Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. It comprises three pillars:
- The Economy
- Society
- The Environment
Therefore, Sustainable Logistics refers to the relationship between Logistics, the Economy, Society and the Environment. The key issues in this relationship are depicted by Figure 7:
Figure 7: Sustainable Logistics
The reduction in carbon emissions is a major objective for a sustainable logistics operation. Signatories to the Kyoto Protocol have committed to reduce carbon emissions by 60% by the year 2050. This is resulting in governmental legislation imposing measures on organisations to achieve this goal. In addition, a sustainable logistics operation supports an organisation’s Corporate and Social Responsibility policy and enhances its public relations profile.
The design of a supply chain can significantly reduce the carbon footprint of an organisation and also improve efficiency. Factors to consider include:
- Carbon auditing of the supply-chain
- Using greener transport modes
- Optimising vehicle usage
- Developing greener vehicles
- Reducing the environmental impact of warehousing
- Improving fuel efficiency
- Making urban logistics more sustainable
- Reverse logistics for management of waste (recycling)