Sustainable logistics practices in Sri Lankan FMCG industry: implementation drivers

Regardless of the significant contribution of the logistics functions to the performance of the FMCG industry, these logistics functions have various concerns related to environmental sustainability. Hence, there is a growing concern about implementing sustainable logistics practices in the FMCG industry, although developing countries such as Sri Lanka are struggling to identify applicable sustainable practices and their implementation drivers. This research aims to identify sustainable logistics practices focusing on transportation, warehousing, and packaging in the FMCG industry in Sri Lanka. Sustainable practices implemented in logistics functions have been identified through a systematic literature review and the applicability of identified practices to the Sri Lankan FMCG manufacturing industry has been examined by conducting interviews with Sri Lankan Logistics industry professionals. The relationship between sustainable logistics practices and drivers is analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Further findings of the research emphasize that top management, Market Conditions, social pressure, and economic conditions positively impact the implementation of sustainable logistics practices and highlight the importance of stringent government rules and regulations, particularly in warehousing and packaging, to ensure the successful adoption of sustainable logistics practices.