Currently, the application of Green Logistics in the supply chain is considered one of the prerequisites for development and integration, helping businesses increase competitiveness and sustainable growth. So what is green logistics? How to apply it effectively in business activities? Let’s find out with InterLOG in the article below!

1. What is green logistics?

Green Logistics, also known as “Green Logistics”, originated in the 1980s.

Green Logistics is a concept that refers to  calculations and applications aimed at minimizing the ecological impacts of Logistics activities. To put it simply, we want to reduce waste. At the same time, use advanced equipment to reduce pollution such as air, noise and minimize the amount of waste released into the environment,…

Green logistics includes pre- and post-product transactions. In addition, services and information between the point of origin of production and the point of consumption.

The purpose of Green Logistics is to create sustainable values for development for companies and businesses. In parallel, there is economic development and environmental protection.

Green logistics requires  close coordination between the government, businesses and the community.

Green logistics is understood as a supply chain that operates efficiently, while still ensuring environmental friendliness and making good use of natural ecological resources.

2. Benefits received when applying Green Logistics in the supply chain.

Implementing Green Logistics is considered an important link in “greening” the supply chain, improving competitiveness as well as the sustainable development roadmap of businesses. Because this model brings many positive benefits such as:

2.1. Environmental friendliness.

Green supply chain management can help companies reduce Carbon Dioxide (CO2) emissions effectively, with some simple methods such as: Reducing the use of non-renewable energy (fuel oil, coal and gas) , limit deforestation, preserve natural resources, reduce – reuse – recycle,…

Not to mention, Green Logistics also enhances compliance with environmental laws, and regulates natural resources used to produce goods and provide services at the lowest level. Thanks to the above activities, environmental pollution has been significantly reduced, while effectively maintaining clean and fresh air.

2.2. Protect human health.

Green Logistics applications also contribute to protecting human health. Specifically, “greening” Logistics will take technology as the foundation and use green means of transportation (mainly using clean materials, not harmful to the environment). Thereby contributing to eliminating greenhouse gas emissions and pollutants.

2.3. Optimize costs and improve supply chain quality.

In addition to outstanding benefits for the environment and society, applying Green Logistics in the supply chain not only helps optimize costs but also contributes to increasing transportation efficiency. Accordingly, businesses can deploy green transportation by combining orders on one trip, choosing reasonable traffic routes so that the truck is full of goods in both directions of transportation, etc. helps reduce the number of empty or semi-loaded trucks on the road to save fuel and transportation costs, while reducing traffic congestion and pollution.

2.4. Minimize industrial waste.

Green logistics deployed in the supply chain also helps businesses effectively use natural ecological resources and be environmentally friendly. Specifically, businesses can use packaging made from recycled, biodegradable materials or pack goods in pallets (wood, plastic,…). Reducing the amount of packaging waste, recycling old products and recovering the necessary values will create competitive advantages, increase flexibility as well as stronger connections with partners.

Need specific measurement tools for ‘green logistics’

4. Development opportunities of Green Logistics

Currently, building green supply chains is a global trend and the Logistics industry is also growing rapidly. The current scale of the global Logistics market in 2021 is estimated to reach 3,215 billion USD, an increase over the same period in 2020 of 17.6%.

In Vietnam, this industry is growing quite rapidly. The average increase is about 14-16%. According to a report by Aglity (the world’s leading logistics service provider) on the 2021 Emerging Market Logistics Index, Vietnam is currently ranked 8th in the Top 10 leading countries. Vietnam has increased its ranking by 3 levels compared to 2020. Therefore, the development of Green Logistics will improve competitiveness among businesses.

Vietnam is also actively joining hands in implementation: “Vietnam will develop and deploy stronger greenhouse gas emission reduction measures using its own resources, along with the cooperation and support of the Government.” international community. Especially countries with large emission economies, both in terms of financial load and technology transfer. Which implements the mechanisms under the Paris Agreement. To achieve net zero emissions by 2050″ is excerpted from Prime Minister Pham Minh Chinh’s speech at COP26, November 1, 2021. ” November 1, 2021.

Here is some information about Green Logistics and the benefits that Green Logistics brings.