Centralised distribution systems and the environment: how increased transport work can decrease the environmental impact of logistics

Carbon dioxide (CO2) emissions stemming from transport within a distribution system are generally acknowledged to increase as the system is centralised, since transport work is increased owing to such a change. At the same time, this type of centralisation creates new opportunities to make changes in the system that are not viable in a decentralised distribution system; changes that can decrease CO2 emissions at the same time as the provision of cost-efficient customer service is not affected negatively. Based on an extensive literature review as well as case studies, the paper discusses and illustrates the circumstances under which it is possible to achieve such simultaneous improvements in the performance of a distribution system. Paramount in achieving concurrent positive results in terms of cost, service, and environmental impact is an understanding of what drives and affects the performance of the system. Keywords: logisticsdistribution systemcentralisationenvironmental impactCO2 emissionsSystem characteristics Notes 1. One of the articles of relevance for this paper is included in three of the pair-wise searches, thus resulting in 34 unique articles rather than 36 as indicated in Table 1. 2. The literature search was conducted on 20 October 2006. 3. For this literature search we used the terms 'logistics' and 'environment' in combination with all of the respective search terms that are presented in Table 1. For other similar literature searches on logistics and the environment we refer to Abukhader and Jönsson Citation(2004a) and Aronsson and Huge Brodin Citation(2006). 4. Gümüs and Bookbinder Citation(2004) refer to Quinn, F.J. Citation(1997) The Payoff!, Logistics Management, Vol. 36, No. 12, pp. 37–41. However, we have not been able to locate this article despite extensive efforts. Zigiaris Citation(2000) does not refer to Quinn Citation(1997), but instead refers directly to Rick D. Blasgen, senior director of product supply at Nabisco Inc in his discussions. 5. Pipeline is also mentioned as a mode of transport, but as it is only useful in specific contexts we exclude this mode from further discussions. 6. NTM, the Network for Transport and Environment, is a non profit organisation, initiated in 1993, aiming at establishing a common base of values on how to calculate the environmental performance for various modes of transport. In order to promote and develop the environmental work in the transport sector, the Network for Transport and Environment (NTM) acts for a common and accepted method for calculation of emissions, use of natural resources and other external effects from goods and passenger transport. 7. See Kohn Citation(2005) for further details regarding the case study. 8. See Aronsson and Huge Brodin (Citation2003, Citation2006) for further details regarding the case study.