Electrifying road freight transport can heavily reduce the sector’s climate impact; however, there exist many uncertainties for making a large-scale transition, especially for logistics companies. In response, the purpose of this article is to identify and describe barriers to transition, but also strategies for how the barriers can be managed. To address the purpose, an interview study was carried out together with two complementary workshops to capture the views of relevant actors. Barriers to electrification are clustered into four separate areas: practical and technological barriers, financial barriers, institutional barriers, and social and cultural barriers. Low cost and high logistics performance are viewed as logistics companies’ competitive advantages, but they are expected to be challenged when making the transition. The current structure of the transport chain also further complicates things: it is transaction-based and risks and benefits can occur in its different parts. This is an issue, since the actor that is forced to take risks is not always the actor that benefits the most. One way to manage this is for actors to form more long-term commitments through collaborations. Moreover, it can be advantageous to start electrifying subsystems that can be described as ‘closed’ and ‘static’, i.e. predictable and easy to control, such as transport between terminals. At the other end of the spectrum, subsystems that are ‘open’ and ‘dynamic’ are the ones that are most difficult to electrify.
In this paper, a mathematical inventory model for a closed-loop supply chain consisting of a single manufacturer and a single retailer is investigated under a stochastic environment and imperfect production. The manufacturer adopts a remanufacturing policy to recover returned products from the market. The model takes into account exchange rate disparities because the supply chain’s participants are in separate countries. The model also considers carbon emissions, which are expected to be produced from storage, transportation, and production. A carbon policy, namely carbon tax, is implemented to manage the overall emissions resulting from the supply chain. To cope with carbon restrictions, the manufacturer has an opportunity to invest in green technologies. The objective of the study is to find optimal shipment quantity, number of deliveries, safety factor, and green investment such that the joint total cost is minimized. An iterative procedure is suggested to solve the proposed problem, and a numerical example is presented for model validation. The findings imply that variations in the production rate and carbon tax have a significant influence on the model’s performance. Aside from that, the results reveal that uncertainty in the exchange rate and production flaws are important factors that must be considered by managers in making inventory decisions, especially those related to the number of deliveries, frequency of deliveries, and the amount of money invested in green technology. Finally, a sensitivity analysis is provided to explain the behavior of the model.