The compromise appears to be the most desirable option with the industry following up through with the implementation of environmental management systems EMS. In these systems firms receive certification on the basis of establishing an environmental quality control tailored to that firm, and the setting up of environmental monitoring and accounting procedures. This represents a fundamental commitment of the corporation to engage in environmental assessment and audit that represent a significant modification of traditional practices, in which efficiency, quality and cost evaluations prevailed.
The challenges of certification schemes include:. Of the three possible directions by which a greener logistics industry may emerge, it is realistic to consider that they will concomitantly help shape the industry of the future. Although there is a clear trend in policy guidelines to make the users pay the full costs of using the infrastructures, logistical activities have largely escaped these initiatives. The focus of much environmental policy is on private cars e.
While there are increasingly strict regulations being applied to air transport noise and emissions , the degree of control over trucking, rail and maritime modes is less. For example diesel fuel is significantly cheaper than gasoline in many jurisdictions, despite the negative environmental implications of the diesel engine.
Yet trucks contribute on average 7 times more per vehicle-km to nitrogen oxides emissions than cars and 17 times more for particulate matter. The trucking industry has been able to avoid the bulk of environmental externalities it creates, notably in North America. Although in the past the environment was not a major preoccupation or priority in the industry itself, the last decades have shown a remarkable change as green logistics became increasingly part of the supply chain management discourse and practices.
The standard themes of materials management and physical distribution can be expanded with an additional focus on strategies able to mitigate the paradoxical nature of green logistics:. Applying green logistics to supply chains must also consider the network and spatial footprint of freight distribution. The hub structures supporting many logistical systems result in a land take that is exceptional.
Airports, seaports and rail terminals are among the largest consumers of land in urban areas.
19 Steps to Creating a Lean and Green Supply Chain - Inbound Logistics
For many airports and seaports the costs of development are so large that they require subsidies from local, regional and national governments. The dredging of channels in ports, the provision of sites, and operating expenses are rarely completely reflected in user costs. In the United States, for example, local dredging costs were nominally to come out of a harbor improvement tax but this has been ruled unconstitutional and channel maintenance remains under the authority of the US Corps of Army Engineers. In Europe, national and regional government subsidies are used to assist infrastructure and superstructure provision.
Themes and challenges in making supply chains environmentally sustainable
The trend in logistics towards hub formation is clearly not green as it incites the convergence of traffic flows and their externalities within a well defined area. On the positive side, this confers opportunities to mitigate these environmental externalities since they are focused and clearly identifiable. In turn, this process is related to additional land take and a level of disorganization of freight flows within a metropolitan area.
The setting of logistics zones is an attempt at providing a more coherent setting for distribution centers, including shared facilities such as parking areas and intermodal terminals. They confer the advantage of being able to more effectively minimize the impacts of freight distribution on surrounding areas such as with direct access ramps to highways less local intrusion or the setting of buffers of mitigate noise and emissions. There is growing evidence that green logistics results in increased supply chain performance, particularly since greenness, particularly because it favors an integrated perspective about supply chains.
The actors involved in logistical operations have a strong bias to perceive green logistics as a mean to internalize cost savings, while avoiding the issue of external costs. The top environmental priority is commonly reducing packaging and waste. The rise in energy prices is conferring additional incentives for supply chain managers to improve upon logistics and will correspondingly push energy and emissions at the forefront.
These observations support the paradoxical relationship between logistics and the environment that reducing costs does not necessarily reduce environmental impacts. By overlooking significant environmental issues, such as pollution, congestion, resource depletion, means that the logistics industry is still not very green. Green logistics remains an indirect outcome of policies and strategies aimed at improving the cost, efficiency and reliability of supply chains.
Still, even in this context the driving force is not directly environmental issues, but factors linked with costs, time, reliability, warehousing and information technologies.
Authors: Dr. Jean-Paul Rodrigue, Dr. Brian Slack and Dr.
Green Logistics and Transportation : A Sustainable Supply Chain Perspective
Claude Comtois 1. Greenness and Logistics Most considerations in sustainable transportation focus on passengers, leaving freight issues somewhat marginalized. Logistic Activities and their Green Dimensions Material Flows Cycle The Circular Economy and Supply Chains Interest in the environment by the logistics industry manifested itself most clearly in terms of exploiting new market opportunities. Green Logistics and its Paradoxes An overview of the standard characteristics of logistical systems reveals several inconsistencies with regards to the mitigation of environmental externalities.
Costs The purpose of logistics is to reduce costs, notably transport costs. Time In logistics, time is often the essence. Reliability At the heart of logistics is the overriding importance of service reliability. Warehousing Logistics is an important factor promoting globalization and international flows of commerce. Information Technologies Information technologies have led to new dimensions in retailing. A Blueprint for Green Logistics Environmental pressures in many economic sectors are already manifest and for the logistics industry, it is latent but quickly emerging.
Over the later three scenarios are possible, but they are not mutually exclusive: A top-down approach where environmental standards are imposed on the logistic industry by government policies through regulations ; A bottom-up approach where environmental improvements are coming from the industry itself through the adoption of best practices through innovative firms; A compromise between the government and industry, notably through certification schemes leading to accreditation to desirable environmental standards.
Potential Impacts of High Oil Prices on Transportation Fuel Consumption by Containership Size and Speed Less predictable, but with a much greater potential impact on the greenness of the industry, are possible attitudinal changes within logistics and without. The challenges of certification schemes include: Certification can be biased to represent or protect the interests of specific stakeholders and markets.
Attaining compliance can be a costly endeavor in terms of time and resources in regard to the uncertainty of the benefits. Figures vary and it can take from 6 months to two years to go through the certification process. This can be a negative factor for smaller firms or developing economies.
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Thus, certification can create barriers to entry, effectively protecting the market advantage of the compliant firms. Once certification has been achieved, auditing and review can continue to be time and resources intensive as they can take place every three years. They can also relapse, implying that the certified firm may not consistently adhere to the standards they have been certified for.
Applying Green Logistics to Supply Chains Although in the past the environment was not a major preoccupation or priority in the industry itself, the last decades have shown a remarkable change as green logistics became increasingly part of the supply chain management discourse and practices. The standard themes of materials management and physical distribution can be expanded with an additional focus on strategies able to mitigate the paradoxical nature of green logistics: Product design and production planning.
The conventional focus of product design and development is the improvement of its commercial and competitive attributes such as price, quality, features and performance. There is also a planned obsolescence in product design with the expectation that it will be discarded after a certain amount of time or uses. This process is common for electronic goods as each new generation of a product computers, phones, televisions is quantitatively and qualitatively better. Forgot your login information?
Chapter Green Supply Chain Management. Subject: Transport Economics , Transport Planning. Rodrigue, J. Green supply chain management. Rodrigue, Jean-Paul, et al.
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SAGE Knowledge. Have you created a personal profile? Login or create a profile so that you can create alerts and save clips, playlists, and searches. Product details Format Paperback pages Dimensions x x Other books in this series. Add to basket. Green Logistics and Transportation Behnam Fahimnia. Back cover copy This book identifies and furthers the state of the art in green logistics and transportation with a supply chain focus. It includes discussions on concerns and linkages across policy, corporate strategy and operations, and inter-organizational relationships and practices.
Separate sections are assigned to discuss issues related to greening of logistics and transportation functions, including green logistics network, green land transportation, and green air and water transportation. Table of contents 1. The role of green logistics and transportation in sustainable supply chains. Dynamic Supply Chain Greening Analysis. City logistics for sustainable and liveable cities. Green transport fleet appraisal. The inventory pollution-routing problem under uncertainty. Vehicle related innovations for improving the environmental performance of urban freight systems.