The rising temperatures, increasing pollution levels, and shrinking biodiversity make the drive towards eco-friendly solutions not just a trend but a necessary change. It’s a change that everyone should commit to.
Individuals can and should make changes to live more sustainably. However, for environmental sustainability to truly be effective and sustainable, organizations must be willing to become key players in this movement. And when it comes to who should be leading the charge, it should be logistics businesses.
With its worldwide reach and multi-channel impact, the logistics industry should be at the forefront of a tech-driven environmental sustainability overhaul. It can leverage technology to develop innovative ways to do better business for the good of both its bottom line and the environment. Let’s delve into why and how industry players can make that happen.
Why Make Logistics Eco-Friendly?
So, why try to make more environmentally friendly choices in the first place? The short answer is that our planet and existence depend on it. However, aside from significantly minimizing its environmental impact, being more environmentally conscious can benefit a logistics business in more ways than one.
Regulatory Compliance
As the threat of global warming becomes imminent and undeniable, governments worldwide are implementing stricter regulations to protect natural resources and address climate change. Such laws include the Clean Air Act of 1963 and the US Energy Independence and Security Act of 2007. Logistics businesses who want to continue operating must be aware of and adhere to the regulations that cover the areas they serve. Non-compliance may result in unwanted consequences including hefty penalties or difficulty in acquiring new business in these countries.
Cost-Efficiency
Businesses looking to cut costs can turn to eco-friendly logistics practices. For example, optimizing transportation routes and investing in quality parts reduces fuel consumption and vehicle maintenance costs. Another technology-driven, eco-friendly solution is investing in renewable energy sources for warehouses and offices, which can lead to lower energy bills over time.
Competitive Advantage
Today’s consumers are increasingly environmentally conscious and prefer to support businesses that prioritize sustainability. By adopting eco-friendly logistics practices, companies can enhance their brand reputation, attract environmentally-conscious consumers, and foster customer loyalty.
And it’s not just individual consumers who are looking to transact with eco-friendly businesses. B2B clients that have commitments to reaching their environmental sustainability goals would only want to do business with vendors who share the same principles. By offering environmentally friendly transport and warehousing solutions, logistics providers can gain a competitive advantage over those who continue to use dated and inefficient technologies.
How Technology Drives Sustainability
We live in an era where almost everything becomes faster and more convenient with technology. Creators can create more content, companies can produce more products at a faster rate, and so on. It can also help logistics businesses operate more effectively and become leaders in sustainability.
Optimized Transportation Routes
Innovative navigation systems help lower environmental impact. Route optimization algorithms present businesses with a better, more efficient way to get their goods from point A to point B. This not only reduces lead times but also minimizes fuel consumption. By significantly decreasing fuel consumption, businesses are one step closer to lowering their carbon footprint.
Efficient Warehouse Management
Warehouse Management Systems (WMS) use technology for more accurate and sustainable operations. Logistics businesses can use WMS to gain real-time visibility into inventory levels, preventing overstocking, which can eventually lead to spoilage. WMS can also allow for better space utilization, meaning you can use a small floor space more effectively. This, in turn, can help save on energy used for heating or cooling, depending on the type of products being stored.
Data Analytics
One of the biggest advantages technology can offer logistics players is the power of information. Through data analytics, businesses can make more cost-effective and low-impact decisions, while ensuring sustainable operations.
For example, those in the aviation logistics industry could use sensors to monitor the condition of aircraft ground support equipment, cargo handling machinery, and more. Real-time data enables the early detection of wear and tear, facilitating timely maintenance. By proactively addressing issues, industry players not only prolong the lifespan of critical equipment but also reduce the need for replacements, thereby decreasing waste.
Data can also be used for forecasting, making it easier to plan inventory orders in advance. This can eliminate the need for rush deliveries, which can be costly and inefficient, compared to consolidated shipments, which can accommodate larger volumes for fewer resources.
Conclusion
It’s becoming easier and easier to take technology and use it for personal or business gain. However, it’s important to remember that leveraging technology doesn’t have to be one-sided. It should also be used to conduct better, more environmentally sustainable solutions. And one of the industries that should be at the forefront of using tech to drive eco-friendly business is logistics.
From decreasing fuel consumption to using data to make as little environmental impact as possible, technological innovations can equip logistics companies with what they need to lead the charge. The journey may not be easy or short, but it’s the better choice than remaining “business as usual.”
