Green logistics is becoming more and more necessary, as consumers increasingly choose businesses and stores that try to lessen their environmental effects.
As to the Research Insights survey, 57% of customers are open to altering their eCommerce buying behaviors to lessen their ecological footprint. In response, businesses are modifying their logistics and supply chains to match these new demands. As more CEOs prioritize sustainability among their organizational priorities, that shift is gradually taking place.
Even still, a lot of businesses are reluctant to spend money on sustainable solutions. According to a poll, a mere 10% of the companies stated that their unique selling point and strategy for expanding their market share is providing the most environmentally sustainable delivery service.
However, these solutions can lower costs to deliver while simultaneously enhancing brand image when the appropriate supply chain tactics and technologies are put into practice. This is particularly true for the last mile, where merchants and logistics providers may simultaneously cut expenses associated with overhead and carbon emissions. This essay will discuss green logistics, the issues preventing the general acceptance of these sustainability solutions, and the best practices that every company may implement to develop an eco-friendly delivery service.
What is Green Logistics?
The practice of minimizing the effects of delivery and logistics procedures on the environment is known as “green logistics.” Shippers need to reduce their carbon dioxide emissions, handle trash disposal and general waste management, use recyclable products, and more as more consumers become environmentally conscious and prioritize doing business with green enterprises.
The carbon footprint of the supply chain, handling carbon emissions from waste management and disposal, packaging, recycling, lowering energy use, etc. are all included in green logistics. More businesses are committing to zero-net targets to become as environmentally friendly as possible because many national and international organizations pushing or requiring more sustainability among businesses and consumers giving priority to eco-friendly consumption.
Including first-, middle-, and last-mile logistics is part of a green supply chain. Digitizing procedures is the most straightforward way to go green in logistics operations at all stages. By using alternative fuels and higher efficiency, digitization can minimize energy consumption and do away with the paper trail.
Do reverse logistics and green logistics work in the same way?
This is a typical misunderstanding. Reverse logistics refers to the process of a product moving backward in the logistics cycle. Refunds or recycling are just two of the many possible causes of this.
Reverse logistics can take various forms, not all of which are directly related to logistical procedures, but some of which address environmental issues. For instance, when a business delivers a new electronic device or piece of furniture, they might remove the old item so that it can be recycled. Because it cuts down on waste, this is environmentally beneficial (and even encouraged), but it is not a sustainable logistical practice in and of itself.
The transportation solution needs to incorporate carbon emission reduction measures for the logistics process itself to be deemed green. This can be achieved by having a driver’s delivery flow include pickups of different items. For instance, on the way back to the factory, a driver may drop off products with some customers and pick up other items from the same customer.
Importance of green logistics
Organizations that switch to more environmentally friendly logistics see gains in all areas, including profit and social responsibility. Client demand is the most important component. Companies that make substantial, long-term progress toward a sustainable future are winning over more customers and businesses. Investors and customers will be in favor of a green supply chain.
One of the many effective campaigns to mitigate the negative environmental effects and lower the carbon footprints of international trade is green logistics. Online retailers need to be conscious of the significant effects that switching to green logistics or eco-friendly items will have on them. Some positive effects include:
Lower gas emissions
Less waste
Improved customer relations
Increased brand credibility
Challenges of green logistics
1. Elevated capital costs
Companies with limited resources may find it difficult to invest in cutting-edge information, technology, and procedures to lessen their impact on the environment.
2. A resistance to change
When a change hurts a company’s bottom line, resistance can be quite strong. Businesses could be hesitant to embrace more costly, ecologically friendly products or novel transportation techniques that reduce emissions. This resistance may be due to a lack of understanding about the benefits of sustainable practices, worries about disrupting current operations, or the notion that sustainability and profitability are incompatible.
3. Supply chain rigidity
Comprising many tiers of suppliers with differing degrees of control over their business processes, supply chains are complex systems. Integration of sustainability goals may be necessary for businesses, particularly if their suppliers are spread across various regions and have distinct regulatory environments. Firms may also require assistance in regulating and overseeing the sustainability practices of their suppliers because of a lack of knowledge about their business processes.
What are the advantages of green logistics?
There are various reasons why companies can benefit from using green logistics.
• Less pollution
Ultimately, the corporation’s ability to produce less pollution is the primary advantage of green logistics. Due to the existing state of the environment, this is advantageous to society as well as the enterprise.
• Lower transportation costs
The distance and quantity of goods transport operations are decreased with the aid of green logistics, particularly when combustion vehicles are involved, as these vehicles release greenhouse gases into the atmosphere. This allows businesses to cut pollutants while still making critical savings.
• Lower package costs:
Using reused or biodegradable materials or packaging is part of green logistics. Recyclable materials and components may initially cost more, but over time they can save firms money. These include reusable plastic film, cardboard pallets in place of wood ones, etc. Nearly half of the plastic pollution in the world comes from packaging, and most of it is never recycled. It is crucial to use this resource appropriately because of this.
• Improved image:
Businesses can adopt an eco-responsible strategy thanks to green logistics, which is especially advantageous for their reputation. The company’s reputation as an “eco-responsible” business is an asset that should be capitalized on, regardless of how suppliers, consumers, or stakeholders perceive it. It can be used to satisfy the needs of B2B clients, who use green logistics and search for suppliers who practice environmental responsibility, or it can be used to satisfy the environmental requirements of B2C clients, who might view it as quality assurance.
• Lower losses:
It also lessens the number of products or raw materials that are lost in the warehouse. When substituting raw materials, it is less expensive to keep unused raw materials for recycling or reuse.
• Warehouse automation:
Another aspect of green logistics is warehouse automation. Time and money can be saved, and a company’s logistics efficiency can rise with the use of automated operations. Installing a permanent inventory management system with WMS software, for instance, can assist in lowering losses from products that have passed their expiration date. Therefore, installing an automated warehouse, or warehouse 4.0, is a win-win situation from an economic and environmental perspective and fully satisfies the need for effective green logistics. Aside from facilitating green logistics, AR Racking offers automated warehouse systems that have numerous additional benefits.
The Future of the Green Logistics
Unquestionably, supply chain automation—a development that has been extensively noted in recent years—is essential to the future of environmentally friendly logistics.With the application of artificial intelligence, information digitalization, and robotization with AGV, AMR, robotic arms, and robotic racks, logistics 4.0 is probably going to continue to grow.
By using fewer fossil fuels, all these automated methods support green logistics. Given the advent of Logistics 4.0 and the state of the environment, it is therefore expected that Green Logistics, which is currently well-established, will continue to grow in the future.