Saturday, 22 March 2014

Green Logistics Paradoxes

Dimension
Outcome
Paradox
Costs
Reduction of costs through improvement in packaging and reduction of wastes. Benefits are derived by the distributors.
Environmental costs are often externalized.
Time/ Flexibility
Integrated supply chains. JIT and DTD provide flexible an deficient physical distribution systems.
Extended production, distribution and retailing structures consuming more space, more energy and producing more emissions (CO2, particulates, NOx, etc).
Network
Increasing system-wide efficiency of the distribution system through network changes (Hub and spoke structure).
Modes used, trucking and air transportation, are the least environmentally efficient.
Warehousing
Reducing the needs for private warehousing facilities
Inventory shifted in part to public roads (or in containers), contributing to congestion and space consumption.
E-commerce
Increased business opportunities and diversification of the supply chains
Changes in physical distribution systems toward higher levels of energy consumption.
Source: Rodrique, Slack and Comtois (2011)

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