Building green supply chain management in pharmaceutical companies in Indonesia

Abstract

This study aims to analyze the contribution of Green Manufacturing and Green Distribution on improving the performance of Green Supply Chain Management (GSCM) through Reverse Logistics. The development of industry and increasing consumer concern for the environment as well as issues regarding the concept of an environmentally sound industry have forced industries to adjust in line with the GSCM concept. To make the program a success, Green Manufacturing, Green Distribution, and Reverse Logistics are assumed to be supporting the implementation process. This study uses quantitative methods, with the number of samples taken randomly as many as 70 people. The analysis was carried out using the Path Analysis method. Hypothesis testing was carried out in two stages, namely Structural Model-1 and Structural Model-2 testing to obtain each path coefficient number. The results of the study conclude that there is the contribution of Green Manufacturing, Green Distribution, and Reverse Logistics on the success of GSM implementation so that companies must always pay attention to the facilities and related policies to improve the performance of those variables.