The Effect of Green Supply Chain Practices on Operational Performance: Bench-marking between Shell and Co-operation Petroleum Company in Egypt

Document Type: Research Paper

Author

Department of Foreign Trade Logistics, International Transport and Logistics Institute for Postgraduates Studies, Arab Academy For Science, Technology, and Maritime Transport, Cairo, Egypt

Abstract

This study aimed to determine the applicability to which green supply chain practices employed by Shell and Co-operation Petroleum Company in Egypt. Additionally, the impact of Green Supply Chain practices on the operational performance of each company. The results, based on benchmarking, were statistically analyzed by Fischer analysis. Concerning the company's practices of green procurement, the results revealed highly significant differences (p<0.0001) in requiring Suppliers to have ISO 14001, purchasing materials that contain green attributes, suppliers on specific environmental criteria and procure products that are made using recycled packages between both companies.
Concerning the company's green manufacturing practices, the results revealed highly significance differences (p<0.0001) in produce products that have packages, use life cycle assessment to evaluate environmental load, replacing hazardous substances with that are environmentally friendly, minimize the use of materials in packaging, encourage reuse of products and recycled materials, reducing the size of packaging, and cooperating with suppliers to standardize packaging between the both company. Concerning the company's practices of reverse logistics, the results revealed highly significant differences (p<0.0001) in dealing with disposal, processing returned merchandise, and repackaging product. Concerning the Company's operational performance with respect to the implementation of green supply chain practices the results revealed highly significant differences (p<0.0001) in quality, safety, delivery, and flexibility between Shell and Co-op companies. The work illustrated that green supply chain practices have a profound effect on the operational performance in Shell Company making it number one in the lubricant industry in Egypt.

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