Auto manufacturers, governments invest in green logistics

Car manufacturers are reducing their environmental footprint in their effort to reduce waste and improve green logistics. Illustrating procurement's role in sustainability efforts, Volkswagen aims to reduce 25 percent of its factory energy usage and carbon dioxide emissions by 2018 through manufacturing and operating efficiency, according to WardsAuto. VW found three of its manufacturing facilities consumed 55.4 percent of energy, with 19.8 percent of it using electricity.

In reducing water and energy usage, VW's assembly plant in Chattanooga, Tenn., performs sustainable practices such as recycling rainwater for equipment cooling and restricting outside lighting to necessary areas.

Improving distribution for green logistics

Other car manufacturers like Kia have committed to green procurement, Hybrid Cars reported. By agreeing to sign a pledge with South Korea that it will provide for energy management for its supply chain, Kia will encourage its suppliers to produce using more environmentally friendly methods.

Kia intends to decrease production costs by unifying its distribution supply chain through have cargo transporters that hold a larger capacity of shipments and shrink the miles between its factories and ports. As for limiting its amount of waste, the South Korea-based car company said 90 percent of its factory waste is recyclable.

UK government funding development of low carbon emission vehicles

As for other government initiatives for cleaner auto manufacturing, the United Kingdom said it will fund £1 billion towards research and development of new vehicles that emit less carbon dioxide via its Advanced Propulsion Centre. The investment brings together auto companies in creating at least 30,000 jobs in the industry.

"With the next generation of vehicles set to be powered by radically different technologies, we need to maintain this momentum and act now," Business Secretary Vince Cable said. "Our industrial strategy will ensure we keep on working to make our automotive industry a world leader."

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