Sustainable logistics, also known as green logistics, encapsulates policies, practices and measures taken by businesses to reduce the environmental impact of supply chain management. The logistics sector is actively adopting sustainable practices to remain compliant with regulatory guidelines, better their brand image, and minimise operational inefficiencies.
According to Fargan and Whalley, 39% of UK adults favour brands with eco-friendly business practices. This stat highlights the core importance of sustainable logistics among consumers and businesses. In this article, you will uncover exactly how to embrace this approach in a successful manner.
How to implement sustainable logistics?
Here are some key steps for implementing sustainable logistics in order to achieve eco-friendliness and elevated supply chain/logistics management:
Embrace route optimisation software
According to Office of National Statistics , in the second quarter of 2024, the UK emitted 0.164 tonnes of CO2e per million pounds of economic activity. To reduce this number, route optimisation is one of the most rewarding techniques that can be integrated to enhance sustainable logistics. This helps to lessen traffic congestion, make quicker deliveries, and decrease the associated greenhouse gas emissions. Distribution and logistics software can bolster route optimisation and much more in the supply chain and logistics field.
Choose green warehousing
Green warehousing refers to the adoption of environmentally sustainable practices in the warehousing and logistics domain. Implementation of green warehousing in sustainable logistics involves using energy-efficient methods such as solar-panel light set-ups, waste reduction and recycling initiatives. These are all made possible through better inventory management and using supply chain management software that fosters sustainable reporting. This helps companies to get clear numbers around increasing/decreasing carbon emissions and other such reporting. It further helps them to take strategic decisions around refining green warehousing practices too.
Collaborate and educate better
This has two parts:
Mindful partnerships: Prioritise working with suppliers who rank sustainable logistics at the highest level of importance. Enactment in this territory includes sourcing raw materials from certified sustainable sources and collaborating with partners who have shared goals to achieve sustainable logistics.
Upgraded employee training: Provide employees with training that preaches best practices to incorporate sustainable logistics in their working area. It can cover subjects such as energy-saving tips by turning to natural resources, on-time last-mile delivery with a reduction in the number of empty miles, sustainable waste management for warehouses, etc.
Get systematic reverse logistics
Reverse logistics processes recycling, refurbishment and waste management in ways that promote responsible disposal of unwanted and hazardous products. It involves methods of collection of useful components from discarded products that reduce the need for raw materials for manufacturing new products. This helps in the circular economy by keeping the products in use for a very long duration, thereby fostering sustainable logistics.
Benefits of sustainable Logistics
Here are some of the associated benefits of this practice:
Reduced carbon footprint
Reduced carbon footprint can be achieved when sustainable practices in logistics are used natural fuel in vehicles, advanced route optimisation software implementation, and solar-powered facilities. These sustainable logistics methodologies also help to protect the well–being of employees working in supply chain management’s operational areas.
Compliance
It is vital for supply chain management businesses to maintain regulatory compliance. Sustainable logistics practices help with this in the following ways:
- It adheres to regulations such as Ultra Low Emission Zones (ULEZ) while avoiding the associated financial penalties.
- It also keeps businesses compliant with key standards such as the ISO 14001 Certification. This helps them to remain credible and competitive in the market.
- Global organisations like WRAP (Waste and Resources Action Programme) push circular economy which is one of the most sought-after environmental-friendly benchmarks for companies. This helps businesses to meet global-level legal standards.
Cost-savings
The economic advantages that sustainable logistics provides can be extensive, thanks to reduced fuel consumption, maximised vehicle capacity through consolidated fleets (which further lessens the total number of delivery trips) and reduced energy costs through more efficient routes.
Enhanced brand image
The significance of brand image is critical in any market and supply chain management is no exception. When business practice is aligned with environmental and social values, then its resonance is more likely to be of the highest regard for consumers and stakeholders. Customers today are eco-conscious and their purchasing decisions are inclined towards environmentally friendly service providers. Sustainable logistics practices do exactly that. Its components like eco-friendly packaging, compliance with environmental regulations, and green warehousing, can contribute to elevated brand image. Additionally, a boosted brand can increase demand which ultimately boosts profitability.
Increased innovation
Sustainable logistics provides impetus to innovation. For example, the rapid adoption of EVs (electric vehicles) for deliveries by supply chain management service providers has bestowed direct support to the UK’s governmental incentives like the Plug-in Van Grant (PIVG). Many companies that manufacture such vehicles can push even further ahead with innovation due to the increased demand associated with eco-friendly incentivisation.
Growth opportunities
When businesses provide green/eco-friendly services they gain the chance to achieve an increased consumer base and market expansion. In the longer run, they get an edge over the others due to the future-proofed nature of their operation and also attract potential partners who share the same sustainable goal. This opens a great opportunity for them to grow.
Elevated social impact
With the decrease in carbon emissions through green transportation and other such practices, sustainable logistics fosters a healthier environment. Such initiatives are improving the air quality in urban areas which is a major concern. Sustainable logistics also prioritises sourcing and distributing raw materials locally which bolsters the local economy All such practices help to develop a positive social impact on the community.
Examples of sustainable logistics
Here are some of the popular real-world examples from companies that have adopted sustainable logistics as part of their supply chain management:
GB Railfreight’s investment in bi-mode locomotives
To take logistics sustainability several notches higher, GB Railfreight has invested £150 million in bi-mode locomotives. These locomotives can be powered by electric and diesel. This provides flexibility to the vehicles during logistics operations and assists in reducing harmful emissions to the environment. This initiative has made a commitment to decrease the harmful environmental impact of freight transportation in the UK.
DDP UK on deploying 7OO EVs
DDP UK has supported sustainable logistics by deploying 700 EVs for parcel deliveries. This has positioned the company as the largest green delivery fleet in the UK. The company has also oriented itself with London’s Ultra Low Emission Zone standard by constructing urban depots to support eco-friendly last-mile deliveries. It is a giant leap forward for the company to reduce carbon emissions in the urban areas of the country.
Evri’s commitment to sustainable logistics
Apollo, a US-based investment group, acquired Evri, a UK parcel delivery company, which at present delivers 14% of parcels by volume. This equates to a total of 12 million customers weekly. Evri has provided concrete proof of its eco-friendly commitment by achieving 21% reduced carbon emissions per parcel in 2023-2024, compared to the previous year. And they are committed to continuing their efforts in the realm of the sustainable logistics.
Sustainable logistics practices today are not just a nice-to-have option but a necessity for businesses. By embracing smart route optimization, green warehousing, alternative fuel options, and EVs, businesses can make their brand reputation better, have a positive social impact, reduce their carbon footprint and definitely make the planet greater and more sustainable.
The future of logistics: Leverage technology for sustainable growth
Sustainable logistics is not only about adopting eco-friendly transportation and optimising routes. It extends to leveraging logistics, wholesale and distribution software to enhance efficiency, streamline operations and drive long-term sustainability growth. Solutions like these help businesses to automate workflows, improve transparency and real-time inventory tracking. By embracing financial management tools, businesses gain in-depth insights to gain profitability and other cost-efficiencies. Financials Software by OneAdvanced is designed to optimise supply chain management and support businesses’ sustainability goals. Explore Financials today!
