Benchmarking Green Logistics Performance with a Composite Index

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Benchmarking green logistics performance with a composite index Author Details: Kwok Hung Lau School of Business Information Technology and Logistics College of Business Royal Melbourne Institute of Technology University Level 17, 239 Bourke Street Melbourne VIC 3000 Australia Corresponding author: Kwok Hung Lau Please check this box if you do not wish your email address to be published NOTE: affiliations should appear as the following: Department (if applicable); Institution; City; State (US only); Country. No further information or detail should be included Acknowledgments (if applicable): The author would like to sincerely thank the retailer for providing the information used in this study. He also wishes to extend his gratitude to the two anonymous reviewers for providing valuable comments and suggestions for improving the paper. Biographical Details (if applicable): Kwok Hung (Charles) Lau is a senior lecturer in the School of Business Information Technology and Logistics at the Royal Melbourne Institute of Technology (RMIT) University in Australia. He holds a bachelor degree in geography, master degrees in business administration, information systems, urban planning, and a PhD in geocomputation. He has papers published in journals and conference proceedings such as Environment and Planning (Part B), Transactions in GIS, Supply Chain Management: An International Journal, International Journal of Physical Distribution & Logistics Management, International Journal of Information Systems & Supply Chain Management, Australasian Transport Reform Forum, International Conference on City Logistics, and Australian and New Zealand Academy of Management Conference. His research interests include modelling and simulation in supply chain, e-supply chain management, outsourcing, benchmarking, reverse logistics, and green logistics. Structured Abstract: Purpose – This paper discusses the development and use of a Green Logistics Performance Index (GLPI) for easy comparison of performance among industries and countries. It uses the survey data collected from the home electronic appliance industry in China and Japan as an example to demonstrate the index development process and compare the performance of green logistics practices between the two countries using the proposed index. Design/methodology/approach – Two-sample t-test and one-way analysis of variance (ANOVA) were used to analyse the data collected from a questionnaire survey. Principal component analysis (PCA) was employed to derive the weights from the survey data for the GLPI. Findings – The findings reveal that the GLPI derived using PCA is robust and gives similar results as obtained through two-sample t-test and ANOVA of the dataset in the comparison of performance among firms and between countries in the study. Research limitations/implications – This study lends insight into the use of an objectively derived composite index to measure and compare green logistics performance. To serve mainly as a proof of concept and to enhance response rate in the questionnaire survey, the scope of the study is limited to three major logistics functions in an industry in two countries. Practical implications – Managers can use the GLPI to benchmark their performance in the respective logistics areas and revise their supply chain strategy accordingly. The proposed index may also assist governments in formulating policies on promoting their green logistics implementation.

Type header information here Social implications – A comprehensive composite index to benchmark green logistics performance can facilitate and encourage industries to invest in green logistics. This will help reduce negative impacts of logistics activities on the environment. Originality/value – Research in green logistics to date has largely focused on theory and management approach. This paper fills the gap in the literature by empirically comparing green logistics...
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