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Companies Seen Passing the Buck on Green Logistics Costs
Most companies seeking to make their logistics operations more environmentally friendly want someone else to cover the costs, Transport Intelligence/Kewill survey finds
Guildford, UK — August 13, 2008 — Most companies seeking to make their logistics operations more environmentally friendly want someone else to cover the costs, according to new research by Transport Intelligence and Kewill.
Despite many companies' avowed commitment to "greening" their logistics operations, it seems that most expect their subcontractors to pick up the bill, according to the findings of the latest survey by Transport Intelligence examining how companies were reacting to environmental concerns.
The "Logistics & Transport Industry Environmental Survey," sponsored by Kewill, a provider of global trade and logistics software, found that three-quarters of respondents who awarded logistics contracts included sections on environmental compliance in their tender documents.
However, most (54 percent) failed to make provision for the extra costs that could be involved. That could be a source of annoyance for many logistics companies, which will see the environmental measures they are forced to adopt as another cost burden pushed on to them by their clients.
On the other hand, it seems there is little that logistics companies can do to avoid investing in green initiatives. In the survey, 70 percent of companies awarding contracts said that environmental compliance was either "reasonably important" or "very important."
Environmental Enthusiasm
Survey respondents also were probed about whether their companies' environmental enthusiasm would change in the coming years, given the chances of an economic slowdown. The overwhelming sentiment seemed to be no, but according to two-thirds of respondents, that is largely due to the "win-win" of implementing green initiatives that bring operational efficiencies and also cut costs.
The number who said they would continue to pay more for an environmentally friendly alternative (17 percent) was balanced by the proportion who said they would base their sourcing decisions on cost alone.
Despite many companies' avowed commitment to "greening" their logistics operations, it seems that most expect their subcontractors to pick up the bill, according to the findings of the latest survey by Transport Intelligence examining how companies were reacting to environmental concerns.
The "Logistics & Transport Industry Environmental Survey," sponsored by Kewill, a provider of global trade and logistics software, found that three-quarters of respondents who awarded logistics contracts included sections on environmental compliance in their tender documents.
However, most (54 percent) failed to make provision for the extra costs that could be involved. That could be a source of annoyance for many logistics companies, which will see the environmental measures they are forced to adopt as another cost burden pushed on to them by their clients.
On the other hand, it seems there is little that logistics companies can do to avoid investing in green initiatives. In the survey, 70 percent of companies awarding contracts said that environmental compliance was either "reasonably important" or "very important."
Environmental Enthusiasm
Survey respondents also were probed about whether their companies' environmental enthusiasm would change in the coming years, given the chances of an economic slowdown. The overwhelming sentiment seemed to be no, but according to two-thirds of respondents, that is largely due to the "win-win" of implementing green initiatives that bring operational efficiencies and also cut costs.
The number who said they would continue to pay more for an environmentally friendly alternative (17 percent) was balanced by the proportion who said they would base their sourcing decisions on cost alone.
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