The main fields of action in green logistics are related to:
- Eco-friendly packaging. Packaging characteristics such as size, shape, and materials impact distribution due to their effect on the transport characteristics of the goods. Better packaging, along with rearranged loading patterns, can reduce materials usage, increase space utilization in the warehouse and the transport modes, and reduce the amount of handling required. For instance, having strong and sturdy pallets ensure their long-term use. Systems that encourage and adopt returnable packaging require a strong customer-supplier relationship and an effective reverse logistics channel. Efficiencies in packaging directly affect the environment. In many countries, take-back legislation on packaging has made packaging operation and planning a critical environmental logistics consideration.
- Eco-friendly transport mode choice and synchromodality. Environmental pressure from the customer base, society, and legislation forces companies to use greener alternatives for logistics. Advancing GSCM requires a massive re-engineering of supply chains in favor of a modal shift to environmentally friendly transport modes and synchromodality. Modal shift and co-modality policies have been implemented to incite the use of barges, rail, and shortsea shipping. Modal shift and co-modality have been expanded to include the notion of synchromodality, which is defined as “the optimally flexible and sustainable deployment of different modes of transport in a network under the direction of a logistics service provider so that the customer (shipper or forwarder) is offered an integrated solution for his (inland) transport”. Implementing a synchromodal solution requires the involvement of several actors. Shipping lines, terminal operators, inland terminals, inland transport operators, 3PL companies, shippers, and public authorities all play a role in developing synchromodal solutions. A synchromodal approach assumes that the shipper books without specifying the mode, thereby leaving modal decisions to logistics service providers. This renders the whole transport system more flexible in terms of modal choice. Synchromodal transport is particularly effective for corridors and regions where sufficient volumes are present, allowing for economies of scale supported by modes such as rail and barge.
- Load and route optimization. One example of load optimization can be to send a truck only as a full truckload (FTL). Route optimization is about reducing transport costs, time or distance. By choosing the best route, it is possible to save fuel and reduce emissions. Synchromodality allows for the consolidation of cargo consignments and finds the optimal route, thus achieving additional efficiency benefits.
- Green distribution networks and distribution hubs. GSCM incites logistics service providers to include green considerations in the design and implementation of distribution networks and the location choice and operational modalities of their distribution hubs and warehousing facilities. The type of product mainly influences these choices and the frequency of delivery, but green considerations are increasingly considered when making such decisions. For example, distribution network configurations might involve internalizing the environmental costs of transport and distribution, such as through environmental taxes such as a CO2 tax. The future configuration of distribution systems has an impact on cargo routing patterns.