Companies Passing The Buck On “Green” Logistics
July 31st, 2008
New research by logistics research and analysis organisation, Transport Intelligence, suggests most companies seeking to make their logistics operations more environmentally friendly want someone else to cover the costs. The Logistics & Transport Industry Environmental Survey on how companies are reacting to cutting their emissions found three-quarters of respondents who awarded logistics contracts included sections on environmental compliance in their tender documents. However, most (54%) failed to make provision for the extra costs which could be involved.
Green If It Cuts Costs. However, it seems there is little logistics companies can do to avoid investing in green initiatives. In the survey, 70% of companies awarding contracts say environmental compliance is either “reasonably important” or “very important.” Survey respondents were also probed about whether their companies’ environmental enthusiasm would change in the coming years, given the chances of an economic slowdown. The overwhelming sentiment seemed to be no – but according to two-thirds of respondents, this is largely due to the “win-win” of implementing green initiatives which bring operational efficiencies and also cut costs. The number who say they will continue to pay more for an environmentally-friendly alternative (17%) is balanced by the proportion who say they would base their sourcing decisions on cost alone.
Warehousing Ignored. When asked about which specific areas they were undertaking green initiatives in, the highest proportion (33%) identified transportation. This included driver training, hybrid engines and better management of empty running. With about a quarter of responses each, were more efficient planning through IT tools and increased administrative efficiencies. Perhaps surprisingly, warehousing is identified by only 15% of respondents as an area on which they are focusing.
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