Logistics efficiency is not just defined by adequate delivery. Environmental sustainability is also a factor that determines the competency and capability of a logistics provider. Past years' data shows that logistics units are responsible for emitting over 33 gigatons of CO2 to our greener earth. The rush for growth and profit have somewhere destroyed the harmony of green earth.
Unethical manufacturing practices and unregulated transportation negatively impact ecological balance. Logistics units have the responsibility to schedule their operations to safeguard the environment and decrease pollution.
The increased demand for production and delivery brings profit to your business. But as a corporate society, you should be concerned about the way your growth affects the environment. This is the right time to think about new modalities in logistics, Green Logistics!
Green Logistics for Boosting Sustainability in Logistics
Maximum use of technology will help logistics units to promote ecological balance without hindering production and distribution. Before we go to the technology-assisted green logistics principles, it is necessary to know the three pillars of sustainability introduced by the Environment Protection Agency:
The environmental pillar includes laws, policies and regulations that address environmental issues. It includes issues concerning air and water pollution, solid waste management, biodiversity management, and protection of species and critical natural habitats.
The social pillar comprises policies that ensure our social well-being. It can include health care, resource security, planning, and modification of institutions and industries for sustainable performance.
The economic pillar relates to laws and regulations that promote private sector development and employment growth. It promotes quantifying changes that bring sustainable development to the environment.
Logistics providers adopting green logistics need to focus on these three pillars to bring considerable change. Here are some top-notch technology-assisted methods you can practice to improve sustainability in the supply chain:
Go Digital in Storing and Processing Data
The paperless economy is the route to ecological harmony. It's time to convert your hard copies to digital documents to reduce the usage of paper. It will not only enhance environmental balance but also improves your business through real-time monitoring and assistance. Digital storage and digital transactions speed up your business by helping you secure data storage. Moreover, it is the best method to switch to the flawless transfer of data that is more organized and simplified.
Read More: Integrated logistics and supply chain coordination
Balance Manufacturing through Strategic Analysis
Overproduction is always a concern for businesses. It is not only a waste of time and money, but it is also a waste of energy and resources. Remember, the security of resources and solid waste management is a crucial parts of green logistics.
Using artificial intelligence and machine learning, you can now predict the expected demand for products. Based on external factors and human behaviour, AI integrated technology forecasts future demand for products; thereby helping businesses produce goods according to the necessity and not in excess. The prediction is calculated based on social media polling, weather, demography, and online reviews.
Strategic analysis helps to reduce 30%-50% of errors in manufacturing and manual processing. Moreover, it will help to wipe out the out-of-stock situation through accuracy in demand forecast.
Maintain Transparency in Raw Material Supply
Visibility of supply chain activity helps supply managers verify the sustainability standard of raw materials used in manufacturing. Blockchain technology and IoT-enabled supply chain operations help in the end-to-end tracking of logistics flow.
The immutable information storage in blockchain technology and IoT helps you track the entire supply chain flow from production to distribution. It helps in the easy monitoring and regulation of carbon emissions through ethical resourcing and transportation.
Plan Your Route to Control Fuel Consumption
Optimizing the fleet is crucial in logistics. Unregulated transportation increases fuel consumption and intensifies pollution issues. Besides, it also blows up the entire operation cost.
IoT-enabled route planning helps you monitor where your commercial vehicle moves. You can provide timely assistance to guide drivers on the route and inform changes in distribution in case of an emergency.
GPS-enabled tracking is also necessary to adopt green logistics. Controlling the freight and optimizing track reduces congestion, fuel consumption pollution, and the total cost of operation.
Recommended Reading: On-Demand Warehousing: Top Benefits & Use Cases To Enhance Your Business
Practice Space Utilization to Manage Shipment
Sustainable containerization should be given prime importance. Maximum utilization of space helps to reduce transportation costs and energy consumption. Optimizing container space helps to plan truckload and frequency of transportation.
Unprofessional packaging and container utilization lead to wastage of space and damage. Understand the nature of products and use secure & space-saving containers to maintain sustenance and quality.
Use Renewable Materials for Packaging
Customers always prefer bio-friendly packages that are easy to dispose of. It's ideal to go for renewable packaging trends. Eliminating single-use plastic is the first and foremost thing every industry and logistics unit needs to practice to incorporate sustainable development.
Reducing the carbon footprint is necessary to promote biodiversity. Customers now demand biodegradable packages that are reusable. Trends in cardboard packages are now gaining momentum. 3-d designed cardboard packages with simple designs and brand icons have helped industries to stamp their brand.
Advantages of Green Logistics
Green logistics helps businesses shoot up their performance by bringing transparency to the supply chain and being a part of the new 'Go Green movement. Let's take a flip through two of the most significant advantages of green logistics that provide you with unlimited growth:
Helps in Branding Your Business
Today's consumers are people who think about the environment, society, and economy. Hence, they always look for products that blend with the environment. Waste management is also becoming a serious concern for people who live in flats and shared spaces. They look for eco-friendly packages that can be disposed of easily.
Remember! Consumers need transparency. How you make it and what you include matters to them. They are not blind followers of any brands. You need result-oriented statistics to prove that your brand meets the sustainable method of production. And, technology-assisted services help your brand meet the global standards of sustainable distribution.
Reduces Waste and Total Operational Costs
With engineered technology, things have become much easier. You can easily monitor production demand and transportation needs by reducing extra expenditure.
A lack of understanding of consumer needs and market demand has always made industries suffer huge losses and unethical resource utilization. But now, through AI-based strategy, businesses can control their production flaws and transport charges by increasing profit and reducing extra expenses.
Go Green Through Smart Logistics
Digital logistics is an innovation that has made the idea of green logistics workable. Technology-assisted logistics management has helped in reducing carbon emissions through proper planning and execution of supply chain necessities.
Businesses need to partner with green logistics providers who cater to smart technology-integrated sustainable services. The best 3PL providers in the logistics industry have converted to green logistics through digitization and business intelligence. So, choose your logistics partner wisely and amplify your business to reap the greener pastures.