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CHAPTER 2 LITERATURE REVIEW
Green Logistics
Definitions
Logistics can be classified as both an art and science. As an art, it refers to the management of the chain of supply (Christopher, 2016). As a science, it relates to the control and management of the movement of products, people, information, sometimes energy and any other resource from where it is produced to where it will be consumed for the purpose of meeting the customer needs (Christopher, 2016). Logistics can take place on any transport means i.e. rail, road, water or air. It makes bringing together all the information from transport, assets, silos, handling of raw materials as well as packaging. In a nutshell, the main aim of green logistics is to achieve the synchrony of all activities of the chain of supply so that the needs of the beneficiary are met without forfeiting the environment (Sbihi, &Eglese, 2007). The aspect of environmental consideration requires the logistic managers to operate at a minimum cost to the environment which is a fundamental component of reverse logistics. Previously, the cost of logistics only considered monetary cost incurred while this day’s cost is considering even logistics impact on the external surrounding which includes degradation of the soil, noises, accidents, air pollution, dumping solid waste especially packaging materials, vibrations and changes in climate (Sbihi & Eglese, 2007).
Dekker, Bloemhof & Mallidis, (2012) refers to green logistics as the study of the activities that are geared towards minimizing the environmental pollution especially emitting greenhouse gases, accidents together with noises from logistics activities so that businesses can achieve a sustainable balance of social, economic and environmental targets. Ubeda, Arcelus & Faulin (2011) refers to green logistics as the issue of embracing activities in the supply chain that are friendly to the environment. As mentioned by (Saroha, 2014), green logistics means connecting the social, economic and environmental perspectives of logistics and hence may refer to the efforts made geared towards decimating the negative effects of logistics to the environment. The main reason as to why business organization is going the green way is out of the competitive advantage associated with it since many customers’ demand that companies conserve the environment and are ready to pay high for those who have done it (Saroha, 2014).
It is clear from the above definitions that green logistics takes into consideration the social, economic and environmental aspects likely to be influenced by supply chain practices. A study by (Dekker et al., 2012) however attempts to give a more reasonable definition of the same. They indicate that green logistics refers to the study of all the activities carried out with the aim of reducing pollution of the environment especially greenhouse gases emission, accidents as well as the noises from logistics activities. All this to ensure that a business achieves a sustainable balance in economic, social and environmental targets.
Development and Application of Green Logistics
As in many other areas of human activity, the term “greenness” became popularly used in the transportation industry from the late 1980s to 1990s (Rodrigue, Slack, &Comtois, 2001). The increase in awareness surrounding environmental problems, particularly in issues of global warming, CFCs, and acid rain, was the main reason behind its growth. The World Commission on Environment and Development Report (1987), through its establishment of environmental sustainability as its primary objective for international action, highly promoted green issues in economic and political arenas. Through its various modes, (Banister and Button 1993) argues that infrastructures and traffic, the transport industry has emerged as one of the main contributors to environmental degradation. The developments in the logistics field were seen by many as an opening which would offer a more environmentally friendly expression in the transport industry. In the early 1990s, many studies, opinions, and reports surfaced to suggest various ways incorporate the environment and the logistics industry (Muller 1990; Murphy, Poist & Braunschweig, 1994).
The use of logistics in the waste management of all kinds of waste materials, including hazardous and toxic waste, has recently become a major new market. According to (Rodrigue et al., 2011), there are, however, several variants in this market, one of the most significant segments of this market being customer driven. In this, the home dwellers set aside their domestic waste for recycling, and it has become trendy in many communities, particularly due to the involvement of the public in the process. Another type is the transportation of non-recyclable materials comprising even hazardous waste, to designated areas for disposal. Due to the scarcity of landfills near urban centers, the waste is transported greater distances for disposal. Another approach is the use of a continuous embedded reverse distribution process, where the manufacturer or distributor is responsible for delivering goods and their take-back (Murphy et al., 1994). This would ultimately entail environmental consideration throughout the life cycle of a product, i.e., from production, distribution, consumption through to its disposal. For instance, the BMW Company is designing a vehicle with entirely recyclable components (Giuntini and Andel 1995).
Green logistics activities
Reverse Logistics
It reffers to all the things that take place ones the product has been sold (Christopher, 2016). The primary objective of reverse logistics is to maximize the activities taking place after selling the product such as customer service, warehousing and inspecting the quality which can act as another source of income, increase the satisfaction of the client as well as conserve the environment (Christopher, 2016). Reverse logistics is based on the 4Rs i.e. refund, restock, refurbish and recycle (Murray, 2012).
Estimating carbon dioxide emissions
Estimations of carbon dioxide (CO2) emitted in the air is usually based on the fact that all fuels containing carbon are burned and released into the atmosphere as CO2 (Ćirović, Pamučar & Božanić, 2014). In order to internalize the estimates of carbon dioxide released to the surrounding, the emissions can be gotten by multiplying the amount of fuel consumed with the carbon dioxide emissions factor. The sum of well-wheel CO2 emitted in every unit of fuel used that is referred to as emission factor is approximately 2.67kg of CO2 from every liter of diesel (Murray, 2012). The amount of fuel used depends on the following factors i.e. the amount of weight carried, the distance to be travelled and the type of vehicle (Ćirović et al., 2014).
Fuel efficiency
Raising the efficiency of fuel use while transporting goods is a technique that can be friendly to the environment. When alternative fuels are used combined with maintaining the vehicles as well as co-driving, the efficiency of fuel use can be raised (Elkington, 2004). Making of alternative and environmentally friendly fuels with high efficiency can help in improving the greenness of the supply chain (Saroha, 2014. According to a research carried out by (Wu and Dunn, 1995), other fuels that can be used as an alternative to diesel were discovered and found to be cleaner, affordable and safe. Examples of these fuels are liquefied natural gas (LNG) and compressed natural gas (CNG). According to (Wu and Dunn, 1995), compressed natural gas was found to be 40% lower in terms of cost compared to petrol. For this reason, if logistic firms would like to change to eco-friendly energy sources, then they need to consider using alternative fuels.
Abstract
CHAPTER I
1.1 INTRODUCTION
1.2 Background of the study
1.3 Specific purpose.
1.4 Main aim of the study
1.5 Research questions
1.6 Study organization
1.7 Chapter summary .
CHAPTER 2
2.1 LITERATURE REVIEW .
2.2 Green Logistics
2.3 Supply chain
2.4 Profitability
2.5 Sustainability
2.6 Chapter summary and research gap
CHAPTER 3 METHODOLOGY
3.1. Introduction
3.2 Epistemology
3.3 Selecting the subject
3.4 Research Method
3.5 Research Strategy and design
3.6 Data Collection Method
3.7 Data Source (Primary & Secondary)
3.8 Population
3.9 Sampling method & techniques
3.10 Data analysis methods
3.11 Presentation techniques
3.12 Advantages and disadvantages of chosen methods
3.13 Limitations and Delimitations
3.14 Reliability and validity issues of the study
CHAPTER 4
4.1 RESULTS
4.2 Chapter overview
4.3 Response Rate
4.4 Respondents information
4.5 Green Logistics Activities in Place
4. 6 Green Logistics impacts; profitability
4.7 Supply chain
4.8 Sustainability
4.9 Improvements or Changes Recommended
4.11 Secondary data .
4.12 Chapter Summary
CHAPTER 5
5.1 DISCUSSION
5.2 Green Logistics
5.3 Impacts of green logistics; profitability
5.4 Supply chain
5.5 Sustainability; Triple bottom lines
5.6 Participants advice
5.7 Chapter summary
CHAPTER 6
6.1 CONCLUSION
6.2 Summary
References .
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SABIC Green Logistics Systems & Profitability
