Introduction
Maersk believes that to reduce air pollution, the most effective measures must be implemented in each supply chain. As a result, the company aligns with the business trend that environmental friendliness is essential to management. Maersk wants to be at the forefront of this issue, so it has put in place several strategies to reduce pollution in the ocean, the air, and the earth.
The Principles of the Green Supply Chain for a Competitive Advantage
First and foremost, the company is concerned with reducing pollution from water-based vehicles entering the ocean. Ocean pollution is currently one of the most serious issues. However, ocean transportation emits waste not only into the water but also into the air, causing significant ecological damage (Sustainability, Innovation, and Entrepreneurship.pdf, 2023). Since ocean transportation is one of the most active and likely the cheapest modes of transportation, the company must reduce pollution in this area to continue using it.
As a result, Maersk is attempting to improve “new building standards, advancing fuel life cycle assessment, development of green fuel supply, and research and development (R&D) investment” (Hofman, 2023, para 4). Furthermore, there are already vehicles that produce less waste, including carbon dioxide, and their fuels can be environmentally friendly, meaning they are less polluting. The company wants to expand the use of such fuel across all types of flood transportation because it produces minimal air pollution. This provides the company with a competitive advantage in the market, as Maersk would be the first to patent the use of green fuel and establish itself as a completely environmentally friendly company before the price of such fuel rises and conventional fuel is completely banned.
Once the product has arrived on the continent, it is critical to use electric transportation as well. Despite the company’s belief that the transition to electric freight transportation is not yet well developed and that, in some areas, there is insufficient infrastructure to support such trucks, the company is ready to deploy them.
The warehouses where the cargo is received are also made as eco-friendly as possible. The company believes this will require greater reliance on renewable energy sources in warehouses. “Solar panels that cover lighting and air conditioning” are ideal for this purpose (Hofman, 2023, para 7). Also, some operations are performed in an energy-efficient manner.
Maersk believes that to achieve this goal, the warehouse itself and the working conditions must be environmentally friendly, minimizing waste and energy consumption (Hofman, 2023). Various strategies for this include full automation and even using some systems in the dark, where light is insignificant. Although warehouses are often undervalued in terms of environmental impact, they are where a company can maximize its success in green manufacturing.
Airplane transportation is another mode of transportation. Airplanes pose a much greater challenge, but significant progress has been made. Since aviation is the largest source of pollution, improving fuel efficiency can have the most significant impact. In addition, environmentally friendly airplane fuels are being developed, which will emit far less waste into the atmosphere. However, such fuel is currently unavailable and requires significant investment. The company uses such fuel if it is better integrated into the infrastructure, and technological advances make it more affordable. At the same time, thanks to improved engines, airplanes are no longer as polluting as they once were, and the materials used to construct them have improved.
How Green Supply Chain Management Increases Profitability
Every chain contains opportunities to reduce pollution while also increasing profitability. First and foremost, the company’s goal is not only to make its production as environmentally friendly as possible but also to make a profit. Renewable power sources in warehouses, green fuels for water transportation, and more efficient fuel consumption in airplanes all contribute to significant cost savings throughout the supply chain (Trivellas et al., 2020). Moreover, understanding the advantages and disadvantages of each chain helps identify problems that would be missed in a cursory examination. A company that has implemented environmental strategies and achieved specific successes may also be granted additional production quotas, thereby increasing profits.
Cold transport, which is also used in the chain, consumes more fuel than conventional transport. The company discovered this and optimized shipments to save energy by reducing waste (Hofman, 2023). Moreover, the decarbonization of ports worldwide is prompting them to switch to renewable energy sources that also power equipment and buildings, saving money and making ports more self-sufficient. Excess energy can be sold to generate additional revenue. Such chains as ports or warehouses become fully autonomous and independent when the power goes out, which is also beneficial to production.
It should not be forgotten that the company is attempting to improve its environmental friendliness now, while it is less expensive, but it will benefit from it in the future. Companies are more willing to collaborate with similar companies that are also seeking ways to reduce emissions, which suggests long-term cooperation (Trivellas et al., 2020).
Finally, this benefits the company by expanding opportunities for collaboration with other sustainability-supporting companies. Green supply chain management, which Maersk is implementing, is already profitable for the company because most of these strategies are innovative, more technological, and are designed not only for technology but also for profit at lower costs. Networking with other companies that use green practices will help develop new revenue streams (Younis & Sundarakani, 2019). Maersk is attempting to keep up with the times, recognizing that there may be no companies left that do not care about the environment, which is why effective strategic plans for greening production are now required. In addition, if the company now occupies one of the most profitable niches in green manufacturing and offers the most effective plan, there is a chance that many others will follow in its footsteps, and the sooner a company does so, the better.
Conclusion
If a company prepares for any possible collapse, including a power outage, by making their warehouses self-sufficient, they will be able to continue production in a market where most companies would fail. In some way, every company strives to occupy the most significant niche in this plan, knowing that it will bring in more money than it does now. Even if it does not generate as much revenue at the moment, it has the potential to generate unimaginable profits in the future. Also, not all companies are looking for effective green or autonomy plans, or are looking for them at all, making Maersk virtually irreplaceable in the event of a collapse.
References
Hofman, H. (2023). Greening the supply chain: a guide to more sustainable logistics. Maersk.
Sustainability, innovation, and entrepreneurship. (2023).
Trivellas, P., Malindretos, G., & Reklitis, P. (2020). Implications of green logistics management on sustainable business and supply chain performance: evidence from a survey in the Greek agri-food sector. Sustainability, 12(24), 10515.
Younis, H., & Sundarakani, B. (2019). The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance. Benchmarking: An International Journal, 27(1), 319–346.