Towards Sustainable Supply Chain Management (SSCM): A Case of Leather Industry

Abstract

At present, sustainable supply chain management (SSCM) has gained a great momentum in this competitive business world for any kind of industry. Leather industry (leather, leather products, and footwear) is the second export earning sector of Bangladesh which is scrambling to implement SSCM in its working cycle. There are lot of challenges that are creating barriers for this industry owners in establishing sustainability practices in their supply chain management. There is lack of enough research in identifying the challenges of SSCM for leather industry of Bangladesh. That’s why, it is very imperative to identify the challenges of SSCM for leather industry in Bangladesh which will guide the industry owners to combat these challenges. In this research, we have not only identified the challenges of SSCM for leather industry but also evaluated the relationship among them. Besides, a priority list of identified challenges is depicted through which the industry owners can easily find out the major and minor challenges. Five industrial experts were selected from export-oriented leather and footwear factories in order to sort out the appropriate challenges. Decision-making trial and evaluation laboratory (DEMATEL) technique was applied to assess the relationship among identified 18 challenges and divided them into two groups such as cause and effect. The casual challenges are lack of knowledge and experience, lack of technical expertise, corruption, social unawareness, lack of acceptance of new technology, lack of training on SSCM, poor organizational culture, market competition and uncertainty, lack of commitment from top management and lack of integration of IT system. On the other hand, lack of eco-literacy among supply chain stakeholders, financial constraints, lack of government rules and regulations, cost of sustainability, limitations of capacity, lack of management initiatives for reverse logistics, demand for lower price and lack of energy and waste management policy were identified as effect group challenges. This study will help the decision-makers of leather industry in formulating strategic policies to address these challenges for in implementing SSCM in leather industry that will drive these sectors toward sustainable development.