An empirical investigation on the implementation of green practices in the logistics service industry

Purpose: Due to the increasing demand for advanced logistics and supply chain management (SCM) services over the past decade, the supply chain role of third-party logistics service providers (3PLs) has changed and these companies are increasingly requested to provide more 'green' services. This development provides 3PLs business opportunities but also challenges and concerns on how to translate green initiatives into practise. The purpose of this paper is to investigate the implementation of green initiatives and influencing factors in the Italian logistics service market. Research approach: The research methodology used in this paper is based on two-phases approach. In the first phase, a comprehensive literature review on the adoption of green initiatives by 3PLs has been done. Such review allows the identification of a number of research questions that, in the second phase, have been addressed through a case study analysis of Italian 3PLs. Findings and Originality: In general, the research results indicate that the surveyed companies have a different degree of involvement in green initiatives due to the different breadth of service offered and the importance associated with environmental issues. This allows to explore the peculiarities of green practices in different types of 3PLs. In general the adoption of "point" initiatives focused on one or few logistics functionalities is higher than initiatives involving different supply chain levels. A further result consists in the identification of the main drivers and inhibitors affecting the adoption of 3PLs' green initiatives. Research impact: The expected contribution of this paper is to illustrate and give a deeper knowledge on how 3PLs respond to changing market conditions are driven by green pressures. This study may provide a broad base for further research on 3PLs strategy development and adoption to facing future green requirements both from customers and government. Practical impact: The paper will describe the way 3PLs implement green initiatives into their operations. Furthermore, the study will also provide a deeper understanding on how green logistics services can be approached and also what drives and inhibits that process.