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CHALLENGES AND OPPORTUNITIES OF GREEN LOGISTICS IN HUNGARY. AN EXPLORATORY RESEARCH
Abstract
Purpose:
The main purpose of this paper is to investigate the environmental sustainability practices of Hungarian third-party logistics service providers (3PLs).
Design:
A multiple case study approach was chosen for this research. The sample consisted of ten companies, which supports explorative investigations.
Findings:
The results show that companies investigated had undertaken a variety of green actions. The main reason connected with the adoption of green initiatives is cost reduction, while the benefit for environment is just considered a positive by-product. More advanced and sophisticated actions (e.g. action having effect at supply chain level) are not so frequent by the companies analysed.
Value:
The main value of this paper lies in being the first green logistics study in Hungary. It thus carries the responsibility of awareness raising about sustainability among logistics service providers and creates connection between research and industry practices.
Research limitations/implications:
The research summarized in this paper is of exploratory character is subject to some limitations. The main limitation lies in the fact that the sample investigated is relatively small partly as a consequence of the selected research method. For this reason, empirical generalization may be achieved through increasing the number of case studies and complementing them with a questionnaire survey.
Practical implications:
This study may have value for 3PL’s managers engaged in green programs to improve the efficiency of their company and contribute to the reduction of CO2 emissions. The results may also be used to suggest some policy directions to accelerate the evolution of the logistics service sector in Hungary toward a more environmentally friendly approach.
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Despite the increasing interest toward environmental issues in the freight transport and logistics service sector, a comprehensive and updated assessment of the existing literature is still missing. This paper aims to fill this gap by presenting the results of a systematic literature review of publications in the area of environmental sustainability in third-party logistics service providers (3PLs) between the years 2000 and 2016. The review offers insight into the critical dimensions of green matters in transport and logistics service companies using an analytical framework based on the following five topic areas: influencing factors, green actions and the impact on performance, Information and Communication Technology (ICT) tools supporting the green actions, energy efficiency in road freight transport and shipper's perspective and collaboration. The results indicate that, despite the number of published papers having grown significantly from 2008 onward, some areas remain highly under-researched such as ICT and performance measurement. Several research gaps have been identified in each topic area, and a set of propositions forming an agenda for future research directions has been suggested.
Purpose
– The purpose of this paper is to investigate the prevalence of the application of standards and their positive influence on the efficiency and competitiveness of Slovenian logistics service providers. Moreover, an analysis was also done on the relationship between the adoption of the environmental standard and greater concern for the environment.
Design/methodology/approach
– A small sample analysis was done using a combination of statistical methods and an abductive approach. A χ 2 analysis was utilized to test the hypotheses.
Findings
– Many benefits were indicated. However, a positive relationship between quality standards and efficiency, as well as competitiveness, was not confirmed. In addition, the implementation of ISO 14001 quality standards was found to have no effect on the higher investment in environmental protection.
Research limitations/implications
– This study is limited by its local aspect (Slovenia), small sample size and its focus on just quality standards and their external factors. Future studies should be extended to the countries of eastern Europe and should further examine the relationship of internal factors as well as the relationship between the adoption of quality standards and the supply chain.
Practical implications
– A survey is essential not just for the Slovenian industry but also for the wider logistics industry as well as for government authorities and standards providers.
Originality/value
– This is one of the first papers written to analyse the effects of quality standards on international logistics service providers and the first paper that has explored the impact of standards on Slovenian logistics service providers.
This paper describes the trends towards green logistics in global aspect and challenges of adopting green logistics in the region of Southeast Europe. Modern logistics with supply chain management is experiencing a period of important evolution. From reversible logistics, we came to green logistics, which is a wider concept of environmentally friendly thinking. Reverse logistics includes processes of movements and transportation of waste from users to recycling plants; meanwhile, green logistics deals also with environmental issues such as pollution and environmental degradation caused by improper logistics processes and utilisation of old and environmentally unfriendly transport technology. The case of Southeast Europe was analysed, and in this context, a development model for green logistics implementation was proposed. A vast number of different challenges in the logistics sector are still open in this region; therefore, systematic analyses and proposals should be subject of additional scientific work in the logistics sector. All parties, including manufacturing industry, logistics providers and governments should take an active part in such researches, as the pressure from green thinking will become even stronger in the coming period.
KEY WORDS: reverse logistics, green logistics, logistics providers, Southeast Europe, green logistics model
Despite an increasing number of third-party logistics service providers (3PLs) regard environmental sustainability as a key area of management, there is still great uncertainty on how 3PLs implement environmental strategies and on how they translate green efforts into practice. Through a multiple case study analysis, this paper explores the environmental strategies of a sample of medium-sized 3PLs operating in Italy and the UK, in terms of environmental organizational culture, initiatives, and influencing factors. Our analysis shows that, notwithstanding environmental sustainability is generally recognised as a strategic priority, a certain degree of diversity in the deployment of environmental strategies still exists. This paper is original since the extant literature on green strategies of 3PLs provides findings predominantly from a single country perspective and mainly investigates large/multinational organizations. It also provides indications to help managers of medium-sized 3PLs in positioning their business. This is particularly meaningful in the 3PL industry, where medium-sized organizations significantly contribute to the generated turnover and market value.
As demand for advanced logistics services grows, third-party logistics providers (3PLs) are being requested to provide more environmentally sustainable services. This development presents 3PLs with opportunities but also challenges and concerns about how to translate green efforts into practice. The purpose of this paper is to analyse environmental sustainability initiatives undertaken by 3PLs and the factors influencing them, both positively and negatively. The research methodology used in this paper is based on two-phase approach. In the first phase, a systematic literature review on the adoption of green initiatives by 3PLs has been carried out and two research questions have been identified. In the second phase, the research questions have been addressed by a case study analysis conducted on 13 Italian transport and logistics service providers. The research has distinguished three groups of companies with slightly different environmental profiles in terms of the green initiatives implemented and the main drivers and inhibitors. The surveyed companies show a differing degree of involvement in green initiatives due to variations in the breadth of service offered and the importance attributed to environmental issues. The paper concludes with a discussion of the managerial implications of the research, particularly for the development of 3PL's green strategies.