The Impact of Green Logistics Implementation to Maskargo

The Impact of Green Logistics Implementation to Maskargo

Abstract

According to Malaysia Green Technology Masterplan 2017 – 2030 (GTMP), Malaysia need to achieve several standard of sustainability by 2030. There are 6 sector which involve energy, manufacturing, transport, building, waste and water. This paper what is the impact of the initiative to Maskargo. Data are collected from GTMP handbook, several literature review and interview with organization representative from Maskargo . This paper will highlight on several impact to organization such as operational cost, productivity and company publicity and reputation. All this impact and effect will be use to study and determine whether green logistic is better operation way for the organization or as and community service provided by the organization to promote better environment sustainability to the public.

Keyword: Green Logistic, Sustainability, Logistic Industry, Supply chain management  

1. INTRODUCTION

The main objective of Green logistics is to coordinate the activities within a supply chain in such a way that beneficiary needs are met at "least cost" to the environment

Statistic show that on 2011, 25% of world CO2 emission come from transportation. The statistic are on the raise due to increasing in demand for better transportation facilities and government afford to accommodate to that demand. CO2 from automobiles, planes and other mode of transportation that use to deliver goods contribute significantly to the statistic. Other than that logistic activities also can contribute to polluting the environment such as water, air and sound pollution, solid waste disposal and fossil fuel consumption. According to GTMP, there are two key sector where green logistic can accommodate which is transport and waste. In the transport sector, production of Biodiesel to be increase by around 100% by 2030. Due to this increase in production, the increase usage of biodiesel in logistic transport. To reduce waste, company can use environmental friendly packaging that not harmful to the environment. Other green logistic initiative that can be implement is Green Building / storage, green technology, green transportation and reverse logistics.

[pic 1]

Source: Green Technology Master Plan Handbook

In this research we are looking at Maskargo which is the logistics arm of Malaysia Airline System Bhd. Maskargo currently serving 100 destination worldwide. Maskargo currently have their main cargo handling facilities in KLIA which is a 108 acre complex currently equip with state of the art cargo handling facilities. Other that offering normal cargo handling services, Maskargo also take pride on other added services that distinguish themselves from their competitors which is six star animal hotel, one stop perishable centre and Priority Business Centre for freight forwarding agent.

1. LITERATURE REVIEW

According to Rose, Chew, Rizal (2017), the way to implement Green Logistics can be derive in 5 criteria which is green storage, green technology, green packaging, green transportation and reverse logistics.

1. Green storage

This referring to the layout of the organization storage facilities. Other than saving operating cost and minimize impact to the environment, it will improve organization performance by providing efficient operation in storage

2, 2        Green technology

        This criteria will enhance organization management and administration work. Using state of the art facilities and system software will enhance organization turnaround time. Other that, the system also will provide paperless documentation which will soften the impact to environment.

2, 3        Green packaging

        Using eco-friendly and biodegradable material will definitely have lesser impact to the environment. Considering the cargo dimension and type of cargo before determine type of packaging to be use also can be seen a green packaging initiative to ensure reduce in unnecessary wastage.

2.4        Green Transportation

        Green transportation can be review in two aspect. First type of transportation used and second on maintenance of the vehicle. Type of green transportation are electric operated vehicle or biodiesel vehicle while maintenance of vehicle is to ensure the vehicle work efficiently and there is no leaking that can consume more fuel and less efficient.

2.5        Reverse logistic  

        Reverse logistic referred to all activity that perform after point of sales. The         main         reason for reverse logistics is utilize the used goods and waste to turn it         into          useful product or raw material

1. PROBLEM STATEMENT

3.1        To investigate whether green logistic is the better and efficient         way to do         business commercially or just and community service initiative to ensure         environment sustainability to the public.

3.2        To impact on operation, cost and productivity on the company that implement         green logistic initiative.

3.3        To study whether Maskargo operation comply to government requirement as         per Green Technology Master plan

1. OBJECTIVE

The research will look into the detail of operation of organization that involve in green logistic. Research also will look into the whole operation process and determined how extensive is the initiative implemented.

The main purpose of this research is to identify green logistic initiative that had been implemented in an organization in Malaysia and study how this initiative effected the operation of the organization. Research will look into criteria such as productivity, cost and daily operation efficiency.

According to Eltayeb, Zailani and Ramayah (2011), Green supply chain initiative have a direct impact on the company performance. Due to this, we will look into whether Maskargo green logistics initiative will have similar impact to its operation and financial.

1. METHODOLOGIES

1. Primary data

The main data gather from interview session done via face to face, phone and email with manager attached to Maskargo

1. Secondary data

Gather from publish data such as Malaysian Airline System Berhad annual report, website and Green Technology Master Plan.

1. FINDINGS

By using this criteria as per in literature review, we will determine initiative by MasKargo can be considered as green logistics initiative and study the impact of the implementation to the organization.