Since the identification of 17 sustainable development goals (SDGs) by the United Nations, sustainability has become a cornerstone for many solutions in the business world, but instead of just talking about it, we're here to take action and if you're here, we have a feeling you are too. These SDGs are a global call to action to end poverty and protect the planet by 2030.
According to the Sustainable Practices in Logistics Systems report, “Sustainable development is the type of development that meets the current needs of the world without compromising the ability of future generations to meet their own needs.”
During the past few years, sustainable logistics has been researched by academics, organizations, and governments. Many companies have made it their strategic initiative and have worked on undoing the damage as well as preventing the future impact.
Before we discuss some best sustainability practices in the logistics industry, let's talk about what exactly sustainable logistics is.
The concept of sustainability in logistics operations can be defined as the promotion of sustainable procurement, transportation, packaging, distribution, reverse logistics, design, and control of sustainable supply chain operations.
Sustainable logistics aims to reduce the environmental footprint of shipping, such as CO2 emissions, noise pollution, and material waste.
As a business, sustainable logistics is a goal to draw a balance between financial growth while taking good care of the environment and the overall health of the planet we live on.
Have you had a day where you expected five different delivery packages from different stores, all shipped overnight?
Have you ever questioned all of the packaging waste that comes with delivery packages?
Do you ever ask, 'Does it really have to be like this?'
Many businesses still haven't figured out how to make sustainable logistics happen. But customers are now ready to pay more if a company offers sustainable shipping.
So, do companies have what it takes to move toward sustainable logistics?
Maybe yes, or maybe no. How each logistics company achieves sustainability goals varies. Below, we’re sharing ten best practices as a roadmap for your sustainable logistics journey.
To implement any change, awareness is the key first step. Assess your company's logistics operations to see where improvements can be made.
A comprehensive plan for sustainable logistics assessment should incorporate the following key elements:
While no shipping method in the world is devoid of carbon emissions, there are better alternatives to 'reduce' the impact than traditional gas-guzzling vehicles.
If not the best, electric or alternate fuel vehicles are the most environmentally friendly way to ship.
Not only that, but the carbon emissions produced by the distribution facilities can also be reduced via clean energy-powered electricity, solar systems, and water recycling systems.
Look for logistic companies that have a sustainable fleet with electric vehicles or alternate fuels to take a step further toward your sustainable logistics goal.
Another good sustainable logistics practice is ensuring that your fleet routes are optimized based on order numbers, location, delivery times, temperature, and other conditions.
Route optimization minimizes the travel distance for vehicles and reduces possible congestion and idle time.
Sustainable supply chains lead to sustainable logistics operations. It’s essential for businesses to optimize their supply chain across all three pillars of sustainability (society, economy, and environment) when making a logistics operation decision.
An optimized supply chain means effectively planning activities to utilize on-site resources and avoid manufacturing and packaging waste, transport and labor costs, and of course, to reduce carbon emissions.
Fast, free shipping has an environmental cost that is 'costlier' than many businesses realize. The more time you have to ship the product, the more efficiently you can optimize the delivery routes and manage the load on your vehicles.
To put this dilemma into perspective, with one delivery per trip, the carbon emissions can be as much as 35 times greater than they would be for a fully-loaded delivery truck. Three to five-day delivery is a good standard practice that businesses should follow to minimize its adverse environmental impact.
Consumers' understanding of the problem is extremely important to introduce positive change, and for that, businesses need to create awareness about sustainability through their platforms and marketing messaging.
Here are some ideas:
Another important sustainability practice is to introduce green checkout on your website. Many businesses think that all customers want is faster shipping, and if they can’t make it happen, they'll lose them, but it's not completely true.
As the world becomes more aware of environmental impact and the damage caused by greenhouse gas emissions, customers are now starting to choose the planet over convenience.
During the UN Climate change conference, it was shared that "While attitudes vary across generations, countries, and industries, 85% of consumers have become ‘greener’ in their purchasing in recent years."
The call to action to bring sustainable shipping methods to your logistics operations through incentives like green checkout has never been louder.
Data shares insights that no human can. If you place data at the heart of your sustainability practices, you’re already one step ahead toward your sustainability goals.
Data analysis allows you to optimize routes based on traffic congestion, infrastructure blocks, or customer availability. It also eliminates the risk of empty mileage by loading vehicles to optimum capacity, which is both environmentally and cost-friendly.
Real-time tracking also allows you to monitor the fleet and identify the best alternatives without wasting time, money, and resources.
If you’re not aware of it, The SmartWay Partnership is a free program in Canada that helps businesses ship goods efficiently while keeping fuel costs and environmental impact at a minimum level.
Logistics companies that have acquired SmartWay Certification in Canada and the US have saved billions of dollars and reduced their carbon emissions drastically.
The program was started by the United States Environmental Protection Agency (EPA) but has been run in Canada by Natural Resources Canada (NRCan) since 2012.
More than 3,600 North American companies have signed on to the partnership. You can visit the Join SmartWay page to see if you qualify as a partner or affiliate.
There are many ways technology can contribute towards your sustainable logistics goals. Businesses that build tech-first policies and logistics software and systems can leverage it for the following benefits:
Sustainability isn’t a one-time gimmick or a fad; it’s a long-term commitment that starts with a deeper understanding of the issue and requires taking consistent steps to prevent damage.
At Ziing, our logistics solutions are intelligent, efficient, and sustainable every step of the way. We’re building a full-proof delivery ecosystem that puts sustainable operations first and fosters a national network of knowledgeable, verified local companies and drivers.
Companies work with us to save capital, harness the power of data-driven insights, and accelerate their positive impact on the environment.
Get in touch to see how we can help you achieve your sustainable logistics goals while growing your business at your pace without the need for large capital. We're ready to make the change. Who's with us?