Cost a deterrent to green logistics?

Global- A new 3PL Logistics study finds that "green" supply chains are vital for future business development, though this is unlikely to happen, as majority of logistics executives are unwilling to spend.

Conducted by the Georgia Institute of Technology, the study polled 1,644 logistics executives from Europe, Asia Pacific, North and Latin America.

The survey shows that while 98% of logistics executives believe  "greening" of the supply chain will have an escalating impact on network design, transport modes used, selection of equipment, business processes, behaviours and balance sheets, only 46% of participants responded that going "green" is a selection factor, said media sources.

Hans Hicker, CEO, DHL global customer solutions said, "3PLs and their customers must be open about expectations and capabilities, if they are to find innovative ways to improve supply chain security and green credentials."

In a joint press release by Capgemini, Georgia Institute of Technology, Oracle and DHL, the top concern is theft of material goods, although logistics professionals believe their customers are becoming increasingly alarmed with the costs of meeting security compliance mandates.

John Langley, spokesperson of Georgia Institute of Technology said, "The greatest shared challenge is that of forming and growing successful collaborative relationships between users and providers of logistics services. Without a commitment from both sides little progress can be made in the greening of the supply chain and supply chain security."

The survey said while 3PLs and their users believe the associated costs of creating a more secure, integrated, environmentally friendly supply chain should be split, there is "continued resistance to collaboration and the unspoken assumption that costs will be ultimately be carried by the customer".