Why sustainability matters in logistics?

Greener practices in the logistics industry is reaping rewards in more ways than one.

'Go green' is the buzzword across industries. 

The logistics industry is no exception. 

Government regulation, citizen awareness, and corporate social responsibility have all contributed to an increase in a conscious collective movement to ensure the conservation of natural resources. 

Considering the effects of climate change and global warming, it is time we make strides towards adopting sustainable methods of living to gift a better planet to the next generation.


What is sustainability?

Sustainability is the ability to exist, create, and sustain living on the planet without any further damage to natural resources. 

The idea is to progress in a way that leaves behind enough and more for the coming generations to lead a healthy life.

It has a three-pronged (economic, environmental, and social) connotation. Hence, also called the three-Ps (Profit, Planet, and People). 

Measures that can spin the wheel of change towards conserving energy, saving fuel, cutting back on polluting practices, and reviving the use of natural materials bring about sustainable living.


Why is sustainability important in warehouse logistics, and how can it be implemented?

Carbon footprint is a fallout and one of the major concerns of a rapidly growing economy. 

With the spike in E-commerce, the warehousing and logistics industry comes under the direct radar due to unregulated carbon dioxide emissions. 

There are additional issues like poor management of resources such as fuel, electricity, and packaging material. 

Adopting greener practices in warehousing and transport logistics is gaining traction, and companies that do are reaping the rewards in more ways than one.

Green practices come in many forms. Here are five best practices that will yield rich dividends.

1. Route optimization

Empty containers on the road or making multiple trips for the same consignment take up fuel, time, and resources beyond what is considered optimal. 

The solution is to plan routes and manage deliveries and fleets to ensure they are driver-friendly, conserve energy, and maximize customer satisfaction. 

Consider investing in route optimization software that is an ideal fit for your needs and goals.


2. Innovative technology

IoT in logistics is a great way to automate tracking systems and build and manage efficient supply chains. There are several ways innovation can make logistics a less cumbersome affair:

• Embedded technologies help to track deliveries digitally with real-time updates that enable you to fix any issues.

• They can also monitor the temperature of the products and identify any defects in the goods stored in the warehouse.

• IoT-enabled devices can ensure road safety through tire sensors and integrate supply chains for better visibility and prompt troubleshooting.


3. Efficient warehouse design

A warehouse is not just about being a storage facility. It is the starting point for creating an efficient supply chain. 

Warehouse management systems (WMS) are the foundation for robust and dependable supply networks. 

IoT-integrated WMS assist in connecting warehouses to distribution centers and stores, finalizing best routes, tracking goods movements, automating mundane tasks, and even ensuring the safety of warehouse workers with the help of hazard sensors. 

Efficient warehouse design implements green practices such as skylights, solar panels, RFID and barcoding systems to minimize paper consumption, light sensors to conserve electricity, and environment controllers for efficient storage of products. 


4. Energy and fuel management

The logistics industry is infamous for causing environmental damage due to high fuel utilization for transport. Fuel costs are also a significant factor in the logistics industry. 

Opting for fossil fuel management systems or investing in electric vehicles for last-mile logistics will result in controlling Co2 emissions and avoiding penalties.

Fuel management systems use data algorithms and machine learning to track the quantity of fuel, optimize consumption, and reduce expenses incurred due to constant re-fueling or wastage by providing better visibility. 

Fuel management systems, through predictive analysis, can help plan routes better, provide real-time data for timely re-routes, and suggest cost-effective solutions. 


5. Fleet maintenance

The health of the fleet is of prime importance in the logistics industry. Regular checks for safety and efficiency are mandatory to ensure the vehicle is in top condition. 

Checks should cover a thorough inspection of every part of the vehicle, including a report for wear and tear, document repairs, and track compliance records, including emission controls. 

Frequent breakdowns are not only expensive but impact the business negatively. 


Are implementing green practices a costly affair?

In a nutshell, no. 

Yes, the initial investment of having to invest in the right tools, implement the correct techniques and hire the required skilled labour would seem expensive and unnecessary. 

However, the guaranteed gains will eventually offset the effort of time and money put in. 

The gains are not only as profits but also as compliance with government regulations and environmental policies, by that extension, not coming under the radar of penalties. 

Moreover, with growing awareness, consumers are conscious about contributing to a green environment and are using their soft power to coerce companies to follow suit. 

Companies aligned with the ideology have a clear advantage over the ones that do not follow a green model.


Would sustainable practices mean a reduction in profit?

No. Far from it, a consistent and collective effort to use efficient methods for transportation along with an equally effective supply chain will cut costs, improve productivity, enhance customer satisfaction, and eventually increase the customer base and profits.

Preetha Tojy April 19, 2023
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