Analysis of the Sustainable Development Concepts in the Logistics Industry

Analysis of the Sustainable Development Concepts in the Logistics Industry

DOI: 10.4018/978-1-6684-7730-4.ch013
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Abstract

The chapter aims to review the existing concepts of the sustainable development within the logistics industry, analyze them, and provide recommendations for further improvement. Special emphasis is placed on the concept of green logistics, together with perspectives on future development in this area. Great potential in solving the sustainability problem is identified in the concept of circular economy and reverse logistics, whose elements and potentials are discussed in detail. The chapter provides answers to the research questions: RQ1: What are the potential ways to improve the sustainability of the logistics sector? and RQ2: What are the risks and threats to implementing sustainable logistics? A key contribution is reflected in the conception of the SWOT matrix for applying the concept of green logistics, highlighting the strengths, weaknesses, opportunities, and threats for the implementation of this concept based on the literature review and current experience.
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Introduction

The concept of a green economy implies the realization of economic activities and the achievement of economic growth and development in accordance with the principles of environmental protection. In this sense, green growth can be defined as “growth that is efficient in the use of natural resources, minimizes pollution and environmental impacts, and takes into account natural hazards and the role of environmental management in preventing natural disasters” (World Bank, 2012, p. 30). In order to ensure the realization of the long-term sustainable development, it is necessary to encourage innovation in the sense of “green economic growth”, whereby innovation, green investment and improvement of the concept of the green economy through finding new models of environmental protection, can increase economic well-being in the long term (Jänicke, 2012). In the context of modern trends and principles of the green economy, international trade and logistics must find their role in the model of sustainable development and rise the opportunities to reduce global pollution and carbon dioxide emissions, which largely depend on logistics activities, such as international and local transport (Mariano et al., 2017).

Sustainable development, as a long-term, complex, and continuous process, is determined by a combination of economic, social, and environmental factors (Šulskytė, 2019). The logistics sector enables the efficient functioning of national, regional, and international trade (Bugarčić et al., 2020; Zaninović et al., 2020), with the growing volume of activities at the global level requiring the analysis of logistics in the context of sustainable development. The contribution of logistics to the model of sustainable development can be seen through the concept of green logistics, which respects the requirements related to environmental protection and the reduction of harmful gas emissions due to the transportation of goods. Also, it is necessary to look at the long-term perspective of logistics development in the future and analyze the possibilities for implementing innovative solutions in the transportation of goods, which would directly enable the realization of sustainable development goals in terms of reducing pollution and increasing the efficiency of transport. Requirements for the full use of potential by the principles of the circular economy impose the need for reverse logistics analysis, which represents a model for efficient use of resources and optimization of processes and activities, whereby the role of reverse logistics can be considered as a component and potential factor of industrial development in the future.

For this reason, green logistics represents a possible way in which countries could redirect their existing industrial and trade strategies in order to enable an ecologically acceptable model of development of the entire economy. In the realization of that goal, it is necessary to raise awareness among companies in the logistics sector about the importance of environmental sustainability (Lieb & Lieb, 2010). With the growing interest in advanced services, logistics providers face the challenge of providing environmentally sustainable services, which poses the problem of how to put the trends towards the development of green logistics concepts into practice in an efficient and purposeful way. The solution to this can be found in the development of green strategies at the national level, which would enable the realization of sustainable development goals related to logistics and increase the awareness of service users about the effects of green initiatives (Evangelista, 2014; Centobelli et al., 2020). Additionally, countries' trade policies must be committed to urgently reducing greenhouse gas emissions. The fight against climate change and the prevention of harmful effects on the planet and society requires significant changes at the global level in production, international trade, and the logistics industry. The identified gap in the current literature refers to the lack of research that analyses the possibilities of the logistics system in achieving the goals of sustainable development.

Key Terms in this Chapter

Logistics Industry: Represents all activities related to the planning, implementation, and control of the storage and distribution processes.

Circular Economy: An economic system that emphasizes circular flow of goods and materials and the full use of all resources within the supply chain in order to increase efficiency and protect the environment.

SWOT Analysis: A technique for structured observation, connection and understanding of strengths, weaknesses, opportunities, and threats.

Industrial Development: An improvement in production processes within the economy that is determined by natural and social factors.

Reverse Logistics: Operations related to the return flow of products from end users to sellers and producers at the end of product's lifecycle with the aim of the potential reuse of resources.

Sustainable Development: Meeting the needs of current generations without compromising the ability of future generations to meet their own needs.

Trade Policy: It includes a combination of strategies and policies intended for the realization of international trade goals, including regulations, tariffs, and non-tariff instruments.

Green Logistics: This concept requires the realization of logistics activities without negative environmental impacts.

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