Logistics service providers (LSPs) are important actors in the supply chain, and due to the transport intensive activities they manage, they can make a large contribution to the development of sustain- able supply chains. They are often considered as reactive and quite passive in their role vis-à-vis their customers though many possess the critical logistics capabilities required to make distribution opera- tions less damaging to the environment. Developing green logistics service offerings can be one way of greening the whole supply chain, though today there appears to be little demand for these services. In the longer term, however LSPs are likely to benefit from being an environmentally innovative and to apply their environmental knowledge more effectively inside their organisations. This will strengthen their competitive position in a future logistics market in which environmental capabilities become ma- jor selection criteria. Many of the innovative systems and practices may not be motivated primarily by a desire to preserve the environment but will, nevertheless, contribute to sustainable development. To make a major commitment to greening client’s supply chain, an LSP will often require a longer-term contract that supports investment in more environmentally friendly technology and business processes.
IGI , 2011, 1. 343- p.