Sustainable Packaging and Logistics - Essay Example

Logistics of the of the Number Logistics Introduction Logistics is a crucial element in the contemporary transport system. Spatial developments as well as contemporary technologies have enhanced the overall efficiency, improved cost and reliability of the passenger and freight transport system. However, negative impact of logistics and transportation on the environment has also increased. These core sustainability issues have gained recognition, especially in urban areas. Since logistics application is considered to ease the overall transportation system, green and sustainable logistics has become a crucial concept for development of an overall sustainable enterprise. Green logistics interlinks the environmental, social and economic aspects. Even so, a strong interdependence has been found between sustainability and green logistics. As a result, most organizations are turning towards green and sustainable logistics management. It includes various aspects such as, effective recycling, construction of green facilities and logistics sites, sustainable packaging and maximum waste reduction (Ahmed 35). Nowadays, sustainable development has become a key issue in case of logistics activities. In order to consider wider concepts and objectives within the supply chain, marketers and researchers have formulated strategies digging deep into methods as well as for achieving green logistics and sustainable management of supply chain. However, companies are facing challenges and new issues during application of these methods. The most basic challenges include high cost of establishment as well as lack of proper manpower. Though big MNCs are capable of integrating sustainable concepts in their operations and logistics, it is the smaller and medium businesses that face tough challenges from consumers, industry as well as regulators. With increasing support from government and various regulators as well as training to staffs and management and availability of technology, analysts and marketers are hoping to make sustainable logistics an integral part of the supply chain. Sustainable packaging Before pondering on sustainable packaging, it is crucial to understand the role of packaging in society. In its simplest form, packaging performs four functions: 1. Protecting and preserving the product: This is one of the most critical functions of packaging, especially for sophisticated as well as expensive items, such as, consumer electronics and food products. For instance, in case of developing nations, average food waste in supply chain process is from 30 percent to 50 percent. However, this wastage is as low as 2 percent in case of European countries, which use sophisticated and sustainable packaging solutions. 2. Communication of the brand image: The design and format of the packaging is a key means for marketers to project their product’s brand image. For instance, a relatively expensive crystal and glass packaging of expensive perfumes is more successful in communicating high value and luxury compared to plastic bottles. 3. Conveying the information: This includes information such as, instruction for product usage or lists of ingredients. 4. Offering convenience: This covers a whole lot of aspects such as, product information and usage, retailer convenience in terms of stocking and display, supply chain convenience such as, stack management, storage information and convenience of disposal. In simple terms, it is the development as well as usage of packaging, which result in an improved sustainability. The objective of sustainable packaging is to reduce ecological footprint and environmental impact, improve long-term quality and viability of life for human beings and long life of natural ecosystems. However, the basic process includes monitoring the entire supply chain from basic manufacturing, marketing activities to end of the product life cycle as well as rebirth. Sustainable packaging system should meet economic and functional needs of the present generation, without compromising the future generation’s ability to fulfil their needs. The rising importance for sustainable packaging can be attributed to the rising impact on environment, which is non-sustainable in the long run. The wide and even increasing production across the globe is consuming the non-renewable resources at an alarming rate. A lot of harmful air emissions are generated from production facilities and transportation, contributing to air pollution, depletion of ozone layer as well as global warning. These production facilities also dump their wastage in various water bodies, thereby polluting them. The solid waste produced during packaging process is disposed in landfills, which again leads to increasing toxicity. Sustainable packaging is a comparatively new concept to the overall packaging system. It needs more documentation and analysis. It looks after various aspects such as, material choice, packaging design, lifecycle as well as processing. Organisations implementing sustainable packaging need to reduce their carbon footprint, use recycled materials more effectively as well as effectively re-use package components. Sustainable packaging is useful not only for customers and suppliers, but is also effective in minimising wastage during transit (Carter and Rogers 365-370). As product damage can end in significant delays as well as revenue loss, placing a high priority on packaging has become an important strategy for companies. For instance, many sustainable organisations implement loose fill package solution prepared from non-food and renewable materials. This enhances the overall protection of products, boosts the worker comfort as well as reduces the material and shipping costs. Companies are also using packaging strategies, such as, fit-for-purpose, which helps in achieving financial and environmental savings. Sustainable packaging also includes tracking as well as understanding of the losses during supply chain. As discussed earlier, sustainable packaging involves the entire supply chain process, right from the sourcing, production, usage to disposal. As a result, it gives much importance to the logistics and transportation system also. Organisations implementing a sustainable packing process use their system to monitor and measure the loss of products as a key indicator of their performance, in the supply chain. They also involve in educating technologists, packaging professionals, specifiers and designers about current performance of packaging, distribution chain and other requirements, which will enhance the overall packaging process. Conducting audits at every supply chain point also helps in identifying opportunities, where wastages can be reduced. Technology has been playing an important role in managing the operations and supply chain system. Sustainable packaging also involves use of high-end technology to facilitate reduction of wastages as well as a smoother transit. Following are two examples of packaging using technological intelligence, along with their impacts. Technology Impact on packaging and food waste RFID tag, also known as radio frequency identification tag. It is generally used for primary, secondary and tertiary packaging. It is employed to trace products during the entire supply chain process, like, distribution centre, transport and retail store. It helps in improving inventory control as well as reducing stock out situations. Thermal sensors It is a very rare technology, used mostly in developed nations. Thermal sensors are kept in the transportation vehicles and distribution centres as well as retail stores. They ensure that the products are kept under required range of temperature, during transit. Time-temperature labels are also helpful in informing consumers, when the products are safe for consumption. Within the supply chain and logistics system, there are numerous opportunities of developing new packaging forms for different target markets. For instance, damage and loss to vegetables and fruits, which are considered as sensitive items, can be minimised though the use of target packing solutions, thereby meeting individual requirements for ventilation, ripening and protection of products (Cumming 24). In case of other sophisticated and expensive products, advanced, loose packaging solution can be used, where products are packaged in a way that minimises damage during transport. Also, companies can use software for tracing the smoothest tracks for these products. There is also an ongoing trend of pre-packaging for waste reduction during supply chain as well as during various consumption points. New technologies and packaging materials offer additional opportunities for extending shelf life and reducing wastages. Collaboration with supply chain is also essential for understanding and monitoring product wastage as well as identifying proper solutions. In particular, packaging developers will have to understand the design and distribution process and develop packaging, which minimises wastage and improves the overall value. In some situations, this might require greater packaging than normal or using more materials for manufacturing of package materials. Other considerations, like, resource recovery and materials efficiency during packaging, should also be regarded in order to optimise sustainability of the entire product-packaging system. Logistics Logistics can be defined as the integrated management of all activities in a supply chain process. A typical supply chain process includes sourcing of raw materials, production process, distribution system, consumption by end user as well as reverse logistics. Logistics activities comprise inventory management, storage, freight transport, materials handling as well as information processing techniques (Björklund 15-20). The major goal of logistics is to coordinate the entire supply chain activities in such a manner that it meets consumer demands at minimum expenses. Previously, these expenses were defined purely on monetary terms. However, with rise in environmental concern, firms are now taking account of the various external logistics costs, which are mainly associated with factors such as, noise and air pollution, accidents, vibration and climate change. Green logistics is a new concept in the logistics management calculated environmentally. The effectiveness of green logistics is determined by its friendliness to nature as well as society. The need for including green logistics in company’s operations had drawn attention during the 1980s. Companies that have successfully integrated green logistics in their operations have started to reap fruits, in terms of increased efficiency, reduced wastages, overall increase in sales as well as a streamlined and reformed logistics system (David 293-298). Transport and logistics activities are the two aspects, which have a major influence on overall environment. For instance, excess emission of carbon has destroyed the existing ecosystem and altered the environmental landscape. Indigenous forests are becoming sparse, resulting in varying patterns of rain and negative impact on food and farming production. As a result, transport and logistics have attracted much legislation attention, at both international and national level. A lot of firms are also realising the increasing importance of making their supply chain greener through incentivising their suppliers, studying consumption process of consumers, analysis of the product life cycle for better understanding of product disposition and recyclability as well as more use of green buildings. These strategies are increasingly being emphasized for driving sustainable and green logistics, thereby creating a positive impact on community and the government (Hazen, Cegielski and Hanna 375-380). Air emissions and energy use are two major issues in the airline industry, more particularly because of the continuous rise in fuel prices. Another issue is noise pollution, which might create problems for people and society residing and working nearby. Even though many international standards have been established for environmental regulations as well as guidelines for aircraft maintenance, it is the duty and responsibility of freight companies to implement green and sustainable strategies in their operations. As a direct result of it, TIACA or the international association for Air Cargo has placed major stress and strong support for providing a global solution to decrease aviation emissions. According to this association, adopting green and sustainable strategies in air cargos will not only enhance their overall operational efficiency, but also reduce costs in the long-term, thereby providing air cargos with new revenue streams (Dey, LaGuardia and Srinivasan 25). Many practices and strategies have been laid down in order to achieve a greener air cargo logistics system. For instance, starting and promoting in-flight recycling in order to reduce wastages produced during airport or aircraft operations. Making recycling a part of the airline policy will ensure that separation of trash from recyclable materials is properly done by the airline staff. Freight companies can also implement frequent maintenance policies, such as, engine washing, so as to assure high level of fuel economy (Hung Lau 875-880). Businesses concerned with shipping and freight purposes always prefer those airlines that incorporate green management and sustainability at every stage of their supply chain process. New and advanced technologies are continuously being invented with capabilities to save airline time, money and fuel. For example, CDA or continuous descent arrivals helps in conserving fuels, while landing and Lido OC system of flight planning employs digital modelling for planning the most cost effective and fuel efficient flight paths. Apart from that, sustainable air cargo companies are using advanced electronic equipments, such as, LED lighting and alternatives fuels, for reducing energy consumption and emissions. Many air cargo companies have gone far ahead and successfully achieved a green logistics system. For example, FedEx has implemented EarthSmart Program for management of its sustainability goals. This helps in reducing environmental impact as well as communicating these efforts to suppliers, employees, vendors, customers and stakeholders. Similarly, the major sustainability objective of United Airlines is reduction of emissions and fuels, which is achieved by investment in technology as well as alternative energy fuels for running the airlines (“Supply Chain Requirement: Transportation – Air Freight”). Figure 1: Infographic illustrating growth and prominence of recycled packaging (Source: “Infographic illustrates growth and prominence of recycled packaging.”) The above info graphic demonstrates critical advantage of recycling the corrugated materials and using them throughout the supply chain packaging process. More and more firms are considering environmental stewardship, along with their other activities such as, recycled packaging and supply chain. This trend has impacted energy consumption, consumer perception as well as overall growth of global packaging industry. The infographic has showed many important statistics, illustrating the importance of packaging industry in the next two years. According to reports, packaging industry will be a 530 billion dollar sector by 2014. As a result of this hike, packaging sector will gain immense importance and more and more companies will increase their efforts to improve sustainability of their materials. Research has also suggested that more than 60 percent of consumers prefer to purchase products from organisations who implement recycling techniques in their packaging process. Corrugated and paper based packages can be recycled and reused more number of times than a combination of all other recycled resources. The overall energy requirement to produce sustainable recycled materials is almost 70 percent less than producing the same from virgin sources (“Infographic illustrates growth and prominence of recycled packaging”). Apart from the abovementioned, there are various other benefits of sustainable packaging. Some of these aspects are needed by regulators for establishing minimum standards and securing that companies are following a minimum level of sustainable and waste reduction programs. Potential investors and stockholders prefer purchasing stocks of firms, which are known for their positive and sustainable environmental policies. As lower risks on environment leads to more capital in future, companies implementing sustainable practises are highly valued in various future projections. Highlighting sustainable practises and green programs to consumers also helps in boosting sales and enhancing brand reputation. It provides a competitive advantage in this business environment, where products and services are becoming almost similar with no differentiation. Sustainable packaging also enhances the overall convenience of customers in using or preparing packaged products as well as minimizes packaging waste. So, it helps in establishing closer relationships with suppliers as well as customers. It can be noted here that relationship building has become one of the major strategies among companies and continuous implementation of sustainable packaging has reflected increased customer loyalty towards the product and brand. Thus, sustainable packaging can be considered as a necessary investment, providing long-term growth and competitive advantage. Works Cited Ahmed, Pervaiz. “Culture and Climate for Innovation.” European Journal of Innovation Management, Vol. 1.1(1998): 30 – 43. Print. Björklund, Mats. “Influence from the business environment on environmental purchasing –Drivers and hinders of purchasing green transportation services”, Journal of Purchasing & Supply Management, Vol. 17.1(2010): 11-22. Print. Carter, Craig and Dale S. Rogers. “A framework of sustainable supply chain management: moving toward new theory", International Journal of Physical Distribution & Logistics Management, Vol. 38.5(2008): 360 – 387. Print. Cumming, Jonathan. “Greening the Supply Chain.” Environment Business, Vol. 4 (2003): 20-22. Print. David, Fred. Strategic management: Cases and concepts (13th ed.). Florence, South Carolina: Pearson, 2011. Print. Dey, Asoke, Paul LaGuardia and Mahesh Srinivasan. "Building sustainability in logistics operations: A research agenda", Emerald, Vol. 34 (2011). Print. Hazen, Benjamin, Casey Cegielski and Joe B. Hanna. "Diffusion of green supply chain management: Examining perceived quality of green reverse logistics", International Journal of Logistics Management, Vol. 22.3(2011): 373 – 389. Print. Hung Lau, Kwok. "Benchmarking green logistics performance with a composite index", Benchmarking: An International Journal, Vol.18. 6(2011): 873 – 896. Print. “Infographic illustrates growth and prominence of recycled packaging.” logisticsmgmt. Logistics Management, 2013. Web. 07 February 2014. “Supply Chain Requirement: Transportation – Air Freight.” gogreenplus. Go Green Plus, 2013. Web. 07 February 2014. Read More