Unlocking net-zero supply chain performance system through life cycle assessment: Empirical evidence from rubber industry

Abstract

The ongoing transition from a supply chain (SC) to net-zero emission (NZE) in SC performance must align with Sustainable Development Goal 13 to address climate change using life cycle assessment (LCA). Effective management of LCA significantly impacts an organization's competitiveness. With a lack of technology oversight and its connections with other enabling parameters that increase competitiveness, practices in the manufacturing industry remain limited. This study identifies and evaluates key enablers for LCA adoption in the manufacturing industry to achieve NZE in SC. Based on 123 responses, an exploratory factor analysis (EFA) was employed, followed by the Best-Worst Method (BWM). Further, a Fuzzy-Decision-Making Trial and Evaluation Laboratory (Fuzzy-DEMATEL) was used. The results revealed ‘organizational integration’, ‘data availability and quality, and ‘policy and regulation’ as significant group enablers that support NZSC to compete in the market. It provides insights for industry practitioners and policymakers on optimizing sustainable SC practices. The essential practical recommendations for resource optimization and carbon footprint reduction are also suggested.

Keywords

• Supply chain
• Net-zero emission
• Life cycle assessment
• Climate change
• Enabler
• BWM