As the race towards net-zero emissions picks up speed, the transport and logistics industry is increasingly focusing on sustainable logistics as a solution for a greener future. As professionals and businesses seek to better understand the connection between their operations and climate change and reduce their environmental impact, sustainable logistics is becoming an ever-greater focus.
What is sustainable logistics?
The definition of sustainable logistics
Sustainable logistics describes strategies and measures that aim to minimise the negative environmental impacts of logistics and transport networks – without sacrificing efficiency or customer satisfaction. Examples of sustainable logistics include reducing waste, avoiding unnecessary transport kilometres and investing in software solutions to identify optimisation potential.
Why is sustainable logistics important?
Sustainable logistics can help companies achieve environmental benefits across their entire organisation and supply chain. It supports companies in meeting emissions targets and minimising their impact on the environment.
The transport and logistics industry has historically contributed significantly to global carbon pollution. The procurement and shipment of goods often has a harmful impact on the environment, releasing pollutants into the air and water. While intermodal transport solutions are already an improvement, there is still work to be done. Sustainable logistics closes this gap and helps the industry to make progress towards greater environmental friendliness.
Implementing sustainable logistics: key measures
There are numerous ways in which companies can optimise their logistics processes and reduce their environmental footprint. However, there is no universal solution – various practices can help to establish more sustainable logistics structures.
Optimising warehousing
An often-overlooked aspect of logistics is warehousing. Incorrectly stored, poorly managed or inadequately monitored inventory often results in excessive waste. An optimised warehouse management system and efficient inventory management help to minimise waste.
Sustainable packaging
Before making wholesale changes to their supply chain, companies should look at the products themselves and how they are packaged. Packaging materials are one of the largest sources of waste in the transportation industry. Investing in environmentally friendly packaging can help reduce non-recyclable materials and ease the burden on landfills.
Avoiding empty runs
Empty runs – i.e. kilometres travelled by trucks without goods – are a significant factor in the industry’s CO₂ emissions. Reducing empty runs helps to lower fuel consumption and emissions. Digital tools and AI-powered solutions help transport companies to minimise empty runs and avoid unnecessary emissions.
Business benefits of sustainable logistics
The most obvious benefits of sustainable logistics are environmental. But beyond that, there are numerous economic and strategic advantages for companies that embrace sustainable logistics.
Customer satisfaction and loyalty
More and more consumers prefer companies that actively implement sustainability. Sustainable logistics can therefore be a key strategy for attracting and retaining customers over the long term. Greenwashing – i.e. merely advertising sustainability without taking real action – is no longer appropriate. Consumers expect transparent strategies and measurable results. Companies that communicate openly about their sustainability efforts benefit from higher customer satisfaction and loyalty.
Attractiveness for skilled workers
Similar to customers, skilled workers are also increasingly valuing sustainability. Companies that do not pursue clear environmental goals find it more difficult to attract and retain talented employees. Sustainable logistics can therefore also increase an employer’s attractiveness.
Improved corporate reputation
Large companies worldwide are already required to report on their environmental measures. Many countries are also discussing the inclusion of smaller companies in these regulations. Companies that invest in sustainable logistics at an early stage and make their measures transparent can strengthen their reputation and secure competitive advantages.
Long-term profitability
All of the factors mentioned above contribute to higher profitability. But regardless of this, sustainable logistics can also reduce costs. By optimising processes and resource utilisation in a targeted manner, companies can achieve significant long-term savings.
Control and Monitoring
Road freight allows for end-to-end tracking, giving shippers full visibility throughout their goods’ journeys. This gives shippers peace of mind that their goods are safe and on track, while providing them with insights into the freight process.
Challenges in implementing sustainable logistics
Despite the numerous advantages, implementing sustainable logistics does present some challenges.
High initial investments
Sustainable logistics often requires significant investments, particularly for new technologies, modified processes and employee training. These initial costs can be a hurdle, but they pay off in the long term.
Complex supply chains
- One of the biggest challenges of sustainable logistics is implementing it across the entire supply chain. Many supply chains involve numerous suppliers in different regions. Traditional suppliers may be reluctant to make changes, especially if they are based in countries with less stringent environmental regulations.
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The future of sustainable logistics
Digitalisation and artificial intelligence (AI)
Like many other areas of the industry, sustainable logistics is increasingly supported by AI and digital tools. Reliable data and forecasts are crucial for the transport industry. AI enables deeper insights and more extensive data analysis than ever before. As the technology continues to develop, the industry will rely even more heavily on AI-based solutions to optimise sustainability strategies in the future.
Sustainable logistics with Amazon Freight
Sustainable logistics is shaping the future of the transport industry and changing the way companies interact with their supply chain and logistics service providers. Through measures such as environmentally friendly packaging, better warehouse management and the reduction of empty runs, companies can not only reduce their environmental footprint, but also achieve economic benefits – from higher profitability to increased customer satisfaction and an improved corporate reputation.
Find out how Amazon Freight is implementing sustainable logistics and environmentally friendly transport in our DE Newsroom. Would you like to ship with Amazon Freight? Create your free shipper account today.