Going "Green" in the Delivery and Supply Chain: Evidence and Insights

Abstract

Given increased consumer interest in green products and practices, this paper will focus on examining sustainable practices within the shipping, packaging and delivery supply chain.  “Green” shipping, packaging, and delivery focuses on transporting products from providers (e.g., manufacturers, retailers) to customers to reduce CO₂ emissions, landfill waste, and overall negative impact to the environment. For example, (a) the use of electric powered vehicles in the delivery supply chain has the potential to reduce CO₂ emissions; and (b) using recycled cardboard or materials that are biodegradable would reduce landfill waste. 

This paper examines the potential benefits of these green practices in the delivery supply chain.  Our results are that a case can be made for use of electric-power vehicles and their potential benefit to reduce CO₂ emissions in an environment where power generation in non-coal based.  In other words, using electric cars in all delivery supply chains isn’t always a solution; firms must recognize the significant impact of the power generation process in their operating area.   From a packaging perspective, there is documented consumer interest on using environmentally friendly material for consumer products.  However, depending upon the market segment size, this might not always result in better financial outcomes for companies.