Green logistics, also known as eco-logistics, refers to sustainable policies and other measures adopted to reduce the environmental impact of storage, transportation, and distribution of goods and other logistic activities. This noteworthy initiative is in response to the realization that the supply chain, which links your customers with products and services from any place in the world, is taking a huge toll on the environment.
It’s imperative to address environmental, economic, and social issues if we hope to have a fully sustainable supply chain. Such a holistic approach characterized by environmentally and socially responsible practices is beneficial not only to people and the environment but also to your bottom line.
This article will cite four ways your business can benefit from eco-friendly logistics practices and cut costs down the road.
1. Boost Brand Reputation
Going for green logistics can help establish your brand’s reputation in today’s information-rich environment. A company’s brand image anchored on environmental responsibility inspires trust and confidence among the general public.
As consumers become more aware of the disastrous effects of global warming, they expect companies to go green and reduce their carbon footprint. Consequently, they want to deal with eco-friendly companies and would stop patronizing companies that aren’t taking action against climate change.
2. Attract New Partners
Opting for a sustainable supply chain enables your business to build its environmental credentials. This environmental advocacy makes you a suitable prospect for other businesses looking for a partner with similar values.
To further enhance your green credentials, apply for ISO 14001 accreditation, an internationally recognized standard that assists organizations in reducing the environmental impact of their products, services, and activities.
Accreditation lends more credibility to your company’s efforts in reducing the impact of climate change. Potential partners and clients will be convinced that your company would make a suitable partner when your environmental goals align with theirs.
3. Provide Competitive Advantage
Adopting green logistics makes you stand out in the competition. Because it could entail hefty upfront costs, going green is not the conventional or convenient option. Many companies are reluctant to embrace change, even if it’s for the benefit of the planet and for an organization’s operational sustainability.
It’s important to note that sustainability isn’t a passing fancy, but an inevitable trend as global warming continues to worsen. Therefore, you’re preparing your company for the future when you pursue sustainable strategies.
4. Reduce Costs
Adopting environmentally responsible practices allows logistics service providers to cut considerable costs.
- Optimizing Transport Fleet Management
The transportation of goods is a major contributor to carbon emissions. More so with inefficient transport management systems. When fleet management is inefficient, delivery schedules are not optimized and may even lead to ‘empty miles’ or trucks on the road that are driving empty.
With the aid of software or digital technology, logistics providers would be able to eliminate empty miles as they optimize fleet schedules, delivery route planning, and load pooling. Aside from reducing carbon emissions, they also save on fuel and fleet maintenance costs due to reduced wear and tear.
- Implementing Energy Conservation Measures
Implementing energy management systems (EMS) in a warehouse could lead to a significant reduction in energy bills, which translates to big savings. EMS can also make material handling equipment and conveyors more efficient by automatically shutting down the system when not in use. Aside from improving operating efficiencies, the life cycle of equipment is also extended as a result.
Warehouses and distribution centers may invest in energy-efficient equipment with high-efficiency motors. Although more costly, these pieces of equipment are more reliable and put less load on electrical circuits, translating to more savings.
- Adopting Sustainable Warehouse Construction And Design
Eco-logistics can be incorporated in warehouse construction and design, ensuring sustainable building management. Such buildings optimize water and energy consumption efficiency, install alternative energy sources, and use sustainable construction materials, among others.
With the complete automation of some processes in the warehouse, artificial lighting may be reduced, similar to the lights-out manufacturing method. Reducing packaging is another green initiative for warehouses and distribution centers as it limits the wastage of resources.
Opting for green logistics could bring substantial gains to your business. It enhances your brand image and reputation, brings in potential partners, and gives you a competitive advantage, all of which could boost your bottom line while you do your part in protecting the environment.
As for logistics service providers, adopting sustainable measures leads to considerable savings. This presents a win-win situation for the environment, the people, and the logistics industry.