Lessons from Successful Environmental Logistics Channel

Kenji Deie, Kumamoto Gakuen University
Hisao Fujimoto, Osaka University of Economics
Yohei Sasakawa, Fukuoka University

ABSTRACT

This paper suggests the important role of trust and cooperation as a governance mechanism for the successful logistics channel. Three types of the circulated logistics channels are discussed. The first is the closed circulated logistics channel, where an actor (a firm) can govern total channel and its flow. In this channel, an actor bears the role of entrance and exit, and processes goods, resources, and waste. The second is the open circulated logistics channel, which is governed by plural actors, such as firms, consumers, and governments, based on trust and cooperation. The last is the intermediate circulated logistics channel, which is intermediated by traders and retailers. It also needs trust and cooperation based on the price/market mechanism.

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