GREEN LOGISTIC: THE PROMISSORY SECTOR

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GREEN LOGISTIC: THE PROMISSORY SECTOR

The high possibility to reach goods leads the world to a constant consumption cycle. In one hand, to satisfy the market demand, the increase of technology permits a continuous and massive production of innovative products. On the other hand, the discontinuation of the old products and the constant output leavings lead the society to a dramatic reality related to garbage output. With these worries, emerging markets quickly grow.

In this text, we will talk about a specific sector wherein earlier times had low or no importance, but now is crucial for the development of industrial activities. This emerging area is seeing from visionaries as a sector of vital importance within the company context: The Green Logistic.

The green practices observance can represent (most times represents) an extra cost for companies. That cost has been avoided for many decades in most industries; nevertheless, two recent main factors changed how companies address this issue. The first one is the increase in awareness of the need for environmental preservation. The second one is the flow accessibility of information in a globalised world.     

Having consumers in mind, the combination of those factors has a significant impact on the market and the power to lead a company into success or failure.  

The final clients are the reason for being of companies, their buying impulse funds the entire supply chain. Thereby, business survival depends entirely on the customers.

If in one side we observe success, and on the other side we observe failure, the image of a company can tell us a history about this both edges. If a company cares about its image, the propensity to succeed is incredibly higher than that one who underestimates the importance of the consumer's opinions.

In that line, the consumers have the power to dictate which direction the market can flow. In other words, the accessibility of information by consumers about the company's guidelines has a direct effect on the success of the business. The comprehensive utilisation of social media to publish contents that denigrates or exalts business practices makes this power even more evident. 

Allied to the importance of image maintenance, the considerable demand for goods, the obsolescence of old products and the leavings of products lead the green logistic to a breeding ground. With this atmosphere, as the society promotes the sense of the importance of the adoption of green practices, the sector of green logistic increases importance. 

In accordance, some companies have already implemented a green logistic sector and have been experiencing the benefits arising from this promisor activity. 

The green logistic consists of more than the transportation of waste to a selective station, it also encompasses recycling (with the help of machinery if necessary), redirecting leftovers that can be reused as raw material, storage and eventually the sale of leftovers as raw material.

There are two direct economic advantages to be highlighted related to the implementation of green logistic as a sector of the company:

  •        The green logistic sector can serve as a parameter of failure indication: by observing the garbage, it is possible to identify failures on the process line and so act towards a corrective posture.
  •        The green logistic sector can reduce disposal cost of the company and eventually generate an extra income for the company: the disposures of a production process can be used as raw material for another production process. It is possible to negotiate the sale of the leftovers with other companies, as it can also be possible to use the scraps on the own company's production line as a raw material. With that possibility, the company cuts down on the expenses incurred on purchasing similar raw materials (for example, aluminium and plastic can be recycled with the help of recycling machines. In that case, the costs of the running machines and it's operators are ideally lower than general via to obtain raw material).

Besides direct economic advantages, we can point out two indirect economic benefits that companies can enjoy:

  •         The green logistic can help the company to build a praise image: the green thinking is actual and crescent. The companies that embrace an eco-conscious approach creates an image compatible with the ideology of the contemporary world and is seen as more credible to the customers and value investors. This credibility brings social and competitive advantages to the company.
  •         The green logistic sector can reduce negative environmental impact: the most significant benefit of industrial waste control is, in fact, the environment. Less waste takes less landfill space and reduces gas pollutants and greenhouse emissions. 



To illustrate this or other texts on this site, if you consider yourself or your company a visionary,  welcome contacting me: It will be a pleasure to highlight your visionary moves toward a better business world.





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Location: Kristiansand, Norway

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