How to Implement Green Logistics in Your Business

Going green 

Not so long ago, it was a pretty concept.

Something that you could implement in your marketing strategy and gain some additional love from your customers.

Nowadays?

It's a necessity, with natural disasters becoming more violent and common, customers and investors alike are showing a clear preference for businesses that demonstrate their respect for the environment.

But with so many details and operations running in your supply chain, how can you be sure that your environmental impact isn't harming the planet?

Green logistics, that's how.

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What is Green Logistics?

You can see green logistics as a group of practices or activities that work to reduce the harmful effects of your company's logistics network.

It focuses on reducing carbon emissions and promoting the use of eco-friendly resources. 

For example, if you realise that the carbon footprint of your transportation routes is way too high, you could opt for alternative roadways to reduce fuel consumption.

Is your packaging still working with plastic? 

Maybe it's time to shift to more sustainable materials.

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In short, green logistics is all about keeping businesses running while at the same working to be more responsible with our planet 

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Key Components of Green Logistics

Okay, but how can you actually embrace sustainability in your logistics?

Well, there are some main areas you can start working on.

Sustainable transportation

Because logistics wouldn't exist without transporting something, it makes absolute sense to start here.

Transportation is one of the biggest culprits when it comes to carbon emissions in logistics. Actually, a couple of years ago, it was estimated that the transport sector was responsible for 25% of greenhouse gas emissions globally.

And there's a really slight chance that number hasn't increased by now.

That's why relying on more sustainable transport is such a priority.

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Here are some ideas to make a difference:

• You can switch to electric or hybrid vehicles, believe it or not, it's becoming common to find companies investing in electric vehicles, which produce zero emissions. If that seems like too sci-fi for you, you could also consider the possibility of using hybrid vehicles so there's a balance between electricity and fuel.
• Optimizing delivery routes is a great alternative and an excellent beginning point in your quest to go green.  With the help of digital solutions and real-time visibility, you can plan the most efficient routes in terms of fuel consumption.  The side benefit? You'll be spending less and speeding up delivery times.
• Exploring alternative transport modes can be more or less feasible depending on the size of your business and the reach of your operations. If you are acting local, it could be a good idea to start using bike couriers and electric scooters so you reduce congestion and pollution levels 

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Eco-friendly warehousing

And where do you store your materials and products?

In warehouses, of course.

But here's the thing, warehouses aren't only a space where you can keep your inventory. To function, they need lightning, heating, cooling, and even machinery. 

So yes, you can bet there's an impact in terms of energy usage. 

The good news is that some options can make your storage facilities more sustainable.

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• Use energy-efficient lighting, yes, as simple as that. A good part of warehouses run 24/7, so switching to LED lights with motion sensors gives you some room to cut energy use.
• And speaking about energy, would you consider working with renewable energy? Solar panels, for example, are a very smart choice, the same as for wind energy.
• Build warehouses with the planet in mind. if you are planning to build a new warehouse, you could decide to go for recycled materials, use better insulation to minimize heating and cooling costs, and even add green roofs full of vegetation so your place is designed to improve air quality.
• Automate if possible. We always talk about how automation cuts down the rate of mistakes in your operations, but did you know that automated robots can also reduce energy consumption?

Sustainable packaging

Yes, we know it

You have to present your products in some sort of packaging. 

But that doesn't mean you've to spend tons of plastic to do so 

In fact, using recycled materials for packaging can reduce carbon emissions by 24%

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Green logistics is based from the idea that it's possible to reduce packaging waste and make materials more eco-friendly. 

Here's how:

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• Go for recyclable and biodegradable options. Just because we've gotten used to the popularity of plastic, it doesn't mean there aren't any other materials like compostable options or cardboard and paper-based wraps. There are even some truly green ones like plant-based films or packaging solutions made from mushrooms.
• Don't waste more than needed. Algorithms can help you to determine the exact box size your product requires. This eliminates excess packaging, and reduces shipping weight, which in turn saves money. 
• Promote a circular sense of packaging, you could start experimenting with returnable shipping packaging. Instead of throwing away boxes, your customers can send them back to be reused for future deliveries.

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Green Logistics, Reverse Logistics and Circular Supply Chain. What's the Difference?

Green logistics

Focused on making the delivery of point A to point Z of your product, across the whole supply chain more sustainable by following these parameters:

• Use electric or hybrid vehicles.
• Route optimization 
• Work with renewable energy sources.
• Switch to recyclable or biodegradable materials.

Reverse logistics 

This is a bit different 

What happens when a customer returns a product because it was defective, the wrong size or they just changed their mind?

Reverse logistics helps you to handle everything that moves backward in your company's supply chain.

This includes:

• Processing returns and restocking items, if they're still sellable.
• Refurbishing or repairing products so they can be resold.
• Recycling old or broken materials.

Circular supply chain 

Now, this is the ideal point.

The piece that was missing from your company's vision.

Nothing goes to waste 

Everything is used across the whole supply chain.

• Products are designed to last longer.
• When a product fulfills its purpose, it is not discarded but rather reused and transformed into something else.
• Instead of relying on raw resources, you use your own recycled materials to create new products.

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The Benefits of Green Logistics 

It's good for the planet 

And isn't this sufficient?

As we mentioned at the beginning, logistics has a massive impact on our environment. 

Trucks, planes, ships…it's just one deadly combination of CO2 after another. Warehouses consume energy, packaging pollutes our oceans with so much plastic.

Green logistics is an excellent approach to solve all of this and more.

Maybe it's by cutting carbon emissions or reducing energy waste. 

Whatever the goal is, you can feel confident about doing the right thing for the world.

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It lowers your business’s costs

Yes, that's also a benefit to bear in mind.

After all, you are here to make money, right?

Trucks and planes burn a lot of fuel, so if you put your attention there with a sustainable mindset, you can actually cut fuel expenses. And let's not get started on the incredible amounts you pay month after month for the electricity your warehouses need 

Depending on your location, you could benefit from government incentives and tax breaks as well.

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It's what your consumers want.

And they want it right now 

If you see any shopping trends for this year and the next, you'll find that people are seriously dedicated to sticking with brands that have eco-friendly values above all. 

They're even willing to pay a bit more if the origin of the product is 100% sustainable.

From choosing sustainable packaging and delivery alternatives that are carbon-neutral. 

The more invested you are in protecting our planet, the happier your clients are going to be.

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What’s Next for Green Logistics?

As we move further into the 21st century, green logistics is only going to get bigger, smarter, and more impactful. So, what can you expect?

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• Electric and Autonomous Vehicles:  You’ve seen electric cars on the roads, but soon, electric trucks could be driving goods across the country. And not just electric, autonomous vehicles could be the future too, allowing for more efficient, safer, and sustainable transportation without the need for human drivers.
• AI and Supply Chain: AI can help optimize routes in real-time, predict supply chain disruptions, and even manage inventory automatically, leading to less waste, better use of resources, and faster deliveries.
• Circular Economy: Over the next few years, we could see more closed-loop supply chains, where products are designed to be easily repaired, refurbished, or recycled,so nothing ever really goes to waste.
• Blockchain: Blockchain technology will help track products through every step of the supply chain, giving customers real-time visibility into where their products come from and how they were transported. This could help eliminate fraud, ensure ethical practices, and verify sustainability claims.

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