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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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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
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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
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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
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- 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
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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 nonvalue 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
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- A Case Study with reference to Automobile Industry
Green Supply
Chain Practices
Tier 1 Suppliers
Lean Supply
chain Practices
EMS & ISO 14001
Certification
Mandatory
Just in Time
Recyclable and
Reusable
Packagings
Geographical
Concentration
OEM
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
Source : (Azevedo, Carvalho, Duarte, & Cruz-Machado, 2012)
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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, & CruzMachado, 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, & CruzMachado, 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 selfassessment, 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.
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- 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
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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 .
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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
Grean Upstream Supply Chain Practices
Business Wastage
Environmental
Performance
Green Image
CO2 Emisssions
Opeartional Cost
Environmental Cost
Economic
Performance
1. EMS ( Environment management system ) & ISO
14001 mandatory for Tier one Suppliers .
2 .Using Recyclable & reusable packaging for
material deliveries
Inventory Cost
Represents Reduction trend
Represents Increased trend
Effect of Lean Upstream Supply chain practices on Business Sustainability
Business Wastage
Environmental
Performance
Lean Upstream Supply Chain Practices
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
Economic
Performance
Represents Reduction trend
Represents Increased trend
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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, & CruzMachado, 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, & CruzMachado, 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
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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 .
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