Lack of Trust and Environmental Partnership and Reward System

In continuation in my last blog, there is another road block for the green textile supply chain is Lack of Trust and environmental partnership with supplier. The manufacturer will not be having the greatness to reward the suppliers to implement the greenness in the supply chain.  One of the major steps toward implementation of green supply chain is to counter the risks in an effective manner and this is possible when all the partners in the supply chain frequently address the issues they face and share the information which create the trust among them and facilitate the collaborative relationship (Faisal et al. 2006). Chiles and McMackin (1996) explained that trust is an expectation where partner work in their best possible way to make the implementation a success without opportunistic manner even there is short- term incentives, this initiate the long-term stability of the supply chain (Spekman et al. 1998).  The supply chain trust built with organisation’s involvement towardsdownward stream supply chain partners (vendors and suppliers ) tomotivate the GSCM practices whereasupward members of the supply chain ( customers ) encourages green practices by purchasing the green products (Luthra et al. 2013).  Strong relationships with supplier helps building trust which is again lower the inventory level, cost and improve the production accuracy (Luthra et al 2010). Trust is an organisational culture which encourages participation and responsiveness in innovation and risk-taking (Mudali et al. 2013). The outsourcing partnership is one of the major barrier for the GSCM due to the problem in maintaining and monitoring the environmental suppliers, and lack of partnership among them (Govindan et al. 2014). 

One of the actions to enhance the trust is proper reward system for suppliers. Organisation provides the rewards and incentives to supply chain partner to promote the green initiatives (Mudali et al. 2013).  Rewards and incentives motivate the suppliers and change the behaviour toward implementation of green system (Zhu et al. 2008). Supply chain partners will be more interested to work toward the green objective if the supplier are aligned with the incentives and revenue are shared ( Faisal et al. 2006). No proper reward system is one of the important barriers for the development of green supply chain (Govindan et al. 2014) especially in outsourcing.  Financial incentives as part of reward system from government body encourage the suppliers to take the initiatives towards green management (Ghazilla et al. 2015). Once the trust is built, the supplier will not mind to invest time, energy and money towards implementation of green concept into the supply chain.  Thru the trust among the supply chain partnership, the manufacturer will get an edge over others for exporting and earn reputation at large in long run.