Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

Speculating environmental sustainability strategy for logistics service providers based on dhl experiences

Author(s): Dat Tien Tran, Wing-Keung Wong, Massoud Moslehpour, Quynh Le Hua Xuan

Abstract: As logistics providers are becoming more aware of the changes in sustainable growth around the globe, they set out their own sustainability goals including environmental aspect. Hence, the logistics organizations’ priority is to utilize natural resources towards the highest reduction in CO2 consumption from their logistics activities. It is rarely seen that a logistics organization publishes its strategy. This is true especially when it comes to sustainability elements; because it could be a potential threat to the leakage of the organization’s confidential data.

Purpose: The purpose of this study is to discuss environmental sustainability strategies for logistics service providers (LSPs) based on the case study of DHL. In particular, this research explores two distinctive aims: 1) Constructing the general framework of environmental sustainability strategy for LSPs with the support from actual data of DHL to eventually applying it to other LSPs, and 2) Discussing the impact of environmental sustainability strategy on both logistics organization’s activities and the environment in general.

Methodology: The study data collection was entirely conducted by the secondary approach. More specifically data has been collected from actual DHL annual report from 2010 to 2017 which was professionally and independently audited by PWC. A general framework of environmental sustainability strategy is proposed by investigating the case study of DHL in their period 2010-2017 sustainability campaign.

Findings: The findings of this research indicate the need for an environmentally sustainable strategy for logistics firms using the data from DHL case study. Prior to this study no framework has been offered or implemented except for internal DHL operation. Hence, it is inevitable to build up a general framework to help other logistics businesses gain awareness of the importance of environmental sustainability. The findings will help their growth and will improve the community as affected by pollution. The strategic framework is tested with the actual DHL data to perceive how practical this strategic framework would perform in reality.

Research implications: This study would help logistics firms to have a better understanding of the applicability of the aspects of the framework in their businesses. Logistics organizations may put some of the elements up to the scale to view what is the best for them towards their environmental sustainability goal. As the businesses grow faster and bigger, their new adaptation of environmentally sustainable strategies will benefit from the findings of this decade-long study.