Principles of Sustainable Logistics

Abstract

Effective logistics largely contributes to the success of business through quick deliveries in minimum time and cost. Logistics is the process of getting material, product, and service where and when they are needed. When addressing the concept of sustainable logistics, it is important to consider the three dimensions of sustainability: economic, social, and environmental. Sustainable logistics is beyond going green and being environmentally friendly, it has an influence on manufacturing processes, starting from where raw materials are obtained, processes involved, use, and potential recycling of the product or service. In analyzing the problem of evaluating logistic operation performance, sustainability will be one among other criteria for evaluation. Selecting a logistics partner who cares about sustainability will help in achieving company’s strategy. The chapter discusses the concept of sustainability applied to logistics. From the main definition of the logistics system, which includes the flow of materials and information, to the goal of sustainable logistics, which includes increasing profitability and reducing the environmental impact. Sustainable development involves coordination between environment and economics to reach social, economic, and environmental sustainability. The chapter aims to help managers, practitioners, scholars, and students to understand the key attributes of sustainable logistics and supply chain in general.