EVALUATING THE GREEN SUPPLY CHAIN MANAGEMENT OF ELECTRONICS
AND COMPONENTS MANUFACTURERS IN VIETNAM BY USING THE AHP MODEL
• NGUYEN TH IDUONG - LE KE Due
ABSTRACT:
Thisstudy is to evaluatethe green supplychain management (GSCM) in Vietnam’s electronic components manufacturing industry. In thisstudy,electronics and components manufacturers in Vietnam are selected as research samples. GSCM measurements are examined in terms of design, production andmanagement perspectives. Data which is collected from electronics and components manufacturers in Vietnam via questionnaires isused toevaluate the weightof GSCM measures. In this study, the importanceof GSCMmeasures in environment is assessedbyusing the analytic hierarchy processwiththe Saaty’sscale.
Keywords: green supply chain management, analytic hierarchy process (AHP), electronic componentsmanufacturing industry.
1. Introduction
Vietnam's electronic components manufacturing industry has grown rapidly over the
years and played an increasingly important role in
the industrial production and export of the economy. According to calculations from enterprise survey data in 2019, there were about 2,319 enterprises doing business in theelectronics industry with an average size of about 371 employees/enterprises, a high level compared to other industries. In the period 2016 - 2020, Vietnam's electronics industry experienced a strong development, foreign direct investment projects in the electronics field increased, many major electronics firms in the world hadinvested in buildingconstruction and factories in Vietnam such asSamsung,LG, and Foxconn [1].
In the period from 2016 to 2020, the import
export proportion of electronic goods and electronic components increased significantly. In 2020, the total export turnover of electronicgoods and electronic components accounted for about 45% of the country's export turnover. Meanwhile, imports of electronic products and components accountfor about 43%of thecountry'stotal import turnover.
Import and export turnover of electronic products and electronic components between the EU and Vietnam tends to increase in the period 2016 - 2020.However, the share of these products in the total export turnoverofVietnam to the EU has gradually decreased.The main reason wasthe rising international awaraness of environmental issues. Therehave been many relevantlegislations
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in the international arena,and Europe hasrecently formulated strict relevant regulations (such as WEEE and RoHS) for green products. Product recycling and restrictions on the use of hazardous substances are well documented. Environmental issues are also rapidly having a great impact on supply chain management.
Selling products to the European market, suppliers are also affected because they must provide green products or green processes. The construction of a green supplychain has becomea major challenge and trend in providing green products and moving towards a sustainable society. GSCM requires that suppliers of components or raw materials must consider sustainabledevelopment in addition to theexisting management mechanism. Thus,this research aims to evaluate thegreensupply chain management of some top electronicmanufacturing companies in Vietnam.
With the rising of environmentalprotection and sustainability, firms have to adopt greenprectices and reduces the negative environmental effect, specialy manufacturing firms which cause a lot of problems to the environment. However, green supply chain management is still is new concept and it requiesmutiplecriteria to evaluate. The most challeging step in GSCM is to develop a set of criteria that are suitable for evaluating the green practices of diffferentfirms.
In this section, webriefly discussseveral multi criteria decision making analysis (MCDA) applications in theenvironment, particularly in the subject of GSCM. Problems, success criteria, performancemetrics, and barriersconnected to the adoption and development of GSCM as a sustainable research topic were addressed in the majority of those applications. According to Huang etal. (2011) [2], the diverse applications of MCDA inthe environmental fieldhave seen considerable changes from 1990to 2010.
The study of Muralidhar (2012) [3] applied AHP in evaluating the green supply chain management stategies of manufacturing industry based on 16 different criteria in which these 16
criteria were devided into 4 groups. The first group evaluated the green procurement with 4 cretia (Green logistics, Lead time, Cost of material and Fufillment of order). The second group was green manufacture with 4 criteria (information sharing, production schedule, back upsystem and quality level). The third group was about customerservive such as technical support, re-design, complaint response time andshortaage frequency. An the last group focused on environmental management with 4 evaluating criteria (raw material, resource recovery, reccycle of waste and emission).
Dey and Cheffi, (2013) [4] measured and compared the green supply chain performance of different manufacturing companies by applying AHP. In their study, the authors used threecriteria to measure the environmental practice (environmental planning, environmental auditing and management commitment) and three indicators were used to access firm’s sustainable performance (environmental performance, economic performance and operational performance).
Freeman and Chen, (2015) [5] conducted a study in terms of green supplier by using AHP combined with other method such as TOPIS to evaluete and ranke selected firmsin the context of green supply chain. In that study, five main criteria was employeed such as cost, green competency, quality, delivery and environmental management performance.
Zhouet al., (2019) [6] used6 main indicatorsas (1) green design, (2) green purchasing, (3) green production, (4) green warehousing, (5) green logistics and (6) reverrse logistic to access the green practice ofthree gament manufacturers in Pakistan by using AHP method.The results of that study revealed that green design, gree production and green purchasing were ranked as the most important green indicators.
Some previous studies that focused on GSCM application areas such as the study of Govindan (2015) [7] which prposed a methodfordeveloping green performance and practices in GSCM.
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Mathiyazhagan et al. (2013) [8], propose a structural modeling approach to analyse the barriers that prevent company from adopting GSCM. The research conducted by Luthra et al.
(2014) [9] and Rozaretal. (2015) [10] focused on selecting thesuccess factors ofGSCM.
Despite the fact that corporations regard environmental management as a strategic priority, evaluating and analyzing the success ofGSCM in terms of applied practices has received little attention, particularly when utilizing a multi
criteria decision framework based on AHP methodologies.
2. Research methodology
AHP is a decision-making technique that provides an overview of the sorting order of choices, fromthat the best possible final decisionis made. AHP helps decision-makers find what is most appropriate for them and helps them understand theirproblems. Basedon mathematics and psychology,AHP wasdeveloped by Saatyand has been applied widely and extended. AHP provides a precise framework for the structure of a problem to be solved. AHP use a pairwise comparison method to determine the importance level of differentcriteria, from that calculate the weight of them by using the Saaty scale with 9 levels ofintensity [ 11 ] is applied which is presented in Table 1.
Table 1. Saaty scale ofintensity of importance
Intensity of
importance Definition
1 Equal importance
3 Moderate importance of
one over another
5 Essential importance
7 Demonstrated importance
9 Extremely importance
2,4,6 Intermediate values
Source:Saaty, (1980) [11]
Suppose that there are k experts who evaluate the importance of criteria. The average score of each criterion is calculated based on the average method as follow:
yk „k.
a u = “ 77^ (1)
In which: ũịj is the average score of criteria and kis thenumber of experts.
Thepairwisematrixis formed as below:
■ 1
a12 ainA = a21 1 ®2n
•®nl
O-n21 .
(2)
From the pairwise matrix, the weightofcriteria is computed based on Geomeanas follow:
7=1 «v)i/n
(3)WỊ=i}x(r1 + r2 + ...+ rn) 1
(4) Inwhich: Vj is the geomean and Wj is the weight of criteria)3. Research Results
Firstly, the main criteria and their sub-criteria wereselected and presentedin Table 3.1
In the next step, AHP method was applied to create the comparison matrix. Firstly,the geometric mean method wasused to considerthe answers from 10 people from 3 companies (LC, Samsung and Foxcom) as a whole, and after integrating these answers, their pairwise comparison matrix was created to obtain their eigenvectors and maximum eigenvaluesas well as obtain the consistency index and Consistency ratio.
Table 3.2 to Table 3.4 show the pairwise comparison matrix of each criterion and the summary ofof set will be presentin Table3.2 It can be seen fromthe order ofimportance in Table 3.2 that flexible change design > planning recycling/recycling process > confirming requừements, raw material characteristics and the impact of the process on the envứonment > easy disassembly whendiscarded.
Fromthe order of importance in Table3.2, it can be seen that responsed, corrective/preventive measures for abnormal environmental shocks were
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Table 3.1. Criteria setin evaluatingGSCM
Main criteria Sub-criteria Coding
Design (C1)
Confirm the impact of demand, raw material characteristics and process on the environment C11
Flexible change design C12
Easy to disassemble when discarded C13
Planning for recycling/reuse process C14
Production process (02)
Confirm that raw materials/suppliers meet environmental protection requirements C21
Implement inspection C22
Control, treatment/recycling process pollution C23
Differentiate poor "green" products C24
Isolation or independent production of "green" raw materials/products C25 Response, corrective/preventive measures for abnormal environmental shocks C26
Management (C3)
Regular assessment, inspection and reviewof compliance with environmental laws,
regulations and “green” directives C31
Persons in charge and operating specifications for chemicals/environmentally controlled
substances C32
Develop environmental protection related training plans and regularly review performance C33
Corrective/preventive measures for non-compliance C34
Obtain environmental management or "green" related certifications/marks C35 Understand environmental laws, regulations, "green" directives and customer needs C36
Source: Compiledby the authors Table 3.2.The comparison matrix of sub-criteria ofDesign
Sub-criteria C11 C12 C13 C14
Importance point 1.585 2.075 0.613 1.728
Ranked 3 1 4 2
Source: Compiledby the authors found to have the highest score, which means that
this was the most importance criterion in production process. Itis understable that the first conditionin the manufacturing process is to formulate measures to respondto environmental abnormalities, corrective and preventive measures, and with preventive measures "green" raw materials can be produced with peace of mind. Then, check whether the remaining materials in the production of green products can be recycled or whether they are too polluted to be used, and then start to separatebad greenproducts to confirm that the products meet the needsofenvironmental protection.
According to the order ofimportance in Table 3.4, it can be seen that managers must first be familiarwith envừonmental protection laws,green directives and customer needs, and then formulate relevant work specifications , cooperate with the regular assessment and review of envừonmental protection laws and green dhectives. Those whodo not meet the requirements will take corrective measures and formulate relevant training plans to regularly review performance before they are eligible to obtain environmental management or green-related certification.
The overall weight (Table 3.5) shows that
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Table3.3 The comparison matrix of sub-criteriaofProduction process
Sub-criteria C21 C22 C23 C24 C25 C26
Importance point 0.64 0.59 1.461 0.972 1.506 2 003
Ranked 5 6 3 4 2 1
Source: Compiledby the authors Table 3.4. The comparison matrix of sub-criteria of Productionprocess
Sub-criteria C31 C32 C33 C34 C35 C36
Importance point 1.041 1.262 0.875 0.958 0.672 2.221
Ranked 3 2 5 4 6 1
Source:Compiledby the authors
understanding environmental laws, greendirectives and customerneeds ranks first. The reason is that whenmaking green products, seniormanagers must first understand relevant laws and customer needs before designing products that meet their requứements ofgreen product. Thesecond-ranked flexible change design is used to meet the specifications required by different products, reducing the number of recycling and reuse. The thirdmostimportant criterion is abnormal response, corrective/preventive measures, which are the key to timely resolveof the current green supply chain management difficuties. Thefourth mostimportant criterion is planning recycling/recycling process which can help to respond to the concept ofgreen environmental protection. The fifth most important is to confirm the impact of demand, raw material characteristics and process on the environment,
which is to avoid certain requirements and raw
material characteristics that do not meet green standards and causeenvironmental damage. Green products and other common products are usually manufactured separately due to the material relationship, so as to avoid recycling materials that should notbe recycled.
4. Conclusions anddiscussion
This research mainly uses the AHP to evaluate the importance of the environmental impact on green supply chain management, and uses three electronic manufacturers in Vietnam as the object to illustrate theactual case.
First of all, after reviewing the literature and
Table 3.5.OveralWeight
Criteria Weight Ranked
C36 2.221 1
C12 2.075 2
C26 2.003 3
C14 1.728 4
C11 1.585 5
C25 1.506 6
C23 1.461 7
C32 1.262 8
C31 1.041 9
C24 0.972 10
C34 0.958 11
C33 0.875 12
C35 0.672 13
C21 0.64 14
C13 0.613 15
C22 0.59 16
Source: Compiledby the authors referring to thekey dhections currently implemented inthe industry, the green supply chain management is divided intothree levelsfor analysis, namely the design aspect, the process aspect and the management aspect. On the design side, the main discussion is to confirmtherequứements,the impact of raw material characteristics andprocesses on the environment, flexible design changes, easy
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disassembly when discarded, and planning recycling/reuse process. In terms of production process, the main discussion is to confirm thatraw materials/suppliers meet environmental protection requừements, implement inspection, control treatment/recycle process pollution, segregation of poor "green" products,"green" raw materials/product isolation or independent production, and major environmental impact. In terms of management, the main topics discussed are regular assessment, inspection and review of compliance with envừonmental protectionlawsandgreen directives, responsible persons and operating specifications for environmentalmanagement substances, formulation of environmental protection-relatedtraining plans to regularly review performance, corrective and preventive measures for non-compliance, and acquisition. To achieve theresearch objective,in this study, Saaty's method is proposed on the AHP method,and the content discussed in the literature is established according to the hierarchical structure proposed by the AHPmethod.
Afterinvestigationand data analysis, thedegree ofimportance given by component manufacturers
were obtained. FromTable 4.5, it can be seenthat the importance of sixteen sub-criteria under three main directions were evaluatedandranked in order.
Therefore, after the implementation of this research, it can be seen that the AHP is systematic and effective, because it cananalyze complex problems systematically by using the hierarchical method, and can simplify the problems and increase the problems by using the hierarchical structure. The validity of theevaluation,andtheevaluationthroughtheAHP, can have specific numerical results, so that the analyst canmake a clear decision.
In view of the experience after the whole research process, this study puts forward several suggestions,which canbeusedforfutureresearch:
- Applicable assessments of the impactof green supply chain management on the environment can be developed according to different industry categories.
- TheAHP method has beenwidely used, but it limits on the number of experts and scholars or criteria. Too many experts and scholars or the selection criteria are biased, which will affect the consistency of the analysisresults ■
REFERENCES:
1. Ngoe, T. T. B., Binh, D. T. (2019). Vietnam's Electronics Industry: The Rise and Problems ofFurther Development.Humanities andSocial Sciences Reviews, 7(4),01-12.
2. Huang, I. B., Keisler, J., Linkov, I. (2011). Multi-criteria decision analysis in environmentalsciences: Ten years of applications and trends. Scienceof the total environment, 409(19), 3578-3594.
3. Muralidhar, p., Ravindranath, K., Srihari, V.(2012).Evaluation of green supplychain management strategies usingfuzzy AHP and TOPSIS.IOSR Journal of Engineering,2(4),824-830.
4. Dey, p. K., Cheffi, w. (2013). Green supply chain performance measurement usingthe analytic hierarchy process: a comparative analysis of manufacturing organisations. Production Planning and Control, 24(8-9), 702-720.
5. Freeman, J., Chen, T. (2015). Green supplier selection using an AHP-Entropy-TOPSIS framework. Supply ChainManagement,20(3),327-340.
6. Zhou, Y., Xu, L., Muhammad Shaikh, G. (2019). Evaluating and prioritizing the green supply chain management practicesinPakistan:Basedon delphi and fuzzy AHP approach.Symmetry, 11(11), 1346.
7. Govindan, K., Khodaverdi, R., Vafadarnikjoo, A. (2015). Intuitionistic fuzzy based DEMATEL method for developing green practices and performances in a green supply chain. Expert Systems with Applications, 42(20), 7207-7220.
8. Mathiyazhagan, K., Govindan, K., NoorulHaq, A., Geng, Y. (2013).AnISMapproach for thebarrieranalysis in implementing greensupplychain management.Journal of CleanerProduction,47,283-297.
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9. Luthra, s., Qadri, M.A., Garg, D.,Haleem, A. (2014). Identification of criticalsuccessfactorsto achieve high greensupplychain management performancesinIndianautomobileindustry. International JournalofLogistics Systems and Management 1, 18(2),170-199.
10. Rozar, N. M.,Mahmood, w. H. w., Ibrahim, A.,Razik,M. A. (2015). A study of success factors in green supply chain management in manufacturing industries in Malaysia. Journal of Economics, Business and Management,3(2),287-291.
11. Saaty,T.L. (1980). The analytic hierarchy process McGraw-Hill. NewYork,324.
Received date: May 2,2022 Reviewed date: May 17,2022 Accepted date: May 28,2022
Author’s information:
1. NGUYEN THI DUONG
International School, Duy Tan University 2.LEKEDUC
Facultyof Electrical -Electronics Engineering, Duy Tan University CorrespondingAuthor:lekeduc @dtu. edu.vn
SỬ DỤNG AHP TRONG ĐÁNH GIÁ
CÔNG TÁC QUẢN LÝ CHUỗI CUNG ỨNG XANH Đối VỚI
CÔNG TY SẢN XUẤT SẢN PHAM và linh kiện điện ở VIỆT NAM
• NGUYỄN THỊ DƯƠNG'
• LÊ KẾ ĐỨC2 •
'Viện Đào tạo Quốc tế, Trường Đại học Duy Tân 2Knoa Điện - Điện tử, Trường Đại học Duy Tân
TÓM TẮT:
Nghiêncứu này nhằm đánh giá hoạtđộng quản lýchuỗi cung ứng xanh (GSCM) trongngành sản xuất sản phẩmvà linhkiện điện củaViệtNam với cácmẫu nghiên cứu làcác nhàsảnxuất sản phẩm và linhkiện điện tại Việt Nam. Các biện pháp GSCMđược đánh giá từ3 quan điểm, gồm: thiết kế, quy trìnhsản xuấtvà quan điểm quản lý. Dữliệu từ bảng câu hỏi của các nhà sản xuấtsản phẩm và linhkiệnđiện tại Việt Namđược sử dụng để đánh giátrọngsố củacác thước đo GSCM. Tầm quan trọng củacácbiện pháp GSCMđốivới môi trường được xácđịnhbằng việc sử dụng quy trình phân tích thứ bậc (AHP) với thang đo Saaty.
Từkhóa: quản lý chuỗi cung ứngxanh,quy trình phân tích thứbậc (AHP), ngànhsảnxuấtsản phẩm và linh kiệnđiện.
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