Assessing the lean-green practices in the automotive industry: Perspectives from academia and industry

Abstract

Since the emergence of rising environmental issues, firms urgently require a supply chain strategy that will allow them to compete effectively in the marketplace. Implementing lean and green supply chain management strategies have been recommended to achieve sustainability and competitiveness. Yet, there is some ambiguity about how these practices must interact with one another. While lean practices have been around for a while and are widely adopted by businesses, the green movement is still evolving in the supply chains for most industries. This paper aims to identify the most important lean-green practices in supply chain management and their relative importance to firms’ sustainable performance in automotive industry context using Best Worst Method. The results reveal that green related practices are the most important to achieve environmental, economic, and social performance respectively. Whereas most lean practices remain the least important. As mentioned by the results three green practices, namely Environmental Management System (EMS), Green Purchasing (GP), and Reduce, Reuse and Recycle (3R), are the most important, while Small Lot Sizing (SLZ) is the least important lean practice. These practices contribute to the improvement of environmental, economic, and social performance respectively. The findings of this research offer a theoretical and empirical roadmap for decision makers seeking to identify key practices that are most likely to contribute to improving various aspects of sustainable performance in automotive context.