Efforts made early in the relationship between logistics buyers and LSPs such as fourth-party logistics providers can help to ensure both parties share a mutual understanding on issues like green enhancements and overall performance, according to a newly published paper.
Amer Jazairy at the University of Gavle, Sweden, explored the relationship between logistics buyers – also referred to in the paper simply as ‘shippers’ – and the logistics services providers (LSPs) who cater to them, with a particular focus on how to facilitate green logistics.
The paper was motivated in part by the recognition that LSPs and shippers are the agents most responsible for improving the green credentials of logistics services used in the real world, including by aligning their approach throughout the different phases of their relationship.
Despite the environmental regulations many firms are required to work towards, the study reveals that efforts on green logistics up to now have actually been driven by other factors, including pressure from within the market itself, and competition from rival operators.
“The findings indicate a general lack of regulatory pressure in driving shippers and LSPs to engage in green logistics, contrasted by a long-term influence of competitive pressure and a prevalent influence of market pressure,” the paper reports.
“It was also found that both actors must put substantial efforts in the beginning of their relationships to reach a mutual business understanding, allowing performance and green enhancements.”
This collaboration should continue with regular communication of performance metrics between shippers and their LSPs, and ongoing optimisation of working practices to further support green logistics practices.
Green logistics as part of 4PL
Green logistics has natural benefits in other areas of 4PL, for example by reducing fuel consumption and empty running, so that optimising your environmental performance can align with more economically efficient logistics practices too.
To find out more about how 3T Logistics can help you to optimise logistics operations across the board, call us on 0116 2824 111 and speak to one of our advisors, or fill in our online enquiry form for a quick reply from our 4PL experts.