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Green Logistics

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Green Logistics
The University of Sydney

Discuss appropriate ‘green’ strategies that can be implemented in supply chains and analyse the impact on all supply chain members

Warinee Prapai

Submission Date: Friday, 21 April 2006
Unit of Study: TPTM6170, Strategy and Supply Chain Management
Degree Enrolled In: Master of International Business (MIB) and Master of Logistics Management (MLM)
Student No: 305044575

TABLE OF CONTENTS

1 INTRODUCTION 1
2 GREEN STRATEGIES AND LEAN STRATEGIES 1
3 REVERSE LOGISTICS STRATEGY 2
4 E-LOGISTICS STRATEGY 3
4.1 Forward E-logistics 3
4.1.1 Procurement 3
4.1.2 Inventory Management and Warehousing 3
4.1.3 Transportation and Delivery Management 4
4.2 Reverse E-logistics 4
5 GREEN PURCHASING STRATEGY 5
5.1 Green Purchasing Policy 5
5.2 Supplier Selection Process 5
5.3 Supplier’s Environmental Evaluation Process 6
5.4 Raw Materials and Design Process Selection 6
6 IMPACT ON SUPPLY CHAIN MEMBERS 7
6.1 Impact of Reverse Logistics Strategy 7
6.2 Impact of E-logistics Strategy 7
6.3 Impact of Green Purchasing Strategy 8
7 CONCLUSION 9
8 REFERENCES 10
APPENDIX 1: COMPARISON OF REVERSE LOGISTICS 14 AND GREEN LOGISTICS
APPENDIX 2: IMPACT OF EFFECTIVE RETURN MANAGEMENT 16

1 INTRODUCTION
Nowadays, the environmental issues are a part of corporate strategies and sustain companies’ success (Parker, 2000). The pressure of environmental concerns by government legislation, changing customer demands, the development of international certification standards (ISO), and aggressive competition are outstanding reasons that why businesses should implement green/environmental strategies into their supply chains (Enarsson, 1997; Murphy and Poist, 2003).

The implementation of green strategies in supply chains and the impact of green strategies on supply chain participants are discussed and analyzed in this paper.

2 GREEN STRATEGIES AND LEAN STRATEGIES
According to Parker (2000),



References: Andel, T. 2004, “How to advance in the reverse channel”, Material Handling Management, vol. 59, no. 2, pp. 24-31. Retrieved: 7 April 2006 from ABI/Inform database. Alghalith, N. 2005, “Completing with IT: The UPS case”, Journal of American Academy of Business, vol. 7, no. 2, pp. 7-15. Retrieved: 7 April 2006 from ABI/Inform database. Azzone, G.and Bertelè U. 1994, “Exploiting Green Strategies for Competitive Advantage”, Long Range Planning, vol. 27, no. 6, pp. 69-81. Retrieved: 31 March 2006 from ABI/Inform database. Beamon, B.M. 1999, “Designing the green supply chain”, Logistics Information Management, vol. 12, no. 4, pp. 332. Retrieved: 6 April 2006 from ABI/Inform database. Byrne et al. 1993, “Logistics must meet the green challenge”, Transportation & Distribution, vol. 34, no. 2, pp. 33-37. Retrieved: 20 March 2006 from ABI/Inform database. Carter, C.R. and Ellram C.L. 1998, “Reverse Logistics: A Review of the Literature and Framework for Future Investigation”, Journal of Business Logistics, vol. 19, no. 1, pp. 85-102. Retrieved: 30 March 2006 from ABI/Inform database. Collins, P. 2000, “E-logistics 2000 re-thinking the supply chain”, Management Services, vol. 44, no. 6, pp. 6-10. Retrieved: 6 April 2006 from ABI/Inform database. De Brito, M. P. and Dekker, R. 2004, “A framework for reverse logistics”, Quantitative Models for Closed-Loop Supply Chains, Springer-Verlag, Germany. Enarsson, L. 1997, “Environmental strategies”, Logistics Spectrum, vol. 31, no. 4, pp. 7-9. Retrieved: 7 April 2006 from ABI/Inform database. Enarsson, L. 1998, “Evaluation of suppliers: how to consider the environment”, International Journal of Physical Distribution & Logistics Management, vol. 28, no. 1, pp. 5. Retrieved: 12 April 2006, from ABI/Inform database. Handfield, R. B. and Nichols, E.L. 1999, Introduction to supply chain management, Prentice-Hall, Inc., New Jersey. Harrison, A. and Van Hoek, R. 2005, Logistics Management and strategy, 2nd edn., Pearson education, UK. Hines, P. and Stewart, A. 2004, “What is lean thinking?”, MHD supply chain solutions, vol.34, no.5, pp. 58-60. Retrieved: 20 March 2006 from ABI/Inform database. Konicki, S. 2001, “E-logistics gets the kinks out of supply chains”, InformationWeek, vol. 864, pp. 64-65. Retrieved: 6 April 2006 from ABI/Inform database. Kuzeljevich, J. 2001, “How to take your supply chain into the realm of e-logistics”, Canadian Transportation Logistics, vol. 104, no. 8, pp. 15. Retrieved: 6 April 2006 from ABI/Inform database. Madsen, J.J. 2002, “Going Green”, Building, vol. 96, no.2, pp. 40-42. Retrieved: 5 April 2006 from ABI/Inform database. Maker, C. 2006, “Store Manager: Green ways to save on cost”, Tonbridge, pp. 14. Retrieved: 6 April 2006 from ABI/Inform database. Mebratu, D. 2001, “Environmental competitiveness: Green purchasing”, International Trade Forum, vol. 2, pp. 11-13. Retrieved: 11 April 2006 from ABI/Inform database. Min, H. and Galle, W.P. 1997, “Green purchasing strategies: Trends and Implications”, International Journal of Purchasing and Materials Management, vol. 33, no. 3, pp. 10-17. Retrieved: 6 April 2006, from ABI/Inform database. Mollenkopf, D.A. and Closs, D.J. 2005, “The hidden value in reverse logistics”, Supply Chain Management Review, vol.9, no. 5, pp.34-43, Retrieved: 20 March 2006 from ABI/Inform database. Murphy, P.R. and Poist, R.F. 2003, “Green perspectives and practices: A “company logistics” study”, Supply Chain Management, vol. 8, no. 2, pp.122-131. Retrieved: 31 March 2006 from ABI/Inform database. Murphy, P.R. and Wood, D.F. 2004, Contemporary Logistics, 8th edn., Pearson Education, Inc., New Jersey. Pagell et al Parker, L.D. 2000, “Green strategy costing: Early days”, Australian Accounting Review, vol. 10, no.1, pp. 46-55. Retrieved: 7 April 2006 from ABI/Inform database. Reagin, M. 2002, “Green policy save money, environment”, The American City & Country, vol. 117, no.12, pp. 16. Retrieved: 13 April 2006 from ABI/Inform database. Roger, D.S. and tibben-Lembke, R. 2001, “An examination of reverse logistics practices”, Journal of Business Logistics, vol. 22, no. 2, pp. 129-148. Retrieved: 30 March 2006, from ABI/Inform database. Sakis, J., Meade, L.M., and Talluri,S. 2004, “E-logistics and the natural environment”, Supply Chain Management, vol.9, no.3/4, pp. 303-312. Retrieved: 20 March 2006 from ABI/Inform database. Simons, D. and Mason, R. 2003, “Lean and green: doing more with less”, ECR journal, vol. 3, no. 1, pp. 84-91. Retrieved: 6 April 2006, from ABI/Inform database. Stock, J.R. 1999, “Reverse Logistics”, Canadian Transportation Logistics, vol. 102, no.5, pp. 30. Retrieved: 30 March 2006 from ABI/Inform database. Tyler, G. 1997, “Blueprint for green supplies”, Supply Management, vol. 2, no. 7, pp. 36-38. Retrieved: 13 April 2006 from ABI/Inform database.

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