The implementation of
sustainable supply chain practices is going to be a vital component for
business operations going by consumer expectations about the bread
manufacturing sector of Ireland. Consumers want to know where the raw materials
are sourced, how they are being used and the channels distributions (Magan, 2018). Most bread
consumers are also interested in business operations that help conserve the
environment and ensure the wellbeing of the consumers and the society in
general (Keena, 2018).While consumers’ interests in sustainable
operations of bread manufacturers is apparent, the stance of the bread
manufacturers is not known. The use of green procurement and other sustainable
supply chain practices within the bread manufacturing sector is vague. Thus, it
would be worthwhile to discover whether green procurement is a common practice
within the sector as well as the barriers and enablers of implementing green
procurement in the bread manufacturing sector.
This is significant
because green procurement will be one of the key operational features that
shows responsible business operations among bread manufacturers and one that
will leverage some businesses over others when it comes to gaining consumer’s
trust.
The bread
manufacturing sector revenues as shown in Appendix
A reveals that it has experienced both declines and improvements and as
shown in the previous section, certain external factor such as consumer needs,
inflation rate and future projections influence how the sector performs.
However, the common theme when it comes to consumer needs and future projects
is the significance of a transparent supply chain process. The consumers want
to know how the ingredients are sourced and how the supply chain impacts the
environment as well as the adaptation of more sustainable practices to reduce
wastage and plastic packaging. This shows that there is a high level of
consciousness about business operations, sustainability and environmental
conservation. It can be assumed that in the future, businesses will be rated
based on how they operate, that is, implement responsible practices that ensure
the welfare of the consumer and environment as well as the firm’s economic
sustenance – in other words, the triple bottom line.
1.3
Purpose of the study of an evaluation of the implementation of green
procurement Bakery Sector in Ireland
This
study was significant for two reasons; foremost it helped fulfill a research
gap about the application of green procurement in the bread manufacturing
sector of Ireland. This is because there were no studies evaluating green
procurement application in the bread manufacturing sector of Ireland to the
best of my knowledge. The preliminary studies focused on the manufacturing and
construction sectors. Very few studies explored the application of green
procurement in the public and private sectors in Ireland – and it became
obvious that green procurement is largely applied in the public sector.
Therefore, this study will contribute knowledge to the field of green
procurement within the bread manufacturing sector of Ireland.
Secondly,
the study has implications for the bread manufacturers of Ireland as regards to
the adaption of sustainable operations – supply chain process – efficiency and economic
improvement. Even though the revenue margins of the bread manufacturing sector
in Ireland has increased and remained stable in recent years, the bread sector
is facing intense competition both locally and internationally due to several
factors such as entry of foreign players, lack of innovation for product
development, quality provision and insufficient business training in the bakery
field.
This
study assessed the bread manufacturers in Ireland to determine whether it
applies green procurement so as to determine the barriers and improve on them.
The supply chain within this sector was also evaluated because it deals with a
sensitive commodity that has stringent legislative directives. The role of the
stakeholders directly affected by the operations of the baker sector such as
consumers and suppliers was also assessed to determine their needs and
expectations, which has a bearing on the economic performance of the sector in
the future.
The
concept of green procurement is relatively new and hence, this study analyses
its application in the private and public sectors of Ireland to determine whether
its application is feasible in the bread manufacturing sector. This is because
several factors influence the application of green procurement such as the
existence of clear regulatory guidelines as well as understanding and awareness
of the use of green procurement. As regards to the implementation of green
procurement within the bread manufacturing sector, the idea was to determine
how the integration of green procurement can help streamline the sector,
improve productivity and efficiency, and eliminate wastage.
1.4
Research questions of an evaluation of the implementation of green
procurement Bakery Sector in Ireland
The research questions that guided this study were
drawn from the implementation or lack of implementation of green procurement
within the bread manufacturing sector of Ireland and the possible outcomes of
implementing green procurement. The questions were also drawn from the
situations influencing the use of green procurement in the bread manufacturing
sector, for instance, the enablers and obstacles as well as consumer perception
about the use of green procurement.
Main
question of an evaluation of the implementation of
green procurement Bakery Sector in Ireland
1) Would
green procurement help improve the economic stance, efficient and sustainable
production in Ireland’s bakery sector?
Sub-questions of an evaluation of the implementation of
green procurement Bakery Sector in Ireland
1) Would the
integration of green procurement in a bakery business woo consumers?
2) What are
the enablers and barriers of integrating green procurement in a business
operation?
3) Why is
green procurement concept significant for the bakery sector?
4) What is
the state of green procurement in Ireland’s public and private sectors?
1.5
Study implications of an evaluation of the implementation of green
procurement Bakery Sector in Ireland
This study has implications for bread manufacturers in
Ireland when it comes to integrating responsible and sustainable business
practices that have ripple effects for the business in terms of economic gain,
customer loyalty, and sustainable reputation, elimination of wastage, and
environment conservation as well as cost reduction. The following are
considered key implications for bread manufacturers.
Adaption and implementation of a sustainable
procurement model of an evaluation of the implementation of green
procurement Bakery Sector in Ireland
Preliminary studies show that green procurement is
effective for eliminating waste, reducing cost, and ensuring quality provision
from suppliers and for consumers (Bag, 2017; Lehtinen, 2012). The findings of
this study will provide bread manufacturers with insight about the significance
of integrating a robust procurement process or green purchasing process in
place. Bag (2017) notes that even without taking into account the issue of
sustainability, the green procurement process will inevitably help reduce costs
and attain a more sustainable procurement model. This will occur through
supplier consolidation, replacement of paper-based payment, use of recyclable
materials, use of quality raw-materials sourced from suppliers who adhere to
relevant and pertinent environmental regulations concerning food supply chain,
streamlined electronic procedures –all of which can help attain instantaneous
economic benefits (Bag, 2017).
Moreover, with a sustainable green procurement and
supply chain in place, bread manufacturers can begin to investigate other
opportunities for enhancing sustainability, for instance, supplier and customer
reviews. This can be done through a survey process using questionnaires to
request information about packaging policies, delivery methods and the use of
relevant green accreditations. Furthermore, selecting the most sustainable
suppliers and working them creates an opportunity to renegotiate contracts with
suppliers to create more opportunities for costs savings (Beer & Lemmer, 2011). According to
Zalwango (2013), the green procurement is also designed to collect data and
information that can be analyzed to evaluate ways to improve and
decision-making process. For instance, information that can be sourced from the
green procurement process include trends in purchasing behaviour such as a
decline in orders or delivery numbers and this can be used to determine other
stakeholders’ interests.
Reputation of an evaluation of
the implementation of green procurement Bakery Sector in Ireland
Gaining a reputation for environmental consideration
and application of sustainable supply chain can be good for business when a
firm wants to have loyal customers – this can improve sales and profits.
However, the dilemma for meeting shareholders profits, reducing cost and
stakeholders’ interests has persisted for most firms in most sectors. However,
very few bread manufacturers in Ireland manage public companies as most of the
bread companies are liability companies or run by sole proprietors. According
to Coughlan (2015), the goal of most bread manufacturers in Ireland is growing
the business and for this to happen, the sales and profits need to increase.
Reducing the cost of operation would help with increasing the profit margins.
Green procurement model can help bread manufacturers source reliable and
quality-driven suppliers as well as save cost by sourcing green and efficient
services such as renewable energy and recyclable materials.
Not only will such operation ensure sustainability in
the long-run, but improve the firm’s image among conscious consumers. Keena
(2018)notes that in an era of real-time social networking global communication,
perceptions of poor business operations can have immediate and in some cases,
permanent impact on reputation and revenues. It is, however, worth noting that
rather than basing decisions mostly on price, quality and time, green
procurement takes into account the whole life cost of products and the likely
benefits or impacts to the firm, community and economy, while reducing the harm
to the environment.
Financial savings of an evaluation of
the implementation of green procurement Bakery Sector in Ireland
Green procurement can influence a firm’s bottom line
because multiple environmentally-acceptable products are competitive in terms
of quality, while costing the same or even less than traditional substitutes (Bag, 2017). In addition, most
green products use less energy, water, fuel and other resources that lead to
extra saving. Given that environmentally-acceptable products and services are
designed to produce minimal to no waste, they help decrease or eradicate the
cost of waste and other hazardous materials (Keena, 2018). As mentioned earlier, cost
reduction creates opportunities for savings and profits. Gormly (2014) study
had found that one of the reasons why green procurement isnot popular despite
its varied benefits is because it is assumed to increase the cost of business
due to a wide misconception that green products and services are expensive. His
study found that firms that use green procurement use less energy as they
mostly use renewable energy (that may be expensive to integrate initially, but
cheaper to use in the long-term), generate less waste that can be expensive to
rid, use recyclable materials, and use quality products that are better that
their toxic substitutes (Gormly, 2014). Therefore, green procurement can help cut the
following costs: operational costs, disposal costs, repair and replacement
costs, and health and safety costs.
1.6
Hypothesis of an evaluation of the implementation of green
procurement Bakery Sector in Ireland
This study applies
quantitative study and as such hypothesis testing is an essential procedure in
statistics. The proposed hypothesis for this study is the alternative
hypothesis (HA):
“If individual bread
manufacturers implement green procurement, then they will engage in sustainable
operations that improve their economic stance”
This hypothesis
evaluates two mutually exclusive statements about bread manufacturers to
establish which statement is best supported by the sample data. These two
statements also happen to be two variables, independent (economic stance) and
dependent variable (use of green procurement). The hypothesis is testable and
falsifiable. The null hypothesis (H0) in this case is:
“If individual bread
manufacturers implement green procurement, then they will not engage in
sustainable operations that improve their economic stance”