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Jul 23, 2008

SURVEY * UK - Shows companies are passing the buck on ‘green’ logistics costs

New research by Transport Intelligence suggests that most companies seeking to make their logistics operations more environmentally friendly want someone else to cover the costs

London,UK -Transport Intelligence -23 July 2008: -- Despite many companies’ avowed commitment to ‘greening’ their logistics operations, it seems that most expect their sub-contractors to pick up the bill. That is one of the findings of the latest survey by Transport Intelligence which examined how companies were reacting to environmental concerns... The Logistics & Transport Industry Environmental Survey sponsored by Kewill, a leading provider of global trade and logistics software, found that three-quarters of respondents who awarded logistics contracts included sections on environmental compliance in their tender documents. However, most (54%) failed to make provision for the extra costs that could be involved. That will no doubt be a source of annoyance for many logistics companies which will see the environmental measures they are forced to adopt as another cost burden pushed on to them by their clients... In the survey, 70% of companies awarding contracts said that environmental compliance was either ‘reasonably important’ or ‘very important’...The number who said they would continue to pay more for an environmentally-friendly alternative (17%) was balanced by the proportion who said they would base their sourcing decisions on cost alone... When asked about which specific areas they were undertaking green initiatives in, the highest proportion (33%) identified transportation. That included driver training, hybrid engines and better management of empty running. Equally important, with about a quarter of responses each, were more efficient planning through IT tools and increased administrative efficiencies. Perhaps surprisingly, warehousing was identified by only 15% of respondents as an area on which they were focusing...

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