The Adoption of Green Supply Chain Management

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1 The Adoption of Green Supply Chain Management Practices in the Brazilian Automotive ti Industry

2 Green Supply Chain Management (GSCM) According to Emmett and Sood (2010), the Green Supply Chain Management (GSCM) consider all ambiental effects on the whole supply chain process, from the extraction of raw materials to final products. Objective The main objective of this research was to verify the adoption of the GSCM practicesinthe Brazilian Automotive Industry.

3 Methodology This research is a survey study, collecting quantitative information. Population: Questionnaires were sent to the Brazilian Automotive Companies, affiliated to Anfavea and Sindipeças. Population: 485 companies. Data collection: Data collection was made through questionnaires, which were sent by Google Docs. From: July 30 th to September 17 th, Sample: The sample was composed by 77 companies, representing 15,88% of the population.

4 Research variables and questionnaire To determine the research variables were considered: - The GSCM practices mentioned by Srivastava (2007), in which was considered about 1,500 books and articles about the GSCM. - In addition, we also considered practices related to Green purchasing, Reverse logistics and Green buildings. The questionnaire was based on studies conducted in China by Zhu, Sarkis and Lai (2007) and Zhu, Sarkis, Lamb and Lai (2008b), as well as the study conducted in Thailand by Ninlawan, Seksan, Tossapol and Pilada (2010).

5 Practices of the GSCM and research variables CONCEPT PRACTICES OF THE GSCM / RESEARCH VARIABLES REFERENCE Eltayeb et al. (2011); Nunes and Green Design or Eco-design Bennett (2010) and Srivastava Green Design (2007). Life cycle analysis Srivastava (2007) and Zhu et al. (2008a). Ninlawan et al., (2010); Nunes and Green manufacturing Bennett (2010); Srivastava (2007) and Vachon and Klassen (2006). Eltayeb et al. (2011); Ninlawan et Green Reverse logistics al. (2010); Nunes and Bennett (2010), Vachon e Klassen (2006) Operations and Zhu et al. (2008a). Waste management Srivastava (2007). Green purchasing Eltayeb et al. (2011); Ninlawan et al. (2010) and Zhu et al. (2008a). Green building Nunes and Bennett (2010). Likert scale of 5 points: from not implemented to fully implemented

6 Results and analysis 31% 52% 47% 75% 9% 48% 16% 44% 9% 69%

7 Results and analysis: Adoption of GSCM Variable Average Green manufacturing 390 3,90 PREQUI 4,13 PRMPRE 4,36 PRDESM 373 3,73 PRRECI 4,31 PRRAVU 2,95 Reverse logistics 341 3,41 LRPDEF 3,58 LREMBA 3,60 LRPACA 3,75 LRPAVU 2,70 Green building 2,57 PVENPR 1,44 PVOTEN 3,22 PVOTAG 3,05 PVISOL 2,56 Variable Average Waste management 451 4,51 GRCLAS 4,78 GRDEST 4,83 GRPNRS 436 4,36 GREFLU 4,55 GREMIS 4,05 Green purchasing 311 3,11 CVMATC 3,26 CVCISO 3,10 CVAUDI 3,03 CVPARC 3,06 Green design 2,72 DVPRPD 2,95 DVPRPC 3,38 DVACVD 2,24 DVACVC 2,29 Legend: 1: Not implemented; 2: Planned to be implemented; 3: Implementation in the initial phase; 4: Partially implemented and 5: Fully implemented.

8 Results and analysis: Adoption of GSCM

9 Results and analysis: Adoption of GSCM The GSCM practice adopted by most companies surveyed is Waste Management, withanaverageof4,51.allvariablesrelatedtopracticeof Waste management had averages above 4, between the concepts partially implemented and fully implemented. This result is strongly influenced by the legislation. This result corroborates the study developed by Zsidisin and Hendrick (1998), where they declare that the government has used the legislation to control the activities of companies. Also according to the authors Zhu et al. (2007) and Zhu et al. (2008b), they stressed the importance of the legislation in the adoption of GSCM practices.

10 Results and analysis: Adoption of GSCM The second GSCM practice most adopted d by companies surveyed was Green production, averaging 3,90, corresponding to the concept partially implemented. Practices related to Green building and Green design, are the least adopted by companies surveyed. Green building: According to GBC Brazil (2012), the low adoption of this practice may be related to the high cost of implementation.

11 Results and analysis: Adoption of GSCM Green design: practices about development of process and product design are implemented in the initial phase. Regarding the Life cycle analysis they are not adopted by the surveyed companies. These practices presented an average below 3, corresponding to the concept implementation in the initial phase. Studies carried out in China by Zhu et al. (2007) and Zhu et al. (2008b) also shown that the life cycle analysis is a GSCM practice not implemented in that country. The life cyclecle analysis is the practice of GSCM with lower adoption.

12 Factor Analysis GSC CM pract tices ions Operat Green Variable Average Mode Median sd IQR Green manufacturing PRRAVU 2, ,669 3 Reverse logistics LRPAVU 2, ,671 3 Green building PVENPR 1, ,045 0 PVISOL 2, ,500 3 Green design Gr reen De esign DVPRPD 2, ,505 3 DVACVD 2, ,422 3 DVACVC 2, ,431 3 Results below 3: Implementation in the initial phase.

13 Factor Analysis Sphericity i Bartlett s test: Variable p value Green manufacturing 0,2939 Reverse logistics 0,5821 Waste management 0,0122 * Green purchasing 0, Green building 0,7881 Green design 0,3748 *p < 0,05

14 Factor Analysis: Waste Management GRCLAS GRDEST Reduced d set of variables Factor 1 Commonality Cronbach s Alfa Characterization and classification of solid waste. 0,60 0,36 0,68 Disposal of solid waste performed only in authorized companies. 0,89 0,80 0,64 GRPNRS Plan for Solid Waste Management. GREFLU Sum of squares Effluent treated before disposal into the environment. 0,51 0,26 0,75 0,60 0,36 0,83 1,776 Cumulative proportion of variance 0,444 Std. Alfa 0,78

15 Factor Analysis: Green Purchasing Reduced set of variables Factor 1 Commonality Cronbach s Alfa CVCISO Suppliers with ISO certification. 0,83 0,68 0,68 CVAUDI CVPARC Environmental audits on suppliers of materials and services. Partnerships with suppliers seeking environmental solutions and / or development of environmentally friendly products. Sum of squares 1,560 Cumulative proportion of variance 0,520 0,70 0,49 0,76 0,62 0,39 0,76 Std. Alfa 0,81

16 Conclusions Factor Analysis: Was verified by factor analysis that the practice of Waste Management and Green Purchasing were validated. The variables of the study showed: - 44% of the factors variation i of the practice Waste Management. - 52% of the factors variation of the practice Green Purchasing.

17 Conclusions Adoption of GSCM practices: It can be stated that Waste Management is the only practice of the GSCM consolidated by the Brazilian automotive companies. Practices such as Green manufacturing, Reverse logistics and Green purchasing, it is considered that they are in the implementation phase. Regarding Green building and Green design, is required greater commitment and investment by companies in order to implement these practices.

18 END

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