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Green logistics applies a three-dimensional life cycle approach, as opposed to the traditional one-dimensional, economics only focused approach. Following the three-dimensional approach does not necessarily means that the level of effort and times will increase by three. However, as the organisation reduces its impact on the environment and support positive social behaviours, there may be a return on overall “value for money.” 

Pillar

Types of effects   

Economic

  • Economic regeneration
  • Sustainable economic development
  • Development of Environmental Management Systems
  • Total cost of ownership and life cycle costing
  • Value for money
  • Poverty reduction

Environmental

  • Environmental resource management
  • Urban planning
  • CO2 reduction
  • Alternative energies: e.g.: solar, wind
  • Water management
  • Sustainable agriculture
  • Marine resources management
  • Protection of ecosystems
  • Pollution and waste management

Social

  • Human rights
  • Clean drinking water
  • Food security
  • Fair pay and labour law protections
  • Anti-child labour and forced labour laws
  • Fair trade
  • Health and safety
  • Gender equality including universal education
  • Child mortality and maternal health
  • Healthy lives and well-being for all

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Area of Activity

Actual Situation

Steps to Improve

Benefits

Transport

Fleet causing high amounts of pollution, air quality reduced.

Measure the movements, costs and maintenance of transport to gather data about their use. Invest accordingly in proper maintenance depending of the needs and the selected strategy. This might include: redrawing shorter routes, investing in green vehicles, etc.

Lowered emission transport units, well maintained and following repair plans that reduce environmental and economic cost by increasing the efficacy.

Distribution

Distribution channels not well organised or with big inefficiencies.

Plan supply chain and procurement taking into account the cost to manage the waste produced.

Effectively connect places of production with the distribution points, including using proximity to storage/distribution points as a selection criteria.

Assess the production line or third level distribution channels of your suppliers for waste or misuse.

Faster deliveries, increased flexibility for late requests, and time savings on managing waste.

Procurement

Price based selection that potentially hides unethical or not environmentally friendly activities.

Create and apply selection criteria that matches the ethical and environmental policies of the organisation.

Research initiatives that other organisations are putting in place and adapt them to your situation.

Reputation increase.

Storage

Product loss by degradation caused by poor storage condition, or damages during in-storage movements.

Make improvements in the infrastructure to facilitate cargo movement. Use solar light and natural ventilation.

If the infrastructure is going to last more than two years, invest in solar or wind power sources and manage your power consumption. (Power Supply section).

Save money and time.

Packaging

Excessive use of non-biodegradable materials.

Choosing the appropriate mode of transport with enough time, to be able to understand how the cargo is packed and labelled. Try to find a good compromise between safety and handling; Reduce packaging or/and use reusable or biodegradable materials. Example - corrugated cardboard and other forms of paper-based packaging.

Resources saved.

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