Creating Green Logistics

Product retrieval is no longer limited to unwanted products sent back to the seller or bottle returns for recycling. As interest in recycling continues to grow, global companies will need systems that allow for retrieving and disposing of long-term capital goods such as cars, refrigerators, air conditioners, and industrial goods. Governments are starting to establish rules related to product retrieval that outside marketers will need to tune in to. Germany, for example, requires car manufacturers to take back their used vehicles for dismantling and recycling. The design of such long-term systems worldwide could end up being one of the key challenges and opportunities for logistics specialists.

Global businesses will also need to be environmentally responsible in other ways, always working to reduce their carbon footprints. This is necessary not only because it will protect the environment from further destruction, but also because consumers will demand it. There is an international tidal wave of change as individuals, corporations,and governments look for ways to function in more “green” ways. The impact on marketers, whether changes are voluntary or mandated, will be significant for some. Packaging will change, as buyers reject wasteful containers used solely for aesthetics rather than product protection or as manufacturers opt for materials that can be recycled after use.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 85-86.

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