Sustainable Consumption & Production for Food Supply Chain of Supermarkets:

Sustainability through Green Supply Chain Design

Martin Bacierto, Hannah Ching, Victoria Pineda, Andrea Valeroso
Submitted to:
Mr. Richard Li
Abstract
Keywords:

I. Introduction
In the recent years, researchers as
well as business entrepreneurs have been
focusing on environmental sustainability and
how to integrate it in their business
operations. As such, industries producing
significantly more negative environmental
impacts are more likely to be pressured by
such issues (Seuring et al., 2008). One
industry, which visibly produces much
waste, is the food industry. In fact, according
to Gustavsson et al. (2011), there is an
average of 1.3 billion of food wastages
produced globally every year, and one-third
of which is loss in the supply chain. Such
wastage was attributed to the fact that the
global population is increasingly growing
and with it, the diversification of dietary
preferences, leading to unsustainable food
consumption (Thyberg & Tonjes, 2016).
Aside from the losses, much environmental
burden is added due to the distribution of
food supply, which causes greenhouse gas
(GHG) emissions across the different levels
of the supply chain starting from input
generation until waste disposal. In fact,
according to Food and Agriculture
Organization of the United Nations (2013),
the equivalent CO2 emissions of the average
yearly food wastages is 3.3 giga tons, which
validates the immense environmental burden
contributed by the food industry. Because of
this, for the last decade, much attention has
been given in integrating environmental
practices in the food retailing industry,

particularly in the area of Supply Chain

Management (SCM) or specifically, in
Green Supply Chain Management (GSCM).
According to Tseng et al. (2013), GSCM
refers to the coordination of different entities
among the supply chain, to ensure the
compliance to environmental, social and
ethical standards. The application of GSCM
has proven not only to be effective in
improving customer-supplier relations but
also, reduce costs.
Several literatures have already
established the relevance of green supply
chain management in the food industry
particularly, in food retailing sector. This is
due to the fact that it is in the later stages of
the food supply chain, such as in the
retailers and households, where most of the
wastes are generated (Gustavsson et al,
2011). Specific literatures that establish the
linkage between green supply chain and the
retail sector include Tidy, Wang & Hall
(2016), which emphasizes the importance of
supplier relationship management in GHG
emissions in the food supply chain.
Likewise, there are still other studies which
propose several GSCM practices for supply
chain management such as taking into
account environmental performance in
selecting suppliers (Bai & Sarkis, 2010) and
development of reverse logistics systems
(Zhu & Cote, 2004). However, it must be
noted that these practices are not specifically
tailored for retailers in the food industry.

For this research, the structure

would be as follows: first, there would be a
brief discussion of green design and how it
is applied in the service industry. Second,
the concept of sustainability and its brief
history will be discussed. Third, a detailed
discussion
of
the
relationship
of
sustainability and supply chain management
would be explained and lastly, an overview
of the application of GSCM in the food
retailing industry would be presented.
II. Literature Review
2.1 Green Design
A green design system has become
an apparent requirement in todays world
because of the increasing risk of the global
warming phenomenon. Consumers of today
have become more aware of the
environmental issues at hand and are more
open to purchasing eco-friendly products, as
well as participating in services that promote
eco-living. Furthermore, green design is
defined as the process of designing a
product or service such that it takes into
account the environmental impact of the
product and service throughout its life. The
application of green design involves a
framework that analyzes environmental
issues that could happen in the process, the
application of relevant statistical analysis
and synthesis, and a challenge on how to
improve traditional processes (Yoga et. al.,
2013).
In order to successfully design a
green process, it would be ideal to first
understand the initial process flow
thoroughly, as well as to determine what
environmental impacts can occur in each
stage of the process. A high-level process
map was adapted
from
Windsor
(2010), and it can
be see in figure 1
below. From this
process map, it
can be used to
develop a more

detailed process map that caters to a

particular industry.
\
Figure 1: Process Map with Possible
Environmental Impacts
From the process map adapted from
Windsor (2012), the process starts with the
input of raw materials, resources, people,
and energy needed. The input is what the
service needs in order to function properly.
In this stage, some of the environmental
impacts that could occur include the wastes
associated with the raw materials, such that
the company will either utilize new or
recycled materials, as well as the inefficient
use of the laborers and if they are
complacent with the acquired resources,
transportation of the resources to and from
the shops and service centers. The process
stage is the main stage wherein the
production or service is carried out. Some
environmental impacts that could occur are
the excess energy used in processing the
materials or the service, material wastes
leftover from the process, as well as
hazardous waste emissions that were given
off by the process. The output stage is what
the customer will get or the services that the
customer paid for. In this stage, there could
also be certain transportation impacts on the
environment, as well as excess use of
packaging materials, if there are any. Finally,
the product end-of-life stage determines
what ends up in garbages and landfills. This
is mostly common for manufacturing
industries because they mostly have wastes
that can no longer be recycled or reused;
furthermore, they also produce hazardous
wastes and toxins from their processes.
Furthermore, Jiaqing & Yao (2010)
stated that green design reflects the
consumers speculation on ecological
destruction brought about by modern
technology and processes, and through this,
a designers sense of responsibility and
ethics are awakened. There have also been
some improvements and new characteristics
that compare green design process with the

traditional design process, as can be seen in

Figure 2. Some traits of the design flows are
that traditional designs are small scale and
relatively independent, whereas, green
design incorporates systematic planning and
are large scale designs. Moreover, as for the
traditional design, it is mainly directed at
increasing sales and profit and importance is
attached to quality, product functions, and
productive costs, subsequently neglecting
service life of the product and its influence
on the environment. Green design is
conducted for the purpose of optimizing the
resources and benefit maximization, as well
as importance is given to recycling of
products and environmental protection.
According to Windsor (2010), green
is the new quality. There are significant
similarities
between
seeking
green
processes, as well as seeking top quality.
First, there are no universal definitions that
strictly defines what green means, as well
as what quality means. Second, it is
difficult to measure, especially in relation to
the service industry. Third, it is not
completely achievable and no company can
have the perfect quality, as well as no
process can be completely green. Fourth,
maintaining good quality, as well as having
green designs and processes require constant
maintenance and management.
Fifth,
customers may require it but they have very
little definition and specifications of how
they exactly want it. Finally, the
requirements and parameters are unique for
each industry.
Furthermore, green design is
applicable in virtually any service industry,
most especially the food retailing industry,
such as convenience stores, supermarkets,
and groceries. In a study conducted by
Scholz et. al. (2015), it was found that
approximately 1,570 tons of food was gone
to waste in six (6) particular supermarkets
over a course of 3 years. It was found that
85% of the total waste was composed of
fresh fruit and vegetables while 3.5% was
contributed by the meats, and the 11.5% was
contributed by dairy and cheeses.

Subsequently,
although
the
meats
contributed to only 3.5% of the wastes, there
was a 43% contribution to the carbon
footprint emissions, while vegetables and
fruits contributed only contributed 10% to
carbon footprint emissions. In light of this,
the study found that it is not only important
to consider the total amount of wastage but
also relate it to environmental implications,
which is why calculating total carbon
footprint emission contribution is an
important tool that will provide better
analysis on the impact of food waste, as well
as to pursue waste reduction targets.
Moreover, some suggested green practices
that may reduce wastes and carbon
emissions from the study include selling
meat in frozen temperature instead of
chilled, as well as taking measures that
involves the supplier, such as reduction of
transportation distances and ensuring proper
handling of the perishable foods.
2.2 The concept of sustainability
The concept of sustainability was
coined in 1987, in the Bruntland report
where it was later adopted by United
Nations
World
Commission
on
Environment and Development (WCED)
(Caniato et al., 2012). In line with this,
WCED (1987), defined sustainability as the
ability of satisfying current needs without
having to compromise the future needs of
the next generations. Since then, several
studies have been made focusing on the
aspect of sustainability. On one hand,
Robinson (2004), for instance, studied the
linkage between usage of natural resources
and the quality of life. On the other hand,
there are some studies that focus on
integrating sustainability in organizations,
particularly, on how a particular business is
managed (Morioka & Carvalho, 2016).
Chin, Tat & Sulaiman (2015) assert that
sustainability has become a business
strategy for firms. Likewise, it was stressed
in their report that there is a strong linkage
between corporate responsibility and
sustainability. This was supported by

Teixeira et al (2016) who also stressed the

importance of having green training in
adopting green supply chain management
practices in order to achieve corporate
environmental targets.
It must be noted that in order to
achieve sustainability, firms must take into
consideration three elements, namely:
economic growth, social equity and
environment (Bansal, 2002). Aside from
sustainability, Chin, Tat & Sulaiman (2015)
argue that the intersection of the
aforementioned elements is the key for firms
in
achieving
long-term
competitive
advantage and profitability while reducing
environmental risks. From this, Chin, Tat &
Sulaiman (2015) posit the integration of
GSCM in firms in order to leverage their
sustainability performance in terms of the
aforementioned elements. The next section
would examine the effectiveness of supply
chain
management
in
achieving
sustainability.
2.3 Sustainability in Supply
Management/Green
Supply
Management

Chain
Chain

In recent decades, companies in a

wide variety of economic sectors have
incorporated the lean supply chain
management to improve their results and
competitiveness
(Moyano-Fuentes
and
Sacristan-Diaz, 2012). However, with the
governments growing urgency through new
laws and regulations regarding the
environment, companies are now heading
towards integrating their supply chain
management with environmentally sound
decisions and practices. (Srivastava, 2007
and Gordon, 2001).
A study conducted by MartinezJurado and Moyano-Fuentes (2012) focused
on the analysis of incorporating lean supply
chain management with environmental
sustainability. A qualitative analysis of
research was done to provide an extensive
research on Lean Management and

Sustainability and Lean Supply Chain

Management and Sustainability.
As Simpson and Power (2005) has
shown in their study, implementing a lean
supply chain management can greatly
impact the company in an economic level. In
the same sense, a lean supply chain
management is essential in achieving
environmental sustainability across the
supply chain. A lean supply chain
management can impact the environmental
stability of an entity by triggering a longterm relationship with environmental
management practices to reduce pollution
throughout all sages of a products life cycle.
Thus introducing another type of SCM, the
sustainable supply chain management.
A
sustainable
supply
chain
management is defined as the management
of materials, information and capital flows,
and cooperation between companies along
the supply chain. A supply chain merged
with sustainability needs is also called Green
Supply Chain Management (GSCM), and is
now a vital role for companies who are
eager to improve their competitive stance
and performance. Another definition of
GSCM coined by Zhu and Sarkis (2004) is
the integration of environmental thinking
into supply chain management, including
product design, material sourcing and
selection, manufacturing processes, delivery
of the final product to the consumers as well
as end-of-life management of the product
after its useful life. In order to achieve this,
Mason et. al. (2008) states that an integrated
vision is required instead of a focus on
achieving
islands
of
environmental
improvements. One of GSCMs key aspects
is the simultaneous pursuit of improvement
in both economic and environmental
performance throughout the supply chain in
established long term buyer supplier
relationships (Walton et al., 1998; Zhu and
Cote, 2004; Yang et al., 2010).
Caniato et. al. (2010) conducted a
study focusing on the environmental
sustainability of the fashion industrys

supply chains. In this research, the case

study methodology was chosen because it is
an appropriate research approach to describe
and explore new phenomena or to build new
operations management theories (Voss et al.,
2002). Furthermore, case study research has
substantial interpretative advantages despite
its limitations for standardizing and
generalizing findings beyond the boundaries
of the considered empirical research
(Larsson and Lubatkin, 2001). The sample
consists of five case studies split into two
homogenous groups: GIBs and SAFs. GIBs
consists of two US-based clothing
companies operating worldwide and have
been vocal about their efforts in being
environmentally responsible. The second
group, SAFs consists of three small
companies operating in Italian districts that
have identified environmental sustainability
as the key element to compete and to survive
in the market. A semi-structured interview
tool was developed to collect data on key
variables of the research framework
described in the previous section. In their
findings, the researchers have concluded that
larger companies have a tendency to focus
more on their products and process
improvements,
solely
focusing
and
reshaping one part of the supply chain,
either the inbound, the internal or the
outbound. While smaller companies are able
to completely reshape their supply chain,
from both inbound and outbound
perspectives.
Another study by Denham et. al,
(2013) discusses and analyses an
environmental supply chain management for
the seafood industry . The relevant peer
reviewed articles were identified from a
structured keyword search and analyzed by
both supply chain stage (capture and
aquaculture, transport, processing, storage
and retail), and examination of the cleaner
production strategies implemented. Results
found entities along the seafood supply
chain generally worked separately to
improve cleaner production processes and
outputs to grow their own businesses. Whilst
this approach can be beneficial, it ignores

the broader cleaner production potential

benefits gained when applied across multiple
supply chain entities. The most effective
cleaner production strategies for improved
environmental performance in each sector of
the supply chain were identified with the
potential to reduce unnecessary handling,
energy usage, storage costs and waste
production. Due to the industry relying
solely on the freshness of the seafood, the
researchers concluded that in order to ensure
the greatest reduction in environmental
impact, a whole supply chain management
system that incorporates life cycle
assessment (LCA) modelling is a must.
From the aforementioned literatures,
it can be noted that the studies stressed the
importance of integrating sustainable or
green supply chain management systems in
firms in order to achieve sustainability. Most
the literatures that were reviewed deal with
assessing the environmental impacts of
shifting to sustainable supply chain
management system of different firms. For
the next section, the application of green
supply chain management, specific to food
retailing industry, would be discussed.
2.4 Green Supply Chain Management in
Food Retailing Industry
Sustainable market development is
increasingly considered a challenge to be
handled by private sectors thus, companies
are moving into the spotlight of efforts to
promote sustainability in production and
consumption
practices
(European
Commission, 2011). With this, the food
sector cannot escape from its responsibility
for contributing to not only turning their
own operations sustainable, but also
remodelling supply chains and influence
consumers
(Blomback
&
WigrenKristoferson, 2011). However, it is an
important question to know how the retailers
are taking on the challenge to develop the
market for sustainable products and services.
A study conducted by Retail System
Research (2009), it was found out that 48%

of retailers viewed sustainability as a

strategic direction in their business
operations. Retailers such as Wal-mart and
Tesco
have
adopted
environmental
protection practices in managing and
improving their retail operations. Many
literatures have been largely confined to
manufacturing (Zhu et. al., 2011), therefore,
literature on the retail sector lacks a serious
focus.
It is of great importance that
environmentally friendly operations be
practiced and implemented because it leads
to the development of full integration of
economic, environmental, and social values.
Lai et. al. (2010) suggest that retailers
minimize emissions, effluents, and waste
through continuous improvement in their
internal operations, which are called
internal-improvement operations in green
retailing. In essence, we refer to them as
green retail operations (GROs). This means
that retailers should be more focused on
store settings and design, and offering goods
and services to satisfy end customers.
Normally, retailers replenishment
policy is based on demand forecasting that
retailers place an order before the customer
demand and any shortages will become
backorders (Chiang and Feng, 2007). With
this, retailers have sought operational
integration with suppliers to share inventory
data on a real-time basis (Yao et. al., 2007).
This practice not only ensures the optimal
amount of inventory but also mitigates the
environmental damage caused by the waste
of extra inventory stock. Furthermore, some
studies have also examined corporate social
responsibility (CSR) in the retail context
with specific categorizations including
employee compensation, donation, local
sourcing, recyclable materials and energy
conservation, and emissions and waste.
Focusing the scope to environmental
management in organizations, de Brito et. al.
(2008) and Lai et. al. (2010) conducted
studies on sustainable retail chains and green
retailing. Both support the idea that product

and process innovations in retail chains

enhance the competitiveness of firms
through cost reduction, improved reliability,
and enhanced responsiveness to changing
market needs.
Green practices in manufacturing
mainly focus on product development
whereby the raw materials should be less
toxic and can be recycled or reused (Bansal,
2005; Kleindorfer et. al., 2005). However, in
retailing, green practices focuses on the
service improvement through cost-effective
and efficient practices (Lai et. al., 2010).
To further explore this in academic
research, Tang et. al. (2016) studied the
qualitative and quantitative approaches of
green environmental sustainability in retail
operations. They considered two phases of
Green Retailing Operations, green store
operations and green transportation. Green
store operations refer to the operations of
systems in the store that help energy
conservation or waste reduction. Green
transportation, on the other hand, involves
the movement of goods with reduced
materials and energy consumption. It was
found out that reducing resources not only
benefits retail stores but also their suppliers
through an efficient logistic system. In
addition, the empirical results also provided
retailers with concrete actionable references
on how GROs attain the triple bottom line
goal better profit, healthier planet, and
greater benefits to stakeholders. However,
the study was only limited to Hongkong
thus, there is a need to explore whether
particular GROs work well in developing
countries such as the Philippines. Moreover,
it can be noted that the aforementioned
literatures have only established the
relevance of GSCM in the food retailing
industry but little is still known about the
drivers that provoke food retailers in
adopting GSCM practices, and what are the
implications of these practices with regards
to their environmental criteria.
III. Problem Statement

Since there are many wastages in

the supply chain of supermarkets, there is a
need to develop a framework identifying the
possible environmental practices that can be
adopted, their corresponding environmental
implications, the external policies that
influence their use, and their implications to
the customers.
IV. Research Objectives and Framework
4.1 Research Questions
In order to determine the possible
research gaps that the study would like to
address, particularly sustainability of the
food retail industry, such as supermarkets,
through the integration and implementation
of a green supply chain design, an extensive
literature was previously conducted. Given
that the study of a green supply chain design
and management is quite extensive and
complex, there is a need to narrow down the
scope of the study, as well as to only
consider certain aspects of a green supply
chain design and management.
Furthermore, the study will be
patterned to that of Caniato et. al. (2012)
because
they
have
studied
the
implementation of a green supply chain
design, as well as its environmental
sustainability in the fashion industry. In the
study, they presented an exploratory casebased research that targets the determination
of the drivers of these fashion industries to
utilize sustainable supply chain systems, the
practices that were used to develop a more
sustainable business, and the implications of
these practices to the environment and to the
business. However, in this particular study, it
will be focused on the food retail industry,
particularly supermarkets and groceries
because based on the extensive literature
review, little have studied about the drivers,
practices, and implications of these
supermarkets and groceries. As such, there
are three (3) main research questions that the
study would like to address:

RQ1: What are the drivers of these

supermarkets in practicing green supply
chain management?
Research Question 1 would like to
determine the drivers and factors that push
the supermarkets and groceries to pursue
practices regarding green supply chain
management. Liu and Wang (2013) stated
that there have been much external pressure
exerted on the companies, such as increasing
pollution, lack of resources, and demand of
consumers to integrate environmentally
friendly practices into the process, that force
the companies to implement and practice a
green supply chain process. Furthermore, the
study would like to determine if these are
also true for the food retail industry.
RQ2: What are the green supply chain
management practices that are currently
being utilized by the supermarkets?
Research Question 2 would like to
determine the various practices currently
being utilized by the supermarkets. As stated
previously, Scholz et. al. (2015) provided
some waste reduction measures that could
not only decrease the total mass of food
wastage of supermarkets, but also reduce
carbon footprint emissions, although, this
study would like to focus on the green
practices and strategies that are currently
being utilized in the supply chain process of
the supermarket, such as prevention
measures that the supplier takes before
delivering the products to the supermarkets
and grocery stores, up to the disposal
measures of the waste products, such as
packaging material of the grocery stores.
RQ3: What are the environmental impacts
and implications of these practices?
In relation to Research Question 2,
Research Question 3 would like to
determine the impacts and implication of
these practices on the environment, as well
as if there are certain trade-offs that occurred
from
implementing
these
practices.
Furthermore, Scholz et. al. (2015) has

focused on reduction and prevention

measures that decrease total amount of food
wastage and carbon footprint emissions,
with this, the study would also like to
consider other environmental impacts and
implications of the practices that will answer
Research Question 2.
4.2 Research Framework
After
an
extensive
research
regarding the green supply chain
management in food retailing industry, the
following framework was derived. It must
be noted that such framework was adopted
from Caniato et al. (2012), who applied the
same framework in studying GSCM in the
fashion industry. Specifically, the drivers in
this framework can be defined as (1)
external drivers such as existing regulations
and customer-related policies, (2) internal
drivers or management driven policies and
efficiency targets. Likewise, green practices
in this model can be dissected into the green
practices considered in the process of
acquisition of raw materials, packaging and
distribution
of
products.
Lastly,
environmental criteria refer to the targets
that the firms aim to improve or achieve
through the adoption of the green practices
in supply chain.

Figure 4.1. Research Framework

V. Methodology
5.1 Review of Related Literature
The main approach of this study will
be purely based on past literature and will be
conducting extensive literature review
pertaining to the main topic. Furthermore,

the methods of this study was adapted from

the study of Denham et. al. (2015), which
studies past, present, and future approaches
of green supply chain management in the
seafood industry. Subsequently, an extensive
search was used in the following databases:
Google Scholar and ScienceDirect using the
following keywords: sustainability, green
design, supply chain management, food
retail
industry,
grocery
stores,
supermarkets,
environmental
sustainability, lean management, and
green supply chain. In order to ensure an
effective and credible study, there are certain
criteria that the researchers used in
evaluating the sources used in the study.
Criteria 1: Scientific research from the last
ten years
The study considered sources and
relevant literature from ten years ago (2006 2016) to ensure that there may be a wide
range of past literature the study can adapt
theories and concepts from. Furthermore,
this will allow the study to compare the
results obtained from the various sources, as
well as to observe the different changes of
the results over time.
Criteria 2: Application of green supply
chain management in service industry
Although the study focuses on the
food retail industry, such as the
supermarkets and grocery stores, it also
considers sources that study other service
industries such as the fashion industry
(Caniato et. al., 2012), seafood industry
(Denham et. al., 2015), as well as
manufacturing industries such as a sugar
refinery plant (Liu & Wang, 2013). These
sources were considered in the study to
allow comparison of the different green
supply chain approaches in the respective
industries,
as
well
as
possible
recommendations that the study could adapt
and analyze if it could also be applicable to
the food retail industry.

Criteria 3: Proposed studies benefit to the

unique features of the scientific
environment (i.e. sustainability through
green supply chain design)
The study should be an avenue to
provide better understanding on the
implications of green supply chain
management that will discuss about the
drivers, green practices, and environmental
criteria in the sustainability of food retailing
industry.
5.2 Validation
Framework

of

Conceptual

In order to validate the conceptual

framework adapted in the study, a particular
supermarket was chosen to gather insights
and opinion from the Store Manager, Mr.
Ronnie Conde. Moreover, a personal
interview was conducted through the series
of questions formulated to achieve a better
understanding
of
the
management
perception toward the implementation and
the effectiveness of the conceptual
framework developed in this research.
1. By identifying the drivers and
factors that influence supermarkets
to pursue green design supply chain
management and through the
implementation of green practices in
the supply chain, will consumers be
encouraged to follow these practices
at home?
2. Can the green practices sustain the
supermarkets such that food wastes
will be reduced, which will greatly
impact the environment?

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