Why is sustainability important in logistics?
Sustainability is a crucial factor for success regardless of the industry, according to recent studies. 57% of consumers are ready to boycott brands whose supply chain harms the environment, or in other words: do not adopt sustainable products and processes. Unfortunately, the logistics industry is one of the last to join “green” businesses. One of the main reasons – increased expenses. Even though sustainability itself can save costs, but big enterprises are afraid of large investments and complicated systems, that might cause unexpected obstacles which result in extra costs. However, the logistics industry is responsible for about 9-11% of global emissions which shows that supply chain enterprises must adopt environmentally friendly processes to reduce the ecological footprint of logistics operations.
The Wider Environment
These days companies try to incorporate as many different ways of protecting the Earth as possible, and creating a sustainable supply chain can play a big role in making the company “greener”. This has to extend beyond the lower transportation costs to choosing the right materials you use throughout the entire production, warehousing and delivery process Recycled cardboard for wrapping parcels, is a better solution than using new materials, it has less impact on the environment. And what about IT? Do you know if your cloud supplier is adopting sustainable practices? And how sustainable their supply chain is? That is the bottom line, if companies don’t start adopting sustainable practices now, there won’t be the materials you need to produce products, and deliver them in the future.
The most important factor in logistics for many years was to reduce the costs of delivery, but today we have another essential aspect – sustainability. As mentioned before, many logistics enterprises don’t invest in sustainability because it seems like an expensive task. Usually, implementing “green” practices in different areas of business will bring an up-front fee which will look costly in the short term. But sustainability doesn’t look to the short term. You get what you pay for, and adopting sustainable processes that will increase efficiency can reduce operational costs, increase revenue.
Good news that there are sustainable solutions that don’t require any investment and upfront fees. The use of existing transportation is one of the most efficient ways to reduce costs and improve the sustainability of the supply chain. Thousands of vehicles on the road are half-empty because every company wants to have their transportation. Reason? The belief that it will save costs and provide more flexibility. But does anyone think of all the licenses, maintenance and finally environment? Companies like ChainCargo which connect carriers with shippers and use ONLY existing transport movements, offer sustainable and flexible services (you can arrange transport within one hour), plus clients don’t need to worry about vehicles maintenance or high delivery costs.
The Power of Awareness
Did you know that 71% of Europeans see the importance of living in a sustainable world and are willing to pay more for a brand that has a positive effect on the environment? This proportion keeps growing higher. However, sustainable business not only attracts new clients, assures loyalty of the existing ones, but also improves recruitment rates. If people are likely to buy “green” products, they are also likely to work in an environmentally friendly company.
Of course, the best benefit from sustainability will always be helping the environment, but we can achieve other positives as well. Companies can save plenty of money, receive good publicity and customers loyalty, plus increased opportunity of attracting new clients, especially for new businesses. Let’s not forget that governments also put an increasing focus on sustainability, drafting new regulations and laws that companies must follow to avoid fines. The bottom line, sustainability isn’t an option anymore, it’s a necessity. If you want to “stay in the market”, you have to adopt it.