Green Logistics and the Future

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Table of Contents

Introduction
Issues and History
Application Plan for the Future
Conclusion
References

Introduction

The present is marked by numerous ecological and environmental concerns such as the high rate of pollution, the threat of global warming, and others. Most of these issues are direct results of humanity’s progress into the industrial stage and the subsequent massive increase in the production and transportation of goods. As such, many developed countries are spearheading efforts to reduce the harm done by manufacturing facilities and various transport vehicles. Technological improvements that allow for better recycling or lower waste production are an essential part of the initiative, but there are other methods that do not require intensive development. One such approach, known as green logistics, is the focus of this paper.

What is Green Logistics?

Nowadays, humanity’s numbers are higher than at any prior point in history, and various goods are produced worldwide. As such, increasing amounts of freight transportation become necessary to deliver products to consumers, especially essential ones such as food. According to Piecyk, Browne, Whiteing, and McKinnon (2015), freight transport was responsible for approximately 8% of the worldwide carbon dioxide emissions, or 33.7 million tons, in 2004. The figure has likely grown considerably since then, as countries such as China and India have entered a rapid development stage. The traffic growth also leads to increased amounts of other pollution manifestations, such as noise and life-threatening accidents. However, freight vehicles are essential to modern civilization and cannot be eliminated.

However, the amount of movement, and consequently the emissions produced by vehicle engines, can be reduced through a reorganization of suppliers and routes. Traditional logistics concentrates on economic efficiency, minimizing the costs of transportations as expressed through money and time, but an additional parameter, pollution, may be added. After such a transformation, the adjective “green” may be used to signify the environmentally conscious nature of the approach. It is gaining increasing traction among companies that try to reduce their overall degree of harm to the planet, as the changes are more organizational than technological. It is accessible to everyone, though the resulting approaches may lead to reduced revenue and so can be unpopular with profit-oriented companies.

Ultimately, the reduction of traffic pollution requires a decrease in the overall time the various transports spend being active. According to Fahimnia, Bell, Hensher, and Sarkis (2015), the primary approaches to the problem at the tactical and operational levels are “green routing, consolidation of delivery schedules, and efficient inventory management” (p. 2). If every vehicle can always be filled to capacity when conducting deliveries, the overall number of transports as well as of the runs necessary will fall, leading to reduced pollution. The choice of providers that are located nearby instead of distant ones can also reduce overall travel time, leading to better outcomes.

The selection of mediums can also contribute significantly to the degree of pollution generated by various methods. Blanco and Sheffi (2017) state that road freight is responsible for more than half of the overall emissions, while rail freight only generates a small portion. The high carrying capacity of trains relative to their lower fuel requirements means one can transport the same amount of products as a fleet of cargo trucks while producing a fraction of the gases and noise, though the convenience and ease of use suffer as a result. Trucks will likely remain the principal means of freight transport due to their versatility, and their harmful influences can be reduced by switching to newer models that utilize different fuel or carry hybrid engines.

Packaging is the final essential aspect of transportation, as it is typically non-reusable and discarded after the delivery is complete. As such, it contributes to pollution significantly, especially as many packaging materials are made of plastic and challenging to recycle. According to Chin, Tat, and Sulaiman (2015), supply chain management that incorporates such concerns through careful selection of suppliers and the integration of collaborative green initiatives can achieve significant results and improve long-term sustainability. The idea still requires further investigation, but the central concept can be implemented in experimental models to evaluate the factors that facilitate environmentally-conscious practices through relationships with other companies.

Issues and History

Environmentalism and green practices are not a new topic, but the situation worldwide continues its decline. According to Klumpp (2016), greenhouse gas emissions by freight vehicles in Europe are increasing despite attempts to achieve the opposite effect. The phenomenon has numerous causes, including economic concerns, a lack of alternative options, and the so-called Jevons paradox (Klumpp, 2016). Some countries, particularly developing ones, have other reasons for reducing to consider environmental possibilities. Overall, while the intentions of green logistics are benevolent, the execution can be difficult and costly. As such, while some companies are well-known for their efforts to reduce the danger they present to the environment, the overall situation is negative.

Typically, logistics seeks to minimize the costs and the delivery time of goods to the locations where they are needed. As such, air transport is gaining increased traction due to the very high speed of planes as opposed to the other options despite its high rate of emissions (Klumpp, 2016). The switch to providers that are geographically near but charge higher prices is an economically unattractive endeavor. Furthermore, the development of environmentally friendly transport methods and packaging is an expensive task with few expected positive outcomes. Overall, companies lack sufficient motivation to engage in environmentally friendly practices beyond publicity and, in some cases, sustainability. The situation may change if governments begin implementing legislation that would offer aid for companies that conduct the changes or penalize those that do not comply, but thus far, such initiatives are not numerous.

Many replacement options, such as electric engines and recyclable packaging, are not yet suitable for widespread use, possibly as a result of the lack of incentives to research them that is mentioned above. Others, such as the advancements in truck engines, do not justify regular investments and are only adopted ten to fifteen years after their emergence, as older models go out of service (Klumpp, 2016). Electric trucks also have to contend with the issue of their low effective range and the lack of a developed charging station infrastructure, which make them unsuitable for long-distance transportation. Environmentally safe packaging may be challenging to produce in sufficient quantities and expensive due to the technologies involved, requiring further improvements before it becomes a viable alternative.

Lastly, even if improvements are put in place, a lack of forethought can lead the overall consequences to be the opposite of expectations. Klumpp (2016) refers to this phenomenon as the “Jevons paradox,” where the improvement in efficiency leads to a decrease in the price of the resource (in this case, fuel), which in turn causes its usage to increase, offsetting any gains created by the initiative. The existence of the issue is still under debate (Klumpp, 2016), but if it is real, the value of technological improvements that reduce the use of harmful fuels instead of eliminating them entirely will be considerably diminished. As such, the organizational aspect would gain increased importance since the overall expected result would become worse.

Application Plan for the Future

Overall, the promotion of green logistics worldwide is going to be reliant on operational improvements primarily. Technological developments are slow and unreliable, and most companies adopt them eventually because the prior versions become obsolete and inferior in most ways. Unlike them, supply chain modifications tend to require little, if any, new inventory and eventually contribute to the economic efficiency of the company’s logistical organization. As such, any company can adopt such procedures, typically with few disincentives, which may be compensated through the government’s future environmental programs. Nevertheless, the technical progress should be incentivized, as well, preferably with regards to alternative methods such as electric cars.

The first proposal is that companies should switch to the closest available producers that can supply the required degree of quality. While Piecyk et al. (2015) note that the concept of “food miles” draws attention away from the overwhelming emissions of greenhouse gases by agricultural producers, such concerns are beyond the immediate scope of logistics, and they will be addressed later. The logistics industry is not responsible for the behavior of its clients, though it may influence their position on the topic through its relationships with them. Shorter travel distances and the use of environmentally safer transport options are likely to reduce the pollution caused by transportation, and therefore the strategy deserves implementation.

The second proposal is the improved coordination of deliveries to minimize the number of trips that are necessary to complete the objectives. This method will require significant effort and coordination, as a determination of the overall volumes of freight and their compatibility during transportation will be necessary, along with substantial changes to schedules and possibly the creation of specialized staging points. Nevertheless, the approach is likely to become economically advantageous once the initial costs are invested, and the reorganization is complete. The decrease in traffic will also prompt an associated lowering of prices, and the Jevons paradox remains a concern due to the increased efficiency created by the method.

The third proposal is to employ supply chain management to improve environmental outcomes through collaboration between various companies. Joint enterprises can lead to innovative production methods that reduce the need for transportation by, for example, letting unfinished products arrive at their final destination and be assembled there instead of the original plant. Another application is to allow the items from several different companies to use the same vehicle fleet, expanding the concept from the proposal above. Overall, cooperative approaches are likely to improve the economic performance and sustainability of the companies engaging in them while reducing the environmental burden they produce. They may also incentivize the industries adjacent to logistics to work on creating and implementing green solutions and to share the knowledge gained in such initiatives.

The fourth proposal is to devote more resources to research new technologies that would improve performance and reduce wastage and pollution. In the case of the logistics industry, the primary focus should be on alternative fuels that do not produce wastage or generate significantly less of it, as the Jevons paradox and the limited amount of oil available on Earth reduce the performance of efficiency-oriented approaches. At the same time, other technologies are available but generally not viable because they are underdeveloped. The introduction of alternative methods that can match traditional transportation approaches without copying their disadvantages can significantly diminish many of the issues, but the slow rate of their adoption means that they should enter the market as soon as possible.

The fifth and final proposal concerns the incentivization methods for various companies to adopt environmentally friendly measures. As was explained above, many businesses are not sufficiently motivated to invest in the reduction of the pollution they create. Klumpp (2016) proposes two government-enabled ways to address the issue: taxation of carbon raw materials and public investment in the development and adoption of new technology. The first method should create an economic incentive for companies to change their practices but is likely to encounter severe backlash. The second requires significant resources to be utilized and is unlikely to reach the same degree of success, but it should meet with less resistance.

Conclusion

Pollution is becoming a more and more relevant issue at present, and each industry should contribute to the adoption of environmentally friendly approaches. Such efforts have failed in the logistics industry in the past despite its significant contribution to overall carbon dioxide emissions. Overall, a reorganization of the delivery process, collaboration between various companies, and technological improvements are recommended. However, most companies are unlikely to undertake such efforts without outside motivation, and the government’s aid will be required.

References

Blanco, E. E., & Sheffi, Y. (2017). Green logistics. In Y. Bouchery, C. J. Corbett, J. C. Fransoo, & T. Tan (Eds.), Sustainable supply chains (pp. 147-187). Cham, Switzerland: Springer.

Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green supply chain management, environmental collaboration and sustainability performance. Procedia CIRP, 26, 695-699.

Fahimnia, B., Bell GH, M., Hensher A, D., & Sarkis, J. (2015). Green logistics & transportation: A sustainable supply chain perspective. Cham, Switzerland: Springer.

Klumpp, M. (2016). To green or not to green: A political, economic and social analysis for the past failure of green logistics.Sustainability, 8(5). Web.

Piecyk, M., Browne, M., Whiteing, A., & McKinnon, A. (Eds.). (2015). Green logistics: Improving the environmental sustainability of logistics. Philadelphia, PA: Kogan Page Publishers.

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