Sustainable Logistics Management in Kruger Products

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Sustainable Logistics Management in Kruger Products PL
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Abstract
Kruger Products PL. manufactures and distributes tissue products. While planning to
distribute its products to customers, sustainable logistic management is necessary to minimize
the impact emissions of green-house gases released into the atmosphere has on the environment.
A review of how the company has adopted sustainable logistics management revealed that the
company has embraced majority of practices in line with the United Nation Sustainable
Development Goals. The company leadership has placed sustainablility at the core of its logistics
operations, and this has led to drastic improvement in efficiency and innovations that have
enabled achievement of key milestones as far as sustainable logistics management is concerned.

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Introduction
The exchange of goods from retailers to consumers is evolving. Increasingly, more products are
transported further and e-commerce is evolving leading to a change in the traditional supply
chain. As a result, there is a need for consumer-packaged goods, companies and retailers to
come-up with ways of improving efficiency in the movement of goods to reduce environmental
impact and carbon-dioxide emissions (Yongrok Choi, 2012). This can only be achieved by
encouraging adoption of sustainable practices and policies. Historically, the main objective of
logistics was coordinating freight transport, storage and inventory management in the most
effective way to meet customers and consumer demands and minimize monetary costs (Amin
and Shahwan, 2020).
However, with the global-warming risks associated with the release of carbon products
while transporting goods, there is a need for logistic companies to embrace measures that
promotes environmental conservation (Bentahar and Benzidia, 2018). This case study reviews
how Kruger Products embrace sustainable logistic management on day-to-day activities and
evaluate whether the measures taken are effective or not.
Company Overview
Kruger Products is a Canadian company that operates in the manufacturing industry. The
main products are bathroom tissues, table tissues, paper towel, facial tissues and napkins. Goods
are distributed to various wholesalers and retailers in the country by the logistics department
after completion of the production process. In the context of sustainability logistics management,
the company launched its first sustainable development goal in 2009 (Sustainability, 2020). The
core goal was to minimize consumption of water and energy, reduction in emission of green-
house gases and adopting conservative mechanism to reduce volumes of packaging materials

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while archiving transportation efficiencies. With these goals at the heart of the company, Kruger
Products was deemed a good reference while evaluating sustainability in logistic management.
1.1 Critical assessment of various issues associated with sustainable logistics and the
transport of goods and services.
For logistic to be sustainable, transportation of goods and services should be done in such way
that the company achieves its objectives while using the available resources efficiently and with
minimal interference with the environment ((Rakovska, 2016). Goods should also be made
available to consumers at the right place, at the right time and at the right price (Jung, 2017). As
logistic companies strive to meet the customers’ demands in the most cost-effective way,
keeping the environment clean is almost impossible (Achahchah, 2018). Some of the issues
associated with sustainable logistics and the transportation of goods by Kruger products are as
enumerated below
Warehousing and storage: when goods are manufactured, they are put in the warehouse
awaiting delivery to the wholesalers. As a result, the cost of holding goods in the warehouse
should be kept as minimal as possible as it has a direct impact on other production processes.
The logistic department should ensure that goods leaves the warehouse at the scheduled time to
create room for new productions. Any delay in removal of goods from the warehouse would
occasion stoppage in productions as additional products may not be accommodated in the
warehouse. In addition, the delayed production means that the company would incur the cost on
idle labor hours and a possibility of a delay in processing of some customers order will be
inevitable.
Products such as bathroom tissues, facial tissue and napkins require packaging before
they are released from the production process to the market. Having the packaging materials

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available when required is an important aspect of logistics in Kruger Products company. In the
event that the packaging materials are few or unavailable, it means that the company will delay
in finalizing processing of orders. Such a delay will affect the entire logistic process as other
subsequent services such as warehousing and transportation will be delayed.
When packaging goods, there is a potential environment pollution that may arise as a
result of disposing unwanted cut-out. These wastes ought to be managed so that the company
does not concern itself on improving efficiency in other logistic processes while ignoring the
impact these wastes has on the environment.
During transportation of goods from the warehouses to retailers or wholesalers, Kruger
Products has to adopt an efficient process of delivering goods. In addition, the process should not
only cut on the cost but also be environmentally friendly. That being the case, the logistic
department should design a transportation module that minimizes the number of trucks required
to deliver products. Furthermore, drivers should be trained on the importance of minimizing fuel
consumption as a way of reducing the cost of carbon emission into the environment.
1.2 Differentiate between the Inbound and Outbound sustainable logistics
Inbound logistics refers to the process of sourcing, transport, storage and receipt of goods
from outside the business. The process mostly involves the acquisition of raw materials required
during the production process. On the other hand, outbound sustainable logistics refers to the
process of warehousing, packaging and transporting goods outside the business.
According to Wichaisri and Sopadang (2017), inbound logistic management entails
having a channel where suppliers provides raw materials for use in the company in the most
efficient way. Efficiency in this case means getting supply in advance such that no delay occurs
in the production due to the lateness in supply of raw materials. In order to make the delivery of

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raw materials process sustainable, a company should maintain economic order quantity (EOQ)
and economic order levels that aligns with its production needs (Silva et al., 2019).
Outbound sustainable logistics should be addressed by the logistics department in the
company. The board of directors should have an advanced understanding of the logistic needs of
a company to be able to guide the department on the most effective supply chain management
approach (Nilsson, 2006). Further, transportation and assignment quantitative models plays a
vital role in minimizing the transportation costs by providing the most cost-effective way of
assigning vehicles routes to deliver goods.
Jedliński, (2015) noted that vertical integration could promote efficiency in logistic
company. Vertical integration occurs when a company merges with its own customers and
consumers to increase efficiency in the logistic process. This approach introduces competitive
cost advantages as the supply chain is controlled from a single source for the three players
(supplier, manufacturer and consumer). When a supply chain is fully integrated, both inbound
and outbound logistics are synchronized and automated systems are used in ordering of materials
and requesting processing of new orders (Kleber, 2006). Resources such as trucks and drivers
can be shared when the supply-chain is integrated. This further increase efficiency in the supply-
chain system.
Inbound and out-bound logistic processes are synonymous in Kruger Products supply-
chain system. The company purchase raw materials used in the production process and transports
finished good to the wholesalers and retailers. Trucks used in delivery of finished goods could
also be used in carrying raw materials from the suppliers to the manufacturing plant if the
supplier operates from the same route that the truck delivered goods. This could minimize the
transportation cost and carbon emission into the atmosphere.