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With the increasing awareness of environmental issues, green logistics is increasingly becoming a major focus in the logistics industry. It paves the path to profitability by not only maintaining the ecological balance but leading to a long-term economic benefit.
Almost fifty percent of the companies around the world have set decarbonisation goals and the rest are beginning to do so. While some companies hesitate due to the initial high costs, many recognise that adopting green logistics is profitable in the long run.
Adopting green logistics can help businesses reduce costs at every stage, from storage to packaging to shipping. It is estimated that by 2030, the demand for Green Logistics could reach $350 billion, comprising about 15 percent of the overall logistics spend.
Explore how we can attain profitable sustainable goals through three simple yet effective strategies.
EFFECTIVE TRANSPORTATION PLANNING
Effective transportation reduces costs associated with shipping and handling, impacting the overall cost of goods. Reducing travel distances begins by understanding where warehouses and assets are currently located, how much it would cost to move them, predicting future demand, and planning for different scenarios.
Businesses can also improve how they load and route shipments and choose optimal locations for their networks. This involves making smarter decisions using data to keep trucks full and avoid unnecessary trips. A decision model that can analyse both costs and emissions helps make important business decisions.
Another strategy is to combine several smaller shipments into larger ones to lower transportation costs per item and make better use of cargo space.
EFFICIENT PACKAGING AND WASTE REDUCTION
Packaging is a major contributor to global plastic pollution, with much of it never getting recycled. That’s why it’s crucial to use these resources wisely. Green logistics involves using packaging and materials that are biodegradable or reusable.
Although these options might initially cost more than single-use materials, they can save businesses money over time. For example, using cardboard instead of wood pallets and reusable plastic film can help cut costs and reduce environmental impact.
Implementing recycling, composting, and paperless programs can further reduce waste going to landfills.
SUSTAINABLE WAREHOUSE PRACTICES
Warehouses can become more environmentally friendly by using less energy and aiming for operations that produce no emissions and are self-sustaining. Upgrade to energy-efficient lighting and smart thermostats help reduce energy use. Switching to renewable energy sources like solar or wind power can further decrease environmental impact.
The market for Green Logistics is growing. This rising demand is expected to drive innovation and investment in eco-friendly transportation solutions, renewable energy sources, and sustainable packaging leading to cost reductions and a more efficient global supply chain.
