For a while now, more attention has been paid to the concept of “Corporate Social Responsibility” (henceforth “CSR”), mainly due to environmental problems, changes in legislation and regulations, commercial benefits and reputation in society. Besides having a high quality and being cheap in price, products and / or services are expected to be socially and environmentally friendly. Consumers are looking for added value. An increasing number of companies, including logistics service providers, are initiating and implementing processes that are considered CSR.
The concept of Corporate Social Responsibility was first introduced by Bowen (1952) and states that organizations must take the values of society into account when implementing strategies and decisions. Sustainable development emphasizes how organizations today can fulfill their needs without endangering the needs of future generations. In this new context, companies can no longer base their commercial strategies on achieving competitive advantages using the traditional ‘four P’s’ (price, product, promotion, and place). Instead, the ‘four R’s’ (reduce, reuse, recycle and rethink) are now considered real added value and logistics play a key role in each of them. Globalization of production and markets has ensured that supply chains have expanded and are less predictable.
Optimization has traditionally been used to reduce costs in logistics. For example, optimization methods can be used to determine optimal stock levels or to reduce transport costs. Combine this with CSR and the above-mentioned spearheads will be combined with other goals, for example: reduction of emissions or a fairer workload distribution among employees. CSR can play a fundamental role within a company in achieving global goals concerning competitive growth, better governance and overall sustainable development.
The logistics sector is global in nature and has a wide variety of effects that affect, for example, the economic, environmental and social dimensions of society both positively and negatively. There is no global agreement, but the logistics service providers who try to protect the climate and actively work on providing sustainable services will increase in value compared to their competition. Some of the CSR actions have a direct impact on a logistics service provider’s daily operations. One aspect is the increased dependence on IT. Logistics Software Solutions, LSS, develops smart IT solutions. Solutions developed by freight forwarders for freight forwarders. If you would like to know more about our iSuite, then please contact us at email@example.com or call +31 (0) 88 1050300.