The harsh reality of convenience is that the higher the demand for lightning-fast deliveries, the greater is the environmental damage. But most consumers aren’t aware of this problem — they want to associate with brands that are socially responsible, but they also want to buy more products and have them delivered faster than ever before. This presents a conundrum for businesses because environmental preservation and consumption don’t go hand in hand. Consider the following scenario:
A customer avails same-day delivery — and a vehicle has to be arranged promptly to ensure that the product reaches on time. This unexpected order disrupts the logistics provider plans and causes them to rethink delivery schedules for other orders.
On the other hand, if a product is ordered with a standard delivery procedure, then the logistics provider can determine an optimal route to deliver a variety of products within the same time frame. This route optimization technique reduces fuel consumption and harmful emissions — ultimately minimizing the environmental impact of on-demand delivery.
So, how can companies address the ecological and economical challenges of rising consumers’ expectations?
1. Reduce energy and resource consumption
Enterprises should consider going paperless in the majority of their operations. They can start investing in RFID, blockchain, IoT, and other technologies that eliminate the need for documentation. Further, they can reduce energy and resource consumption in the warehouse, by using LEDs for lighting and battery-powered vehicles or robots for navigation.
2. Switch to recyclable packaging
In the US alone, 165 billion cardboard packages are shipped annually, which amounts to about a billion trees. Additionally, the plastic used to protect products in transit is choking up oceans and releasing harmful emissions. So, companies must make it a priority to partner with packaging companies that use corrugated material. 46% of corrugated boxes can be used to produce new boxes, thus reducing the cost of packaging as well as the waste generated.
3. Optimize transportation
Transportation contributes to almost 30% of greenhouse gas emissions in India. Enterprises can reduce this number significantly by determining the most ideal location for their warehouses and production plants. This minimizes the distance traveled during the procurement and delivery of goods. Enterprise cans also leverage a route-planning system to find the most efficient routes to limit fuel usage. The key to green logistics is the process of route optimization. A well-planned driver route minimizes mileage, fuel use, and driving hours, and maximizes the productivity of the driver and utilization of the vehicle. By switching to intelligent transportation systems and smart route optimization processes, routes can be calculated with optimum delivery conditions including smart time and traffic flow. It calculates the routes using daytime-dependent, road-specific travel times that reflect the actual situation that drivers face on the road, even in crowded cities.
At H&S, we balance sustainability and profitability by building future-ready 4.PL solutions. We work with innovative technologies such as electronic vehicles, blockchain, AI, etc. to create a digital supply chain. We also utilize techniques such as the weighted distance traveled method to optimize the use of transportation.
The call for sustainability is only going to get louder in the coming years. And brands that fail to transform their logistics strategy can potentially lose customers, brand value, and reputation. But by mapping the environmental impact of the supply chain and taking measures to minimize emissions at each stage — businesses can conserve resources, save costs, discover innovative solutions, and most importantly, win over customers.