SUSTAINABLE LOGISTICS & TRANSPORTATION

SUPPLY CHAIN & INFORMATION SYSTEMS AND SUSTAINABILITY

What is Sustainable Logistics?

Logistics is the integrated management of all the activities required to move products through the supply chain. For a typical product, this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. The logistical activities comprise freight transport, storage, inventory management, materials handling and all the related information processing.

The main objective of logistics is to co-ordinate these activities in a way that meets customer requirements at minimum cost. In the past this cost has been defined in purely monetary terms. As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents. Companies like IBM are offering sustainable logistics services especially as attention to Scope 3 emissions increases. The measurement and mitigation of these externalities is managed by supply chain professionals and knowledge of this topic can help to better prepare you for your future career experiences (Source: Green Logistics Website)

Case Study: Greener Logistics at DHL

DHL is a global logistics company with annual revenues of $8 billion and an employee headcount of nearly 600,000. Moving products all around the world with vehicles, trains, ships, and planes requires incredible amounts of logistical genius, technology and natural resources. DHL’s website claims that 86% of electricity consumed comes from renewable sources and they are making investments in sustainable aviation fuel, lower emissions cargo ships and reducing waste from packaging. DHL is a good example of a logistics provider using sustainability to reduce waste, improve customer service, and innovate new offerings.

Humanitarian Logistics: Helping in a Crisis

Humanitarian logistics comprises acquiring and delivering needed supplies and services, at the places and times they are needed, at reasonable cost. In the immediate aftermath of any disaster, these supplies include items that are vital for survival, such as food, water, temporary shelter and medicine, among others.

Supply chains are often the critical link in delivering life-saving supplies during a crisis triggered by natural disasters, conflict, and disease outbreak.

The Humanitarian Logistics Association, started in 2009, is a global network of practitioners and an excellent platform for further learning about this critical role of logistics and transportation to creating a sustainable and safe world.