Harry Wood | 4 November 2024

Study finds green manufacturing, purchasing key to sustainable supply chains

DHAKA - A recent study published in Supply Chain Insider (Volume 14, Issue 01) investigated the impact of sustainable supply chain practices on environmental performance, specifically within Bangladesh's manufacturing sector. Led by researchers from the University of Dhaka, the study addresses a gap in empirical research on sustainable practices and their environmental outcomes in developing economies like Bangladesh.

The researchers surveyed 196 supply chain professionals across various manufacturing companies in Bangladesh. The survey focused on six key sustainable supply chain practices: Green Purchasing, Green Manufacturing, Green Product Design, Green Distribution, Green Information Systems, and Reverse Logistics. According to the authors, these components were chosen based on their widespread recognition in sustainable supply chain management literature as crucial to reducing environmental impacts.

The study’s findings suggest not all sustainable practices have a uniformly positive impact on environmental performance. Specifically, Green Purchasing and Green Manufacturing emerged as the only practices with statistically significant, positive effects on environmental performance. Green Purchasing emphasises procurement of eco-friendly materials and supplies, while Green Manufacturing focuses on reducing emissions, waste, and energy consumption during production processes. The researchers found these two practices show the strongest influence, suggesting manufacturing and procurement practices are key levers for environmental improvement in Bangladesh’s supply chains.

Conversely, the study found no statistically significant environmental benefit from Green Product Design, Green Information Systems, Green Distribution, or Reverse Logistics in the current Bangladeshi context. This lack of significant impact for these practices suggests they may require more substantial investment or systemic support to yield noticeable environmental improvements. The authors caution that while Green Purchasing and Green Manufacturing should be prioritised, other sustainable practices should not be entirely dismissed. These practices are often interdependent; for instance, Green Distribution could indirectly support Green Purchasing efforts, and an overemphasis on certain practices could weaken the broader sustainability framework.

For policymakers, the findings of the study prove the importance of supporting green manufacturing and purchasing initiatives within Bangladesh’s supply chain sectors, as these have the clearest impact on reducing environmental harm. For corporate leaders, the results offer guidance on prioritising investments in sustainability. Small and medium enterprises, which may lack the resources to implement comprehensive SSCM strategies, could focus on green purchasing and manufacturing as cost-effective ways to enhance environmental performance and align with global sustainability trends.

Interestingly, the study aligns with the “Three Zero Theory” popularised by Nobel Laureate Dr. Muhammad Yunus, particularly the goal of zero carbon emissions.

The authors note some limitations, such as a relatively small sample size and the broad industry scope, suggesting that future research could focus on specific industries or expand the sample size for greater accuracy. They also propose that future studies could incorporate moderating variables to further understand the nuanced impacts of SSCM practices on environmental performance.