A step towards green Logistics
Logistics is the integrated management of all the activities required to move products through the supply chain. For a typical product this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. The logistical activities comprise freight transport, storage, inventory management, materials handling and all the related information processing. The main objective of logistics is to co-ordinate these activities in a way that meets customer requirements at minimum cost.
In the past this cost has been defined in purely monetary terms. As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents. This is a very passive approach. Prevention is better than cure. Therefore companies should shift from passive to active attitude and to look for possible changes in direction.
Then the question arises as to whether customers needs are well forecasted. Effective forecasting. This is where it all starts. Accurate forecasting and building sale plan are essential and have bearing on logistics processes.
Green logistics operations encompass:
- green purchasing
- green production
- green transportation
- green packaging
- reverse logistics