Balancing Sustainability and Efficiency: Analyzing the Impact of Green Supply Chain Practices on Production Optimization

Abstract

This study examines the impact of green supply chain management (GSCM) practices on production optimization in manufacturing sectors, including automotive, electronics, and consumer goods. Using a mixed-methods approach, data were gathered from 30 companies that implement sustainable practices in sourcing, waste reduction, and green logistics. The findings indicate that GSCM practices enhance both sustainability and efficiency, with firms reporting an average 15% increase in cost efficiency, 20% reduction in waste, and 12% improvement in lead times. Sustainable sourcing, waste minimization, and green logistics contributed significantly to these operational gains. However, challenges such as high initial costs and the need for specialized skills were noted. The study aligns with resource-based theory, which suggests that sustainable resource management creates competitive advantages. Practical implications indicate that GSCM provides dual benefits, addressing both environmental responsibility and operational efficiency. Future research should extend these findings to a broader range of industries and explore the role of advanced technologies, such as AI and IoT, in optimizing GSCM practices.