management in Indian manufacturing industry using Analytical Hierarchy Process. Journal of Industrial Engineering and Management. 2013; 6(4). doi: 10.3926/jiem.693
4. Tippayawong K, Niyomyat N, Sopadang A, et al. Factors Affecting Green Supply Chain Operational Performance of the Thai Auto Parts Industry. Sustainability. 2016; 8(11): 1161. doi: 10.3390/su8111161
5. Sinaga STR, Puspasari M. Analysis of Green Supply Chain Management Application in Indonesian Automotive Company Using Integrated Green SCOR and AHP Method. Proceedings of the International Conference on Industrial Engineering and Operations Management; 2022. doi: 10.46254/na07.20220288
6. Mathu K. Green Initiatives in Supply Chain Management Drives Enterprises’ Competitiveness and Sustainability. Green Supply Chain—Competitiveness and Sustainability; 2021. doi: 10.5772/intechopen.94770
7. Reddy EE, N B. Achieving sustainable development through strategic green supply chain management. Global Journal for Research Analysis. 2019. doi: 10.36106/gjra/5907084
8. Hsu C, Choon Tan K, Hanim Mohamad Zailani S, et al. Supply chain drivers that foster the development of green initiatives in an emerging economy. International Journal of Operations & Production Management. 2013; 33(6): 656-688. doi: 10.1108/ijopm-10-2011-0401
9. Sinaga Y, Mulyati A, Darrini D, et al. Green Supply Chain Management Organizational Performance. International Journal of Supply Chain Management. 2019.
10. Achillas C, Bochtis DD, Aidonis D, et al. Green supply chain framework. Green Supply Chain Management; 2018. doi: 10.4324/9781315628691-1
11. Eltayeb TK, Zailani S. Going Green through Green Supply Chain Initiatives Toward Environmental Sustainability. Operations and Supply Chain Management: An International Journal. 2014: 93-110. doi: 10.31387/oscm040019
12. Surmacz T. Performance evaluation of green supply chain management. Gospodarka w Praktyce i Teorii. 2017; 46(1). doi: 10.18778/1429-3730.46.06
13. G.P. K. Performance measurement systems for green supply chains using modified balanced score card and analytical hierarchical process. Scientific Research and Essays. 2012; 7(36). doi: 10.5897/sre11.1655
14. Dey PK, Cheffi W. Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations. Production Planning & Control. 2012; 24(8-9): 702-720. doi: 10.1080/09537287.2012.666859
15. Suryaningrat B, Rezky E, and Novita E. Application of the green supply chain operation reference method in ribbed smoke sheet processing (Case study at PTPN XII Sumber Tengah Silo, Jember) (Indonesian). Jurnal Teknologi Industri Pertanian. 2021.
16. Pulansari F, Putri A. Green Supply Chain Operation Reference (Green SCOR) Performance Evaluation (Case Study: Steel Company). Journal of Physics: Conference Series. 2020; 1569(3): 032006. doi: 10.1088/1742-6596/1569/3/032006
17. Suharno F, Syafika Haq M, Bardanet TB, et al. Assessing Green Supply Chain OperationReference with Life Cycle Inventory: The Case ofGamboeng Green Tea, Indonesia. Journal of Environmental Science and Management. 2022. doi: 10.47125/jesam/2022_1/04
18. Cash DW, Clark WC, Alcock F, et al. Knowledge systems for sustainable development. Proceedings of the National Academy of Sciences. 2003; 100(14): 8086-8091. doi: 10.1073/pnas.1231332100
19. Saaty TL. Analytic Heirarchy Process. Wiley StatsRef: Statistics Reference Online; 2014. doi: 10.1002/9781118445112.stat05310
20. Schmoldt DL, Kangas J, Mendoza GA, et al. The Analytic Hierarchy Process in Natural Resource and Environmental Decision Making. Springer Netherlands; 2001. doi: 10.1007/978-94-015-9799-9
21. Saaty TL. Decision making with the analytic hierarchy process. International Journal of Services Sciences. 2008; 1(1): 83. doi: 10.1504/ijssci.2008.017590
22. Dyer JS. Remarks on the Analytic Hierarchy Process. Management Science. 1990; 36(3): 249-258. doi: 10.1287/mnsc.36.3.249
23. Saaty TL. How to Make a Decision: The Analytic Hierarchy Process. Interfaces. 1994; 24(6): 19-43. doi: 10.1287/inte.24.6.19
24. Sumiati M. Measuring Company Supply Chain Performance Using the Supply Chain Operation Reference (SCOR) Approach at PT Madura Guano Industri (Kamal-Madura) (Indonesian). Tekmapro: Journal of Industrial Engineering and Management. 2012.
25. Trienekens JH, Hvolby HH. Performance measurement and improvement in supply chains. In: Proceedings of the third CINET Conference; CI 2000 From improvement to innovation: CINET Conference: CI 2000 From Improvement to innovation, Aalborg; 2000.
26. Abd Elkhalek HA, Aziz RF, Omar AF. Implementation of environmental management systems in construction industry. Available online: https://www.ijern.com/ (accessed on 5 May 2024).
27. Turner A, O’Neill C. Confronting the inevitable: iso 14001 implementation and the Durban automotive cluster. The South African Journal of Industrial Engineering. 2012; 18(2). doi: 10.7166/18-2-117
28. Lee H, Ling LP, Lee HL Impact of implementation of ISO 14001 environmental management systems on environmental performance: a case study. International Journal of Engineering Research and Science & Technology. 2015.
29. Arimura TH, Hibiki A, Katayama H. Is a Voluntary Approach an Effective Environmental Policy Instrument? A Case for Environmental Management Systems. SSRN Electronic Journal. 2007. doi: 10.2139/ssrn.1001325
30. Kellaghan T. Evaluation Research. International Encyclopedia of Education; 2010. doi: 10.1016/b978-0-08-044894-7.01326-9
31. Sugiyono D. Metode penelitian pendidikan pendekatan kuantitatif, kualitatif dan R&D. ALFABETA; 2013.
32. Devano A, Tarigan Y, Priyono Moh, et al. Analysis of Supply Chain Management Performance Measurement: A Case Study in an Indonesian Manufacturing Company. Proceedings of the 5th International Conference on Applied Economics and Social Science; 2023. doi: 10.4108/eai.7-11-2023.2342435
33. Devano AM, Tarigan Y, Naibahoa DM. The Performance Measurement of Mobiya Material’s Supply Chain to Support Special Projects for the UNHCR. Journal of Applied Business Administration. 2023; 7(2): 164-174. doi: 10.30871/jaba.v7i2.6056
34. Avci Ö. A study to examine the importance of forecast accuracy to supply chain performance: A case study at a company from the FMCG industry. Proceedings of the 12th IBA Bachelor Thesis Conference, Enschede, The Netherlands: University of Twente; 2019.
35. Smith CD, Mentzer JT. User influence on the relationship between forecast accuracy, application and logistics performance. Journal of Business Logistics. 2010; 31(1): 159-177. doi: 10.1002/j.2158-1592.2010.tb00133.x
36. Agrawal A. Managing raw material in supply chains. European Journal of Operational Research. 2014; 239(3): 685-698. doi: 10.1016/j.ejor.2014.06.012
37. Handayani DI. Risk Management Of Supplier-Buyer In Procurement Of Raw Materials For Improving Supply Chain Performance. Jurnal Manajemen. 2018; 22(3): 293. doi: 10.24912/jm.v22i3.423
38. Grandic D. The Impact of Environmental Management Systems (EMSs) and ISO 14001 Standards on Corporate Performance: A Systematic Literature Review. Eurasian Journal of Business and Management. 2017; 5(1): 21-34. doi: 10.15604/ejbm.2017.05.01.003
39. Ushakov D, Goryunova E, Shatila K. Assessing the impact of environmental management systems on corporate and environmental performance. IOP Conference Series: Earth and Environmental Science. 2021; 937(2): 022038. doi: 10.1088/1755-1315/937/2/022038
40. Tamboli PD, Kulkarni SS, Thosar AG. Energy Efficiency in Manufacturing Industry and Analysis of Industrial Motors. Proceedings of the 2020 4th International Conference on Electronics, Communication and Aerospace Technology (ICECA); 2020. doi: 10.1109/iceca49313.2020.9297492
41. May M, Taisch V, Prabhu V, and Barletta I. Energy Related Key Performance Indicators—State of the Art, Gaps and Industrial Needs. Advances in Production Management Systems. Sustainable Production and Service Supply Chains; 2013. doi: 10.1007/978-3-642-41266-0_32
42. Boyd GA. Development of performance-based industrial energy efficiency indicators for food processing plants. Available online: https://www.energystar.gov/sites/default/files/buildings/tools/Food_EPI_Documentation_final.pdf (accessed on 5 May 2024).
43. Vachon S, Klassen RD. An exploratory investigation of the effects of supply chain complexity on delivery performance. IEEE Transactions on Engineering Management. 2002; 49(3): 218-230. doi: 10.1109/tem.2002.803387
44. Rogers DS, Lambert DM, Croxton KL, et al. The Returns Management Process. The International Journal of Logistics Management. 2002; 13(2): 1-18. doi: 10.1108/09574090210806397
Copyright (c) 2024 Alrido Martha Devano, Yulinda Tarigan, Sarah Ayu Wandira, Syiffa Rahmania

This work is licensed under a Creative Commons Attribution 4.0 International License.