Dimension | Outcome | Paradox |
Costs | Reduction of costs through improvement in packaging and reduction of wastes. Benefits are derived by the distributors. | Environmental costs are often externalized. |
Time / Flexibility | Integrated supply chains. JIT and DTD provide flexible and efficient physical distribution systems. | Extended production, distribution and retailing structures consuming more space, more energy and producing more emissions (CO2, particulates, NOx, etc.). |
Network | Increasing system-wide efficiency of the distribution system through network changes (Hub-and-spoke structure). | Concentration of environmental impacts next to major hubs and along corridors. Pressure on local communities. |
Reliability | Reliable and on-time distribution of freight and passengers. | Modes used, trucking and air transportation, are the least environmentally efficient. |
Warehousing | Reducing the needs for private warehousing facilities. | Inventory shifted in part to public roads (or in containers), contributing to congestion and space consumption. |
Information Technologies | Increased business opportunities and diversification of the supply chains. | Changes in physical distribution systems towards higher levels of energy consumption. |