Is Money Really Green? - An Investigation Into Environmental Supply Chain Practices, with a Cost Focus

TitleIs Money Really Green? - An Investigation Into Environmental Supply Chain Practices, with a Cost Focus
Publication TypeConference Paper
Year of Publication2014
AuthorsBancroft, J
EditorKersten, W, Blecker, T, Ringle, CM
Title of ProceedingsNext Generation Supply Chains
Volume18
Page183
Publisherepubli
Conference LocationHamburg
ISBN Number978-3-8442-9879-6; 978-3-7375-0340-2
ISSN NumberISSN (print) 2365-4430, ISSN (online) 2365-5070
Keywordscost focus, green, performance, reliability
Abstract

In the setting of the supply chain and the environment, logistical operations are
the most visible and contribute significantly to CO2 emissions (Dekker et al.,
2011); Tol (2006) suggests that transportation accounts for 14% these
emissions. As most products consumed have a global footprint it is important
that logistics is managed with a green and cost effective approach.
For third party logistics providers and in-house logistics operations to reduce
CO2 emissions and "green up" their operations, it must be possible to do this
whilst remaining competitive in areas such as cost, reliability and performance.
Without this, it is unlikely that logistics providers will voluntarily make changes
to their operations. This research paper will investigate current green initiatives
as well as future approaches and evaluate them, focusing on those which can
maintain or reduce costs whilst sustaining performance and reliability.
Investment in environmentally friendly distribution practices has become a must
for organisations; the degree to which this is practiced and invested in varies
significantly. The motivation for this investment could be for numerous reasons;
a genuine care for the environment, legislation, pressure from
environmentalists or due to an increase in the cost of fossil fuels. For
investment to be facilitated it must be sustainable fiscally, or these practices
cannot be continued. Helper et al. (1997) and Conrad and Morrison (1989)
suggest that previous attempts to reduce the impact of supply chain practices
have frequently increased costs, thus discouraging investment in such
practices.