Nowadays, because of extensive growing of supply chain, “sustainability” became one of the most important issues of logistics and the companies.
There are many factors that corporations affect the environment such as the greenhouse gas impact of transportations and wasting fuels. As we learned in class, 5 operating characteristics of transport modes are speed, availability, dependability, capability and frequency. However, sustainability also can be important characteristic of transport modes. Trucks, for example, they are the most common transport mode. Transporting activity is increasing every year so green house gas that they emit has huge impact on environment. Companies should be responsible and think about sustainability to protect the environment.
Cars are one of the vehicles that emit high level of greenhouse gas. The governments strongly encourages citizens to use public transportation and carpool to reduce greenhouse gas. Yet, many companies ignore environmental issues in their supply chain. Only a very small percentage of Fortune 500 companies have tried to significantly reduce greenhouse gas emissions from freight transportation in the supply chain. (Among Fortune 500 companies, 44 have publicly addressed the environmental effects of transportation in their supply chains)
To elevate environmental considerations, corporate executives should consider the following actions:
- Developing detailed metrics
Utilizing transportation technology that reduces fuel
Optimizing their supply chain’s logistical network such that transportation distances are minimized
Utilizing knowledgeable personnel with skills in logistics and environmental sustainability to develop and implement company and supply chain transportation strategies.