Green logistics

Green logistics has its origin in the mid-1980s and was a concept to characterize logistics systems and approaches that use advanced technology and equipment to minimize environmental damage during operations

As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents.

Green logistics is a form of logistics which is calculated to be environmentally and often socially friendly in addition to economically functional. It describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows of products, information and services between the point of origin and the point of consumption. Its aim is to create a sustainable company value using a balance of economic and environmental efficiency.

Importance of Green Logistics:

Green logistics has its importance from the view point of business, society and environment at large. It benefits could be understood with the help of following points:

(a) Better Transportation ideas: Green management endeavors at finding out innovative methods of transporting goods to the customers. In some countries trends have begin of using electric vehicles rather than using traditional vehicles consuming lot of fuel like diesel and petrol.

(b) Lesser Pollution: Greener techniques of logistics also aim at keep the environment clean and green. Pollution free land, air and water is the agenda of green logistics.

(c) Reduction in Company’s Costs: The green logistics is not very much expensive. On the contrary it is cheaper the traditional methods. For instance using electric vehicles in transportation is much cheaper than using diesel trucks. This reduces the overall costs of the company.

(d) Increase in revenues: Green logistics saves energy costs, reduces operational costs, maintains steady supply of materials and creates a safer, secure working environment for the business. This contributes to higher revenues for the company.

(e) Customer loyalty: We are now in an era with highly informed customers who care more about what they use and how it is produced. So when a company communicates its green supply chain, company is bound to retain and attract more customers than a company without a green supply chain

(f) Increases company’s longevity: At times, most companies die prematurely because they cannot survive market competition and innovation. Green supply chain supports sustainability on very important levels for continuous business growth.

(g) Human health: Green logistics help’s to decrease several kind of emissions such as CO2 and CO. For example, using non-fossil fuel such as electric cars help to decrease air pollution which impact on human health when they breathe the air.

(h) Waste Management: Green logistics also aims at waste management and carrying out proper disposal. Waste can create lots of environmental hazards which gets reduced by implementing green logistics.

(i) Better Corporate Image: Companies that follow the green logistical practices are bound to be liked by the public. Efforts of such companies are embraced by the public. Such companies enjoy good reputation in the market and it leads to a better corporate image.