JOURNAL OF CHAIN COFFEE SHOP

Journal 5

Sustainable Coffee Supply Chain Management: A Case Study in Buon Me Thuot City, Daklak, Vietnam.

April 30, 2018

TITLE: Sustainable Coffee Supply Chain Management: A Case Study in Buon Me Thuot City, Daklak, Vietnam.

AUTHORS: Giang N. T. Nguen and Tapan Sarker

YEAR OF PUBLICATION: 2018

Conceptual Framework:

Figure 1: Conceptual framework for sustainable supply chain management for coffee

This study about for sustainable supply chain management for coffee. This conceptual model have six element which are sustainable farming, supply chain management, marketing, environmental management, reverse logistic and corporate social responsibilities.

Theories:

Due to the nature of this research, mostly based on institutional theory, resource based view theory and stakeholder theory. In terms of institutional theory, it explained how institutional factors, such as regulation, collective industrial self-regulation, NGOs and other independent organizations can influence organizations to interact with their stakeholders and behave in socially responsible manners and avert socially irresponsible actions. Institutional theory facilitates the ability to understand the variance in interactions amongst various stakeholders and corporate governance in different situations.

Finding:

The study about sustainable supply chain management for coffee. Sustainable farming relates to the replacement of chemical pesticides and fertilizers with bio-fertilizers for weed and pest control. The annual production level and farmers’ income are also investigated to understand the differences between certified and non-certified coffee farms. Moreover, crop diversification is also mentioned due to its benefit of reducing risks and uncertainties arising from mono-cropping, and biological and climatic changes. Supply chain management pays attention on the innovation of supply chain and logistics management to reduce energy consumption and control the pollution levels from the transportation and production process. Marketing with the purpose of evaluating economic dimension, this focuses on pricing policies of companies for premium products, product differentiation in terms of labelling, promotion strategies. Example, consumers’ attitudes and awareness of sustainable products and the strategic development of the product life-cycle. Environmental management examined the critical factors regarding environmental management to reduce negative environmental impacts. They concentrate great attention on biodiversity, soil quality, natural resource, climate change, air and water quality, and emission reductions in production and logistics activities. Reverse logistics relates to the recycle of containers, packaging materials and the use of environmentally friendly materials. Corporate social responsibility (CSR) concerns the harmony of using natural and local human resources to tackle inequality, poor living standards and low education levels in the rural area.

Limitation:

This study has some limitations stated below. Following the research, it is plausible to conclude that the development of sustainable coffee in Buon Ma Thuot City in particular, and in Vietnam in general, offers many opportunities but still encounters some difficulties that need to be overcome. By means of Chi-square analysis the positive impacts of sustainable coffee programs on the sustainable coffee supply chain management are confirmed. Environmental management, social attainment and corporate social responsibility are becoming the main concern of coffee processing companies but there is limited evidence of large-scale support from them to local farmers. The government should also consider more effective policies and laws to encourage investment in sustainable coffee production, and expand the market for this product.

Item:

Journal link : 

https://link.springer.com/article/10.1186/s40991-017-0024-x