ENVIRONMENTAL ISSUES IN LOGISTICS

An Analysis of Environmental Issues in Logistics



An Analysis of Environmental Issues in Logistics

Introduction

The concept of logistics and logistics management is a relatively recent (within the last 20 years) managerial principle. The topic and field have evolved with input from a number of disciplines and fields including purchasing, marketing (distribution channels), logistics, and operations management. The issues include management of inventory, customer-supplier relationships, delivery time, product development, and purchasing just to name a few related managerial areas.

Green Logistics—What Is It?

Green supply refers to the way in which innovations in logistics management and industrial purchasing may be considered in the context of the environment. (Green, Morton, & New, 1996, p. 188)

Environmental logistics management consists of the purchasing function's involvement in activities that include reduction, recycling, reuse and the substitution of materials. (Narasimhan & Carter, 1998, p. 6)

The term “logistics” describes the network of suppliers, distributors and consumers. It also includes transportation between the supplier and the consumer, as well as the final consumer … the environmental effects of the researching developing, manufacturing, storing, transporting, and using a product, as well as disposing of the product waste, must be considered (Bettac, Maas, Beullens, Bopp, 1999, 42).

From these three definitions, we see that there is a range of author focus and purpose on green logistics and management. Research or practitioner field (i.e., purchasing, operations, marketing, or logistics) also influences the definition. The definition of the purpose of green logistics, which range from reactive monitoring of general environmental management programs to more proactive practices such as the Rs (e.g., reuse, remanufacture, recycle, and reclamation) of environmental management and incorporating “innovations” also differ. This lack of consensus in practice and definition of green logistics is not surprising, since its foundational elements of corporate environmental management and logistics management are both relatively new areas of management study and practice (Carter, Ellram, 1998, p85).

The discussion in this chapter will follow the last of the four definitions encompassing most of the customer-supplier logistics. The logistics has both a supply side and a demand side, and both of these sides need to be managed.

The primary focus in this figure is the management of materials that flow through the logistics and relationships among the various functions. Vendors (who have their own internal and external logistics) supply the necessary materials (Fleischmann, Bloemhof-Ruwaard, Dekker, van der Laan, van (Nunen, Van Wassenhove, 1997, p17). The materials may include raw and virgin material, parts, and components from original manufacture and recycled, reusable, or remanufactured materials. There are environmental implications depending on the focus of acquisition activities at this stage.

These materials are transported from various vendors, which also may be a determinant of environmental impact of the product or material to be procured. For example a recycled material from a distant location may not be as environmentally sound as a virgin material from closer locations. The policies for selection of vendors are a central issue for purchasers. Vendor selection criteria and policies are briefly ...