Green Logistics in DHL: An Industry Report on Strategies and Audit

This report provides an in-depth analysis of DHL's green logistics initiatives. It begins with an introduction to green logistics and its importance, followed by an audit of DHL's current green practices, including waste management, and warehousing operations. The report then delves into DHL's strategies for promoting green initiatives, such as carbon reduction programs and sustainable shipping practices. Recommendations are provided for enhancing these initiatives, including the adoption of alternative fuel fleets and consumer education. The report concludes by emphasizing the significance of green logistics in today's world and DHL's efforts to minimize environmental impact and maximize efficiency, ultimately contributing to a healthier planet and improved business outcomes. The report references relevant books, journals and online resources supporting its findings.

Green Logistics-
Industry Report on
DHL

Table of Contents
INTRODUCTION ..........................................................................................................................3
Audit of Green Initiative on DHL operation ........................................................................3
DHL strategies on green initiative .........................................................................................5
Recommendation for green initiative ....................................................................................5
CONCLUSION................................................................................................................................6
REFERNCES ..................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Green logistics is an element to measure and minimise the ecological impact of logistics
activities (Centobelli, Cerchione and Esposito, 2017). This concept ties environmental and
economic efficiency to logistics by trying to reduce the impact of sector on environment. This
report covers the audit of current green initiative on firm operation and company's strategy on
improving green initiative is also mentioned here.
Audit of Green Initiative on DHL operation
Logistics companies carry out logistics activities such as warehousing, transportation,
inventory management and other processing for their customer. In current scenario of
competitive world, all leading companies, large and small are seeking for an opportunity to go
green as they believe that safe planet will be remain habitable for generation to come (Prause
and Hunke, 2014). Logistics plays a central role in the growth of global economy and therefore
this industry has a crucial part in the way business is carry out with regard to environmental
impact.
In context to DHL, an international courier, parcel and express mail division of logistics
German company which is established in the year of 1969. DHL is a pioneer of green logistics as
they utilise their expertise to make its logistics greener and more sustainable in order to attain
edge over competition. A growing trend in business is the emphasis on sustainability i.e. green
business practices. Green initiative is one of the demanding trend in DHL business operation for
reducing global warming, greenhouse gas emission and minimising environmental impact on
nation. Along with this, managing a profitable business today consist several challenges such as
growth and efficiency should be balanced alongside zero waste, renewable resources, climate
resilience for creating an effective environment (Envirosolutions, 2019). Moreover, DHL
provides a range of solution and its current audit of green initiative on their business operation
(manufacturing and warehousing) are as follows:
Waste management.
Protracted Producer Responsibility.
Lead environmental partner
DHL warehousing function improve inventory efficiency and accelerate effective
response on customer demand. Their experts are highly dedicated in designing, implementing

and operate flexible warehousing and distribution solution for the proficiency of company.
Moreover, they analyse their every stage of supply chain to determine the business operation.
Some of their audit are described below:
 Dedicated and shared operation: In DHL, from storage of raw material to consumables,
spare parts an finished goods, they provide productive solution which ensure customer
satisfaction. Along with this, they focus on global solution as they collect and recycle
waste streams and converts cost into revenue which support them to attain 'zero waste'
target.
 Ambient and temperature controlled facilities: DHL has safe and healthy working
condition which keep their employees fit and improves their morale.
Furthermore, its manufacturing solution also highly focused on the concept i.e. green logistics
which enable them to deliver high quality of product by considering lean management and total
quality environmental management. Some of its audit of green initiative in manufacturing
division are:
 Kanban replenishment: It support pull based replenishment in manufacturing system of
DHL which push them to reduce lead times and decrease inventory (Prause, 2014). It
mainly applied to those items which is relatively constant demand and medium to high
production volume.
 Effective production method: DHL efficiently uses its factors of production i.e. labour,
capital, land, material in the production of goods and services as well as they have
productive supply chain consultant which help them to attain environmental objective.
Customer and stakeholder pressure on green initiative
DHL faced high pressure from customer ans stakeholders regarding environmental
responsibility which effect its business operations. However, DHL code of conduct defines clear
ethical standard and it help them to focus on spectrum of their daily operation. Its spectrum
includes quality management, customer relationship, workplace conduct, business integrity as
well s corporate social responsibility and environment (.Ramanathan, Bentley and Pang, 2014).
They introduced several environmental friendly projects in order to minimise the pollution and
improves the morale of their customers and stakeholders and it lead them to attain high market
share.

DHL strategies on green initiative
In logistics industry DHL is one of the leading company at the same time they are very
much active in crating eco friendly atmosphere that improves their brand image. They adopt
several strategy in order to reduce emission and protecting environment from global warming.
Some of its strategy are as follows:
 Carbon reduction strategy: IN this strategy, DHL main focus is to protect the climate
with the help of reduction in carbon dioxide emission. To attain the same they introduced
electric and hybrid cars, and developed shortest and efficient routes reduce the amount
of fuel in delivering goods.
 Good shipping Program: IN this strategy, DHL main initiative was to decarbonize the
container shipping industry by changing marine fuel mix, exclusively collaborate in
making ocean freight transport more environment friendly (Zailani and et. al., 2014).
Moreover, DHL is the first one to offer its customers the opportunity to choose next
generation marine biofuels rather than fossil fuels for their transport by sea.
Recommendation for green initiative
From the above discussed report, it has been recommended that DHL is definitely taken a
big step ahead by implementing reducing policies like carbon emission strategy and many more
which helps them to accomplish their goal effectively. However, DHL took initiative in fleet
modernization by renewal of aircraft fleet in order to generate healthy atmosphere. Some of the
recommendation are as follows:
 Enhanced alternative fleets: DHL should put their main focus on electric cars as it is
scarce in market as well as they can implement some modification in cars. However,
they should adopt a latest technology which is cheap and widespread in market i.e.
changing the fleet to ethanol moved cars.
 DHL need to educate consumer regarding cost and benefit of environmental friendly
product and stimulate them to buy those product even if they are expensive.
 DHL should re-utilize the packages of waste product and indirectly influence customer
to do the same and can provide small monetary incentive for participating or involving
in this program.
However, implementing green initiative and carbon reduction initiative have the
capability not only to influence the environment but at the same time DHL can improve its

outcome through cost reduction and introduce effective or productive decision in order to put a
legacy in logistics industry.
CONCLUSION
From the above report, it has been concluded that green logistics is an important element
in today's world in order to provide healthy and safe attornment. Moreover their main objective
is to offsetting Greenhouse gases which is emitted by human activities that ranges from complex
industrial production process to simply driving car, with reforestation projects in riparian areas.
Furthermore, for improving morale of customer and stakeholder company adopts several strategy
and enhance its business operation in order to maximise wastage of product and attain high
productivity.

REFERNCES
Books and journals
Centobelli, P., Cerchione, R. and Esposito, E., 2017. Developing the WH2 framework for
environmental sustainability in logistics service providers: A taxonomy of green
initiatives. Journal of cleaner production. 165. pp.1063-1077.
Prause, G. and Hunke, K., 2014. SECURE AND SUSTAINABLE SUPPLY CHAIN
MANAGEMENT: INTEGRATED ICT-SYSTEMS FOR GREEN TRANSPORT
CORRIDORS. Journal of Security & Sustainability Issues. 3(4).
Prause, G., 2014. SUSTAINABLE DEVELOPMENT OF LOGISTICS CLUSTERS IN GREEN
TRANSPORT CORRIDORS. Journal of Security & Sustainability Issues. 4(1).
Ramanathan, U., Bentley, Y. and Pang, G., 2014. The role of collaboration in the UK green
supply chains: an exploratory study of the perspectives of suppliers, logistics and
retailers. Journal of Cleaner Production. 70. pp.231-241.
Zailani, S and et. al., 2014. Determinants and environmental outcome of green technology
innovation adoption in the transportation industry in Malaysia. Asian Journal of
technology innovation. 22(2). pp.286-301.
Online
Envirosolutions, 2019 .[Online]. Available through:
<https://www.dhl.com/content/g0/en/logistics/supply_chain_solutions/what_we_do/
environmental_compliance.html>