SELECTED PROBLEMS OF SUSTAINABLE LOGISTICS
Janusz GRABARA
Abstract: The “sustainable development” term is listed in almost every aspect of life. The
wide perspective of sustainable development and its three dimensions: ecology, economy
and society, allows for its frequent use in relation to any actions taken by people or
companies. At the beginning this term was often use and understand only in ecological
aspect, but today, all its dimensions are taken account. It was a matter of time when
sustainable development concept will be connected with logistics area – it is also a very
wide field, in which, sustainable development might be found very useful. This article
presents the essence of sustainable development conception in connection with the
logistics. After the introduction, the assumptions of sustainable development in logistics are
presented and then the most common problems and issues are listed.
Keywords: sustainable development, logistics, ecologistics, management, supply chain,
transport
1. Introduction
Due to the increased interest in issues of sustainability, it takes a particular significance.
It is a multi-layered phenomenon, encompassing such research plane as ecology,
philosophy, culture, society, politics, technology and economics. The main goal of
sustainable development is the introduction of an integrated governance, which pays special
attention to corporate merger of environmental sustainability, socio-economic, spatial and
institutional and political. This concept is realized by carrying out environmental, socioeconomic and spatial category policy, with an emphasis on sustainable development in the
political sense as well as in the field of management.
The principles of sustainable development in the economy, concern including the
organic matter, so far unprecedented in the economic history, in the area. This reorientation
of the world economy, gives rise to questions concerning the major determinants of
determining the possibility of developing the concept of philosophical and practical
solutions, applied, for example, by the companies [1].
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Figure 1. The levels of sustainable development.
The main objective of sustainable development, is to protect the natural capital as a few
important rules. This concept is important to reproduction of renewable resources, the
integrity of the natural environment, the greening of the economy and its developmentenvironment cannot be in conflict with the interests of the economy. The last principle
refers to the economization or policy in a way that minimizes the social cost.
2. Assumptions of Sustainable development in the field of logistics
Until recently, the costs and speed were the main criteria for evaluation of logistics
operations. This situation has now changed, with the result that the process of making key
decisions logistics, has been extended to the third dimension: sustainable development. [2]
The concept of sustainable development is, more often, being used in logistics, due to
the fact, that logistics is a human activity, that naturally generates many benefits but also
poses risks to the environment. Logistics impacts on the environment through transport,
storage and packaging management processes.
Sustainable development began to play an important role in the logistics business. Even
a separate field of logistics – Ecologistics developed, thus "realization of optimal solutions
for the collection, storage, disposal and utilization and non-harmful for environment and
society disposal of various types of waste” [3]. Her main goal is to solve environmental
problems in the areas of logistics, which can be understood by eliminating or minimizing
any negative impact of logistics on the environment. These activities include designing
sustainable packaging, and reuse of, recycling waste, reducing energy and the pollution
caused by transport [4].
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Figure 2. Waste hierarchy.
With ecologistics are related concepts such as logistics disposal, recycling logistics,
reverse logistics, and downcycling. Reverse logistics is a very important area of logistics
management in individual companies and supply chains. Reverse logistics is so called.
waste management. It is arousing growing interest among companies, which was caused
due to stringent regulations for environmental protection.
Reverse logistics - "is the process of planning, implementing and controlling the
efficient and cost-effective flow of raw materials, semi-finished and finished products,
together with the related information flows, from the point of consumption to the point of
origin, in order to recover the value or proper management" [5].
Disposal logistics - "the application of the concept of logistics for the residue, to induce
their efficient, economically and ecologically, movements, while the space-time
transformation, including changes in the amount and type of” [6].
Recirculation logistics - "suggests that product or packaging, is circulated repeatedly in
a closed loop supply chain” [7].
Downcycling - "process of waste or useless products transformation into new materials
or products, having a lower quality and functionality [7].
Looking at these definitions, it seems necessary to explain how they are defined from
the point of view of logistics and recycling waste. Wastes "are all solid and liquid
substances (except water), as a result of economic activity or human life, that are in
accordance with the decision of the trustee useless in a place and time in which they arise”
[8]. However, recycling is "dispose the waste in the recycling process” [8].
Another term associated with sustainable logistics is called. Green logistics. This
management approach is aimed at minimizing the negative impact on the ecosystem of
logistics flows. This term, from some time is significantly increased in importance. The
problems of excessive environmental degradation concern on companies, operating in each
market sector. In particular, however, apply to freight forwarders and carriers. The concept
of green logistics associated with the strategy, consists in the use of their resources in the
most efficient and environmentally friendly way. It is a trend, that stems from the need to
care for the global environment.
The implementation of sustainable development strategies in logistics functions, should
play an important role in the company. An interesting example is the logistics of the
chemical industry in Europe. The managers of these companies have introduced fully
utilized assets, the products were sent in smaller parties, but always at full load, which
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contributed to the cost-effectiveness, as well as the reduction and elimination of waste.
These activities, as well as greater integration of the different components of the supply
chain, compliance with social systems and a better environment and quality of work,
contributed to sustainable logistics and helped the company reduce carbon emissions.
However, the sustainable management of tangible assets has been identified as the highest
priority in the supply chain managers, as it can affect the minimization or elimination of
energy-intensive storage, reduce travel time and increase cargo trucks.
3. Problems of sustainability in the main logistics’ fields
Logistics includes "efforts to acquire materials and finished products distribution to the
right place, at the right time and in the right amount” [9]. Typical elements of the logistics
system are: customer service, demand forecasting, distribution communications, inventory
control, warehousing, procurement processes, parts and service support, site selection
magazine, shopping, packing, handling complaints, waste management, transport and
storage. This process can extend from the source of raw materials, through the
manufacturing and distribution, to the point of consumption and the associated reverse
logistics. Companies collaborate with business partners (suppliers, shippers, distributors,
customers) in order to improve their logistics operations, thus considerably improving
business performance and reduce logistics costs.
The literature on logistics and supply chain, also highlights the importance of
sustainability and energy efficiency. Abukhader and Johnson conducted a thorough
literature review in the field of environmental protection in logistics, and observed weak
ties in knowledge concerning the implementation of discipline between logistics and
environmental protection [10]. Also Halldo'rsson and Kova'cs, in the survey of CEOs of
large outsourcing companies, tried to identify the five most important reasons, that affect
the determination of sustainable programs of their companies, they were as follows: the
desire to make a "good deeds ", pressure from customers, the desire to improve the image
company, the desire to attract the so-called "green consumers" and to achieve a competitive
position in the market.
3. 1. Sustainability in the supply chain management
The supply chain is a network, in which the raw material is a complement to semi- and
finished products, that are not sent to the client, and the flow of information and funds is
delayed. The complexity of the structure and management of these networks have been
documented in the literature. Supply chain management is synonymous with the network
supply, gas supply management, value chain and value stream.
Supply chain management is the management of all the processes, functions, activities and
relationships, in which the products, services, information and monetary transactions move
among enterprises. Supply chain management is a very challenging task [11], in particular,
the flow of supplies from sources of supply to end users [11].
In recent years, the concept of sustainable development was introduced in the areas of
management, technology and supply chain. The introduction of environmental strategy will
create new opportunities for the organization [12]. Social responsibility of business Has
been replaced by the provisions of the business environment of the organization.
Nowadays, companies have established various environmental strategies to improve their
operations, and business environment. Environmental Strategy, which are used in
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organizations is the management of the supply chain. Sustainable Supply Chain
Management (SSCM) is an important strategy, that helps organizations achieve competitive
advantage and improve overall performance. Effects of SSCM strategy are unclear and may
lead to positive or negative economic results
SSCM activities that have been discussed in the literature review are shown in figure 3. A
brief overview of each type of action associated with the concept of sustainable
development.
Figure 3. Actions of Sustainable Supply Chain Management
Sustainable design - the first action in the implementation of SSCM is developing a strategy
for the sustainable design of the product and its presentation. This also includes the design
of products, in a way that will allow them to recycling or refurbishing. It is believed that „it
will optimize the important factors in addition to the design features, quality, and cost of
the development cycle” [13].
Sustainable Production - is second, after the project, a very important function in the
development of SSCM. Environment production can be achieved through clean production
methods, the use of new technologies and reducing the use of raw materials and resources
to achieve low input, high efficiency and low pollution [13] .
Sustainable Marketing - is a very important function in the development and
implementation of SSCM. To achieve sustainable marketing, organizations „should
maintain biological balance and pay more attention to environmental protection”[14].
Waste management in sustainable marketing, can lead to cost savings and increased
competitiveness. In addition, it helps companies improve their relationships with
customers, suppliers and other partners [15].
Sustainable transport - another important element of SSCM effective development. Many
factors, including renewable energy, modes of transport, infrastructure and operational
management practices, should be considered in the development of environmentally
friendly transport systems. These factors and dynamics associated with them, determine the
environmental impact generated in the phase of transport logistics supply chain [16].
Sustainable Purchase - SSCM development requires the implementation of a sustainable
purchasing strategy, that leads to a reduction in the amount of waste and hazardous
materials with organic materials [17]. In addition, sustainable purchasing plays a significant
role in SSCM, as helps organizations reduce the sources of pollution and waste by using
strategies such as recycling and disposal, dumping, sorting and using biodegradable
packaging.
3. 2. Sustainability in the competitiveness
Competitiveness, from the point of view of the company, can be defined as the ability to
provide products and services in the same, or a more efficient way, than competitors do.
The competitiveness of companies is, of course influenced by many factors, until recently,
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it was mainly the quality and price of goods or services. For some time, often appear
another important factor for consumer, when choosing goods, it is the ratio of the principles
of sustainable development.
One of the main goals of sustainable development and corporate social responsibility, while
creating a marketing strategy, is to take into account not only the needs of the organization,
but also a group of entities, that operate in its environment (ie, shareholders, borrowers,
local community). In the name of these principles, business organization target should be to
maximize the company's value, however, with a balance in meeting the needs of all
stakeholders. This requires integrated actions of economic, social and ecological.
According to the idea of corporate social responsibility, company in its business operations,
developed strategies and everyday decisions, should take into account the environmental,
ethical and social aspects. It is about the social responsibility of enterprises for the
consequences of its actions, which have a direct or indirect impact on the environment (coworkers, local communities and the environment). In a broader approach to this problem,
you can even Take, that actually are all the stakeholders of the company, as at present, in a
globalized world interconnections are getting stronger [18]. Therefore, all stakeholders
have expectations for the company, which it tries to meet, what's more, the behavior and
decisions of these groups have an impact on the achievement of the objectives set by the
company.
Sustainability in business is often treated as a source of constraints, that are introduced by
environmental and social regulations. They are treated as obstacles, because their
performance adds to the cost and inconvenience of doing business. In this perspective, only
by worsening business performance, environment can be improved. On the other hand the
"cost of adaptation to environmental regulations can be minimized or even eliminated,
through innovation, that generate other competitive advantages” [19]. This is not only a
theory. There are many companies creating innovation, eliminating the harmful
technologies. A good example is Germany, in the case of the early adopters of the standards
of recycling, the company has given many chances to get ahead of noduleas already
developed products with fewer pack. That kind of products are manufactured at a lower
cost and the demand for them is growing.
Poland has also faced these challenges, because the regulations and standards in the field of
sustainable development are becoming increasingly common. More and more companies
are also introducing integrated reporting on sustainable development and corporate social
responsibility. Undoubtedly it has an impact on consumer pressure, but it 's starting to see
benefits of this business. More and more companies are promoting so 'green economy', and
try to adapt new standards of operations, in accordance with the principles of sustainable
development.
3. 3. Sustainability in the transport
Addressing the concept of sustainable development into transport, was associated with a
rapid and, increasingly aggravating environment, development, and the lack of balance in
this area of human activity. The increasing number of vehicles and their exploitation
contributes to the reduction of natural resources such as oil and emissions. It is therefore
important to introduce to this field the concept of sustainable development.
Ecologistics’s inherent element and the concept of green logistics, is the pursuit of
sustainable transport . Because, as mentioned earlier, in recent years, there has been
growing interest in the issues of sustainable development and its references to planning the
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transport system [20]. Transportation because it is a factor entailing consequences, both in
the economy and to society and the environment, thus determining in this way all elements
of the balance. Among the features of sustainable transport, deserve attention, two of them,
namely the mobility category and availability category.
Sustainable development emphasizes the integrated nature of human action and, therefore,
the need for coordinated planning, across different sectors, groups and jurisdictions. It
develops all purposes, their effects and the possibilities included in the planning process.
As a result, short-term individual decisions are consistent with long-term strategic
objectives. The sustainable transport planning, transport decisions affect people in different
ways, so the planning process should take into account the objectives and results.
Interest in sustainable development and transport continues to increase. Published many
works, such as reports and books, dealing with issues of sustainable development and
communities involved in the projects of sustainable planning. Studies on the nature and
extent of these issues, and their implications for transport planning and Policy, have been
recently launched. Several factors contribute to participate in these matters. The concern for
sustainable development makes that public is aware of the impact of human activities on
the environment, the results of which, can be seen in the economic, social and
environmental costs. Global air pollution, the impact of producing toxins, degradation of
natural resources such as fresh water and fisheries, and the cross-border nature of many
environmental problems, highlight the need for the perception of the human impact on the
environment from a wide perspective.
4. Conclusion
As was mentioned above, logistics is a very wide concept and covers many actions
performed by the companies. This wide range allows to, first introduce, and then use many
tools, solutions or actions proposed by sustainable development conception. It led to
creation of new term which is Sustainable Logistics Management. In a nutshell – these are
all processes, which belong to logistics field, with additional tools or actions or ways of
perform, which are characteristics for sustainable development or are the pillars of this
conception. Now, it can be said, that a lot of was done – sustainable development is visible
almost in every aspect of logistics, but still remain a lot to do. The present situation on the
markets, both, local and global, allows for introduction of sustainable development
assumptions into logistics. But, fast changing reality and conditions, will require another
actions among sustainable development.
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dr. hc. Prof. Ing. Janusz Grabara
Instytut Ekonometrii i Informatyki, Wydział Zarządzania,
Czestochowa University of Technology
42-201 Czestochowa, ul. Dabrowskiego 69,
tel./fax: (0-48) 34 3250 388
e-mail: janusz@grabara.eu
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