Critical factors analysis and its ranking for implementation of GSCM in Indian dairy industry

Abstract

Purpose – Sustainability in food sector is the need of the hour. It has been revealed that Green supply chain management (GSCM) is an emerging new and effective approach to improve the productivity, efficiency of any enterprises and to achieve sustainability. The purpose of this paper is to rank the key performance indicators which are responsible for implementation of GSCM in Indian dairy sector. Ranking is done by giving weightage to them based on survey reports. The study includes literature review, personal interviews and surveys using the detailed questionnaire. Since food processing industry, e.g. dairy industry is the major energy user and directly affecting the health of public is being chosen for implementing GSCM practices. The approach is to form an effective framework for successful implementation of GSCM in dairy sector. Grouping of key performance indicators has been done using factor analysis and thereafter Analytic hierarchy process (AHP) method has been applied to determine the suitable framework based on relative importance of critical factors. Design/methodology/approach – The first step was to identify critical factors through extensive literature review, personal interviews, etc. The personal interviews has been carried out by contacting executives, managers, professionals of various dairy industries. Data has also been collected by interviewing auditors of ISO 14001 which was responsible for implementation of Environmental management system. Questionnaire used for collecting data has been formulated based on critical factors. It is also used to study minute details of the process being used in dairy industry. After collection of sufficient data SPSS is used for grouping of data through factor analysis. Thereafter AHP method has been used to identify the relative importance of these factors by ranking it which can be used by the managers in developing model/framework for implementing GSCM. Findings – The work aims to examine the critical factors of GSCM and its ranking so as to implement GSCM practices in dairy industry in Indian context. Detailed questionnaire based on 79 parameters has been used for survey in dairy industry in northern India. Grouping of these parameters has been done using factor analysis. The ranking of these identified critical factors has been used by using AHP which is used to see the relative importance of these eight factors. These ranked factors would be used by the managers of the dairy industry to implement GSCM. The work is limited to Indian dairy industry but it can be extended to other industry also after identification of critical factors. Originality/value – It is certified that this research work is original and has never been submitted or published in any journal.