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Green Logistics

Essay by   •  April 14, 2011  •  Research Paper  •  620 Words (3 Pages)  •  2,432 Views

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Through the growth of economic globalization, a lot of multinational companies have urgent needs of logistics. The international competition and with the development of the green consumption idea, logistics companies established and strengthened the concept of green marketing and logistics has become a current important issue. Currently, small and medium-sized enterprises are beginning to realize that to strengthen the management of green logistics is an effective way to attain profits from internal components. (Penfield, 2007,1) The definition of Green Supply Chain is the use of environmental protection and renovation by changing the investment process agent - -product can improve existing environment or in developing recycling. This process can output by recycling and reuse of products life cycle, therefore, to create a sustainable development of supply chain. The main idea of green logistic is to reduce the cost while protect the environment. Research shows that eco-friendly business can enjoy above-average return on investment as well as better performing stock. Even for a large retailer like Wal-Mart, the benefits of going green have made a significant impact on their bottom line. New innovations in manufacturing and transport have revolutionized the way Wal-Mart conducts its business in China, and consequently, around the world. The rising costs of oil and raw materials have revolutionized the landscape for global corporations. Companies are being forced to find new ways to reduce energy use and this in turn has made "going green" both strategically important and economically viable. Thus, it is important to companies to pay attention on environment problems. Green logistics methods should be implemented in all logistics companies as it reduces the consumption of resources; provides a chance for enterprises to obtain a new competitive advantage and reduces environmental pollution.

Opponents may claim that focus on green logistics is not necessary for a logistics company due to the green logistics operation increased the cost. The purpose of using green logistic is to reduce the cost, Brewer (2001,342)claims that manager base on the cost-saving strategies, and focus on the environmental problems assumes a wide burdens and costs. In general society or individuals are not willing to accept the costs of using green logistic. However, this argument contradicts the truth, because using green logistic not stand for will increase the extra costs of a company. According to the (Penfield, 2007,2), A top European company design system using pumps that regulation of 95 horsepower. The Interface engineer focus on the project re-designed the system by using "fatter pipes" and straightening/shortening the length of the pipes used in the system. General requirement is now seven horsepower or reduce 92 percent. He redesigned system construction, low cost, no new technology and better job in all aspects. The engineer of

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