An exploratory survey into Australian logistics companies' perspectives and experiences with green logistics

This research explores perspectives and experiences of Australian logistics companies on green logistics. Green logistics is "an integrated management of all the activities required to transfer products through the supply chain with more sustainable balance between economic, environmental and social objectives" (Best Logistics Guide, 2009). This research is looking at 4 aspects related to green logistics; 1) Barriers in achieving ROI and investing on green logistics; 2) Australian logistics companies' expectation on green logistics focusing on ROI; 3) role of information technology in improving ROI from green logistics; 4) Australians logistics companies' experience in green logistics. Unexpected barriers occur during green process inevitably. Most of these barriers are about conceal costs that the organizations have to pay in order to achieve sustainability (Nalewaik & Venters, 2008). According to the issues, this research studies barriers in achieving ROI and investing in green logistics, expectation on ROI from green logistics. In conducting this exploratory research a quantitative methodology underpinned by an objective ontology and positivist epistemology was adopted as the most appropriate approach to generate data to answer the research questions. Following an extensive literature review, three research questions were developed and a postal questionnaire for data collection prepared. The questionnaire was mailed out to 1,761 logistics companies around Australia. There were 156 responses accounted for 9%. The data collected from the survey was analysed by using descriptive statistical techniques. While the response rate was low, it was still possible to conduct analysis on the data and generate a number of research findings. The key findings from the research are; 1) 69% of Australian logistics companies performing green logistics have conducted in transportation activities 2) 26% of Australian logistics companies considered cost of fuel bill as the first priority in making decision for conducting green logistics projects 3) 23% of Australian logistics companies do not expect ROI from green logistics 4) 43% of Australian logistics companies consider initial cost for setting up the systems as the most important barrier of achieving ROI 5) 40% of Australian logistics companies view brand image as the most important competitiveness from green logistics 6) 56% of Australian logistics companies have long-term plan to invest in green logistics 7) 59% of Australian logistics agree that IT improve ROI from green logistics The research has found that; • Transportation is the first area that Australian logistics companies have started to conduct green logistics (69% of respondents) • The cost of fuel is the most important factor in making decisions for conducting green logistics projects (26% of respondents) • Initial cost for setting up the systems is the most important barrier to achieving ROI • Australian logistics companies perceive that green logistics will improve their brand image (40% of respondents) • Australian logistics companies are aware of importance of green issues (47% of respondents have conducted green logistics; 56% of respondents have long-term plan to conduct green logistics) • Information technology was identified as having an important role to play in improving ROI from green logistics (59% of respondents) The research concludes that future research should focus on improving models for understanding potential for ROI from green logistics, developing more case studies into successful implementation of green logistics and methods for overcoming barriers to investment into green logistics