What is green logistics in Supply chain management?
Green logistics is the answer to the negative environmental impacts of a supply chain operation. They try to communicate factors like environmental safety and follow regulations to ensure that this planet remains green for a long time. The customers today are looking at sustainable products that do not harm the environment and a company that puts this thought into practice is forever embedded in their minds.
There is also the concept of green reverse logistics wherein the supplier has to dispose packaging materials or environmentally sensitive materials like heavy metals.
Companies can improve their efficiency along with cost savings, not to forget the boost to brand images.
And think about the consumer mindset –– given the choice, wouldn’t you feel better?
This concept started in the 1970s as the general public became more aware of the growing threats to climate change. There was a pressure in the corporate world to bring forth new technological advances for the same. Since the customers themselves demanded environment friendly products, the companies had no option but to rethink about the negative impacts that their operations had on the environment.
Green logistics makes the entire supply chain more sustainable, cost-effective and productive by minimizing the number of emissions-producing vehicles on the road, reducing packaging waste and optimizing energy consumption.
So how do we go about it?
- A proper warehouse management system: Ensuring your space is used in the most optimal way and maintaining proper stock levels will prevent excess inventory from ending up in landfills.
- Reducing the company’s carbon footprint: You can use a carbon calculator tool to find out about the emissions
- Eco-friendly transportation methods: Optimizing delivery routes and to use electric or hybrid vehicles, removing aging vehicles etc will significantly reduce the amount of emissions you produce.
- Using AI for efficiency: Utilizing automated robots, machine learning and AI software can help create efficiencies across your entire supply chain, from packaging to distribution.
- Choosing green packaging: Customers are delighted when companies use recycled or compostable materials as their packaging. This will boost their brand image
- Green reverse logistics: Promoting repairs, recycling and resale of returned products will extend their lifecycle. This is cost-friendly compared to a landfill to bury these.
- Choose green supply chain partners: Working with companies that show a solid commitment to the environment will strengthen and enhance your sustainability efforts while creating a positive, eco-friendly company culture and brand image.
- Using alternative fuels: For trucks, ships and airplanes. Eg: Biofuels
- Management of the vehicles: Ensure there are fewer trips, optimized routes with less congestion, streamlined delivery.
As we move into the future, it is imperative that companies understand if their operations are negatively affecting the environment and take proper measures so that they remain efficient, cost-saving and promote to a greener environment and planet.