Question

Explain the economic and social sustainability and logistic environment sustainability

Answer 1

Abstract – The goal of a sustainable logistics system is to

improve profitability and reduce environmental impact for

long-term performance. The sustainable logistics system

considers three aspects: economics, the environment, and

social that are essential for a logistics system:. This paper

presents a framework for a sustainable logistics system that

will address these three criteria. This framework is then

used as the basis for analyzing inputs and outputs in a case

study.

Keywords - Framework, sustainable, logistics system

I. INTRODUCTION

Nowadays, companies emphasize the cost and quality

of their products. They analyze logistics systems in order

to reduce their costs and improve the efficiency of their

organization in the short-term to improve their business

performance. However, customers need information about

the quality of the products, the availability of green

products, and the company’s commitment to

environmental and social responsibility before they decide

to purchase goods. Hence, companies need to implement

sustainability using a logistics system that takes long-term

improvement into consideration.

A sustainable logistics system is a distribution

management system that integrates sustainable

development and a logistics system in order to improve

long-term performance. This paper presents a framework

for a sustainable logistics system by considering the

inputs and outputs required for that type of system. This

framework is then tested in a case study to determine the

inputs and outputs that are needed to implement the first

step of the sustainable logistics system.

II. LITERATURE REVIEW

A. Logistics System

A logistics system is a path by which raw materials or

products flow from a point of origin to a point of use [1],

[2], [3]. The point of origin involves raw materials that

are produced to finish goods. The point of use (customer)

is associated with the next step in the process that requires

raw materials or work-in-process items to produce

finished goods for customers. The logistics system is

comprised of the relationships among the logistics

activities, such as purchasing, forecasting, production,

warehousing, and transportation [4], [5]. It plays an

important role in increasing the competitiveness of a

company’s products and services. The competitive

advantage is realized through efficiency, quality,

innovation, and customer response to the logistics system.

The objectives of a logistics system are to improve

efficiency and minimize costs.

A logistics system coordinates the flow of physical

goods and information. The elements of a logistics system

consist of inputs, outputs, processes, controls, feedback,

environment, and boundaries. Inputs and outputs are

associated with resources within the logistics system, such

as materials, information, and money. The inputs are

important for entering information about the resources

into the logistics system. Outputs are the outcomes of the

process, such as goods, services, and information. The

inputs and outputs are the first step in defining the values

of a logistics system. A logistics system’s processes are

concerned with transforming inputs into outputs in order

to obtain the main goals (minimize costs and maximize

profits).

Companies need to reduce costs and improve the

quality of their products in order to respond to customer

requirements and maximize their profits. Therefore, a

logistics system is used to analyze an organization’s

logistics flow from the point of origin to the point of use

(the end point), which receives the raw materials from the

suppliers to distribute goods to the customers. While

companies should focus on a logistics system to reduce

costs and improve the quality of their products, these are

short-term goals for improving their business

performance; however, long-term performance must also

be addressed.

B. Sustainable Development

The World Commission on Environment and

Development defined sustainable development as

“development that meets the needs of the present without

compromising the ability of future generations to meet

their own needs” [6]. The concept of sustainable

development involves coordinating the relationship

between environmental issues and economics to achieve

social, economic, and environmental sustainability. For

long-term improvement, companies should consider all

three of these aspects. The goal of sustainable

development is to increase economic value while reducing

the company’s environmental impact and improving the

quality of life for humans [7]. Sustainable development

considers the long-term approach by focusing on finan