The barriers affecting green logistics in the South African pharmaceutical Industry: a case study of CIPLA, South Africa.

Abstract

The pharmaceutical industry is one of the most significant contributors to environmental degradation globally but also an essential contributor to the well-being of people. Organisations and humanity are dependent on this life-giving industry even though it impacts the environment negatively in various ways. This has driven pharmaceutical organisations, governments and international bodies to probe into methods of incorporating sustainable development within the sector, which has driven the establishment of green supply chain management (GSCM) and, subsequently, green logistics. The identification of the barriers impacting GSCM and green logistics is critical to the promotion of this sustainable initiative within the pharmaceutical sector in South Africa. The purpose of this study was to critically examine the barriers affecting green logistics in the South African pharmaceutical industry by using a case study at CIPLA Medpro Manufacturing. The significance of this study is to bridge the knowledge gap on the barriers impacting green logistics within a South African context. The study population comprised of thirty Logistics Department staff members at CIPLA Medpro Manufacturing. This study used a mixed methods approach through the analysis of both quantitative and qualitative data. Existing literature was reviewed, face-to-face and online surveys were conducted with employees and a key informant interview was undertaken in 2021. The key informant was the logistics manager who was purposively chosen. All thirty staff members responded to the survey, and the data was analysed using the Statistical Package for the Social Sciences (SPSS) software. In relation to the objectives, the study findings show that CIPLA Medpro Manufacturing is currently involved with GSCM practices such as the recycling of water and paper, reverse logistics, use of reusable materials, incineration of hazardous materials, sludging of hazardous waste, shredding of waste packaging materials and the reduction of electricity usage. It was also identified that logistics staff members did not perceive environmental issues such as climate change as being the most important factor impacting society but did identify environmental concerns as one of the top five factors impacting business. It was also highlighted that a number of staff members did not have a comprehensive understanding of climate change or the environmental strategies employed by CIPLA Medpro Manufacturing. The most significant external barriers impacting green logistics and GSCM at CIPLA Medpro Manufacturing were a lack of government support, a lack of awareness by society, a lack of knowledge and experience by suppliers and pressure for lower prices of products. The most significant internal barriers to green logistics at CIPLA Medpro Manufacturing were the high costs associated with the adoption of green logistics and GSCM initiatives, lack of training on green logistics initiatives, a lack of understanding to incorporate green buying and a lack of skilled human resources to implement GSCM initiatives. It was determined that CIPLA Medpro Manufacturing did not have sufficient countermeasures in place to combat the internal and external barriers impacting green logistics and GSCM at CIPLA Medpro Manufacturing as it was not a core competency, according to the key informant and survey respondents. A recurring theme identified within the study was a lack of awareness and knowledge of GSCM and green logistics, which impacted respondents’ responses. This research identified that knowledge, awareness and training are significant barriers to GSCM and green logistics within a South African context. Based on the findings of the study, pharmaceutical organisations should prioritise the training of staff to ensure that they can effectively implement and maintain these sustainable initiatives and identify risks and barriers. Hence, the recommendations that were made in this study are to incorporate a three-phase training system that would improve employee knowledge and capacitate them to be able to successfully implement GSCM and green logistics initiatives. It was also recommended that CIPLA Medpro Manufacturing focus on developing a culture that fosters the support of GSCM and green logistics initiatives and creates an alignment between GSCM initiatives and government incentives. These recommendations can be extended to other corporations as well, to transition enterprises to embrace green logistics that support sustainability and corporate responsibility to protect the environment while responding to socio-economic demands.