Green logistics – a study of logistics sustainability part II technology investment in enhancing transportation logistics

Abstract

This report is the second paper of a three-part sequel on the study of sustainable logistics. It identifies technology as the key to reconciling apparent conflicts between the objectives of transportation systems and those of sustainable ‘green’ logistics. Technology has been applied far and wide in numerous systems in today’s world, exploiting the limitless dimensions of informational space. Since advanced technological software and hardware are costly and possibly take longer periods of time to establish, companies are holding back their enthusiasm in hopping onto the green bandwagon. In addition, large logistics players who have spearheaded the development of green technology in the early years have only recently publicised the possible paybacks of such technological investments. This has caused market followers to be skeptical about green technology being able to create profits for businesses. However, it was found via preliminary literature research that investments in technology can produce mutual benefits for the environment and businesses alike. To ascertain the results of the preliminary finding, case studies and interviews were conducted with local and global ports, companies and organisations. The case studies and interviews unanimously concluded that the trade-offs between social, economic and environmental objectives could be mitigated by the large-scale use of reproducible technology. But, independent investments in green technology may not produce piecemeal benefits for all its users, especially in the absence of regulatory support. Hence, modifications to the technology according to market demands and geographical constraints, along with other logistical practices like modal shift and sustainable packaging strategies, can provide a Total Logistics Solution for maximum effectiveness in the logistics field.