Logistics plays a key role in the functioning of many businesses.
During the pandemic, people stayed at home, used their phones to text and message food services, groceries, medicines and even hardware. The convenience is paramount as people stayed safe in their houses and simply received their orders right at their doorstep.
The pandemic triggered massive growth for the eCommerce industry. Partnering with digital retailers is the logistics industry which also witnessed huge growth. However, with the growth of the logistics industry, sustainability became an issue. Bubble wrap, plastic containers, corrugated boxes can highly impact the environment in a negative way.
With the increased concern of global warming, this negative impact of is highly visible. Taking care of the environment has become an utmost priority for the many–the citizenry, the government, NGOs responsible businesses, including the logistics industry. This is why sustainable logistics will become the next big trend in the logistics industry.
What is sustainable logistics?
Many people are aware of the functioning of logistics companies like Ninja Van.
However, the concept of sustainable logistics is somewhat new to many. In simpler terms, sustainable logistics refers to the adoption of measures in the logistics industry to reduce its environmental impact. With sustainable logistics, the functioning of the logistics companies is taken care of in a manner that it does not impact the environment in a negative way.
Shopee Xpress for example, allows its customer to change the delivery address after placing an order after meeting the required criteria right from the app without going through any paperwork. This is an example of sustainable logistics where the company is ensuring that it does not contribute to deforestation by digitizing the process.
Sustainable logistics reduces the emission of carbon dioxide and ensures that the resources are properly utilized in a sustainable manner. The emission of carbon dioxide is reduced most of the time by optimizing the transport routes. Also, there is a huge scope for implementing sustainable measures in logistics companies by taking care of the packaging material which is used to package a courier.
Ways of working towards sustainable logistics
One of the simplest ways to work towards sustainable logistics is by increasing the end-to-end visibility which allows the logistics companies to plan the route of the shipment in a manner that guarantees a low carbon footprint and further, prevents wasted trips. For ensuring this, it is important to work on the data for efficient functioning. Also, freight collaboration needs to be improved for the same. The last-mile delivery is the most resource-heavy part for the logistics company. The issue of the same can be resolved with a simple pop-up warehouse which allows the logistics companies to ship the courier of the same area together and dispatch the same to the customers whenever required. This not only reduces the carbon footprint but also reduces the delivery time and thus, results in better customer satisfaction.
Taking care of sustainable logistics simply does not mean taking care of the environment but also of the different employees. For instance, empty piles are not profitable for the truck drivers but it uses the effort of the drivers. Ensuring the well-being of the truck driver also ensures efforts towards achieving sustainable logistics. Better quality of life should be something that should be taken care of by the logistics companies. The companies can also work towards green logistics by utilizing the space of the warehouse and reducing product damage during the freight. There are many environment-friendly fuels available and these energy sources should be used for transporting goods of the logistics companies if possible.
Also, the traditional packaging used by many logistics companies included plastic but this is not sustainable. There is an urgent need to shift towards green packaging. Also, whenever possible, the 3Rs: reduce, reuse and recycle should be taken care of.
How expensive is sustainable logistics?
There is a misconception that just because a company is working in a sustainable manner, it is pricing its products and services at a high price. A few years ago, this was true but this is no longer true in the post-COVID-19 world.
The current society is more environmentally conscious and wants to contribute to improving the environment. As a result, even many governments provide support to the companies that are trying to work in a sustainable manner. Therefore, it is now comparatively easier for logistics companies to offer their customers cost-effective solutions. However, a proper strategy is required to ensure that the logistics companies can offer their logistics services in a sustainable but cost-effective way.
