In the last few decades, the environmentalists become more and more concern about the green concern. (Toke, Gupta and Dandekar, 2012) Also, the increase deterioration of environmental such as global warming, acid rain, toxic substance usage, decrease in non-replenish resources, depletion of raw material, overflowing waste landfills, and pollution in general had gain the awareness from people around the world. (Mutingi, 2013; Toke et al, 2012; Kumar and Chandrakar, 2012) Globalization is one of the factors that cause the increase in environmental deterioration. (Gardas and Narkhede, 2013) It also found out that the environmental pollution is correlated to the industry development and increase in waste or emission based on the environmental concern in the past few decades. (Singhal, 2013; Shakti; Kumar and Chandrakar, 2012)
Since the globalization and industry development cause the occurring of environmental problems, it had driven the companies use the Green Supply Chain Management (GSCM). (Mutingi, 2013) GSCM can create a sustainable supply chain since the whole process of producing a product and it will not harm the environment. The input is using the environmental friendly raw material and the output can be reused or recycled. (Patrick, 2010, as cited in Gardas and Narkhede, 2013) Besides that, GSCM also defined as involve the activities such as green procurement, green manufacturing, green distribution and reverse logistics. (Shakti)
It can be said that the companies need to go green due to the various agencies, there are government, customer, competitor, and stakeholder. (Jasti, Sharma and Kodali, 2012) In addition, the reason that the companies use the GSCM is it can help the companies to achieve win-win situation which means companies can take action to accomplish their responsible for the environmental and also gain the competitive advantage or increase the profit of the companies and also the market share. (Shakti; Van Hock and Erasmus, 2000; Zhu and Sarkis, 2004, as cited in Verma and Gangele, 2012)
GSCM is different with the traditional supply chain. Companies which apply the green principle and GSCM need to concern the every process start from the product design until the product being disposed by the customers. (Toke et al, 2012) There have several critical factors that influence the successful of implementing the process of GSCM which are the written GSCM policies, supplier meetings, training, collaborative R&D, top-level leadership, cross-functional integration, effective communication within companies and with suppliers, effective process for targeting, evaluating, selecting and working with supplier, restructuring relationships with suppliers and customers. (Lippmann, 1999, as cited in Shakti) One of the biggest issues is the action of suppliers. (Shakti) It is because the cooperation between manufacturer and supplier is critical to get the environmental friendly raw material. (Gaffar Hossain Shah and...