Suggesting a compatibility between the environment and the distribution system, green logistics constitute solutions companies undertake with a goal to improve sustainability practices in freight movement. There is a range of strategies that cover production planning and physical distribution to packaging materials used.
How can the supply chain be more sustainable?
The best way for companies to begin streamlining their product chains would be to take advantage of reverse logistics - a much cheaper strategy to potentially start with.
Reverse logistics involve finding ways to create value out of an expired product - be it through reusing or recycling them to properly dispose of them. Companies need to actively embrace the mechanisms of reverse logistics as they make a switch towards sustainability.
By collecting and recycling plastic waste into designated bins, Roadbull employs reverse logistics into their product chain cycles. Reverse logistics are a considerably far more accessible green practice to adopt before making changes to manufacturing and distribution processes.
By improving returns management processes, product repair and refurbishment as well as the recycling of goods and materials, logistics firms can embark on a more sustainable chain.
AI for Efficient Route Planning
In an age of technological advancement, another method that companies can become more sustainable is to capitalise on the effects of artificial intelligence (AI) on route planning.
For instance, a Transport Management System (TMS) helps businesses reduce expenses, track real-time, improve warehousing productivity and supply chain efficiency through the improvement of freight movement operations. Making route planning more efficient can help logistics companies reduce mileage and fuel usage while improving customer service from a business point of view.
Streamlining transport distribution channels - which are one of the biggest contributors of carbon footprint - will lead to significant improvements on the environmental effects. By taking into consideration the distance, timing and number of delivery points, Roadbull optimises in-house technology to have optimal delivery routes.
Adopting Electric Vehicles
Following that, vehicular transport, in the form of cars, vans and trucks, remain the primary mode of transport management for logistics firms. On top of 15% of carbon dioxide emissions coming from transportation, the mode of transport adds on to the already staggering carbon footprint statistics.
Companies can change the mode of transport to make their deliveries more sustainable. In fact, another technology-enabled measure is the adoption of electric vehicles that vastly reduce carbon emissions. Furthermore, electric vehicles are performing far better than their diesel counterparts with a longer battery life and cleaner sources of energy.
Organisations of all tricks and trades are facing mounting pressure from consumers to go “green”. The logistics industry is no exception.
The increasing focus and move towards green technology also is a form of Corporate Social Responsibility (CSR). When companies listen to their consumers, they effectively improve customer service and expand their consumer base.