How important is Green Logistics?

 

Currently, the trend of environmentally friendly business practices is gaining significant popularity. Environmental factors such as resource depletion and consumer sentiment are forcing many businesses to emphasize eco-friendly operations. This is particularly crucial for logistics-related businesses, which should also pay attention to the environmental impact of transportation. Moreover, the societal, political, and economic demands for organizations to develop sustainable supply chain and transportation strategies are increasing. Adapting the structure, processes, and methodologies with environmental considerations is a significant challenge for organizations in the logistics sector.

 

What is Green Logistics and what are the methods of operation?

 

Green Logistics is the management of all processes related to Movement of goods, raw materials, and information from the beginning to the end of the supply chain, both forward and backward. The objective is to reduce the negative impacts on the ecosystem caused by all logistics activities. Whether it is moving, collecting, storing, distributing products, and using various forms of packaging, Green also helps reduce costs efficiently as well.

 

As the global economy changes rapidly, many countries are entering a new era of economy. Successful business management must be conducted under the circumstances that is constantly changing and the competition is becoming more intense Especially costs that are continuously increasing. Businesses that can satisfy consumers’ needs while operating with low total costs have an advantage. Therefore, operating a business under the current situation Effective management is thus important and applying supply chain management methods can help your business succeed.

 

However, today the world is undergoing rapid natural changes. and is likely to become even more severe Natural resources that are beginning to decrease rapidly as a result, the world has become aware of the importance of the operations of manufacturers, service providers, and consumers. Every activity in the supply chain that affects Society and environment from raw material procurement, production, transportation, consumption, and waste management to green logistics management that gives importance to reducing environmental impacts in every activity throughout the process All of these things are part of the concept “Green Logistics” as well

 

 

Green Logistics’ best practices can be divided into 6 approaches 4:

1. Changing the mode of transporting goods (Model Shift)

is to change the mode of transporting goods from a form that emits high pollution, such as road transport by trucks. Toward a form of transport that emits less pollution. such as rail transport by train

 

2. Joint Transportation

is to improve the efficiency of transporting goods (Load efficiency) by combining goods from many logistics operators together. In order to reduce the available space for transporting goods each time. Including reducing empty transportation and loading goods to the full truck (Backhaul & Full Truck Load), but must not exceed the weight limit specified by law because the weight of the truck exceeds the road surface can support it. It is also considered environmental destruction.

 

3. Unification and Relocation of Cargo Bases

is the location of the warehouse or distribution center to reduce the distance of transporting and waiting for the goods of all buyers or orders (Lead Time) and reducing the transportation time (Delivery Time), which will cause the emissions from transporting goods to be reduced according to distance. transportation time as well. This includes the collection of goods from many operators without a stopping point then arrange routes to transport goods together as well.

 

4. Technology

is the use of technology to reduce carbon dioxide (CO, emissions) and pollution, including increasing efficiency in business operations, such as using vehicles. that uses energy efficiently use of electric vehicles Using a trapping device Pollution from exhaust pipes Using a tachometer to check vehicle service Eco-Wrapping emphasizes the use of environmentally friendly packaging, such as using recycled paper packaging and changing packaging from paper to plastic that can be recycled.

 

5. Infrastructure

is the creation and maintenance Structural rehabilitation Transportation infrastructure such as roads, freight stations, train stations, ports, airports, electric vehicle charging stations In order to make the overall transportation of goods more efficient including telecommunications infrastructure In the future, there will be a part in transmitting data used in transporting activities as well.

 

6.Government policy Creating international cooperation

is the issuance of policies and the creation of international cooperation between the government departments of various countries. To reduce carbon dioxide and pollution in the transportation sector both freight transport and passenger transport

 

In this regard, the concept of Green management Logistics can be done from many perspectives. Whether it be with services, processes, customers, control and measurement processes, technology, employees, and suppliers. This can be done as follows:
    • Effective packaging
    • Optimizing transportation routes
    • Creating a network of organizations connected by logistics services.
    • Optimizing logistics processes using technology

 

Green Logistics that Weiss has been practicing for a long time until it is part of the organization’s culture include:
    1. Eco-drive is about creating driving awareness among truck drivers. To reduce the use of wasted oil. and maintaining the engine in perfect condition Does not release exhaust gases that disturb the environment
    2. Full Truck Load is the management of using fuel to get maximum utility. By reducing empty transportation and loading the truck with goods. without exceeding the weight limit specified by law Because the weight of trucks exceeding the capacity of the road surface is also considered environmental damage.
    3. Eco-Packaging is the selection of packaging that can be recycled. and/or can be recycled in the production process again

 

For the trend of Green Logistics, it is another strategy that Thai entrepreneurs must prepare to raise the level of logistics system management towards development and effectively create a competitive advantage that is currently challenging with trade measures and rules in various forms that are becoming more intense in line with global trends If we do not adjust, it will inevitably affect future business operations.

 

Source: krungthai, itln

Picture: freepik and unsplash

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