Logistics Network Design for Sustainable Supply Chains: Evaluating Trade-Offs between Cost and Environmental Impact

Abstract

Logistics network design leads to critical components in supply chain sustainability specifically in the United States since businesses aim to achieve reduced operational expenses together with decreased environmental impact. Since their initial inception as traditional transportation systems, logistics networks have gradually developed into worldwide systems which offer efficiency but cause raised environmental emissions and energy utilisation. The study evaluated the trade-offs between cost efficiency and environmental sustainability in logistics network design, particularly examining how different operational decisions affect both logistics cost and carbon emissions. A primary quantitative approach was adopted by the research, which utilised data obtained from 380 representatives of logistics companies operating in the USA, and a survey questionnaire was utilised. SmartPLS software analysed direct and indirect relationships between independent and dependent variables during the data evaluation process. Sustainable logistics procedures decrease environmental damage, but expenses typically rise in the process. The examination discovered that inventory management, together with sustainability initiatives, create a major influence over carbon emissions and logistics expenses. Transportation mode selection demonstrated better effectiveness in lowering environmental emissions than it did in cutting costs down. The research established that organisations need to find effective ways to achieve financial efficiency while promoting sustainability. Strategic decisions made by companies need to maintain sustainability steps while avoiding competitive setbacks through an understanding that sustainable logistics practices generate lasting advantages. The sustainability of business logistics networks requires top priority while policymakers need to back sustainable logistics programs with both incentives and rules. More research is necessary to determine multiple variables that affect logistics network design.