Green Logistics is the use of practices and strategies in supply management to ensure freight distribution causes minimum effects on the environment. It involves management of materials, physical distribution and planning in terms of production. In the recent past, the world has realized the importance of environment conservation. Governments and regional bodies such as the European Union have called for sustainable use of the environment because of its benefits. Sustainable use of the environment enables companies acquire their raw materials in an efficient manner and protect the environment from further degradation and this enables the company operate in a safer environment as well as its customers.
Green logistics helps in cost cutting and reduction of pollution. Application of green logistics in a company enables it identify departments with similar functions and merge them to cost cut. For example, a company has separate departments for packaging and distribution of products can merge the departments in order to reduce their carbon emissions. This saves on carbon emission costs paid to the government and eliminates the trips made from one department to the other. Companies can market themselves through their use of green logistics since the government and logistics industry is advocating for environmental-friendly ways to operate. Clients will engage with companies that comply with this new method of operations. Despite these benefits, most companies are hesitant to use green logistics. The costs of implementing Green logistics are high and this deters companies from it. Green logistics requires use of environmentally friendly fuels for transportation but these fuels are expensive compared to the regular fuel used. Managers of Logistic companies see safer fuels as an increase in operating costs that will lower profits.
Logistics companies use the most reliable methods to satisfy their customers’ needs. Reliability means that the goods will arrive in the fastest time so that companies can meet the customer’s deadlines. Green logistics expects companies to use pollutant free means of transport such as trains and ships. In the logistics industry, Companies view ships and trains as the least reliable methods for transporting goods because they are slow and therefore a high risk of not meeting clients’ deadlines. Green logistics is steadily spreading in companies through government and Industry participation. The government can pass legislation that charge higher taxes on companies with large carbon emissions as a way of imposing green logistics. It can offer incentives such as tax breaks to companies that use green logistics in their operations.
Industry players can hold workshops where they will discuss how to implement green logistics in their companies. The use of biodegradable packaging materials helps in reduction of pollution. Huge Logistics companies may outsource their distribution to trains in small geographical areas such as counties in order to minimize their pollution and cost cut.