COMPARING TRADITIONAL LOGISTICS AND GREEN LOGISTICS – WHICH DIRECTION SHOULD BUSINESSES CHOOSE?

1. What is Traditional Logistics and Green Logistics?

Traditional Logistics

  • Is the management, transportation, storage, and distribution of goods based mainly on cost and speed factors.
  • Goal: On-time delivery, minimizing costs.
  • Less attention to environmental impact during operation.

Green Logistics

  • Is logistics optimized to reduce negative impacts on the environment through technology, clean energy, and sustainable processes.
  • Dual goals: On-time delivery + environmental protection.

2. Detailed comparison table

Criteria

Traditional Logistics

Green Logistics

Target

Optimize cost and speed

Optimize costs, speed and reduce emissions

Means of transport

Fossil fuel trucks, ships, planes

Electric cars, LNG ships, fuel-efficient aircraft, multimodal transport options

Warehouse

Warehouse uses grid electricity, conventional lighting system

Solar warehouse, energy saving LED lights

Packaging

Disposable plastic, nylon, wooden pallets

Recycled packaging, biodegradable bags, reusable pallets

Environmental Impact

High CO₂, NOx, SOx emissions, lots of plastic waste

Reduce greenhouse gas emissions, reduce waste

Brand Image

Neutral, less related to sustainability factors

Environmentally friendly, increasing prestige with international partners

3. Illustrative example

3.1. Traditional logistics

Company A exports 20 tons of frozen pangasius from Vietnam to the UK:

  • Transport by oil truck from the factory to the port.
  • Use refrigerated containers running on diesel engines on conventional ships.
  • Packaging with foam boxes + plastic wrap.
  • Result: Fast and cheap delivery, but high CO₂ emissions, packaging difficult to recycle.

3.2. Green logistics

Company B exports 20 tons of roasted coffee to Germany:

  • Transport by electric truck to the port.
  • Choose a shipping line that uses LNG fuel (25% reduction in emissions).
  • Recycled paper packaging, reclaimed wooden pallets.
  • Warehouse in Germany uses solar power to preserve goods.
  • Results: Same delivery time, slightly higher costs (about 3%), but 40% reduction in emissions and highly appreciated by EU customers, easy to sign long-term contracts.

4. Which direction should businesses choose?
Short term: Traditional logistics may be cheaper, but there is a risk of being excluded from the global supply chain as “green” standards become increasingly mandatory.

Long term: Green logistics is an investment for the future, helping businesses enhance their reputation, access demanding markets and meet legal requirements.