Integrating Lean-Green Waste Reduction into Supply Chain Strategy: Evidence from the Indonesian Automotive Industry

Abstract

The application of the Lean and Green Management System (LGMS) and Lean and Green Waste Reduction Technique (LGWRT) has become a focal point for companies aiming to enhance operational efficiency and environmental sustainability. This study examines the implementation of LGMS and LGWRT and their impact on Lean and Green Business Results (LGBR) in the Indonesian industrial sector. By integrating lean and green principles, LGMS assists companies in eliminating waste, minimizing resource usage, and reducing emissions. Simultaneously, LGWRT aims to decrease waste through environmentally friendly and efficient techniques, supporting productivity and cost reduction. Using a quantitative method based on survey data from manufacturing companies, the findings reveal that these approaches significantly improve green business outcomes, including enhanced energy efficiency, lower carbon emissions, and reduced operational costs. Additionally, LGMS and LGWRT enable companies to meet strict environmental regulations and improve their public image. The study concludes that the combination of LGMS and LGWRT positively impacts environmental performance and competitive advantage through improved profitability and process efficiency. These findings encourage more companies in Indonesia to adopt lean and green approaches for achieving optimal business sustainability.