Green Supply Chain Management Practices and Performance of Soft Drink Manufacturing Firms in Nairobi, Kenya

Abstract

Globalization has increased customers awareness about environmental issues that introduced business opportunities for environmentally conscious manufacturing industries. Hence, manufacturing industries are facing pressure from global market to improve their sustainability performance by implementing environmental management practices. Despite the increasing popularity of green supply chain management in developed countries, there is a number of areas that necessitate for further research. The general objective of the study was to investigate green supply chain management practices and performance of soft drink manufacturing firms in Nairobi County, Kenya. The research objectives were to establish the extent green supply chain management practices are implemented by Soft Drink firms in Nairobi Kenya, to find out the correlation involving GSCM practices and performance of soft drink companies in Kenya and to decide the Challenges faced by firms in implementing green supply chain practices. The research design was a descriptive research approach. The research comprised of soft drink and water firms in Nairobi Kenya. A census was done on 68 firms in Nairobi. The questionnaire was answered by 65 respondents of quality assurance or equivalent departments. The study has used primary data which was gathered by use of a questionnaire. Quantitative information gathered was analyzed by use of descriptive information to get percentages, means, standard deviations and frequencies. This study concludes that Soft Drink firms have Green Supply Chain Management (GSCM) enables the firms to reduce negative environmental effects by minimizing wastage, decreasing the use of harmful materials, recycling products and their wastage and limit the pollution through cleaner production. GSCM introduces reverse logistics approach that assists Soft Drinks firms to recycle the products after consumption as result overall consumption of raw material decrease, which provide solution to the scarcity of resources as well as to the degradation of environment. GSCM helps to improve brand image as well as company’s image and increase the profitability. The study also concludes that green supply chain seeks to maximize the economic benefits by decreasing consumption of resources, energy, and emission of pollutants to create socially responsible enterprises. Implementation of GSCM practices improves both environmental and financial performance of a firm. It is very important to know that, Collaborative efforts between buying firms and suppliers are needed to improve performance.