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Challenges and Solutions in Working with Green Suppliers: Perspective from a Manufacturing Industry

Author

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  • Johan Krisnanto Runtuk

    (Department of Industrial Engineering, President University, Jalan Ki Hajar Dewantara, Mekarmukti, Cikarang Utara, Bekasi 17550, Indonesia
    Faculty of Engineering and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

  • Poh Kiat Ng

    (Faculty of Engineering and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

  • Shih Yin Ooi

    (Faculty of Information Science and Technology, Multimedia University, Jalan Ayer Keroh Lama, Bukit Beruang, Melaka 75450, Malaysia)

Abstract

This study explores the challenges and solutions faced by manufacturing companies in one industry when integrating green suppliers into their supply chains. The FGD transcripts were analyzed using NVivo 12 Pro for coding and thematic analysis, which helped identify key challenges and solutions. The key challenges identified included higher procurement costs, limited availability of green materials, quality assurance issues, and difficulties in verifying green practices. Strategic solutions involve establishing partnership strategies, conducting supply chain audits, and developing clear evaluation criteria. The content analysis shows that higher procurement costs can be mitigated through strategic partnerships offering better terms and pricing stability. Diversifying the supplier base and investing in supplier development programs address the limited availability of green materials. Quality assurance is maintained through stringent controls and regular audits, while verification challenges are managed with third-party certifications and robust audits to prevent greenwashing. The SWOT analysis highlights strengths such as strategic partnerships and regular audits, opportunities like developing evaluation criteria and technological advancements, and acknowledges weaknesses and threats. This comprehensive analysis provides a nuanced understanding of the practical challenges and solutions in green supply chain management, offering a strategic framework for manufacturing companies to enhance sustainability and achieve competitive advantage.

Suggested Citation

  • Johan Krisnanto Runtuk & Poh Kiat Ng & Shih Yin Ooi, 2024. "Challenges and Solutions in Working with Green Suppliers: Perspective from a Manufacturing Industry," Sustainability, MDPI, vol. 16(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8744-:d:1495566
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    References listed on IDEAS

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