Green Supply Chain Managementpractices in Brewery Industry: The Case of BGI Ethiopia
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Date
2021-06
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Addis Ababa University
Abstract
This paper is dedicated to assess the green supply chain management practices at BGI Ethiopia, a pioneer beer manufacturer in the country. The study focused on four green supply chain management (GSCM) practices: green procurement, green manufacturing, green transportation and reverse logistics. In order to capture the issue, a mixed approach of qualitative and quantitative techniques was applied. Dispatching a structured standard questionnaire, Key Informant Interview and review of company profile were the main approaches to gather the data. The whole population of the company (top management, midlle management and technical experts) were involved in this study. Later, the data was analysed using SPSS 23. A reliability test was done using Cronbach Alpha (0.966) which is an indicator of high reliability. The findings showed that BGI is exerting an effort to engage itself in the green production system while there is a very low green procurement practice. Among the enablers, pressure from competitors and availability of sustainabe supply chain management strategy took the most empowering role while government incentives are presumed to be low. On the other hand, among the challenges to impliment GSCM, the lack of cross departmental communication and lack of customer collaboration dominated the responses. A multiple regression was run after checking for the assumptions of linearity, indipendence, homoscedasticity, multicollenearity and indipendence. The result indicated that only the enablers have noticeable impact and are statistically significant which is an indication that positive reinforcement is required to effectively apply the GSCM practice. In order to corroborate this finding a correlation and a hypothesis test were undertaken. Finally, recommended modesl are developed to facilitate the implementation of GSCM at each stage in BGI Ethiopia. These models are designed to explicity indicate the procedures and formats to follow at each stage of production and give an overall picture of what the company’s supply chain should look like.
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Keywords
Distribution; Eco-friendly, Green Supply Chain Management, Procurement, Production, Reverse Logistics