A Case Study in Applying Green Logistics to Business Practices

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Kansiree Chaisrianurak
Tartat Mokkhamakkul
Natcha Thawesaengskulthai

Abstract

Green Logistics is at its initial state among pharmaceutical logistics service providers and has not yet widely been applied in Thailand’s pharmaceutical industry. Various studies explored and addressed the business practices by applying green concepts as a new strategy for sustainable growth since the mid 1990’s. This study attempted to address features and activities of green logistics development process through a case study company. The study began with a literature review to understand the concepts of green logistics, green process innovation and green business practices. An observation research was applied to understand the details of the values and beliefs held by members of the population and explore the activities that should be addressed to improve company’s carbon emission, defining proper carbon sources, carbon intensity compared to sales value, transactions and cost saving. The green logistics model was applied through the ordering process and the outbound logistics processes of the case study company. The data of the case study was analyzed based on evidence from various sources by using analytic techniques. The results of applying the green logistics model resulted in the reduction of carbon emissions from 0.32 tCO2e to 0.27 tCO2e, in terms of sale value one million baht and cost reduction approximately 37 million baht for project projection.

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