Bangkok Terminal Logistics Co., Ltd.
Green Logistics that entrepreneurs should not overlook
Green Logistics is another option to alleviate and improve this problem. It is also a process to increase management efficiency.
Green Logistics
When it comes to running a successful business, it is very important to rely on the logistics system, which has operations that have an impact on the environment, such as air pollution from transportation, energy use in the production process, and the use of packaging materials, etc.
The logistics cost of all sectors in the country is approximately 14% of GDP, divided into transportation costs of 7%, inventory storage costs of 6%, and management costs of 1%. Logistics management is therefore an extremely important step in doing business and a factor that helps increase business competitiveness, combined with the concept of Corporate Social Responsibility (CSR) that is gaining popularity.
This concept is another alternative to alleviate and improve the problem. It is also a process to increase management efficiency and help increase the capabilities of the business sector in terms of reducing production costs, creating added value, saving energy, and preserving the environment at the same time.
For example, by using the correct and safe driving principles and helping to preserve the environment to train transport drivers to follow, the company was found to save 16% on fuel, while driving in the correct way reduced accidents by 27%, reduced the overall cost of Ecodriving by 10-20%, and was able to negotiate with insurance companies to reduce the premium payment rate at a lower price, etc.
Logistics management is the improvement of efficiency in logistics activities, from receiving, production and processing, storage of goods, transportation to distribution centers and customer service. In addition, logistics management to create sustainable logistics must take into account 4 elements.
- Economics looks at organizational growth, work efficiency, employment, competition and business options.
- Environmental aspect: Consideration is given to activities that affect climate change, air quality, water and noise, land use suitability, biodiversity, waste and fuel use.
- Social aspect, consider the impact on safety and hygiene, access to real information and fairness.
- In terms of added value, we look at service potential, research, consumer needs and tastes.
Therefore, Green Logistics is to give importance to the environment as a factor in managing all logistics activities instead of focusing on efficiency only. It can be explained simply with the sentence, “Logistics is to Reduce Non-Value Added Activities, But Green Logistics is to Reduce Waste and CO2 from Logistics Activities”.
Source: www.bangkokbanksme.com
[Logistics Contents] Green Logistics and Alternative Energy (blockdit.com)
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