Optimized supply chain processes can help reduce carbon emissions and increase the ecological sustainability of business processes. Until now, the costs and benefits of supply chain measures were not investigated with quantitative methods nor based on case studies or looked at in relation to each other.
„Costs and Benefits of Green Logistics“
For the current 4flow study “Costs and Benefits of Green Logistics”, the supply chain experts at 4flow took a close look at opportunities for reducing greenhouse gas emissions. The focus was on whether logistics can contribute to a sustainable economy and whether cost efficiency and sustainability are compatible in actual practice.
In this study various means for reducing greenhouse gas emissions were classified based on their financial and ecological impact. The ideal measures can both reduce emissions and save costs. The ecological measures reduce the CO2 emissions but lead to additional costs while the economical measures do just the opposite.
Optimized supply chain processes can help reduce carbon emissions and increase the ecological sustainability of business processes. Until now, the costs and benefits of supply chain measures were not investigated with quantitative methods nor based on case studies or looked at in relation to each other.
Using realistic scenarios, the costs and benefits of 11 green logistics measures were examined. The measures were selected for their innovativeness, relevance, and practicability. Scenarios such as integrating two separate sourcing networks, sourcing standardized parts locally, switching from returnable containers to disposable containers for distribution, and extending delivery windows were evaluated. All of the measures were found to be feasible from an ecological point of view and result in emission reductions up to 80 percent. When cost efficiency was considered, the findings were particularly interesting: Four of the measures were shown to reduce supply chain costs by up to 25 percent. The remaining seven measures are accompanied by considerable additional costs.
Wendelin Gross
Green Logistics Grüne Logistik Klimawandel Nachhaltigkeit Supply Chain Management Sustainability Ultimate change