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Impact of Green Transportation Models on Transportation Business and its Role as a Component of Logistics: Paper Outline

Introduction

I. Transportation is one of the essential components of logistics processes in economies and the operations of enterprises.

a. The management of the flow of raw materials and equipment, products, and other production resources between the points of production and consumption is necessary to fulfill customers' and corporations' requirements for efficiency.

b. the overall quality and effectiveness of the logistics process depend on transportation to harness its advantages and promote the enterprise’s or economy’s competitiveness.

II. The focus of the paper: Discussing and evaluating the impact of upcoming models of green transportation on the transportation business and its role as an essential component of logistics processes in economies and organizations.

a.      How will green transportation solve, advance, modify, or otherwise influence long-standing issues in transportation (decisions of materials to move and means to use, improving the efficiency of transportation, best choices to minimize costs, promoting competitive advantage, ensuring the safety of materials, etc.) as an element of logistics in economies and businesses?

III. Thesis: Green transportation promises to strengthen the role of transportation as a vital link among the mechanisms of production, hence reinforce the capacity of business logistics to yield competitive advantages for businesses. This effect is likely owing to improved efficiency of movement of products, speed of delivery, load of movement, quality of services, costs of operation, usage of facilities, and saving of energy in the logistics process. Nonetheless, this effect is dependent on the effectiveness of transportation laws and their implementation among states/societies.

Transportation

I. Transportation has an essential role in logistics. Logistics describes the management of the flow of raw materials, products, equipment, and other production resources between the point of origin and consumption; the objective of meeting the requirements of both organizations and customers (Tseng, Taylor, & Yue, 2005).

a. Transportation has the essential role of determining the efficiency of movement of products: vital influence on the speed of delivery, load of movement, quality of service, costs of operation, usage of facilities, and saving of energy in the logistics process (Tseng et al., 2005).

b. Transportation is a vital link among the various processes of production: business logistics cannot achieve all its advantages without a well-developed and efficient transportation system. A competently operated transportation system enhances business or economic competitiveness.

II. At its basic level, transportation describes the movement of materials/products between two points. In business/economic operations, transportation links different processes of production - procurement of raw materials, manufacturing, storage, and distribution to customers (Havenga, 2018).

a.      Transportation links these procedures through both movement of products/materials and the flow of information among operational procedures in business.

III. Influence of transportation on business efficiency/competitive advantage: Transportation is a critical economic activity across the components of a business logistics system. It takes up between one and two-thirds (33-67%) of enterprises’ expenses in logistics systems. Costs of transportation account for 6.5% of market revenue and 44% of logistics (Tseng et al., 2005).

a.      Transportation costs cover expenditure on the means of transportation, corridors of transportation, and the costs of, or relating to, pallets, containers, corridors, labor involved, time, and terminals.

IV. Implications: Role of transportation is complex, expanding beyond the process of carrying products/materials

a.      At the economy/society level, transportation affects the location of activities, style of life, and availability of products/services. Advances in transportation influence changes in ways of living and ways of organization in societies.

b.     Transportation has an immense influence on the development of civilizations, based on uses of transportation and relationships between transportation and other activities in human society (Veryard, 2015; Musso et al. 2007).

Green Transportation

I. Definition: Transportation means/models that are sustainable, with minimum adverse impact on the environment, society, and climate, and that balance current needs with interests of the future; transport modes that utilize renewable energy sources.

II. Positive contribution to socioeconomic and environmental sustainability at the society level; reduced air pollution, greenhouse gas emissions, noise pollution, use/depletion of natural resources; improved efficiency

III. Some trends in green transportation include the use of electric vehicles, peer-to-peer vehicle sharing, vehicle "light-weighting," smart city and parking schemes, self-driving vehicles, reinvestment in rail-road transport, incorporation of big data analytics to enhance transportation efficiency, use of hybrid ships, and use of biofuels.

Impact of Green Transportation on Long-Standing Issues in Transportation as an Element of Business Logistics

Sustainability goal

Sustainability objective

Transportation objective

Ecological integrity

Reducing climate change: -

Reducing greenhouse gas emissions

Reducing pollution

Reducing harmful vehicle air and water emissions

Human health

Reducing injuries

Reducing traffic accidents

Reducing exposure to pollution

Controlling the quantity of emissions

Increasing exercise

Increasing active transport – improving cycling, walking conditions, encouraging non-motorized transport

Economic welfare

Business productivity

Improving freight mobility and affordability – adequate air/freight/road capacity, efficient land use, freight priority; Improving the efficiency of transportation facilities and services (efficient planning and pricing)

Consumer’s mobility

Adequacy of transport services, increasing mobility choices, reducing traffic congestion, improving facilities for walking, cycling, adequacy of road capacity and transit services making cycling

Equity

Horizontal equity

User-pay principle (cost-based pricing, reduction of externalities)

Vertical equity

Progressive pricing (taxes for basic driving and transit); providing adequate facilities for walking, cycling, ride-sharing

Social welfare

Community livability

Improved mobility in neighborhoods, street improvements for public mobility

Table showing a summary of appropriate sustainability goals/objectives and relevant actions in transportation to achieve the objectives (Litman & Burwell, 2006)

I. Better control of transport demand and pressure on road networks: Restricted private car use owing to measures such as congestion charges, parking charges, and tail restrictions could reduce traffic on transportation systems.

II. Strengthened public transport systems: because of the focus of governments on convincing more citizens to choose public means of transport over private ones; improved operational efficiency (Shen et al., 2018)

III. Green transportation models are likely to reduce vehicle pollution emissions and per capita motor vehicle mileage, increase average traffic speeds, lower crash (accident) rates, and increase transit ridership (Litman & Burwell, 2006).

IV. Green transportation models are likely to improve the affordability of transportation (reduce the portion of private and commercial expenditures devoted to transport), freight efficiency (speed and affordability of freight and commercial transport), per capita expenditure on transportation means, parking facilities, and traffic services, accessibility of different modes of transport, and reliability of freight and logistics planning (Litman & Burwell, 2006).

V. Green transportation is likely to have an overall positive effect on resource efficiency and material/product movement in business logistics. It is likely to enhance and improve the role and impact of transportation as a component of business logistics.

VI. Green technology is likely to have a positive effect on efforts to advance, modify, and solve long-standing issues in transportation, including the choices of materials to move, means to use, the efficiency of transportation, minimization of transportation costs, and ensuring the safety of materials.

a.      It is likely to strengthen the role of transportation as a vital link among the various processes of production, thereby enabling logistics to achieve its advantages and promote economic and business competitiveness based on the efficiency of movement of products, speed of delivery, load of movement, quality of service, costs of operation, usage of facilities, and saving of energy in the logistics process.

VII. Nonetheless, these positive effects of green technology on transportation and business logistics are dependent on how effective particular governments and societies develop and implement relevant transportation laws and schemes.

Conclusion

I. Green transportation ideas and models are likely to improve the role of transportation in logistics, and hence yield stronger competitive advantages for businesses and economies.

II. This outcome is dependent on the effectiveness of transportation laws and their implementation among societies.

References

Havenga, J. (2018). Logistics and the future: The rise of macro-logistics. Journal of Transport and Supply Chain Management 12: a336.

Litman, T., & Burwell, D. (2006). Issues in sustainable transportation. International Journal of Global Environmental Issues 6(4): 331-347.

Musso, E., Sanguinetti, S., & Sillig, C. (2007). Socio-economic impact of transport policies: An institutional approach. In Haezendock, E. (Ed.). Transport project evaluation: Extending the social cost-benefit approach. Cheltenham, UK: Edward Elgar publishing.

Shen, L., Du, L., Yang, X., Du, X., Wanng, J., & Hao, J. (2018). Sustainable strategies for transportation development in emerging cities in China: A simulation approach. Sustainability 10: 1-22.

Tseng, Y., Taylor, M., & Yue, W. (2005). The role of transportation in logistics chain. Proceedings of the Eastern Asia Society for Transportation Studies 5: 1657-1672.

Veryard, D. (2015). Quantifying the socio-economic benefits of transport. IEA/OECD Discussion Paper 2016-06. Retrieved from: https://www.itf-oecd.org/sites/default/files/docs/summary-round-table-socio-economic-benefits-transport.pd