Companies are now moving towards greener supply chain operations, thus protecting the environment and becoming fully environmentally conscious. The global consumption is continuously rising and for that matter, the demand for efficient logistics and supply chain management has grown manifold. Due to increasing operations, the environment is also being impacted negatively to a great extent. Logistics and transportation contribute significantly to greenhouse gas emissions, which is a major contributor to climate change. Greenhouse gas emissions emitted are significantly dangerous for humans as well as the natural environment. With the increasing concerns for the environment, every industry especially the logistics industry has an important role to play in reducing its environmental impact and moving towards sustainability.
Well, it’s not only the responsibility of companies but consumers as well. As per IBM Research Insights, 57% of consumers are more than willing to change their online purchasing patterns for reducing the environmental impact. Companies are also playing their part to change the way logistics and supply chain logistics are done in order to meet their environmental sustainability goals. The companies have started to rate environmental goals higher on their corporate priority goals list, yet the transition is slow. One of the key ways that logistics companies can reduce their environmental impact is by adopting green practices in their operations. These can include the use of alternative fuels, optimized route planning, efficient and green packaging, sustainable warehousing, and transparency.
The logistics industry can reduce its carbon footprint by transitioning to alternative fuels such as biofuels, hydrogen fuel cells, and electric vehicles. These options reduce the emission of harmful pollutants such as carbon dioxide, nitrogen oxides, and particulate matter. Concerning route planning, optimizing the route planning can lead to significant fuel savings and emissions reductions. By optimizing the routes, logistics companies can reduce fuel consumption and lower their carbon footprint. Additionally, green and sustainable packaging materials such as recycled materials can be used to reduce waste and the amount of packaging used in the supply chain. This can also lower the shipping cost for the products. The use of sustainable packaging material can not only reduce carbon emissions but also the recycle material is also financially beneficial for companies to reduce their costs.
Sustainable warehousing is another method that can be used for contributing towards a green supply chain and protect the environment. Warehousing is an important component of the logistics industry. Implementing green initiatives such as installing energy-efficient lighting, and HVAC systems, and using sustainable materials can reduce the carbon footprint of warehousing. Another important but less-talked-about aspect of the sustainable environment discussion is collaboration and transparency between companies and customers. This might not be a direct material benefit but a slow, transition process that gives long-term benefits. Collaboration between logistics companies, suppliers, and customers can help reduce the overall carbon footprint of the supply chain. Transparency about the environmental impact of operations and the carbon footprint of products can lead to informed decision-making and a reduction in emissions.
