‘‘Problem Statement: Environmental Economics of Green

Logistics and Supply Chain Operations’’

Course:( BUS 8508) Research Methodology.

Submitted to: Prof. Dr. Mohammad Zahedul Alam

Professor,
Bangladesh University of Professionals.

Submitted by:
Name: K M Asif Iqbal Akash

Class ID: 23230332001

MBA(Professionals)
Batch-32(A)
Problem Statement: Environmental Economics of Green
Logistics and Supply Chain Operations
Introduction

In the wake of increasing environmental concerns and stringent regulatory frameworks,

businesses are compelled to reassess their logistics and supply chain operations. The traditional
supply chain models, which prioritize cost-efficiency and rapid delivery, often overlook the
environmental impact, leading to significant ecological footprints. The concept of green logistics
and sustainable supply chain management (SSCM) has emerged as a critical area of focus,
aiming to integrate environmental considerations into logistical and operational strategies. This
thesis seeks to explore the environmental economics of green logistics and supply chain
operations, addressing the multifaceted challenges and opportunities associated with the
transition towards sustainable practices.

Background and Rationale

The global supply chain network is a complex web of interrelated processes, including
procurement, production, transportation, warehousing, and distribution. These activities
collectively contribute to substantial greenhouse gas (GHG) emissions, resource depletion, and
environmental degradation. According to the Intergovernmental Panel on Climate Change
(IPCC), the logistics and transport sector alone accounts for nearly 14% of global GHG
emissions. The urgency to mitigate these environmental impacts has never been greater,
necessitating a shift towards green logistics.

Green logistics and SSCM involve adopting practices that reduce environmental footprints, such
as optimizing transportation routes, employing energy-efficient technologies, implementing
waste reduction strategies, and using renewable resources. Despite the apparent benefits, the
transition to green logistics poses significant economic and operational challenges for businesses.
These include the high initial investment costs, potential disruptions in supply chain processes,
and the need for stakeholder collaboration and compliance with regulatory standards.

Research Problem

The core problem addressed in this thesis is the economic feasibility and strategic
implementation of green logistics and SSCM within contemporary supply chain operations. The
research aims to investigate the balance between environmental sustainability and economic
viability, seeking to answer the following key questions:

1. Economic Implications: What are the short-term and long-term economic impacts of
adopting green logistics and SSCM practices on businesses? How do these practices
influence cost structures, profitability, and competitive advantage?
2. Operational Challenges: What are the major operational challenges faced by businesses
in implementing green logistics? How do these challenges vary across different industries
and geographical regions?
 3. Stakeholder Engagement: How can businesses effectively engage stakeholders,
including suppliers, customers, and regulatory bodies, to foster collaboration and support
for green logistics initiatives?
4. Regulatory and Policy Frameworks: What role do government regulations and policies
play in shaping the adoption of green logistics? How can businesses navigate the
regulatory landscape to achieve compliance and leverage incentives?

Objectives

The primary objective of this thesis is to provide a comprehensive analysis of the environmental
economics of green logistics and supply chain operations. Specific objectives include:

• Economic Analysis: Conducting a cost-benefit analysis of green logistics practices to

evaluate their financial implications for businesses.
• Case Studies: Analyzing real-world case studies of companies that have successfully
implemented green logistics to identify best practices and lessons learned.
• Operational Framework: Developing a framework to address the operational challenges
associated with the transition to green logistics.
• Stakeholder Strategies: Proposing strategies for effective stakeholder engagement and
collaboration to support sustainable supply chain initiatives.
• Policy Recommendations: Offering policy recommendations to governments and
regulatory bodies to facilitate and incentivize the adoption of green logistics practices.

Significance of the Study

The significance of this study lies in its potential to bridge the gap between environmental
sustainability and economic performance in supply chain management. By providing a detailed
analysis of the economic and operational aspects of green logistics, this research aims to equip
businesses with the knowledge and tools necessary to make informed decisions about
sustainability investments. Furthermore, the study seeks to contribute to the broader discourse on
sustainable development by highlighting the role of logistics and supply chain operations in
achieving environmental goals.

Research Methodology

To achieve the research objectives, this thesis will employ a mixed-methods approach,
combining quantitative and qualitative research methods. The methodology will include:

• Literature Review: A comprehensive review of existing literature on green logistics,

SSCM, environmental economics, and related regulatory frameworks.
• Quantitative Analysis: Using statistical tools to analyze economic data related to the
costs and benefits of green logistics practices.
• Qualitative Analysis: Conducting interviews and surveys with industry experts, supply
chain managers, and stakeholders to gather insights into operational challenges and best
practices.
 • Case Studies: Examining case studies of companies that have adopted green logistics to
identify successful strategies and common pitfalls.

Expected Outcomes

The expected outcomes of this research include:

• A detailed understanding of the economic impacts of green logistics and SSCM practices.
• An operational framework to guide businesses in implementing green logistics.
• Strategies for effective stakeholder engagement and collaboration.
• Policy recommendations to support the adoption of green logistics practices.

Conclusion

The transition to green logistics and sustainable supply chain operations is essential for
mitigating the environmental impact of global supply chains. This thesis aims to address the
economic and operational challenges associated with this transition, providing valuable insights
and practical recommendations for businesses, policymakers, and stakeholders. By exploring the
environmental economics of green logistics, this research will contribute to the development of
more sustainable and resilient supply chain networks.