Is the term ‘Green Logistics’ an oxymoron Essay

Is the term yard Logistics an oxymoron? An oxymoron is a term in which contradictory words appear in conjunction with one other such as bitter sweet or a deafen silence. In an attempt to answer this question we must outset specialize what the term honey oil Logistics means. When the term is broken down into its composite split logistics is simply defined by Murphy and Wood (2011) as the get off the ground of the supply chain which plans, implements and controls both the forward and backtrack f downcasts of goods, services and cultivation between the point of origin and the point of wasting disease in an effectual and effective manner. However, the term spirt is much more equivocal when defined in a business line sense. In 1996 McDonagh and Prothero proposed that there are several(prenominal) dimensions of park which non only cover ecological, sustainability and conservation issues but in like manner political, corporate social responsibility, fair trade and equali ty matters. Since these topics are re each(prenominal)y broad it is hard to define honey oil in a logistics sense. As a result of this uncertainty over the definition of potassium, it is stabilising to look at the definition of squirt on a consumer harvest-feast take.Ottman (2006, p.24), suggested that while all outputs inevitably have some effect on the environment, Green products are those which aim to minimize this impact by conserving nil and resources and limiting pollution and waste. This definition builds on Reinhardts (1998, p.46) view that a Green business creates products that provide great environmental benefits, or that overturn smaller environmental apostrophizes, than similar products. When we combine these definitions we flush toilet view Green Logistics as the activities which serve the forward and reverse flows of goods, services and information finished a supply chain in a way which is not only efficacious and effective in achieving organisational goals but also aims to denigrate the environmental impact and promote sustainability.When we define and consider Green Logistics this way, I believe the term is not an oxymoron and when aligned with an appropriate higher level corporate strategy can actually a major competitive advantage for organisations who are able to achieve it. The body of this essay get out provide practical examples of organisations who are successfully using the concepts of GreenLogistics to not only minimise environmental impacts but also create and sustain a competitive advantage against competition. One concept which is becoming more prominent in Green Logistic networks is the design of reverse logistics. overturn logistics can be simply defined as goods flowing rearward through the supply chain from the consumer to the producers and suppliers. Tompkins (2010) provides multiple Green benefits which arise from practicing reverse logistics such as increased sustainability throughout the supply chain a nd cut down waste products, as well as producing an increased level of guest service through after-sales support.An example of reverse logistics in practice is the to the south Australian Governments policy of paying 10 cents for every(prenominal) glass, plastic and tin container returned to collection depots. By doing this the Government is able to facilitate the recycling of materials which ultimately has a positive benefit on the environment. This provides a clear example of how logistics processes can be Green by promoting greater environmental benefit than similar products existing in different logistics arrange. An Australian Associated Press article revealed that in 2010, 80 percent or 49,800 tonnes of all containers are recycled in Australia which reveals both obvious environment and financial benefits arising from the practice of green logistics.Another common and relatively simple way for organisations to Green their logistics processes while also reducing financial c osts is to redesign their logistics chains with increased considerations for route optimisation and collaboration throughout the supply chain. Blanco and Cotrill (2013) view apparent one example of this through a case theater of operations of the agricultural cooperative maritime nebulizer (based in spic-and-span jersey with a distribution centre in Florida) and competitor Tropicana who is based in Florida with a distribution centre in New Jersey. Tropicanas ternion party logistics provider approached Ocean Spray and suggested that instead of Ocean Spray delivering to their distribution centre via road, they make use of Tropicanas rail tie in between the two cities and utilise the empty train carriages returning from New Jersey to deliver to their distribution centre in Florida. This agreement allowed Ocean Spray to lower both their logisticscosts and environmental emissions and saved Tropicana the cost and emissions associated with returning empty rail carriages to Florida. Apart from the physical movement of goods, a firms logistics operations also incorporates warehousing strategies. The storage of goods whitethorn be overlooked when considering the environmental impacts of logistics chains. Figure 8.1 taken from McKinnon et al. (2013) shows the increasing physical exertion of warehousing and its associated impacts. McKinnon et al. (2013) also proposed three ways in which firms can lower the environmental impact of warehousing practices. Firstly firms should improve the energy energy of the lightingand particularly heating methods used in warehouses (as shown in witness 8.4. McKinnon, 2013). Secondly, firms can harness green energy to generate energy from low carbon emitting or renewable sources of energy such as solar, squirm and biomass. Finally, and most importantly, firms should design sustainability into their warehouses, meaning that the buildings not only produce green energy more efficiently but also use less(prenominal) of it.If an orga nisation is successful in doing this it is able to not only encounter the logistical goals of operating efficiently and effectively but also minimise impacts on the environment. While reverse logistics, route optimisation and energy efficient warehousing strategies are only a small example of Green Logistic practices, which also include environmental packaging considerations, paperless order bear upon and improvements in vehicle energy efficiency, these practices may be ineffective in achieving Green outcomes unless the corporate strategies of the organisation also align. Reinhardt (1998) suggests that for an organisation to attain environmentally friendly practices as a competitive advantage it must first consider whether this strategy is viable in the industry in which it operates. If a firm does consider environmental product differentiation an option it must then ensure customers are willing to pay for environmental quality, establish and convey the environmental benefits of its product and finally these benefits must be defensible against imitation competition. Only then can an organisation enjoy the benefits of a growing green trend in consumption (Peattie, 2010).If this is strategy connective is adopted and maintained by an organisation, then Green Logistic practices can provide substantial competitive advantages for the organisation while reducing impacts on the environment. Modern organisations can no longer afford to view Green Logistics as an oxymoron and perhaps Henry Fords (1903) famous oxymoron A business that makes nothing but money is a poor business may be more applicable.ReferencesBlanco, E & Cotrill, K, 2013, Delivering on the promise of green logistics, MITSloan Management Review, December 2013.McDonagh, P & Prothero, A, 1996, Green management A reader, The Dryden Press, London.McKinnon, A. Browne, M. Whiteing, A. 2012, Green logistics Improving the environmental sustainability of logistics, Kogan Page, London.Murphy Jr PR & Wood, DF 2 011, Contemporary Logistics International Edition, tenth edn, Pearson, Boston.Ottman, J, 1997, Green marketing Opportunity for innovation, TC / Contemporary Books, Lincolnwood.Peattie, K, Green consumption Behaviour and norms, Annual Review of Environment and Resources, Vol. 35, Issue 1, pp. 195-228.Reinhardt, F.L. 1998, Environmental product differentiation Implications for corporate strategy, California management review, vol. 40, no. 4, pp. 43-73. Tompkins, J, 2010, countermand logistics is not the reverse of logistics, Material Handling and Logistics, November 2010.Big jump in container recycling in SA, AAP General News Wire, July 22, 2010.