Green Logistics Development - Research Paper Example

Green Logistics Logistics have long been an important part in the operation of transportation systems. It is what defines the degree of control over optimization of resource distribution and freight movements. In the development of a logistics system, several problems may be encountered, however in the current trend, ‘greenness’ or environmental impacts of the logistics systems have become more and more important as we are reaching a point where sustainability can no longer be ignored. Green logistics may be considered as the supply chain management practices and strategies that reduce the “environmental and energy footprint of freight distribution. It focuses on material handling, waste management, packaging and transport.” (Rodrigue, Comtois & Slack, 2009). Pollution has become a major issue of concern in regard to logistics, as logistics firms are opting for heavy goods vehicles, which emit airborne pollutants such as particulate matter and gaseous toxins. If nothing is done regarding this, Co2 emissions will rise to extreme levels. It is important that the issues of green logistics must be taken seriously and solutions must be sought. The biggest challenge that logistics systems are currently facing is the creation of a sustainable society with minimum negative impact on environment. This paper discusses the problems in the development of a green logistics system, giving a detailed description of the paradoxes in green logistics, while offering a ‘blueprint’ for the implementation of green logistics, concluding upon a recommended solution. Green Logistics and its Paradoxes Studying the standard characteristics of these systems shows that there are several issues that need to be addressed, in regards to the green solutions. The basic paradoxes are discussed. Cost: Reduction of costs are perhaps the most important aspect of a logistics system from the perspective of a distributor, which may be implemented through the improvement in the packaging and efficient reduction of wastes. This will benefit the distributor as well as the consumer, but presents the problem that the environmental costs are often externalized. (Geroliminis & Daganzo, n. d). Time: The management of time mainly rests upon the integration of the supply chain, which can be most beneficial in physical distribution of products. Through integrated supply chains, it would also become more practical to provide flexibility in the system. However the paradox of this option would be that in the process of extending production, the number of retailing structures using energy options would have to be increased, resulting in increased production of emissions. Reliability: On-time distribution or reliable distribution of freight would greatly benefit the producer as it directly impacts the efficiency of the production and the distribution process. The issue faced in regard to this concern is that the modes used for transportation including various sets of vehicles could be least environmentally friendly. Warehousing: This can greatly increase business opportunities, and improve the flow in supply chains, ensuring efficient delivery of goods. However, these changes are bound to greatly increase the levels of energy consumption, which is a major environmental concern. Considering the paradoxes in the implementation of green logistics, it would seem that the best schemes for logistics systems and the most environmentally viable schemes do not coincide, and that the internal inconsistencies will possibly make it impossible to efficiently implement green logistics. However, certain solutions have been provided by scholars based on extensive research on the subject. The discussion of these options will give us a better understanding of how to tackle the paradoxes presented by green logistics. Findings: It was suggested by Cherrett & Hickford (2007) that the major issue that will be faced by the logistics systems will be the increased restrictions they will have to face in regard to environmental issues. “The growing importance of environmentalism is suggested to have two major impacts on logistics management: a broadening of the scope of logistics and an influence on the way logistics managers do their jobs.” (Muller, 1992). This meant that the subject of concern was not only the distribution and movement of products from producer to consumer, but also the return of the wastes or movement of wastage from consumer back to the producer for efficient waste management and recycling options. This brought in the concept of reverse logistics which has become inevitable in green logistics. From the study carried out by Rodrigue and his colleagues (2009), it was evident that since logistic schemes do not pay for the entire infrastructure, the logistics managers opt for the least environmentally viable options, meaning they choose the least energy efficient and the most polluting option that is available to them. However, in view of green logistics, these experts have suggested options that may help in implementing green logistics, which have been implemented by several organizations according to what is most beneficial to them. Reduce freight transport intensity: Certain environmental trade-offs may be achieved through strategic logistics decisions. The centralization of inventory is one such logistics decision that reduces Co2 emissions in transport, warehousing, material handling and inventory. Lower inventory emission levels are achieved through centralization due to lesser energy use in transportation, storage (heating, lighting and refrigeration) as well as lesser wastage of product. Lesser warehouse space will be required, which in turn reduces Co2 in maintenance and operation. These warehouses will emit less Co2 per unit of throughput. Switch to greener transport options: Innovation in modes of transportation is certainly a very important part of emission reduction, as road traffic pollutants contribute to a large percentage of all air pollutants. Statistically, airfreight emits 1600 Co2 gm per tonne-km, with vans at 200 units, HGVs at 120 units, waterways at 50 units and rail transport at the minimum emission level of 20 units. (McKinnon, 2008). While greener transport options are considered, it would also prove fruitful to switch to biodiesel and other fuel sources that will reduce the carbon intensity. Packaging reduction: Sustainable packaging options can help with carbon reduction throughout the supply chain. Choosing environmental friendly, light-weight packaging with alternative resources can help with overall cost reduction. The important aspect of green packaging is that the product is conceptualized; taking into account the impact it will have on the environment in every step. When alternative environmental sources are used, it directly helps with waste management and disposal, enabling beneficial recyclable processes. Coordinated transport and Intermodal transportation: Proper planning and coordination of the transportation system, contributes to the reduction of congestion during loading as well as unloading of products. (Cherrett & Hickford, 2007). Intermodal transportation or multimodal transportation has now become a largely discussed topic, with more and more producers turning to this option as it can be a cost efficient while also being applicable in green logistics. The concept of intermodal/ multimodal transportation is that a particular mode of transportation does not have to solely depended upon for freight distribution, meaning that congestion could be greatly reduced, while lowering costs as well as cutting down on emissions. “For manufacturers trying to improve their carbon footprint, intermodal certainly fits into their plans as rail transportation uses far less fuel than the same distance over the road.” (Earing, 2009). Coordinated transportation has been implemented in Berlin and Stockholm while intermodal/ multimodal transportation is being implemented by several organizations all over the world. Recommendation: Although there are several paradoxes in the implementation of green logistic systems, there certainly are ways to improve the environmental impacts to it, even if the systems cannot be changed entirely or altered to maximum environmental benefit. Transportation expert Robert Bamba, talked about the large increase in fuel surcharges when fuel prices went up by just a few dollars, and pointed out how intermodal transport could be cost effective, stating “We have manufacturers that realize that they have maybe one extra day of transit time compared with truck transport, but the cost saving is $500 or $600 less via intermodal in certain lanes.” (Earing, 2009). Intermodal/ multimodal transportation means that logistics systems will involve different forms of transportation, thereby reducing the congestion caused by road freight traffic, reducing emissions while also reducing costs. Considering all the options that may be included in the development of a green logistics system, it may be noted that Coordinated and multimodal transport schemes will be most efficient and the preferred choice by many manufacturers. Conclusion: Although multimodal transportation covers several topics of concern, it cannot be the only solution to the implementation and development of green logistics. It is necessary that policy level changes be made in order to ensure that the most environmentally viable solutions are chosen and that environmental concerns are placed ahead of solely economic concerns. Further, it would be wise to consider various options that enable implementation of green logistics systems, and choosing the one best suited to the particular circumstance or organization. In some cases, it is most beneficial to use a combination of schemes, which will give optimized logistics and environmental friendly schemes. In a general perspective however, multimodal transportation may be considered as a good option, with many manufacturers turning towards it. References: Cherrett, T.J. & Hickford, A.J. (2007). Green Logistics. Retrieved from: http://www.greenlogistics.org/SiteResources/c566b714-1f55-416e-99af- 9aab1b4cd2cc_WM10%20-%20Southampton%20-%20Reverse%20Logistics.pdf Earing, A. (2009). Intermodal Transportation: A Green Way to Ship. Retrieved from: http://www.manufacturing.net/articles/2009/02/intermodal-transportation-a-green-way- to-ship Geroliminis, N & Daganzo, C. (n. d). A Review of Green Logistics Schemes used in Cities around the world. Retrieved from: http://www.metrans.org/nuf/documents/geroliminis.pdf McKinnon, A. (2008). Low Carbon: How to implement Green Logistics. Retrieved from: http://www.konferanse.info/modules.php?op=modload&name=PagEd&file=index&p_del iver=media&m_id=194 Muller, E.J. (1992). The Quest for a Quality Environment. Retrieved from: http://infohouse.p2ric.org/ref/27/26854.pdf Rodrigue, J, Comtois, C & Slack, B. (2009). The Geography of Transport Systems. New York: Routledge. Read More