Business Benefits of GSCM Practices
In addition to the environmental benefits that GSCM practices generate for logistics and transportationservice providers, various business benefits can result as well. Businesses that have gained environmentalbenefits in the two main GSCM practices specific to logistics and transportation service providers — energy and waste reduction in distribution activities — are defined as Best–in–Class (BiC).
BiC logistics and transportation service providers report improved distribution efficiency and services differentiationas the most common business benefits, both of which are important determinants of competitivenessin such a highly commoditized service sector market (Figure 5). Other business benefits include reduceddistribution cost, enhanced compliance processes to regulations and supply chain partners' mandates, andincreased customer retention.
Figure 5: Business benefits —BiC logistics and transportation service providers1
