Green Supply Chain Management in Manufacturing Industries in Penang.

(RESEARCH PROPOSAL)

KHAJAL SHRE PRATAPAN

141180054

Bachelor in Logistics and Supply Chain Management

WAWASAN OPEN UNIVERSITY

OCTOBER 2020
1. Proposed Title

A study on the Green Supply Chain Management in Manufacturing Industries in Penang,

Malaysia.

2. Introduction of the Study

In 2020, global economy facing a serious financial crisis. Covid-19 has imposed

profound impact on manufacturing industry, since low-cost country sourcing, globalization

and minimal inventory management have been key tenets of supply chain management for

industries like auto, electronic, pharmaceuticals, wholesale and retail and many more. This is

because Covid-19 have been playing a big role in every industry. Large organization cited

delays in receiving supplies as the main supply chain challenge, while SMEs noted delays in

fulfillment and delivery as their major challenge. Green supply chain management is a

concept of integrating sustainable environmental processes into the traditional supply chain.

This can include processes such as product design, material sourcing and selection,

manufacturing and production, operation and end-of-life management Srivastava, S. K.

(2007).

Thus, businesses are developing and introducing green strategies in order to green the

supply chain activities to build common approaches towards energy conservation, pollution

abatement, waste reduction and improve their operational efficiencies. Organizations must

implement green into their organization in order to produce green products. Greening supply

chain could be the new area that ensures the organization gain double wining situation by

creating a more competitive advantage. Most of the organization think that it will not bring

any benefits if they go green on their supply chain, but with the correct strategy, there are
possible to gain extra tangible benefit as lower cost and inventory efficiency of the company

while moving towards a green supply chain.

3. Problem Statement

This study is to find out the green supply chain management in manufacturing industry in

Penang. Manufacturing industry are playing vital role in development of a country’s

economic growth and they can be considered as backbone of economic growth in all

countries (Khalique et al., 2011; Ghazilla et at., 2015). Increasing environmental concerns

and awareness are the driving force which pushes manufacturers all over the world to adopt

green manufacturing practices that results manufacturing industry to implement green

practices in their business (Ghazilla et at., 2015).

In fact, Malaysia is one of the countries where issues related to environment pollution are

becoming more critical. From the trends in Global CO2 emissions report (2016), Malaysia is

one of the eight largest CO2 emitting countries which contribute to 0.7% of the world’s CO2

emission. The industries pollute the environment to great extent knowingly and

unknowingly, if knowingly they pollute what would be the reason behind it and why they are

forced to do so. The industries experiences lean wastes in their manufacturing process, so

how could they identify the lean wastes in their process and eliminate it.

These studies above have been made on manufacturing company in Penang because the

process of adopting green supply chain is slow. This study is to seek answers the following

questions. To what extend green supply chain practices in manufacturing industry in Penang?

How to develop green supply chain strategies by reducing environmental risks? What are the

challenges faced in adoption of green supply chain management in the manufacturing

industry in Penang?
4. Research Objective

The main objective of this research is to minimize waste in Penang Manufacturing Industry

 To examine the influence of green supply chain management practices in manufacturing

industry.

 To study organizations to develop strategies which lead to a higher level of profitability

by reducing environmental risks and increasing environmental efficiency

 To identify challenges faced in adoption of green supply chain management in the

manufacturing industry.

5. Research Questions

i) How manufacturing industry implementing the green supply chain management

to its production?

ii) What are the activities involved in green supply chain management (GSCM)

implementation in manufacturing industry?

iii) Does implementation of green supply chain practices affect manufacturing

industry sustainability performance?

iv) What are the connections between green supply chain management practices and

firm performance in manufacturing?

v) What are the challenges faced by manufacturing industry?

This study focuses on green supply chain management (GSCM) and the research would

be highlighting about implementing green supply chain in the manufacturing in industry.

This research will be carrying out in Penang, Malaysia among the manufacturing industry.

This will encourage the manufacturing industry further to put into practice green practices in

their organizations to achieve the company and country’s goals and vision.

7. Significance of the Study

The purpose of study is to aims to provide a better insight how green supply chain

management helps to practices influence sustainability performance of manufacturing firms.

It is believed that the companies which adopt green supply chain management practices with

focus on green activities will be able to improve their sustainability performance that results

enrichment of overall performance industry. The results from this research would help

manufacturing industry that are planning, or has completed, the implementation of green

supply chain management practices enhance its operations and better connect their efforts for

sustainability performance improvement. It may also help to understand the barriers that the

industry is facing in regard to the implementation of green supply chain.

Green supply chain management has emerged as a key approach for enterprises aiming to

become environmentally sustainable. With increased pressures for environmental

sustainability, it is expected that enterprises will need to implement strategies to reduce the

environmental impacts of their products and services. Success in addressing environmental

items may provide new opportunities for competition, and new ways to add value to core

business programs.
8. Organization of the Dissertation

The entire research study will consist of five chapters which include:

Chapter I

 An introduction of the overview context

 Identification of problem statements

 Cover on research objectives, research questions and the significance of the

Chapter II

 Review of literature

 Review of theoretical framework

Chapter III

 Discussion about theoretical framework, data collection methods, sampling

 Proposed Hypothesis

Chapter IV

 Include demographic analysis, reliability analysis, descriptive analysis

 Tested hypothesis analysis

Chapter V

 Summary of all analysis and discussion on major findings

 Limitations and recommendations

8. Summary
 This research is to conduct a basic understanding to implement of Green Supply Chain in

manufacturing industry Penang. It also provides a fundamental guideline for further

development of the study. Further discussion of this research will be carried out as Chapter I,

Chapter II, Chapter III, Chapter IV and Chapter V in the final report.