Green Logistics

Logistics encompasses the business processes that plan, control, and implement the flow of goods and related information between points of origin and points of consumption to meet customer demand. It does so by managing transportation, warehousing, and inventory decisions across the company and, whenever possible, across its supply chain. Traditionally, logistics decisions have been driven by minimizing cost, maximizing profitability, or achieving customer service targets. As companies have added sustainability goals to their business objectives, there has been an increased interest in mitigating the social and environmental impact of their products and operations. This new focus has also impacted the field of logistics: transportation providers are expected to reduce greenhouse gas emissions from their vehicles, warehouse managers have focused on waste and energy reduction strategies, and products are redesigned to increase recyclability and reuse, which require different inventory planning needs. Green Logistics refers to the systematic measurement, analysis, and, ultimately, mitigation of the environmental impact of logistics activities. This effort to mitigate environmental externalities in logistics activities includes reducing of consumption of nonrenewable energy sources, air emissions (e.g., particulate matter), greenhouse gas emissions, and waste. Some of these efforts may be technological, such as