Overcoming barriers to green procurement: Insights from an integrated model of decision-making trial and evaluation laboratory-interpretive structural modelling in logistics industry

Abstract

Background: Indonesia’s logistics industry boosts economic growth but harms the environment via plastic waste and carbon emissions – single-use plastics and fossil fuel transport cause persistent pollution. Green procurement (GP) is essential to reduce these impacts by prioritising sustainable suppliers and products despite cost and regulatory challenges.
Objectives: The objective of this study is to explore the interconnections and significance of barriers affecting the implementation of GP in Indonesia’s logistics sector.
Method: The study employs content validity analysis, decision-making trial and evaluation laboratory (DEMATEL) and interpretive structural modelling (ISM) approaches for data processing. These methods are used to identify, analyse and structure the relationships and hierarchical positioning of the barriers.
Results: The study identifies 14 key barriers to the successful implementation of GP in Indonesia’s logistics industry. Key barriers include the lack of eco-friendly materials, insufficient supplier readiness, the absence of regulatory frameworks and inadequate government incentives. These foundational barriers trigger cascading effects that impact both operational and strategic procurement levels.
Conclusion: The findings suggest overcoming barriers through targeted supplier training, increasing eco-friendly materials, adopting effective GP regulations and enhancing government incentives, which will reduce environmental impact, promote sustainable logistics practices and support broader environmental sustainability goals.
Contribution: This study helps Indonesia’s logistics by providing practical solutions that enable the industry to adopt sustainable practices, reduce environmental impacts and support national sustainability goals.