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Business

What are the Benefits of Green Logistics?

Undoubtedly, it’s difficult to imagine our lives without the convenience offered by logistics operations. Generally speaking, we don’t think about this on a daily basis but imagine the pace at which the accessibility of goods and services has improved over the years. If you have an Amazon Prime account, in less than 48 hours, what you need is delivered to your doorstep. Isn’t that wonderful? One thousand percent. But as responsible citizens, let’s also think about the cost involved in logistics, which is not primarily monetary always. With advancements in the technology employed in logistics and supply chain, there has been a continuous impact on the environment as well. This is why there is a need to explore the benefits of green logistics.

Since environmental degradation and climate change become a huge concern globally, green logistics started gaining momentum. Outlined below are some of the major factors that are driving the importance of going green in logistics.

  • Ever-increasing power, fuel consumption, and costs with the raw materials involved
  • Hight Carbon Footprint and Global Warming
  • Environmental Laws and Regulations
Top Benefits of Green Logistics: What’s in it for you?

Corporate social responsibility and ESG (Environmental, Social, and Governance) is an important aspect of businesses today, something which has moved beyond the policy literature and found a place in day-to-day decisions. Companies are actively exploring the long-term benefits of green logistics and incorporating those into their strategies. Here are some rewards for going green:</br/>

  • An opportunity to accelerate innovative business models and bring down the risks</li/>
  • Reduce the cost of operations with greener alternatives
  • Enhancing the potential to adapt to new challenges and innovations
  • Scope to becoming a favored vendor in Green Supply Chain
  • Maintaining business continuity by enhancing employee satisfaction and attracting top talent
  • Positioning the brand name uniquely
How can green solutions for logistics be achieved?

After the what and why the “how” arrives and this is where we discuss the actions derived from the insights. How can green solutions for logistics be implemented? Here are some possible solutions for logistics companies:

  • Optimization of the transportation route carrying goods can bring about energy efficiency and cost-effectiveness
  • In order to prepare for some unprecedented breaks in the supply chain, some aspects of transportation planning can be automated
  • Exploring the opportunities with digital channels
  • Encouraging a culture of paperless processes where the expenses on natural resources can be cut down
  • Collaboration and forecasting can impact the overall usage of energy resources by businesses
A Business That Cares

Most importantly, an organization that structures its business aligned with environmental benefits, is loved by all. It reflects that the business is not only concerned about the profits but also cares about the larger community, by ensuring sustainability. From employees to stakeholders, everyone feels great to be a part of a system that is responsible. The benefits of green logistics or green solutions for logistics go a long way in determining the credibility and revenue of a brand. The pandemic has given us all ample time and opportunity to reflect and rework our plans and strategies. There is no time like now to see through the gaps and work on the way forward. Ask yourself some important questions and you would know what to do next. Are you building a business that cares?

johnwilliams01

John has years of experience in the trade & logistics industry. He also likes to share his thoughts on the use & benefits of technology in the global trading & logistics industry.

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