Green Logistics Implementation Factors: A Study on a Global Logistics Provider
Green logistics has become the newest trend in doing business that is not just economy sustainable but is also environment sustainable. As the world ecology is becoming worse due to globalization and industrialization with the rising temperature and sea levels, many logistics companies are applying green logistics as it helps mitigate climate change by reducing carbon emissions. This paper identified and analyzed the internal and external factors in implementing green logistics. In this case study, a global logistics company which is DB Schenker Malaysia was chosen as the research location. Qualitative data were obtained through various literatures and through 30 semi-structured open-ended interviews. This study found that there are four internal implementation factors and three external implementation factors in green logistics. The four internal factors are cost efficiency, human resource skills, knowledge and supports, information technology and system, and organization’s/top management support. Meanwhile, the three external factors are public and consumers’ pressures, competitions, and collaboration and integration with suppliers and partners. Findings also indicated that implementing green logistics has many benefits but only a few implementation factors found in the literatures were relevant to DB Schenker Malaysia. Nonetheless, the company still implements green logistics in order to be a top logistics company.
M. Thiell, J. P. S. Zuluaga, J. P. M. Montañez and B. V. Hoof, “Green Logistics: Global Practices and Their Implementation in Emerging Markets,” in Green Finance and Sustainability: Environmentally-Aware Business Models and Technologies, IGI Global, 2011, pp. 334-357.
T. T. Lin and M. Chan, “A decision analysis on flexible scale of green logistics under limited carbon emission with real options concept,” in Proceedings of the 2011 IEEE International Conference on Industrial Engineering and Engineering Management, Singapore, 2011, pp. 11-15.
G. Zhang, Q. Gao, B. Wei and D. Li, “Green Logistics and Sustainable Development,” in Proceedings of the 2012 International Conference on Information Management, Innovation Management and Industrial Engineering (ICIII), 2012, pp. 131-133.
G. Xiu and X. Chen, “An international comparative study on the developments of green logistics,” in Proceedings of the 2011 International Conference on Mechatronic Science, Electric Engineering and Computer, 2011, pp. 783-787.
A. Mckinnon, M. Browne and A. Whiteing, Green Logistics: Improving the Environmental Sustainability of Logistics-2nd ed. London: Kogan Page Limited, 2012.
P. Newby, Research Methods for Education. Essex: Pearson Education Limited, 2010.
M. Saunders, P. Lewis and A. Thornhill, Research Methods for Business Students-6th ed. Essex: Pearson Education Limited, 2012.
K. Isaksson, M. Björklund, P. Evangelista and M. Huge-Brodin, “The challenge and adoption of green initiatives for transport and logistics service providers,” in Proceedings of the 16th Annual Logistics Research Network (LRN) Conference: Smarter Logistics: Innovation for Efficiency, Performance and Austerity, Southampton, 2011, pp. 1-10.
G. Rumble, The Costs and Economics of Open and Distance Learning. Oxon: Routledge Falmer, 1997.
B. Beškovnik and L. Jakomin, “Challenges of green logistics in Southeast Europe,” PROMET – Traffic & Transportation, vol. 22, no. 2, pp. 147-155, 2010.
F. Eng-Larsson and D. Vega, “Green logistics in temporary organizations: a paradox? Learnings from the humanitarian context,” Supply Chain Forum: An International Journal, vol. 12, no. 2, pp. 128-139, 2011.
B. Redmond. (2013). Why 'Green' Logistics Must Not Be Ignored [Online]. Available: http://logisticswithballs.blogspot.com/2013/08/why-green-logistics-must-not-be-ignored.html
Y. H. Ho, C. Y. Lin and S. H. Chiang, “Organizational determinants of green innovation implementation in the logistics industry,” The International Journal of Organizational Innovation, vol. 2, no. 1, pp. 3-12, 2009.
K. Lai and C. W. Y. Wong, “Green logistics management and performance: some empirical evidence from Chinese manufacturing exporters,” Omega, vol. 40, no. 3, pp. 267-282, 2011.
C. Marinagi, P. Trivellas and D. P. Sakas, “The impact of information technology on the development of supply chain competitive advantage,” Procedia – Social and Behavioral Sciences, vol. 147, pp. 586-591, 2014.
S. Alshawi, “Logistics in the internet age: towards a holistic information and processes picture,” Logistics Information Management, vol. 14, no. 4, pp. 235-241, 2001.
C. Rong, “Green logistics research based on sustainable development,” in Proceedings of the 2011 2nd Conference on Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), Deng Leng, 2010, pp. 4635-4639.
A. H. Hu and C. Hsu, “Empirical study in the critical factors of green supply chain management (GSCM) practice in the Taiwanese electrical and electronics industries,” in Proceedings of the 2006 IEEE International Conference on Management of Innovation and Technology, Singapore, 2006, pp. 853-857.
G. Zhang, N. Gu, X. Lv and X. Wang, “The study of operation mode of green logistics,” in Proceedings of the 2nd International Conference on Intelligent Human-Machine Systems and Cybernetics (IHMSC), Nanjing, Jiangsu, 2010, pp. 65-68.
Y. Xia and B. Wang, “Green Logistics in Logistics Industry in Finland,” Bachelor’s Thesis, Faculty of Business Studies, Lahti University of Applied Sciences, Finland, 2013.
T. H. Byers, R. C. Dorf and A. J. Nelson, Technology Ventures: From Idea to Enterprise, 3rd ed. New York: McGraw-Hill Education, 2011.
C. Quan, X. Cheng, K. Wang and P. Pan, “Research on green logistics and sustainable development,” in Proceedings of the 2008 International Conference on Information Management, Innovation Management and Industrial Engineering, Taipei, 2008, pp. 162-165.
G. Zhang and Y. Mu, “Green logistics management of logistics enterprises,” in Proceedings of the 3rd International Conference on Information Management, Innovation Management and Industrial Engineering (ICIII), Kunming, 2010, pp. 567-569.
M. Denisa and M. Zdenka, “Perception of implementation processes of green logistics in SMEs in Slovakia,” Procedia Economics and Finance, vol. 26, pp. 139-143, 2015.
V. Sanchez-Rodrigues. (2006). Supply Chain Management, Transport and the Environment- A Review [Online]. Available: http://www.greenlogistics.org/SiteResources/7a76ee40-f62d-4efe-9d4e-47ac2a2a9211_WM1%20-%20Cardiff%20-%20Supply%20Chain%20
K.L. Keller, Strategic Brand Management – Building, Measuring, and Managing Brand Equity. India: Pearson Education, 2011.
M.S. Ab Talib and S. Muniandy, “Green supply chain initiatives in Malaysia: a conceptual critical success factors framework,” World Applied Sciences Journal, vol. 26, no. 2, pp. 276-281, 2013.
M. Barratt, “Understanding the meaning of collaboration in the supply chain,” Supply Chain Management: An International Journal, vol. 9, no. 1, pp. 30-42, 2004.
C. K. Choong, B. C. Chew and M. S. Rizal, “Implementation of green supply chain management for production: a case study in Sony (Malaysia) Sdn. Bhd.,” Journal of Technology Management and Business, vol. 1, no. 2, pp. 1-19, 2015.
D. Power, “Supply chain management integration and implementation: a literature review,” Supply Chain Management: An International Journal, vol. 10, no. 4, pp. 252-263, 2005.
Deutsche Bahn AG. (2016). Deutsche Bahn 2016 integrated report [Online]. Available: https://www1.deutschebahn.com/file/ecm2-db-en/12210234/hWTFG8DCjKgtQrEuMLPsAqCyG4g/13620500/data/ib2016_dbgroup.pdf
Deutsche Bahn AG. (2014). Deutsche Bahn 2014 integrated report [Online]. Available: https://www.dbcargo.com/file/rail-deutschland-en/13396296/-Ibg_9WcLlOARF5Zj-GR7fC5rak/10233668/data/geschaeftsbericht_integrierter_bericht_2014.pdf