Green Logistics Guide: Part 2
During the first part of our Guide to Green Logistics, we went over what it is, its impact worldwide and the benefits of implementing such actions in order to achieve a more environmentally friendly logistical process.
In this second part, we’ll be discussing how to apply green logistics in transportation.
How to Apply Green Logistics in Transportation?
Most supply chain activities produce carbon emissions, but last-mile delivery is the greatest culprit and also the fastest-growing aspect. For many transportation services, trying to reduce their environmental impact without sacrificing delivery efficiency seems impossible.
However, it’s not as stressful as you might think it is to move towards a more eco-friendly logistical process, in fact, sticking to the following recommendations might help you balance your company’s financial health whilst incorporating sustainable logistical practices and managing deliveries in a timely manner.
A recent study conducted by the Environmental Protection Agency has concluded that the transportation sector emits more greenhouse gases than any other industry. The road transportation industry alone is responsible for nearly 29% of all GHG emissions. Meanwhile, consumers are becoming increasingly environmentally conscious.
For companies with logistical needs, this means implementing the use of technology in order to optimize processes within the supply chain and last mile process.
One of the easiest ways to do so is through the use of TMS software, such as the one Drivin offers.
Manual planning is tedious and inefficient if one aims to meet green logistics objectives. With Drivin's routing software, fleet routes are planned and executed using sophisticated algorithms specifically configured to meet delivery operation needs.
Sustainable criteria can be employed in green logistics to manage waste accumulated in warehouses. To improve warehouse management and efficiency, companies should look at:
- Establishing a waste classification strategy with respect to recyclable materials,
- Reduce paper usage in favor of digitization,
- Implement waste management that adheres to recycling guidelines and laws,
Green Criteria in Procurement Policies
Some companies incorporate sustainability logistics criteria into their procurement and contracting policies when evaluating proposals from their suppliers. This refers to:
- Product Characteristics:
- Requesting environmentally friendly packaging with limited use of plastic.
- Manufacturing Processes:
- Positive environmental management in the manufacturing processes.
- Supplier Location:
- Eco-friendly criteria may prioritize the supplier closest to the company.
Strategies of Green Logistics
Organizations that use a cloud-based, intelligent supply chain with mobile technologies, gain a panoramic view of their entire logistical process, from manufacturing to delivery and returns. But the attainment of green logistics is not achieved in isolation.
Successful implementation requires planning and the engagement of all stakeholders. Here are some steps for implementing green logistics strategies:
- Collaborating with suppliers, vendors, third-party logistics partners, and seasoned advisors to develop eco-friendly procurement protocols and shipping options.
- Employing AI-powered technologies, such as logistics control towers, to integrate carbon footprint analysis throughout every stage of the business.
- Networking with corporate entities to share green logistical resources and data-based information.
- Crafting correctly dimensioned strategies for the fleet. Integrating the ability to accommodate fluctuating demand with flexible logistics networks, so trucks are not idled.
- Educating customers on the impact of speedy delivery speeds versus more sustainable options.
How to achieve Green Logistics
One of the finest ways of handling supply chain operations with green logistics is through a route optimization software.
There are various methods of reducing fuel consumption, such as using a delivery management system like Drivin. This action leads to greater efficiency and reduced costs.
Encouraging Ecological Delivery Options
As an IBM survey revealed, customers are willing to pay more for ecological delivery options that foster sustainable logistics activities.
If you're offering same-day delivery services, compare the costs with next-day delivery, and you may be taken aback. Next-day delivery affords you more time for efficient shipping and routing, leading to a reduction in business expenses. Encouraged delivery options at lower costs for you, the customer, and the environment.
Automating Route Optimization
Improving vehicle efficiency leads to fewer miles traveled and less fuel consumption. The environment will thank you for reducing your company's carbon footprint through the automatic optimization of routes.
Green logistics encompasses various means of advanced software tools that aid in delivery route optimization. By choosing more efficient routes selected through automatic routing, the company will require fewer drivers and vehicles, translating to lower costs.
Focus on Local Deliveries
If you’re a retailer, you’ll most likely benefit from making local deliveries from stores, rather than regional warehouses. Why?
Local delivery entails lower costs, as you do not have to contend with high shipping costs and distribution center expenses. The "ship-from-store" approach locally reduces fuel costs and allows the business to thrive through green logistics.
Local deliveries are aided by SaaS TMS delivery software, which helps companies scale last-mile operations.
How does Route Optimization work?
Drivin is an end-to-end, cloud-based delivery management and optimization platform. Our formidable solution addresses the paramount challenges faced by modern distribution and field service companies, including route optimization, planning, and execution.
Using this type of technology can help your company strive when it comes to reaching eco-friendly logistical standards.
Get in touch with us now and schedule a demo!