Discussions about the impact of climate change have been among the dominant topics of conversation in 2020. As global leaders in government and business consider what steps must be taken to ensure the health of our natural resources and ecosystems, the worldwide supply chain has been a key area of interest.
DHL states, “Today’s leading companies, large and small, are looking for ways to go green. They understand that if we want our planet to remain habitable for generations to come, we must work together now to identify and reduce emissions, make our businesses more sustainable and ultimately move toward a Circular Economy.”
The world of manufacturing and shipping are now beginning to track their carbon footprint and overall environmental plans strategies. In this article, we will consider how embracing green logistics practices is the way of the future.
Going Green Can Make Your Business More Competitive
While your knee-jerk reaction when it comes to carbon optimization can be to envision a series of expensive and onerous new restrictions, early adopters of environmental policies are finding that they can have measurable positive ROI.
By implementing sustainable and green practices, logistics businesses can improve their reputations with potential consumers for whom environmental sustainability is a matter of importance.
While this can look like a benefit that would be primarily applicable to B2C sales, it is quickly growing in importance for B2B businesses as well.
Sustainability initiatives have become a need for acquiring government and municipal contracts in some parts of the globe, meaning that companies that take strides to reduce their carbon footprint will have more opportunities available to them than companies that do not.
Green Logistics Can Help Reduce Supply Chain Inefficiency
According to the Global Supply Chain Group “Despite ample evidence to the contrary, there persists a myth that going green costs additional expense.However, the most fundamental benefit of Green Supply Chains is a positive long-term net impact on the financial performance of the organization. This has been proven by both analysis and empirical evidence.”
Embracing the notion of having a ‘green footprint’ can significantly raise revenue and strengthen your overall value chain.
The over-consumption of resources contributes to waste in the supply chain.By taking stock of things such as unnecessary fuel consumption, inefficient use of warehouse space, and less-than-optimal freight and container use, you aren’t just mapping up areas where carbon consumption may be improved, you are uncovering areas where your transport operations are inefficient.
Sustainability Initiatives Go Hand in Hand with Logistics Software
When it comes to optimizing transport routes and container usage, supply chain managers need a higher degree of visibility and considerable insight into the inner workings of their operations. In this way, logistics software systems are particularly well-suited to promoting sustainability.
A lot of data is inaccessible to key stakeholders, therefore something as simple as monitoring yearly fuel costs and usage is often overlooked which can lead to dire environmental affects across a large fleet of vehicles.
If however, your logistics company incorporates key logistics and trucking software to retrieve data from a series of connected workflows, accessing visible, high-quality data from diverse teams of truckers, transport managers to production planners, more sustainable plans can be put in place to ensure the environment is a priority.
It Is the Future of Supply Chain Management
Ongoing climate concerns are going to have a major effect on the supply chain going forward.
As we have sketched out above, early adopters of green supply chain management is key to a better future and a more profitable logistics operation.
Whether you get ahead to begin on the trend or not, it is probably that, in the future, businesses will track their emissions as closely as they track their finances. When that day comes, supply chain transparency and agility will be critical for anybody hoping to capitalize on new and emerging areas across the globe.