Green supply chain management: logistics and transportation services–A Canadian perspective

Background

Canadian distribution service firms must continuously introduce new and innovative business processes toremain competitive. One way Canadian logistics and transportation service providers are differentiating themselvesis by developing green supply chain management (GSCM) solutions within their organizations or through mandates^{Footnote II} with their customers and suppliers.

GSCM integrates environmental thinking into supply chain management (SCM). For the purpose of this report, this includes introducing technical and innovative processes into materials sourcing and selection, delivery of the final product to consumers, and end–of–life product management. The intended result is to improve a business' environmental impact while increasing efficiency and growth within its own supply chain.

GSCM practices that are being implemented in distribution activities include:

• Energy efficiency;
• Reduction of greenhouse gas (GHG) emissions;
• Water conservation or processing;
• Waste reduction;
• Reduced packaging/increased use of biodegradable packaging;
• Product and packaging recycling/re–use; and
• Green procurement practices.

In general, investment in a new business process such as GSCM should be supported by a business plan that outlines a demonstrable return on investment. However, current literature is relatively sparse in citing GSCM's tangible benefits. For this reason, Supply Chain &Logistics Association Canada (SCL)² has partnered with Industry Canada to research GSCM practices and their business benefits.

Specific resulting business benefits can include greater service differentiation, successful compliance, increasedsales, new access to foreign markets, better customer retention, decreased distribution cost, enhanced riskmanagement, and improved distributional efficiency. This research report identifies industry perspectives, issues, and drivers for GSCM practices and thus helps inform decision makers of current and futureindustry needs.

This report also provides insights on the:

• Internal and external pressures involved in adopting GSCM practices;
• Importance and use of GSCM practices by businesses;
• Specific GSCM practices that businesses use;
• Environmental benefits gained by implementing GSCM practices; and
• Business benefits gained by Best–in–Class (BiC) logistics and transportation service providers and the GSCM technologies and processes used to achieve them.