Sustainability in Food Retail Industry through Reverse Logistics

The food retail sector is known for its supply chain dependency. The delicate nature of its products emphasizes smooth movement of forward supply chain. The size of this industry however results in clogging of its supply chain from backward movement of packaging and food materials. The management of these products required adaptation of the supply chain to returns and waste management. This resulted in development of reverse logistics process, which has been successfully accepted by industries across the globe. Studies on reverse logistics adoption across global industries and its complete immersion into global supply chains have been widely conducted. The situation of research on reverse logistics adoption in Malaysian food retail industry is however restricted. The limited number of studies conducted on recent developments in Malaysian food retail industry and reverse logistics indicate a major gap in sustainable logistics studies. Considering the importance given to green movement by the government of Malaysia, it is necessary to understand this sustainable logistics practices. This study aims to investigate the level of reverse logistics adoption by retailers in Malaysia. The results highlight present scenario of reverse logistics processes of return and waste management, determinants to reverse logistics adoption, benefits obtained by retailers from reverse logistics and barriers to adoption of reverse logistics. The indifference of consumers to greening of retail operations acts as a major inhibitor to adoption of reverse practices by retailers. This study could be used as a precursor for further detailed studies on this issue

Sustainability practices in Malaysian grocery retail industry

Malaysia is in the midst of a nationwide green movement to combat the environmental problems plaguing the nation. Water pollution, air pollution, deforestation, soil and coastal erosion, overfishing, and solid waste mismanagement are some of the many problems faced by the nation. However, solid waste mismanagement has become a major environmental issue of concern to the government. Overflowing capacity of landfills, limited recycling centers, poor waste collection system, and weak policies on waste management elevate the seriousness of this situation. The Malaysian government‟s solution to this problem is shifting from depending solely on environmental policies to preventive steps for calculation and management of pollution,through holistic focus on introducing sustainability and 3R (reduce, reuse, recycle) campaigns to businesses and consumers. With the changing governmental stand towards environmental conservation, industries can no longer avoid getting into sustainability practices for their operations. The grocery retail is one of the largest service industries in Malaysia, and also a major contributor to environmental pollution in the nation. The environmental effects from retail operations in this industry includes solid waste generation, energy use, water pollution, and air pollution. However, the grocery retail industry is in a unique position to also green its services. Retailers can effectively implement sustainability along upstream and downstream ends of supply chain. They are widely recognized as changeagents for introducing sustainability into supply chains. The retail stores can play a role in reducing food wastage, implementing better waste management practices, promotion of green products, while introducing more sustainability practices into the food supply chain. Thereby, it is imperative to understand sustainability as practiced in this industry. However, the Malaysian grocery retail industry is heavily fragmented, with 56% provision stores, 43% hypermarkets and supermarkets, and 1% convenience stores. This fragmentation makes monitoring of sustainability both difficult and critical for sustainable development in the industry. It is essential to identify the practices that retail formats identify as sustainable, and to evaluate their level of sustainability based on its implementation. Specifically, the implementation of reverse logistics in the Malaysian retail industry needs to be evaluated, due to its contribution to waste management among other benefits. Since business decisions on change often depends on value added benefits, the evaluation of contribution of sustainability to firm performance is critical for sustainable development. A study on mediation is critical to study the effect of intervening variables on sustainability implementation. The verification of such an effect could be used by regulatory bodies for policy development and evaluation. The large concentration of provision stores in this industry (56%), followed by wide spread distribution across the nation makes it a critical agent to sustainable development in the industry. Also, the government‟s focus on Program Transformasi Kedai Runcit or Small Retailer Transformation Program (TUKAR) makes information on sustainability in provision stores critical. However, such studies on sustainability, focused across retail formats in the Malaysian grocery retail industry are limited. Especially since the grocery retail industry is fragmented, information on sustainability as understood and practiced by all the major retail formats is required to summarize on sustainability in the retail industry. The current research was carried out to study the sustainability as implemented in this industry. A post-positivist approach was adopted in the study, incorporating the Stakeholder Theory to confirm the predictors to sustainability implementation in stores. The level of sustainability across retail formats were categorized using the Three Tiers Ranking System. Descriptive statistics was used to categorize the level of sustainability, environmental concern of retailers, and reverse logistics in stores. The influencers to sustainability implementation were identified across stakeholder pressure, CSR, economic, and environmental factors, and barriers that hinder sustainability in business. Mean ranking, confirmatory factor analysis (CFA), and mediation were used to evaluate and interpret all possible effects of these factors to eco-friendly and reverse logistics implementation in retail stores. The contributions of eco-friendly and reverse logistics to firm performance were evaluated for managerial implications using importance-performance matrix analysis (IPMA). The associative relationship between firmographic characteristics of retail stores and sustainability implementation across the formats were tested using chi-square analysis. Mediation analysis using bootstrapping method was used to estimate the effects of intervening variables to reverse logistics implementation and firm performance. Content analysis was used to verify the factors found significant to sustainability implementation in provision stores. The study interviewed 375 respondents using a structured questionnaire to understand sustainability in the industry. The respondent stores included representatives from the four major retail formats, namely provision stores, supermarkets, hypermarkets, and convenience stores. The stores identified waste management issues, water crisis, and energy crisis to influence their store operations. Majority of the stores were found to be unfamiliar with the Malaysian government‟s Solid Waste and Public Cleansing Management Act 2007 (SWPCMA 2007), though 3R campaigns were familiar to them. Product take-back policy was adopted by majority of the retailers, mainly as per supplier instructions for returns. The study showed that Tier 1 eco-friendly practices like reducing energy consumption and energy saving activities were mainly followed by the retail formats. The green practices of local supplier support, green consumer research, and promotion of green products in stores were found to be highly practiced by hypermarkets, and supermarkets. Hypermarkets were the major practitioners of Tier 3 sustainability practices, followed by convenience stores. The firmographic characteristics of store location, years of store operation, and annual sales were found to influence the implementation of sustainability in the retail industry. The predictors CSR and barriers to implementation were found to significantly influence the implementation of Tier 1 sustainability practices in retail stores. The predictors CSR, barriers, stakeholder pressure, and implementation of Tier 1 sustainability practices were found to significantly influence the implementation of reverse logistics practices by retail stores. The implementation of Tier 1 practices was found to contribute more to the firm performance. However, the implementation of reverse logistics practices were found to reduce the effect of Tier 1 practices to the firm performance. This could be because of increased resource commitment required for execution of the reverse logistics operations at the retail end of the supply chain. Since Tier 1 practices were found important to the firm performance, the implementation of reverse logistics could be considered a hindrance. But, it was found that reverse logistics contributed greatly to operational firm performance. Also, the implementation of Tier 1 practices was found to reduce the pressure on retailers to turn sustainable. This could be due to the familiarity among stakeholders on Tier 1 practices and its implications over reverse logistics. Therefore, in order to ensure reverse logistics implementation, the government has to develop specific policies for implementation of reverse logistics by grocery retail stores. Content analysis revealed governmental, competitor, NGO pressures, and barriers to significantly influence the implementation of sustainability in provision stores. Provision stores focused on competitor practices to retain their markets, to meet consumer needs, and as temporary experts for sustainability adoption. Government played the most important role in influencing the implementation of reverse logistics practices in the provision stores. Therefore, the government could turn the provision stores green with stricter policies and economic incentives. The study conducted a detailed evaluation of sustainability as implemented across retail formats. All possible interactions between interacting variables provided an insight into the relationship between intervening variables and their influence on sustainability. These observations could be used by regulatory bodies and top management for policy development. The Three Tier Ranking System used in this study could be used by other agencies to monitor the level of sustainability across retail formats. The academicians could use this study as a base for confirmation based and post-positivist research, and pave the way for extensive sustainability studies in the food sector. In the long run, the combination of increased academic awareness and specific policies could pave the way for voluntary practices and a greener, cleaner, and healthier Malaysia

Three tiers of sustainability measurement in the grocery retail industry

The global trend on sustainability has pushed firms to incorporate corporate sustainability into their business operations. This has led to extensive research on sustainability indicators and its application by consultancy firms, organizations, and academicians. However, the primal focus on such studies have always been industries of developed economics with dominating modern formats. This leaves behind the fragmented industries of developing and underdeveloped economies. With globalization and trade policies, such emerging economies are now turning towards sustainability implementation for universal acceptance and sustainable development. It is now imperative for the sustainability researchers to focus on such economies, with their fragmented markets. This chapter gives a summarized view on corporate sustainability and its measurement, highlighting its prevailing limitations for applicability in the fragmented grocery retail industry. Furthermore, the need for a simplified and interpretive evaluation system, for measurement of sustainability across retail formats is discussed. Henceforth, the chapter introduces the Three Tiers Sustainability Ranking System as a possible alternative for sustainability measurement in firms. The Three Tiers Ranking System could be considered as a solution to the wide spread dilemma of sustainability measurement, and performance evaluation based on implementation of practices by the formats. The applicability of the Three Tiers Ranking System, based on similar research paradigms has also been provided for comparative evaluation of the system. This could be the necessary impetus for governments, consultancy firms, and academicians to turn their focus towards sustainable development of fragmented industries

Strategic value creation in a supply chain

This chapter is designed to give the readers a concise understanding of supply chain strategies and the process involved in its formation. It is a background study on the changing role of supply chain in gaining competitive advantage for the firm. The chapter discusses on traceability and integration along a supply chain, its inception and the advantages to the corporate world through its implementation. The chapter focuses on the topic of value creation in a supply chain through strategic management decisions like vertical and horizontal integration. The value chain analysis model for competitive advantage is covered in this chapter. A discussion on the differences between vertical and horizontal integration systems and the best strategic decision among them is provided. The concepts of sustainable supply chain integration, traceability, and the limitations to their implementation have also been discussed. The best examples on practitioners of supply chain strategy and integration are provided along the chapter

An empirical view of knowledge management

This chapter is a comprehensive investigative documentary on knowledge management (KM). It was extensively cover past researches done on knowledge management, exposing its varied dimensions to readers as well as guide the readers through its role in research, business, and daily life. The chapter was well discussed about knowledge, knowledge management and knowledge management systems. It also address the Nonaka's Knowledge Management Model or known as SECI modal in order the readers can understand the knowledge creation process

Will consumers purchase Stevia as a sugar substitute?: an exploratory study on consumer acceptance

Stevia rebaudiana Bertoni, commonly known as Stevia, is an ancient sweet herb native to Paraguay. The plant, especially the leaves, has a sweetening effect 300 times sweeter than saccharose. Malaysia has taken a particular interest in promotion of Stevia derivatives as a precautionary measure to combat chronic diseases. This study aims to investigate factors that influence the acceptance of Stevia-based products by consumers. Face-to-face interviews were conducted using a structured questionnaire with 900 consumers from Klang Valley areas. The results revealed that most of the respondents were willing to use Stevia-based products as a substitute for sugar. There was also a significant relationship between level of education and consumer’s willingness to change for Stevia-based products. Health benefits, promotion, availability, and price were found to be the most influential factors toward acceptance of Stevia-based products by consumers. An effective promotion is necessary to increase consumer’s awareness toward a more healthy diet

Sustainability: a comprehensive literature

Sustainability has become vital aspects for today's world and the future to come. Various definition of sustainability have added to the confusion with respect to sustainability in people's mind and in the organizations. A collection of different sustainability frameworks, indicators and tools have provided important insights about the outcomes of the sustainability process and in providing analytical and logical designs for sustainability. However, implementing sustainable practices has been overlooked by the majority of the organizations. Identifying the challenges and integrating with the tools in the form of indicators, assessment, and strategies will be a good start for an organization to be sustainable. The organizations that develop and implement sustainable practices are recognized as a success in sustainability. This chapter aims to provide an outline for sustainability with strategies, assessment, indicators, and application for better products and create and maintain business and customer value

Sustainability in food retail industry through reverse logistics

The food retail sector is known for its supply chain dependency. The delicate nature of its products emphasizes smooth movement of forward supply chain. The size of this industry however results in clogging of its supply chain from backward movement of packaging and food materials. The management of these products required adaptation of the supply chain to returns and waste management. This resulted in development of reverse logistics process, which has been successfully accepted by industries across the globe. Studies on reverse logistics adoption across global industries and its complete immersion into global supply chains have been widely conducted. The situation of research on reverse logistics adoption in Malaysian food retail industry is however restricted. The limited number of studies conducted on recent developments in Malaysian food retail industry and reverse logistics indicate a major gap in sustainable logistics studies. Considering the importance given to green movement by the government of Malaysia, it is necessary to understand this sustainable logistics practices. This study aims to investigate the level of reverse logistics adoption by retailers in Malaysia. The results highlight present scenario of reverse logistics processes of return and waste management, determinants to reverse logistics adoption, benefits obtained by retailers from reverse logistics and barriers to adoption of reverse logistics. The indifference of consumers to greening of retail operations acts as a major inhibitor to adoption of reverse practices by retailers. This study could be used as a precursor for further detailed studies on this issue

Reverse logistics by food retailers in Klang Valley, Malaysia

Perishability of products is one of the most important challenges faced by food supply chains worldwide. The delicate nature of its business thereby stress on smooth movement of the forward supply chain. This does not, however prevent the backward movement of food materials. The backward management of these materials requires adoption of efficient reverse logistics practices. Although reverse logistics is widely studied across industries by researchers, information on reverse logistics in the Malaysian food retail industry is limited. The limited number of studies conducted on recent developments in the industry and reverse logistics indicate a major gap in sustainability logistics studies. Considering the importance given to green movement by the government of Malaysia, it is necessary to understand this sustainable logistics process. This study aims to investigate reverse logistics adoption by retailers in Klang Valley, Malaysia. Klang Valley had been selected as area of study due to its high retail format population, which supports multi-format retail study including grocery stores, convenience stores, supermarkets, and hypermarkets. The results highlight benefits perceived by retailers from reverse logistics and barriers to adopt reverse logistics. Consumers’ unconcern towards greening of retail store operations act as a major inhibitor to adoption of reverse practices by retailers. This study could be used as a precursor for further detailed studies on this issue

Stability and utility of flow cytometric platelet activation tests: A modality to bridge the gap between diagnostic demand and supply

Light transmission aggregometry (LTA) is the gold standard for the diagnosis of platelet function disorders (PFDs). The requirement of customized aggregometer, large blood volume, normal platelet count and processing within 4 hours of venipuncture for LTA makes platelet function testing inaccessible to wider population. Flow cytometric platelet activation test (PACT) may overcome these limitations. This study compares the performance of PACT with LTA, characterizes diagnostic patterns of PFDs on PACT and assesses the stability of PACT beyond 4 hours of venipuncture in controls (n = 5) at different temperature conditions. LTA and PACT were performed in 121 healthy controls and 66 patients with suspected PFD. PACT had excellent agreement (kappa = 0.93) with LTA and 94.1% sensitivity, 98.5% specificity. PACT had distinct patterns in Bernard Soulier Syndrome (n = 10), Glanzmann Thrombasthenia (n = 24), δ-granule disorder (n = 7), and other PFDs (n = 12). PACT could assess platelet function in patients (14%) with thrombocytopenia/lipemia wherein LTA was inconclusive. PACT was stable up to 24 hours in samples stored/transported at 2–8◦C. The results of utility and stability are only valid for the specific markers, agonist concentrations, and conditions investigated in this paper. PACT is a useful modality for the diagnosis of PFD, especially in children, thrombocytopenia cases or in the setup where an aggregometer is not readily available