Impact of green reverse logistics on environmental

sustainability in fmcg sector

 Research problem
Researchers have stated for a number of years that the modern period of globalization has led to a greater global accessibility
of commodities (Bendul et al., 2017).
Corporate operations may pose a significant threat to environmental performance due to the release of carbon monoxide, the
dumping of packaging substances, the waste of hazardous materials, the congestion of the environment caused by traffic on the
roads, and many other forms of industrialized pollution. In recent years, "green supply chain managements" (GSCM) have
arisen as a broad range of business solutions that help businesses improve their credibility and environmental efficiency. As a
result, more and more organizations are putting their attention on developing and bolstering their own green initiatives (Ahi &
Searcy, 2015; Markley & Davis, 2007).
By reducing the negative effects of supply chain operations on the environment and boosting the bottom line, the reverse
logistics paradigm is a key factor in enhancing the environmental, social, and economic performance of most businesses
(Panya et al,2021).
Manufacturers of food, drink, personal care, and household products are all a part of the Food, Beverage, and Consumer Goods
(FMCG) industry, which is responsible for meeting consumers' needs for these items on a regular basis, disseminating
information about those brands, building consumer loyalty to those brands, and organizing their supply chains to ensure that
their products are competitively priced (Payan & McFarland, 2005).
 Research objectives
To determine the Impact of green reverse logistics on environmental sustainability in fmcg sector.
 Hypothesis
Research Hypothesis: H1: Environmental performance is strongly correlated with green buying. Green buying is a crucial component of supply

chain management and has a big impact on how well a company performs in terms of environmental safety by choosing durable, reusable products

that won't damage the environment.

H2: Environmental performance is favorably correlated with green manufacturing. The greening idea in manufacturing and producing goods

demonstrates a positive association with environmental performance since the firm cares about minimizing resource and water waste in order to

minimize air and land pollution.

H3: Environmental performance is favorably correlated with green packaging. Green packaging refers to goods and products that are wrapped in

materials that are reusable or simple to recycle in order to prevent the contamination of water and land. Green packaging plays a crucial role in

environmental performance by using such tactics.

H4: Environmental performance is favorably correlated with green distribution. Green distribution has had a huge influence on the environment's

performance since it allows businesses to employ cars that emit little to no pollution, accept plenty of orders, and maintain delivery methods
 Review of literature
• Reusing, recycling, and remanufacturing are placed at the top of the GRL hierarchy, while landfilling and incineration are at
the bottom.
• According to research by Hazen et al. (2012), businesses that embrace GRL are more likely to experience growth and
success. Customers are more likely to be pleased with the environmental commitment of the organization, leading to a
stronger readiness to pay and an increase in loyalty, since sustainability and becoming green are prominent themes in
practice and study.
• Long-term success with RL requires careful planning of the network's infrastructure and a robust disaster recovery strategy,
as proposed by Jayaraman and Luo (2007). A company's success or failure might hinge on how well its RL is implemented,
thus this strategy shouldn't be disregarded.
• Because of the inherent unpredictability of the reverse logistics supply chain, ensuring adequate inventory levels while
meeting customer demand is a formidable obstacle. As a result of this unpredictability, inspection has become centralized,
and the transportation requirements and capacities may change depending on whether or not goods are sorted closer to the
beginning or the end of the reverse chain (Dekker et al., 2004).
• Similar to how Srivastava (2008) discussed the strategic and operational concerns of establishing RL centers while taking into
account factors like consumer convenience and maximum distance, for low return quantities, the stipulations become critical.
The findings also revealed that the processing costs are the driving factor behind the disposition choices, which are the result
of a compromise between the costs and value recovery.
• The fast-moving consumer goods (FMCG) sector in India operates on thin profit margins, with much of the industry's success
riding on the volume of goods moved. Companies prioritize product availability in the intricate distribution network while
designing and maintaining an effective supply chain. As there are more intermediaries between the manufacturer and the
consumer, more stock keeping units (SKUs) must be allocated to reach the final distribution point.
• Large third-party logistics (3PL) carriers are entering the market, and Indian companies like Gati and Shreyas Shipping are
expanding their domestic networks. These developments are changing the nature of services and the business processes in
the industry as a whole (P. C. N. Jain, 2014).
• Strategic Supply Chain Management (GSCM) is a tool that aids in management choices that aim to maximize the efficiency with
which materials move through a value chain (S. Kumar et al., 2012).
• In order to be considered "green," a supply chain must be efficient and produce little to no waste. Having a green supply chain
is as simple as reducing waste to a minimum. In another definition, GSCM is the coordination of environmental management
with supply chain management (Vijayvargy & Agarwal, 2014).
• When compared to other environmental techniques like cleaner manufacturing and environmental management systems,
GSCM may be seen as a more sophisticated management practice, therefore its contribution to environmental performance is
more effective (Chang, Kenzhekhanuly, & Park, 2013).
• The green supply chain is an eco-friendly method of doing business. Included are strategies for cutting emissions at every
stage of production: from raw materials to finished goods to transportation to recycling (V. K. Jain & Sharma, 2014).
 Research gap
There is currently little knowledge available on the green reverse logistics in terms of environmental sustainability, and more
research could clarify a number of issues. Potential environmental effects of manufacturing, usage, and disposal are some of
these topics. Green reverse logistics will have different environmental effects depending on the size of the factory.
 Conclusion
When it comes to protecting the environment in Pune, India's industrial industry, green supply chain management is a crucial
factor.
Data collection and testing procedures revealed that the company's environmental performance improved significantly after the
implementation of green distribution, manufacturing, and packaging. This research focused on the manufacturing of fast-moving
consumer goods (FMCG), which are used on a daily basis and have an effect on consumers' health; as a result, only the highest-
quality raw materials could be used in the production of these goods while still meeting strict environmental standards.
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