Environmental initiatives: A study of dyadic buyer and supplier relationships in the South African Fast-Moving Consumer Goods industry

Abstract

Background: In the current fast-paced markets, customer demands are changing and environmental considerations have placed organisations under pressure to integrate and implement environmental initiatives in their business and supply chain functions. This pressure forces organisations to respond better to the changing global trends and customer demands.

Objectives: The purpose of this generic qualitative study was to explore environmental initiatives within the context of a dyadic buyer–supplier relationship in the South African fast-moving consumer goods (FMCG) industry.

Method: Semi-structured interviews were conducted with 12 participants. These interviews were conducted with six organisations who were engaged in a dyadic buyer–supplier relationship.

Results: The findings indicate that organisations implementing environmental initiatives experienced improved collaboration between supply chain partners. Improved collaboration leads to enhanced product quality, cost savings in the long-term and transparency between organisations. The drawbacks from environmental initiatives included increases in planning time and high capital investment. Implementing environmental initiatives revolve around buyer–supplier relationships that are strategic in nature and should not be underestimated by organisations. To improve buyer–supplier relationships, organisations are recommended to devote more capital and resources to environmental initiatives.

Conclusion: This study determined the predominant environmental initiatives within the South African FMCG context and showed how environmental initiatives influence buyer–supplier relationships.