Three main sections of green logistics

Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. Thisincludes all activities of the forward and reverse flows of products, information and services between the pointof origin and the point of consumption. It is the aim to create a sustainable company value using a balance ofeconomic and environmental efficiency. Green logistics have its origin in the mid 1980s and was a concept tocharacterize logistics systems and approaches that use advanced technology and equipment to minimizeenvironmental damage during operations.[1]

1 Demand for action 2 Ecological concern 3 Approaches4 See also

Organizations have to face changing circumstances forseveral years. In addition to increasing diversity anddynamics, environmental issues become more important.Social, political and economic demands for sustainabledevelopment force organizations to reduce the impact on theenvironment of their supply chains and to developsustainable transport and supply chain strategies.[2]

There are strong interactions between logistics, environmentand natural resources. In addition, the approach of logisticsis interdisciplinary, holistic and cross-company[3] Realisingenvironmental objectives can be done in synergy with otherstrategic and financial goals. This is the basis of the greatpotential of this new logistics problem and challenge.[4]

The "ecological concern" in logistics determines how far the logistics or the supply chain of a company is facedwith the issue of environmental protection and resource conservation. Basically, a supply chain is affected ofvarious influencing factors in this context. The main influencing factors are the stakeholders of the organizationand the rising costs of energy and commodity.[5]

Unit 2

Some of the key stakeholders in this context are:

The state with growing international and national regulationsCustomers and consumer with increasing awareness and demand for ecofriendly products and (logistics)servicesEmployees who want to work in an environmentally and socially responsible companySociety with increasing claims for more corporate social responsibility (CSR)Companies themselves; dealing with their own motivation

There is also the pressure of lenders, investors, insurers and investors. Indications of this are new forms ofinvestment in the capital market, such as the Dow Jones Sustainability Index, that tracks the stock performanceof the world's leading companies in terms of economic, environmental and social criteria.[6]

The dimension of ecological concern of a company is the product of these complex and varying factors.

Logistics has a whole range of measures to protect the environment and resources. Some are new, otherslong-known. These actions can be assigned to different levels maturity, range, scope, capital expenditure andresource requirements.

Corresponding to the holistic approach of green logistics, logistics has five starting points to implement measuresfor environmental protection and resource conservation:

customer, market and product (level 1)structures and planning (level 2)processes, control and measurement (level 3)technologies and resources (level 4)employees, suppliers and service providers (level 5)

Examples:[7]

More efficient packingRoute optimizationLoad optimizationFormation of corporate networks, which are connected by logistics serviceOptimizing physical logistics processes by providing a sophisticated IT support

The first four levels form a hierarchy and influence each other sequentially. Decisions on one level define the scope for further decisions on the following levels. Decisions at higher levels reduce the freedom for the following levels. Example: The determination of the packing mass of a product on the Level one defines the volume and weight of a product and therefore the maximum number of items per carrier (e.g., container). Thus, the decision made on level one influences the maximum capacity of a container. The impacts on theenvironment as carbon-dioxide (CO2) emissions per transported product therefore are strongly influenced by the decisions made on level one. But also decisions made on levels two and three, such as route optimization have an impact on carbon-dioxide emissions.[8]