Third-party logistics companies play a significant role in the functioning and development of business organizations because they take care of complex processes and tasks that maximize organizations’ efficiency. However, third-party supply chain and logistics companies are occasionally criticized for their role in environmental degradation. Most third-party supply chain and logistics companies deal in transport and product management. As a result, these companies leave a significant carbon footprint due to increased carbon emissions from burning fossil fuels to power their vehicles and automobiles. The following review examines the article by Shaharudin et al. (2018), “Factors That Influence Green Practices Adoption Amongst Logistics Services Providers,” and the relevance of the research conducted by the scientists based on the example of Malaysia. The environmental sustainability practices of this kind of company can be improved in several ways, the most important of which is to take advantage of the ancillary framework, despite its dynamic pace of operation.
Summary of the Article
Introducing the use of greener appliances in solving the logistics problems of various companies in Malaysia was the goal of this study. According to the researchers, the number of third-party logistics companies and their activities has significantly increased in the region (Shaharudin et al., 2018). However, their actions are associated with environmental pollution as they contribute to releasing greenhouse gasses. Nevertheless, the fact that these companies are responsible for about 70% of ecological degradation in the region suggests that they are advancing at an alarming rate that should be checked to avoid future issues (Shaharudin et al., 2018). Implementing environmental practices for a particular purpose is challenging in a number of ways. The main ones are such as environmental, technological and organizational. Researchers spend a great deal of time trying to find solutions using these, and other, factors. Considering the technological, it is necessary to note what it affects, namely the complexity of the process, the possible risks and assumptions, and the difficulties that may arise. The organizational aspects comprise human resource qualities and administrative resources. Finally, the environmental factors had uncertainty, stakeholder pressure, and government support.
To be credible, we need to ensure that this research model shares common features with the conservative approach to the transition to green logistics methods in Penang. As a result, the study population comprised 3PL organizations registered with the Associations of Malaysian Hauliers and the Penang Freight Forwarders Associations until 2006 (Shaharudin et al., 2018). The researchers applied census sampling using 260 questionnaires that were sent by email and post to fleet managers, operation managers, and distribution managers to obtain responses to a set of questions (Shaharudin et al., 2018). After that, the researchers assessed the validity and reliability of the measuring tools, followed by an analysis of the obtained results by focusing on their measurement and structural models.
After the results, a decision was made that influenced the entire study as a whole, namely that all of the above factors, namely complexity, technology, and ecology had a direct impact on the adoption of “green” practices (Shaharudin et al., 2018). Similarly, the research revealed that the quality of the human resource, organizational support, and government support positively influence green practices in third-party logistics companies. However, the study established no associations between green practice and shareholder pressure. This might be because most organizations are inclined towards addressing shareholder and investor needs, encouraging them to forego environmental conservation obligations.
In addition, it should be clarified that creating a competitive environment while stabilizing more environmentally friendly methods of transportation can bring some dividends from a technical point of view. On the other hand, compatibility enhances harmony between various departments, allowing individuals to collaborate toward better outcomes. Nevertheless, the complexity of technological solutions and environmental uncertainty can hinder adoption if the processes derail other activities or limit productivity. There are many ways to motivate employees to adopt eco-delivery practices. These can include promotions, bonuses, and higher salaries. The tangible point of solving the issue remains one of the most effective in influencing human resources within the company (Shaharudin et al., 2018). Nevertheless, the results suggest that shareholder influence does not have implications on green practices in this industry as several external forces advocate for greenhouse practices, but they are neglected.
Relevance of the Article
Technological advancement and the global expansion of business organizations have encouraged many institutions to outsource supply chain and logistics companies as a core business strategy. However, unlike organizations that deal in manufacturing industries and factories, many activities carried out by third-party supply chain and logistics services go unnoticed, allowing them to go against industry standards. However, the article by Shaharudin et al. (2018) describes the implications of these organizations on the environment and the factors that encourage or deter their adoption of green practices. In Malaysia, these organizations are responsible for about 70% of environmental degradation, which is alarming, thus obligating rapid action (Shaharudin et al., 2018). This information is critical, especially in the developing world, since it allows administrators to acknowledge the existence of these companies and the implications of their activities. Subsequently, it can facilitate the creation of standards to advance their green practices and conserve the environment.
Moreover, the information shared by the authors is critical for administrators, managers, and shareholders in this sector. All players in organizations are responsible for ensuring that their organizations adhere to ISO standards, including adopting practices that encourage conservation and sustainability. Thus, the information is crucial to individuals in these positions as it can provide a framework for decision-making. Thus, based on this study, it is clear that the factors discussed in this paper have an impact on the use of green laws and their implementation in the current living environment. Therefore, the information can assist individuals in authority and shareholders to acknowledge these factors in their business plans and embark on strategies to limit the negative aspects and maximize potential benefits. It is also important to note that the green rule initiative also increases the level of inclusivity that explains the application of some initiatives. Ultimately, these initiatives can improve business processes, increase efficiency, and ensure the future of the human generation.
Conclusion
The number of third-party supply chain logistics in Penang, Malaysia, is steadily rising as is the number of these organizations in other developing nations worldwide. Therefore, it is critical to investigate their potential implications on human society and the environment. The featured research article proposes that the increased number of these organizations in Malaysia has resulted in environmental destruction as it has raised the level of greenhouse gas emissions. Judging from the study results, some factors can both be a barrier to implementing green rules and promote their spread, namely technological, economic and organizational. In addition, they detail how components within these factors influence organizations’ willingness to ecological conservation. Hence, the researchers provide reliable and valid information on how to note the influence of these factors and develop solutions to reduce pollution and degradation by these companies.
Reference
Shaharudin, M. R., Akbar, J., Zainal, N. N., Hassam, S. F., Zainoddin, A. I., & Nizam, M. F. M. (2018). Factors That Influence Green Practices Adoption Amongst Logistics Services Providers. International Journal of Supply Chain Management, 7(6), 242.