Abstract:
BACKFROUND : 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.
