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Exploring Drivers of Closed Loop Supply Chain in Malaysian Automotive Industry

Exploring Drivers of Closed Loop Supply Chain in Malaysian Automotive Industry
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Author(s): Fadzlina Mohd Fadzil (Universiti Sains Malaysia, Malaysia) and Yudi Fernando (Universiti Malaysia Pahang, Malaysia)
Copyright: 2019
Pages: 11
Source title: Advanced Methodologies and Technologies in Business Operations and Management
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-5225-7362-3.ch077

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Abstract

This chapter explores the drivers of closed loop supply chain in the Malaysian automotive industry. The growth of the automotive industry in Malaysia is rapidly increasing. There are five drivers identified that can implement the closed loop supply chain in the Malaysian automotive industry. Customer awareness has urged the manufacturers and suppliers to produce and supply more environmentally friendly products. Social responsibility is the firms' obligation to ensure that their operation activities could reduce environmental impacts that can be harmful to the society. Environmental concern is the awareness of environmental preservation and conservation. Governmental legislation has been implemented to ensure the firms adhere to the government policies to attain greener industrial practices. Waste management refers to the waste disposal system in order to reduce waste treatment costs, pollution, and landfill issues. Therefore, the drivers are important elements in carrying out the closed loop supply chain in the Malaysian automotive industry.

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