GREEN LOGISTICS: ANALYSIS OF U.S. STEEL

 Running head: GREEN LOGISTICS: ANALYSIS OF U.S. STEEL 1
GREEN LOGISTICS: ANALYSIS OF U.S. STEEL
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GREEN LOGISTICS: ANALYSIS OF U.S. STEEL 2
Abstract
The United States Steel Corporation widely known as U.S Steel is an integrated producer of steel
headquartered in Pennsylvania. Owing to the rising concern for global pollution, the producers of
heavy and basic raw materials like iron ore, steel are struggling to meet the international standard
against pollution. One major controversy that the U.S Steel is recently facing is regarding the
discharge of their industry by-products like mercury into the Great Lakes, is harming the
ecological balance of the environment. This paper studies the impact of such operations on the
environment on a wider perspective and device a green logistics program for the U.S. Steel
Corporation which can help them to mitigate impacts of their production activities on the
environment.
GREEN LOGISTICS: ANALYSIS OF U.S. STEEL 3
Table of Contents
Introduction..................................................................................................................................... 4
1.0 Background............................................................................................................................... 4
2.0 Literature Review...................................................................................................................... 5
2.1 Introduction........................................................................................................................... 5
2.2 Environmental Sustainability in Freight Transport............................................................... 5
2.3 Externalities in Transport...................................................................................................... 6
2.4 Green Logistics in Supply Chain Management .................................................................... 6
3.0 Findings of the Study................................................................................................................ 6
3.1 Social Benefits...................................................................................................................... 7
3.2 Economic Benefits................................................................................................................ 7
3.3 Environmental Benefits ........................................................................................................ 8
3.4 Cost Benefit Analysis ........................................................................................................... 9
3.5 Implementation of Green Logistics ...................................................................................... 9
Conclusion ...................................................................................................................................... 9
References..................................................................................................................................... 11
GREEN LOGISTICS: ANALYSIS OF U.S. STEEL 4
Introduction
With an annual production capacity of about 25 million tons, U.S. Steel is the largest
integrated steel manufacturer in the world. The primary operations segments of U.S. Steel are
located in North America and Central Europe. The company manufactures mainly value added
steel and tubular products that are used as intermediaries in the other manufacturing industries in
the economy (USSteel.com, 2015). Over the years, U.S. Steel has been restructuring their
business strategies and making transformations in their production operations with the changing
economic circumstances in the country. However, the large scale of operation and the multiple
manufacturing units of US Steel across the country make it more responsible for the
environmental hazards. The fact that the U.S. Steel is the leader in the global steel market
providing the best quality products to the manufacturing and other industrial sectors makes it
essential for them to incorporate green logistics program in their production operations and
delivery. Green logistics approach incorporates the supply chain management in a way that can
reduce the impact of environmental externalities arising from their logistics activities.
1.0 Background
The main vision of U.S. Steel is to provide integrated steel to the manufacturing units
across the world, while complying with the core values of the companies. The main mission of
the company is to provide world class steel using the finite resources of the earth judiciously, so
that enough resources are left for the future generations. The company being the world leader in
the steel manufacturing is committed towards sustainable management of production and
logistics operations, so that the fundamental resources of the company are preserved for future
use (USSteel, 2015). The company has been makin