The logistics sector contributes significantly to environmental concerns; however, green logistics could reduce the carbon footprint one delivery at a time.
What is Sustainable Logistics?
Sustainable logistics or green logistics refers to the practice of managing logistics operations in such a way that it minimizes the environmental impact.
You might wonder how logistics and a simple parcel delivery can be taxing on the environment.
Think of the large trucks burning fossil fuels as they drive for miles at a time from one state to another, releasing toxic gasses. As a result, greenhouse gas emissions add to the challenge the world is facing with climate change.
To fix this, logistics companies, manufacturers, small entrepreneurs, and big corporations must all participate in the social and environmental responsibility to contribute to a better green logistics future.
Benefits of Sustainable Practices in Logistics
Logistics businesses often think it’s expensive to implement green logistics strategies; however, these strategies can also help companies reduce costs.
It also improves efficiency and boosts brand reputation, often leading to more customers flocking to use your service. Existing customers are also more keen to stay loyal to the brand due to your commitment to social and environmental responsibility.
It strengthens supply chain resilience and leads to better compliance with environmental regulations.
By adopting some or all of these sustainable practices listed below, businesses can reduce their carbon footprint while gaining more benefits to boost the company’s growth.
What is a green logistics plan?
The first step in making a difference with your sustainable logistics plan is cutting down on unnecessary operations. This plan helps companies strategize a timeline for starting the transitioning process.
First off, assess your current logistics operations. Here, you can identify areas where urgent and realistic improvement is needed.
Remember that your sustainability strategy will incorporate short-term and long-term goals that align with your business goals and objectives.
As long as you have a timeline for implementing the plan, you’ll be on track to make a meaningful impact.
Not sure where to start? Here are 12 strategies, ideas, and considerations before transitioning your business into green logistics.
1. Green Transportation Strategies
Trucks, vans, and vehicles driving long distances with stock from the warehouse storage space or to customers’ homes release toxic gasses. According to the US Natural Resources Defense Council, fossil fuels produce large quantities of carbon dioxide when burned. Carbon emissions trap heat in the atmosphere and contribute to the global warming crisis.
In the US, these fuels, specifically used in the transportation sector, account for three-quarters of America’s carbon emissions.
The NRDC states biofuels are a more sustainable option as they are produced from renewable feedstocks, and their usage may be “sustained indefinitely.”
Zurich’s plan for greener transportation
In Zurich, a team of researchers started exploring through a project to determine how viable it is to have more e-bikes, cargo bikes, and e-scooters on the road. The research team hopes to take 50% of the road space from parked cars and return it to green logistics transport modes.
Going green with trucks
Green transportation strategies also involve using alternative fuels. According to Uber Freight, approximately four million heavy-duty trucks travel more than 177 billion miles annually, creating over 260 million tons of greenhouse gas (GHG) emissions.
Fleet managers can start with route optimization to minimize their carbon footprints and reduce energy consumption.
Here are the nine best route optimization apps to consider:
Electric trucks are also becoming more popular among green logistics companies. Big businesses like Volvo, Tesla, Nikola, and Daimler are introducing electric trucks.
ALSO READ: Australian logistics giant helps ‘owner drivers’ go electric
DHL even acknowledges decarbonizing heavy-duty road transport as a “real challenge.” However, it recognizes that it’s one that “must be solved.”
DHL is still expanding its fleet of electric trucks, partnering with Mercedes-Benz Trucks and Germany to introduce more electric vehicles for heavy-duty transport.
2. Removing Unnecessary Plastic
Less is more; in this case, it’s hard to think you won’t need all the excessive padding and plastic pillows to prevent your products from damaging en route to your customer.
Amazon has realized that it is not necessary to add all the extra cardboard to parcels. In Australia, it has gotten rid of the extra packaging, showing many retailers that it can be done.
The retail giant has also discontinued its use of plastic fillers and is replacing them with paper fillers made of 100% recyclable materials.
For Amazon, it’s not only about the plastic but also the size of the package. “We want to ensure that customers receive their items undamaged while using as little packaging as possible to avoid waste and prioritizing recyclable materials,” it says.
3. Sustainable Packaging Design
Creating eye-catching, sturdy packages made of recyclable and eco-friendly materials is not impossible. It’s not only for large companies but even small businesses with a small budget.
Production Packaging Innovations emphasizes that entrepreneurs should not have to choose between quality and creativity. When a package is easy to take apart, customers are more willing to dispose of it properly.
Here are some tips to remember when trying to reach your sustainability goals through your packaging design to suit your green logistics activities.
- Incorporate sustainable elements like reusable packaging, recyclable packaging, or items that allow for commercial compostability.
- Be cautious about the chemicals and materials used to manufacture packaging.
- Making sustainable packaging sturdy relies on folding and interlocking; this ensures the material lasts longer.
4. Using Technology to Help Fast-Track Green Logistics
Robot and drone deliveries are increasingly popular in the last mile delivery process. It’s known in the industry as the green logistics future.
The global delivery robots market size is projected to reach a value of USD 2,143.1 million by 2030.
However, drones and robots are also used in other parts of the supply chain, helping to move cargo in warehouses, storage facilities, or airports.
At the Munich Airport, an autonomous robot dog is used to identify accessible storage locations at a warehouse. This is seen as groundbreaking technology that helps the green logistics supply chain minimize its carbon footprint.
5. Adding Autonomous Transport to Your Green Logistics Fleet
In logistics services, many processes unfold in the background of which the public is unaware. Think about equipment that must be moved around, people, information, or resources.
Autonomous logistics is when technology is used to execute these supply chain processes. To address environmental concerns, Zoox has launched an e-hailing shuttle to transport people around Vagas fast without harming the environment.
The Zoox hopes to make transportation safer and cleaner in America. It’s designed to function in a dense urban environment.
6. An Electric Vehicles (EVs) Fleet
Electric Vehicles (EVs) are gaining popularity in the corporate world; however, there are still some challenges (or opportunities) regarding charging infrastructure.
In 2021, several companies, including Arrival, Rivian, and Tesla, announced their development and launch of EV light vehicles.
According to AmpTruck, light and medium-duty trucks are ideal for using electricity, as they only travel short distances between deliveries. For the last mile, EVs are perfect for their speed and reliability.
7. Supply Chain Management for Sustainability
Green logistics-conscious companies aim to work with suppliers to share their sustainability values and goals.
To achieve sustainability goals, the entire supply chain management system must also be optimized. Minimizing environmental impact is vital.
But how do you find service providers who share the same sustainability goals?
Logistics startup Ofload offers an analytics platform to help companies track their carbon emissions performance.
8. Reverse Logistics Plays a Part
Reverse logistics, also known as return logistics, occurs when a customer wants to return a purchased item. Instead of shipping and delivering the items to the customer’s front door, a driver has to pick up the parcel at an address and return it to the manufacturer or wholesaler.
It can also include repairs or recycling, where goods can be resold or discarded. This is often referred to as a circular supply chain. It’s when materials and goods are used for as long as possible to maximize their value instead of immediately ending up in landfills.
The reverse logistics industry is expected to reach a US$649.22 billion market value globally by 2027.
Companies reduce their waste and conserve resources by implementing reverse logistics and circular supply chains.
9. Overcoming Challenges in Sustainable Logistics
Many cities in urban settings are highly dense, making it nearly impossible to move or make drop-offs with a standard vehicle. In London, e-bikes are becoming more popular as a sustainable alternative to vans and trucks.
Evri has spent $24 million transforming its fleet into pedal-powered delivery bikes. Zedify is another example of how the last mile delivery turns into more green mile deliveries.
One of the most significant challenges in sustainable logistics is the high upfront cost of implementing sustainable practices. However, cost-saving technologies are on the market to bridge this financial gap.
Businesses can reduce costs by collaborating with suppliers and partners to help ease the financial burden of investing in green logistics.
10. Emerging Trends in Sustainable Logistics
Artificial Intelligence (AI), blockchain, and the Internet of Things (IoT) are some of the latest trends being used to optimize logistics operations and reduce environmental impact.
How AI Turns Into Green Logistics
AI can help businesses make smarter decisions during the supply chain management process. By leveraging advanced algorithms, businesses can reduce their fuel consumption, contributing to green logistics solutions.
How IoT Turns Into Green Logistics
Smart technology helps identify the shortest routes to move goods from ports to warehouses, promoting energy efficiency and reducing carbon emissions.
How Blockchain Turns Into Green Logistics
Forbes describes blockchain as something used to process transactions in fiat currency. It’s the fastest way to send money without waiting days for a bank to clear the transaction. It creates an amper-proof record of every transaction.
11. Best Practices for Sustainable Logistics
The UK exemplifies how green logistics with EVs can be fast-tracked. The country’s charging network nearly doubled in size.
Transport secretary Mark Harper says the UK’s roads could be fully autonomous within the next few years.
DHL is one of the top delivery companies applying green logistics. Deutsche Post DHL Group, one of the world’s largest logistics companies, aims to invest €7 billion to reduce greenhouse gasses by 2030.
It also aims to electrify 60% of its last-mile delivery vehicles that year.
How to master green logistics
Sustainable logistics is essential, and companies can no longer ignore their contribution to environmental impact.
Companies can reduce costs, improve efficiency, and enhance their brand reputation by implementing sustainable logistics practices.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
