Developing green innovations within 4PLs : Pursuing green logistics

Abstract: Problem – Logistics services worldwide are not considered to be environmental sustainable because of their high emissions of greenhouse gasses (GHG) as well as its air, soil and water pollution. Since fourth party logistics providers (4PLs) manage the entire supply chain they can reduce their harmful environmental impact on a large scale through green logistics innovation., There are however difficulties for 4PLs to innovate in green logistics.  Purpose – This paper investigates how 4PLs generate and manage green logistics innovation. It also explores what drivers and barriers there are for developing green logistics innovation.  Method – This paper is based on a single case study that uses CIMO logic in the theoretical framework to thoroughly explore and clarify the area of green logistic innovation among 4PLs. Semi structured interviews and a questionnaire were constructed as the main source for gathering empirical evidence.   Results – The case company provided evidence for how 4PLs innovate by being close to their suppliers and customers and finding new opportunities for green logistics innovation. Drivers and barriers are also identified for green logistics innovation.  Conclusions – The study shows how 4PLs can manage and generate innovations as well as create their own playing field by developing competence for new areas of business, enlarging the boundaries for 4PLs to innovate in. The study also shows the importance of considering the goods as a factor in green logistics (particularly reverse logistics).