Real-world examples in the quest for sustainable logistics

The world is becoming more conscious of the environment regarding logistics. Companies worldwide are thinking about the impact of carbon emissions and actively taking steps to reduce them.

Logistics refers to the comprehensive process of managing the acquisition, storage, and transportation of resources to their final destinations.

The ‘greener’ way of doing business involves using modern marvels like drones to fly directly to a location. Business on the fly!

Let’s explore insights into why sustainability is important in logistics and highlight some real-world examples of how logistics can be ‘greener’ for the love of the environment.

Why is sustainability important in logistics? 

Allied Market Research defines ‘green’ logistics, or sustainable logistics, as the practice of integrating environmental considerations into logistics management and supply chain management processes to minimize environmental impact and promote sustainability.

It adds the ‘green’ logistics market is expected to achieve good growth over the next eight years.

“Factors such as increase in corporate social responsibility (CSR) activities by logistic companies and rise in adoption of EVs in the logistics industry drive the growth of the green logistics market share. In addition, the surge in adoption of EVs in the logistics industry propels the market growth.”

Here is why sustainability is important in logistics.

Environmental Impact

The logistics industry is a major contributor to greenhouse gas emissions. Material handling practices can contribute to reducing greenhouse gas emissions by optimizing the movement and storage of goods. 

Transportation, warehousing, and distribution activities collectively account for a substantial portion of global carbon dioxide output.

By adopting sustainable practices, the logistics sector can significantly reduce its environmental footprint, contributing to the global fight against climate change.

Regulatory compliance in logistics management

Governments worldwide are implementing stricter environmental regulations. Companies that prioritize sustainability in logistics are better positioned to comply with these regulations, avoiding potential fines and sanctions, and gaining a competitive advantage.

In a post, logistics giant Maersk says: “Adhering to environmental regulations is only part of the sustainability that responsible logistics providers take into account. Perhaps less publicized, but equally important, is the social sustainability at the core of businesses around the world.”

Cost savings

Sustainable logistics practices often lead to cost savings in the long run. Efficient route planning, optimized load management, and the use of energy-efficient technologies reduce fuel consumption and operational costs. 

Effective inventory control can lead to cost savings by optimizing storage and reducing waste.

These savings can be reinvested into further sustainability initiatives, creating a positive feedback loop.

In its Sustainability Trends in Logistics, DHL says: “A sustainability strategy will help your business embrace a culture of innovation and agility.

You’ll review your current logistics operations, enabling you to spot inefficiencies and make changes that are not just better for the environment, but will save your business money. For example, implementing route planning software across your transportation fleet will reduce your emissions and your fuel costs.”

Customer demand

Modern consumers are increasingly aware of the environmental impact of their purchases. Efficient order processing can enhance customer satisfaction by ensuring timely and accurate deliveries.

Companies that demonstrate a commitment to sustainability can attract environmentally conscious customers, enhancing brand loyalty and customer satisfaction. Transparency in sustainability efforts can be a powerful marketing tool.

In a post logistics provider Maersk says: “One way for companies to ensure that their products are reaching their customers in a sustainable way is to partner with a sustainable logistics provider that tracks and traces emissions in all steps of their supply chain.”

It adds that this level of transparency allows companies to be radically honest with their customers, minimizing the risk of greenwashing claims as both company and consumer is informed.

What’s the bigger picture in the supply chain?

Supply chain management company Blue Yonder has released its third annual sustainability survey, highlighting how sustainable practices in supply chains contribute to the overall sustainability of logistics operations.

It gathered insights from U.S. consumers on eco-friendly shopping behaviors, the trustworthiness of green brands, and the use of electric vehicles, among other topics.

The company conducted the consumer sustainability survey by gathering feedback from over 1,000 US consumers aged 18 and above.

A key finding in the survey shows that 78% of respondents say sustainability is a determining factor when choosing to purchase a product or shop at a particular retailer.

Future-proofing

As the world moves towards a more sustainable future, businesses that lag in adopting green practices risk falling behind. A qualified logistician plays a crucial role in planning and implementing sustainable logistics practices, ensuring that all steps in the supply chain are efficient and eco-friendly.

Embracing sustainability in logistics is a strategic move to future-proof operations against evolving market demands and environmental challenges.

Maersk provides insight for brands: “While prioritizing sustainability is arguably the ‘right’ thing to do for the planet, it is increasingly a standout way to build a better brand image and gain an advantage over competitors.”

Picture this: You are a small business owner running an eco-friendly boutique, needed to send a package to a customer across town.

You have always been conscious of your environmental footprint and want to use a delivery service that is aligned with your values.

While searching online, a customer finds your delivery company that operates exclusively with e-bikes. Your company emphasized its commitment to sustainability, reducing carbon emissions, and supporting cleaner urban transportation.

The customer is impressed by your business’s dedication to the environment and its use of electric bikes, which produced zero emissions.

Choosing your business was a natural decision for your customer. Not only did it align with their eco-conscious values, but it also reinforced the customer’s own brand commitment to sustainability.

The customer books a delivery, confident that their package would arrive swiftly and responsibly, all while minimizing their own environmental impact.

Deliveries with ‘greener’ vehicles

Bet yourself that the American industrialist and founder of Ford Motor Company would have thought electric vehicles (EVs) would be a reality someday.

Truck drivers play a crucial role in operating these electric vehicles, contributing significantly to sustainable logistics.

In the UK, postal service operators are also shifting to sustainable logistics. The UK’s first fully electric mobile post office has been successfully trialed.

Parcel delivery company Evri is also making headway on the sustainability front by investing $24 million (£19 million) to speed up using electric cargo bikes for deliveries.

Zedify, the UK delivery service, plans to expand to 51 UK towns and cities in the next five years.

In Australia, Grace Removals, one of the country’s largest furniture removal companies, introduced the first fully electric removal truck.

Real word EVs in action 

Imagine how great it must be to know you’re contributing to a better environment with each sustainable delivery.

Mecalux is a Spanish-based company that specializes in design, manufacturing, sale and services of steel racking, warehouse automation, warehouse management software and other storage solutions.

In a blog post Mecalux says: “Electric trucks are one of the greatest advances in urban logistics in recent years. These freight vehicles are powered by one or more electric motors, a system which reduces the carbon footprint by not emitting greenhouse gases.”

Distribution centers are adapting to support the use of electric vehicles in logistics by implementing efficient charging stations and optimizing routes to reduce energy consumption.

It adds that in a world where businesses are striving to lessen the environmental impact of their operations, electric trucks could help to achieve a more sustainable supply chain.

Autonomous vehicle testing 

Companies like Faction, an autonomous vehicle technology company, have started testing self-driving light EVs in Houston, Texas.

It’s not just light vehicles, but trucking companies have also hopped onto the ‘green’ trend. E Trucking company Scania and tech company Sennder Technologies have partnered for a pay-per-use trucking model.

The companies have formed JUNA, a joint venture company for electric truck solutions for logistics across Europe. Both companies hope this initiative will see the large-scale adoption of electric trucks.

Global EV market 

Grand View Research reports the global EV market is expected to experience excellent growth in the next six years.

“The expansion of the transportation and logistics sectors significantly drives the rising demand for EVs. As global trade and e-commerce continue to surge, there is an increased need for efficient and sustainable transportation solutions.”

Sourcing raw materials sustainably is crucial for the production of electric vehicles, ensuring that the supply chain remains environmentally friendly and efficient.

The report adds that EVs offer a promising alternative to traditional internal combustion engine vehicles, as they produce lower emissions and have reduced operational costs.

The report highlights that the advancements in battery technology, along with lower costs and better performance, are driving the rapid growth of EVs in the market.

Benefits of using EVs 

There are several benefits of using EVs.

Managing inventory effectively can enhance the efficiency of electric vehicle operations by ensuring that the necessary parts and supplies are always available, reducing downtime and improving overall logistics and supply chain performance.

Reduced emissions

EVs produce zero tailpipe emissions, significantly lowering the carbon footprint of logistics operations. This reduction is crucial in urban areas, where air quality is a major concern. By adopting EVs, logistics companies can contribute to cleaner, healthier cities.

Lower operating costs

Although the initial investment in electric vehicles can be higher than traditional vehicles, the long-term operating costs are considerably lower. 

EVs have fewer moving parts, leading to reduced maintenance costs. Additionally, electricity is generally cheaper than diesel or gasoline, resulting in substantial fuel savings.

Government Incentives

Many governments offer incentives for the adoption of electric vehicles, including tax credits, rebates, and grants. These incentives can offset the initial purchase cost and make the transition to EVs more financially viable for logistics companies.

Enhanced efficiency for competitive advantage

Electric vehicles are highly efficient, with instant torque and smooth acceleration. This efficiency translates into better performance, especially in stop-and-go urban delivery scenarios. The ability to regenerate energy during braking further improves overall efficiency.

Noise reduction

EVs operate much quieter than their internal combustion counterparts. This noise reduction is beneficial for deliveries in residential areas, reducing noise pollution and improving community relations.

Technological integration

Modern electric vehicles are often equipped with advanced technologies, such as telematics, GPS, and real-time monitoring systems. These technologies can enhance route optimization, vehicle management, and overall logistics efficiency.

How do drones contribute to sustainable logistics? 

Drones have helped delivery companies give customers the ultimate convenience.

Here’s a scenario: You forget it’s your wedding anniversary. It’s your year to pull out the stops, so you decide to cook. You place your order and they dispatch a drone. A drone delivers the all-important grocery items to your door. 

No traffic, no hazards – just speed. Needless to say, dinner is going to be a flying success!

But on the operations side, drones are taking flight too. Drones that are equipped with sensors and cameras can conduct regular inventory checks in warehouses, providing real-time data on stock levels.

Manual picking methods can be integrated with drone operations for efficient order fulfillment, combining the precision of manual picking with the speed of drone delivery.

This helps in maintaining accurate inventory records and reduces the risk of stockouts or overstocking.

Real world drones in action 

On, a global sportswear brand, and Verity, an AI and robotics company, are working together to improve warehouse operations and inventory management.

What’s the goal here? They aim to provide real-time inventory tracking by using fully autonomous drones in warehouses. This will reduce stockouts, misplaced items, and shrinkage, ensuring accurate and efficient order fulfillment for retail and e-commerce. 

Additionally, drones can assist in storing raw materials efficiently, optimizing the logistics management process and ensuring the availability of resources.

Types of drone use 

Precedence Research reports that, with the rapid development of technology, drones are now extensively used in managing logistics and transporting goods to their destinations.

“In the warehousing facilities the drones are now being widely used in order to monitor the inventory and even sometimes it is used in transporting small items that reduces the use of forklifts and conveyor systems that makes the work cost effective,” reads the report.

Supply chain logisticians play a crucial role in overseeing drone operations, ensuring efficient logistics management and adapting to the evolving landscape of global supply chains.

Here are the different types of drones used in logistics.

Remote area delivery

In regions where traditional vehicles struggle to reach, such as islands, mountainous areas, or rural communities, drones offer a practical solution. They can easily navigate difficult terrains, ensuring that essential supplies and goods reach even the most isolated locations.

Medical and emergency supplies

Drones are instrumental in delivering medical supplies, such as vaccines, blood, and emergency medications, especially during crises or natural disasters. Their speed and ability to bypass obstacles make them ideal for time-sensitive deliveries.

Inventory management in distribution centers

Within large warehouses and storage facilities, drones are used for inventory management. They can quickly scan and monitor stock levels, helping to maintain accurate records and streamline inventory processes.

Environmental monitoring

In addition to transporting goods, drones are employed for environmental monitoring and data collection. They can track shipments, monitor environmental conditions, and ensure compliance with sustainability practices.

Reverse logistics

Drones are also being explored for reverse logistics, where they facilitate the return of goods from customers back to the company. This can enhance the efficiency of the returns process and reduce costs associated with traditional return methods.

Key features of drones 

• Speed: Drones allow logistics companies to bypass peak traffic, especially in urban areas by optimizing delivery routes.

Effective logistics management practices can enhance the efficiency and effectiveness of drone operations, ensuring timely movement of goods and resources.

• Cost savings: They can cut fuel expenses. A company will also save on labor expenses because no ground vehicle is in use as a drop-off.
• Accessibility: Drones can deliver to remote locations, including islands or disaster-affected areas.
• Delivery vehicles: Scanning orders onto delivery vehicles updates the status for both sender and recipient, ensuring transparency and efficiency in the delivery process.
• Tracking: This modern technology gives customers real-time tracking which gives customers peace of mind.

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