Due to increased competition and the growing environmental impact of logistics activities, organisations are compelled to collect and evaluate logistical performance metrics. Effectiveness, efficiency, and distinction are three aspects that managers should concentrate on to improve logistics performance. According to the author, clients of Boise and OfficeMax collaborated to improve the “Effectiveness” factor of logistical performance. OfficeMax and Boise’s Carload Direct project pool chose to ship SKUs through rail since it is less expensive and uses less fuel for the same weight and distance. A half-pallet and staged order satisfied the customer’s specifications. Ocean Spray and Tropicana have acknowledged logistical “Efficiency” by employing chilled rail car-boxes and intermodal shipping to cut greenhouse gas emissions. Caterpillar used the “Difference” factor of logistics performance to urge suppliers to transition from metal to plastic containers in order to reduce CO2 emissions.
The demand for substantial internal and external collaboration is one of the most significant obstacles associated with implementing these strategies to reduce CO2 emissions. The availability of rail and truck to load cargo with a focus on lead management and on-time delivery was noted as a challenge for the two projects completed by the MIT Team. Other obstacles include the logistics function, which is driven by multiple collaborators, supply chain visibility, information exchange between two parties that use the same third-party logistics provider, as discussed in class risk mitigation across different operation levels, and the availability of logistics cost data to conduct accurate cost analysis and share the analysis with collaborators to highlight the issues. These initiatives demonstrate the ability of collaboration to unlock the enormous potential for decreasing the carbon footprint of logistics and, by extension, the environmental performance of participating enterprises.
Through a number of projects, logistics managers can determine the efficacy of their organisations. Each technique requires management in order to identify the elements that influence efficacy and evaluate their relative significance when creating logistical performance parameters for reducing emissions. As stated in class, developing a “Sustainable Organization” is a responsibility that top management is responsible for instilling in all levels of management and advising appropriately. This can be achieved with the help of the Sustainability Balanced Scorecard (SBSC), which can be used to track emission reductions at various organisational levels. (Beamon, 1999) emphasised tracking resource consumption, expected output, and flexibility (how well the system adapts to uncertainty) as essential elements of supply chain success. It also highlights the significance of these three types of performance metrics in supply chain monitoring systems. Finally, the article contributed to the understanding that teamwork is frequently the key to achieving the predicted financial and environmental benefits.