Logistics is one of the most polluting industries as cargo transportation accounts for about 8% of carbon dioxide emissions worldwide. Warehousing and transportation management are likely to add 3% to this total. In the long term, green logistics will be not only just related to the reduction of carbon emissions discharged into the environment.
The concept of green logistics in each country has certain differences. Therefore, key factors of green logistics are also perceived from different angles. However, some of the basic features of green logistics that are widely recognized are as follows:
- The multimodal transport use green transport, prioritizes the use of clean fuel, transportation by seaways creates lower emissions 4-5 times, railways 7-8 times lower than the roadway. Suppose the freight network planning and distribution center layout are managed well, and proper traffic route selection avoids useless travel. In that case, convection transportation will help reduce costs.
- Optimize warehouse layout strategies to reduce logistics costs and environmental pollution. Designing energy-efficient warehouse systems, exploiting green energy, certifying sustainable facilities are all necessary. Innovative warehouse layout can accurately calculate reasonable stock, avoid energy-wasting of more minor stock problems, and minimize storage costs. Therefore, it is essential to study the supply and demand volume, calculate the inventory cost ratio to apply an appropriate inventory strategy.
- Applying reverse logistics applications to manage low costs, using raw materials to input, and ensuring suitable handling procedure of returned goods.
- Packaging is a reasonably necessary marketing tool nowadays. However, packaging can account for up to 12% of several items' costs. Green packaging encourages the use of recycled or biodegradable materials. Using green packaging contributes to proving corporate social responsibility and improving business-grade.
In the Conference of Sustainable Transport and Logistics in the Mekong region on January 10, 2019, the issue of economic development associated with ecological and environmental balancing activities was considered to become a trend indispensable direction and an important criterion to evaluate sustainable development. At the conference, Mr. Tom Corrie, Deputy Head of the Development Cooperation Department, said: "SME using the old transport system leading to high fuel demand and increasing CO2 emissions into the environment will gradually be eliminated from business and commercial activities without environmental reforms and timely adaptation to new trends.
In conclusion, green logistics projects are essential not only for Vietnam in general but also for the whole region. Developing green logistics orientation will become a prerequisite to help businesses survive and thrive in the future.
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